Fox Entertainment acquires equity stake in vertical video firm Holywater
Fox Entertainment is looking to be an early mover in Hollywood when it comes to investing in microdramas, with the US entertainment giant on Thursday revealing a strategic investment in vertical video leader Holywater.
The Lachlan Murdoch-led company has acquired an undisclosed equity stake in Holywater, the firm behind platforms including microdrama app My Drama, one of the most downloaded apps across North America and Europe in recent months, and My Muse, a vertical video platform that produces series with the help of generative AI. It also owns the digital book platform My Passion.
As part of the investment, Fox Entertainment Studios (FES) will create and produce more than 200 vertical video titles for My Drama over the next two years, spanning microdramas and other vertical video series. FES is already in production on several of these projects in Atlanta, Georgia, including titles such as Billionaire Blackmail and Bound by Obsession.
Holywater, founded in Ukraine in 2020 by co-CEOs Bogdan Nesvit and Anatolii Kasianov, has more than 55 million users across its platforms, according to the company. It has become a leader in microdramas, the shortform medium characterised by soapy, bingeable storytelling, one-to-two-minute episodes and a token-based viewing model. The medium was popularised in China but has since spread across Asia and is now gaining momentum in North America and Europe.
According to a recent report from Media Partners Asia, microdrama revenues in China will exceed the country’s box office this year, with revenue having grown from US$500m in 2021 to US$7bn in 2024 and projected to reach US$16.2bn by 2030. Outside China, revenue is projected to hit US$9.5bn by 2030, up from US$1.4bn last year.
Fox Entertainment said the deal will accelerate its “long-term growth trajectory by embracing a proven digital entertainment innovator, which is harnessing cutting-edge technology and a forward-facing business model to lead the next generation of entertainment.”
It added that development deals with top Hollywood talent would be unveiled soon, with areas of collaboration including original vertical video series, ad sales and brand partnerships. Fox noted that there is an “opportunity for creator-driven content lanes, and potential integration of popular Fox Entertainment IP, including storytelling extensions for current Fox shows and remake projects.”
Fox has struck several forward-looking deals in recent months, including its acquisition of podcasting network Red Seat Ventures. More recently, Lachlan and his father Rupert Murdoch were revealed to be part of an investor group acquiring TikTok in the US. The TikTok investment is being made via Fox Corp.
“Innovation in digital storytelling is shaping the future of entertainment and investing in vertical video positions Fox Entertainment to achieve sustained, long-term growth as we build a modern studio for the future,” said Fox Entertainment CEO Rob Wade.
“Holywater is at the forefront of this evolution, skillfully using technology to fuel creativity. This partnership is all about finding different, innovative ways to tell stories and inspire storytellers and creators like never before, while giving us the tools and flexibility to bring talent ideas to life faster, smarter and across more platforms worldwide.”
Nesvit and Kasianov said that partnering with Fox Entertainment will accelerate its goal of making vertical series mainstream, increasing production values and pushing it into new genres.
“We’ve been focusing on storytelling depth to prove that verticals can carry premium drama, thriller, romance, and more – not just a narrow set of tropes,” they said. “Our partnership with Fox Entertainment validates that vision and gives us the scale and creative firepower to accelerate it. Fox has already been a collaborative, innovative partner, and together we’re empowering major talent and building a vibrant library of gripping vertical series for audiences worldwide.”
