FOX Entertainment has acquired an equity stake in Ukrainian vertical video company Holywater, positioning itself for growth in the vertical video market. The partnership focuses on original vertical video production, ad sales, brand partnerships, and potential integration of FOX’s intellectual property into the vertical format.

FOX Entertainment Studios commits to creating and producing more than 200 vertical video titles for Holywater’s My Drama platform over the next two years. Initial productions include “Billionaire Blackmail” and “Bound by Obsession,” currently filming in Atlanta, Georgia.

“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,” Rob Wade, CEO of FOX Entertainment, said in a blog post.

The alliance leverages both companies’ strengths. FOX contributes investments in content production, production infrastructure, intellectual property, and talent relationships. Holywater provides co-production expertise, distribution capabilities, and analytics.

The investment comes after a growth period for the vertical video market. According to a July 2025 Sensor Tower report, global in-app purchase revenue from short drama apps reached approximately $700 million in Q1 2025, nearly quadrupling year-over-year. Since early 2024, cumulative global revenue from these apps approaches $2.3 billion.

“Our main goal is to become a leader in our niche and the most recognizable brand in the vertical streaming space and beyond,” Holywater co-founders Bogdan Nesvit and Anatolii Kasianov said in an interview with Ukrainian High Bar Journal. “We aim to build Netflix for vertical video streaming.”

Vertical Content Player

Founded in Ukraine in 2020, Holywater reaches more than 55 million users across four platforms: My Drama (vertical streaming), FreeBits (ad-supported vertical streaming), My Passion (e-book publishing), and My Muse (AI-assisted vertical series production).

The company differentiates its content from user-generated videos on mass platforms by focusing on premium storytelling. “We create full-fledged movies and TV series in smartphone format – vertical stories with the quality of a big movie,” the founders explained.

Monetization relies on a hybrid model combining subscriptions, transactional episode purchases, and advertising. The FOX partnership enhances opportunities for branded content and creative collaborations.

Selection criteria for the 200 planned vertical series prioritize strong scripts, cinematic production quality, and stories with global appeal.

According to Sensor Tower, global downloads of short drama apps exceeded 370 million in Q1 2025 alone, representing a 6.2x increase year-on-year, with cumulative global downloads nearing 950 million. The U.S. remains the dominant market, accounting for 49% of global revenue ($350 million in Q1 2025).

The Raine Group served as Holywater’s advisor in the transaction. Financial terms were not disclosed.

This investment follows FOX Corporation’s June announcement of backing for The Lighthouse, Whalar Group’s studio and campus space designed for creators to collaborate and develop content. FOX Entertainment plans to expand this strategy using the FOX Studios Lot in Century City as a hub for creator-powered innovation.

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