Could the Absence of AI Characters Be Quibi's Downfall? One Startup Thinks So
A new startup believes the key to success in streaming lies in enhancing viewer engagement through AI characters. Enter My Drama, an innovative app offering over 30 short series primarily centered on soap opera formats designed to captivate audiences. Now, the app is set to launch an AI-driven chatbot, propelling it into direct competition with players like Character.AI, the chatbot startup backed by a16z.
Developed by Holywater, a media tech startup based in Ukraine, My Drama is the brainchild of CEO Bogdan Nesvit and CTO Anatolii Kasianov. The parent company also operates My Passion, a reading app renowned for its extensive collection of romance titles.
Since its debut in April, My Drama has swiftly gained popularity, amassing 1 million users and generating $3 million in revenue. Holywater boasts a significant track record, achieving $90 million in annual recurring revenue (ARR) across its various offerings.
Surprisingly, the market for short drama apps has flourished, contrasting sharply with Quibi's challenges. According to Appfigures, an app intelligence firm, a record 66 short drama apps—including names like ReelShort and DramaBox—amassed $146 million in global consumer spending in the first quarter of 2024.
Holywater's confidence in My Drama stems from its robust intellectual property library. With My Passion's extensive catalog of published works, My Drama has a treasure trove of content to transform into cinematic experiences. Additionally, My Passion's established fanbase is likely eager to see beloved characters brought to life.
By year-end, My Drama aims to unveil 100 new titles.
The company's upcoming initiative involves introducing AI characters that interact with users, fostering an immersive storytelling experience. Upon launch, My Drama users can engage with two fictional characters: Jaxon, the wealthy romantic lead from “The Shy Beauty and the Billionaire Beast,” and Hayden, the privileged heir of a powerful mafia lineage in “Love Captive to a Mafia Boss.”
After viewing several chapters, users can chat with these characters and even request images (noting that adult content is forbidden).
In a recent demo, Nesvit and Kasianov showcased the interaction with Hayden. The app facilitates relationship-building, guiding users to earn his trust (after all, he’s a formidable mafia boss). He quizzes users on series events, including details about his rival gang.
A "trust meter" at the top of the screen displays users' standing with Hayden, a gamification tactic designed to boost engagement.
Users can also access AI companions through a separate app called My Imagination, now in beta. This new platform allows for more personalized conversations with characters, and future updates will enable users to create their own characters, a feature that Character.AI has already popularized.
Notably, the characters Jaxon and Hayden are portrayed by real actors, Nazar Grabar and Bodgan Ruban. Given the current concerns actors have regarding AI's influence on the industry, it’s intriguing that these actors have given permission to use their likenesses as AI companions. However, they are compensated fairly, with potential earnings surpassing traditional actor salaries. According to Holywater, these actors can earn over $10,000 a month based on user demand and chat engagement.
Nesvit explained, “Our payment structure includes a base rate and additional royalties. The more users engage, the greater their earnings.”
The creative team at My Drama incorporates AI into scriptwriting, localization, and voice acting processes. Holywater employs hundreds of actors whose likenesses have been consented for voice sampling and video creation. AI models utilized include ElevenLabs, Stable Diffusion, OpenAI, and Meta's Llama 3.
As many companies in media assert, Holywater stresses the operational efficiencies gained through AI. For instance, while producing a video of a house fire, the company spent around $100 using AI, significantly less than the typical $8,000 required without it. This efficiency allows My Drama to produce content within a week.
“Our goal by the end of the year is to reduce production costs by at least 40% using AI,” said Nesvit.
The company also plans to enhance its AI chatbot feature, enabling new scenes to emerge based on user interactions, thus allowing viewers to co-create narrative experiences. Moreover, video and voice chatting capabilities are anticipated in future updates, aligning with Character.AI's recent introduction of voice chat features.
Available on the web, iOS, and Android, My Drama offers several free episodes; however, most content is behind a paywall. Users must purchase coin packs, ranging from $2.99 to $19.99 weekly, to access premium titles, enjoy ad-free viewing, and gain early access to new content.
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