Short-form video series and films could be the next big thing. One Ukrainian startup aims to take on its giant Chinese competitors with innovative technology.
New forms of media consumption are always met with incredulity. When YouTube first launched could you predict gaming streamers or ASMR videos? Do you remember a time before ‘Netflix and Chill?’
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It pays to be open-minded. In the near future, you’ll probably be binge-watching series on your smartphone, shows filmed vertically in episodes lasting just two minutes long.
You might also be interacting with the main characters while you do it. That’s if one Ukrainian startup has its way.
Short-form vertical media refers to scripted video content designed for mobile viewing, shot in a vertical aspect ratio (9:16), and delivered in short episodes. They’re designed for and inspired by social media like TikTok and YouTube Shorts. Episodes are brief and usually feature engaging, fast-paced narratives.
Big business in China
The format is rare In English-speaking countries but it’s huge business in China where the market grew by 268% year on year to 37.39 billion yuan ($5.27 billion) in 2023. Aside from its format, production differs little from conventional media, however Kyiv-based Holywater aims to revolutionize this process via AI.
“When I saw a major Chinese player launch a domestically popular vertical video series in Western markets, and scaled it rapidly, I knew we could do better. By integrating AI into the creative process our viewers don’t just watch our characters; they can actually interact with them on a sustained basis,” said Bogdan Nesvit, the CEO and Co-Founder of Holywater.
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“You can watch short-form series anywhere, so our viewers can fit a couple of one or two-minute episodes into almost any schedule, and there’s always a hook. Each of our episodes ends on a cliffhanger so the viewer always wants to know what happens next.”
“Amongst the top 10 companies in the world in the short-form vertical format medium, we’re the only non-Chinese entity. It’s a milestone I’m proud of.”
AI helps human creators
Nesvit, alongside co-founder and CTO Anatolii Kasianov, set up HOLYWATER to bridge the gap between content and gaming via interactive stories. They went from uploading books to inviting writers and content creators to upload their own work, and see it monetized as interactive content like comics.
The next step came as a logical progression; they could work with books and comics so why not video content? The result was Holywater’s My Drama app, but they didn’t just want to exist in the same market as big Chinese players like Xi’an Fengxing Culture and ReelShort.
Instead, they wanted to take on the giants of the media industry and disrupt the market altogether. The result was a significantly increased focus on AI.
My Drama is working on creating AI characters its viewers can interact with, and it is focusing heavily on AI-driven content generation too. Current AI models support content lasting around 10 seconds, according to Kasianov, but My Drama can already create consistent narratives of up to 30 minutes.
This is being made possible by Holywater’s subsidiary My Muse, which Kasianov says can generate synthetic videos while avoiding the common pitfalls of time, cost and audience feedback constraints. Combined with My Passion, the company’s story library, the options for new content are nearly limitless.
“We believe AI enhances, not replaces, human talent. We’re working on new additions to this technical capability which we hope to launch in the near future,” Kasianov said.
“Our aim is to continue making content in synergy with creators and AI, not at their expense. That’s because this is the future of entertainment.”
Romantic dopamine hits
Search through My Drama titles, and the most popular genres appear similar to those of competitors like ReelShort. Titles like the Shy Beauty and the Billionaire Beast, His Mission, and Mistaking a Billionaire for a Gigolo highlight that both have a similar audience, one that’s middle-aged, female, and looking for quick content fix. The company plans to introduce several new genres this year, including true crime and action.
An increased number of genres may not be the only advantage Holywater has; as a non-Chinese company, he has another ace in the hole despite being headquartered in a country at war.
Mainland Chinese businesses are subject to periodic and arbitrary crackdowns by the government which now may have short-form media in its sights. In December 2023, the Communist Party’s Cyberspace Affairs Office issued guidelines on short-video content, and since June 1 this year, the government has required short-form media producers to have a license to operate.
Ukraine’s media industry on the other hand is continuing to operate with little government interference despite the ongoing war and its tech sector is thriving. Accounting for 42% of total service exports from Ukraine and with nearly 300 companies focused on AI technology, it’s a solid base from which to challenge the big Chinese producers.
“Our goal is to produce Hollywood quality hits at the cost of $20,000 per show.. We can make this happen,” Nesvit said.
“We want creators to have skin in the game; we want them to profit from the content they produce. Thanks to AI, our payment model, and favorable conditions for production in Ukraine, we can do that.”
The views expressed in this opinion article are the author’s and not necessarily those of Kyiv Post.
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