Holywater, a Ukrainian-founded vertical streaming company backed by Fox Entertainment, is raising $22 million to scale its mobile-first streaming platform, which CEO Bogdan Nesvit describes as a “mobile first Netflix” specializing in short, episodic, vertical video. Positioned at the convergence of three media trends—mobile video consumption, serialized short-form storytelling, and AI-driven content creation—Holywater is pioneering a new approach to streaming. The company operates several consumer apps, including My Drama (video) and My Passion (fiction), with video comprising about 70% of its revenue. Holywater reports generating hundreds of thousands of dollars monthly from AI-generated videos alone, separate from live-action content. Its total user base reaches 85 million, with revenue and subscribers growing over 2x year-over-year. Fox remains a key partner, committed since fall 2025 to producing up to 200 vertical series for Holywater’s platform over two years. Some series are already live and performing well, while others are in testing and development. Holywater does not position itself as a traditional studio but as a platform focusing on distribution, data analytics, recommendation systems, and IP discovery rather than direct production ownership. “We are building mobile-first video streaming, ” Nesvit said, emphasizing the company’s focus on technology, audience retention, and IP discovery. AI is integral to this IP discovery process, with Holywater’s internal content funnel facilitating fluid transitions between formats. Stories often start as short fiction on My Passion, where in-house writers test them with audiences before rapid adaptation into AI-generated video within days. Successful videos may then be developed into live-action productions. The process is bidirectional: AI-generated video experiments can lead to adaptations into books, comics, or higher-budget live action. The ecosystem is format-agnostic, with AI enabling quick iterations across genres like fantasy, romance, anime-inspired tales, and comics.

Using platforms such as LTX Studio alongside proprietary tools, Holywater can produce one finished minute of AI video in 1–2 days, enabling scale and speed unmatched by traditional live action. AI also supports audience testing, with content piloted on TikTok and YouTube Shorts, targeted paid user acquisition campaigns, and performance measurement within Holywater’s subscriber base. Nesvit noted instances where content underperformed internally but succeeded on social platforms, leading to full series development targeting new viewers. Romance dominates Holywater’s content mix, accounting for around 75% of production and audience demand, mainly drawing a female audience. However, the company is expanding into fantasy and male-oriented genres, where AI boosts production values cost-effectively. Live action remains vital, especially for premium-tier content preferred in filmed form. Holywater typically uses non-union crews to meet budget and speed needs, though hires high-profile talent when needed. Average budgets for one-hour vertical series often stay below $250, 000. Holywater’s roughly 200 employees reflect its hybrid nature: most engineers are based in Ukraine, providing skilled talent at sustainable costs, while IP development, production, and partnerships are US-centered, with additional production hubs in Europe. In 2026, Holywater plans to release between 120 and 200 new series—surpassing the annual original output of many traditional streamers—timed according to readiness and seasonal peaks, notably year-end, early year, and summer months when mobile usage rises. Nesvit views Holywater as a “learning engine” for vertical storytelling rather than a closed ecosystem. Studios and creators on the platform receive detailed performance data, with Holywater serving mainly as an exclusive distributor rather than owner of content. “We created a safe ecosystem where studios and creators can share data and learn from the audience, ” Nesvit said. “We are ready to be the distribution engine. ” The new $22 million funding will enhance Holywater’s platform, improve recommendation algorithms, and expand AI-driven IP discovery, focusing on technology rather than increasing headcount or production budgets. The company’s bet is that vertical streaming is a distinct medium, not a side format, and AI will be crucial in meeting the speed and scale mobile audiences demand.