The Rise and Fall of the Celebrity Video-Greeting App Cameo

It began in 2021 with a bit of drama in a WhatsApp group. During the ever-changing lockdowns, a loose coalition of friends and acquaintances passed time by playing a cutthroat online game called Subterfuge, where treachery and betrayal were part of the fun.

But on this occasion, things took a turn for the worse, and someone was upset enough to quit the group. To win him back, the friends concocted a dubious plan: they would have Nigel Farage, of all people, record an ironic apology video urging their friend to return.

Using Cameo, a platform Farage had recently joined, they were able to execute their plan easily. For about £100, Farage recorded a baffling 60-second clip filled with in-jokes he couldn’t possibly understand, and delivered it through the app within 24 hours. The gambit worked, and peace was restored.

This episode exemplifies one of many uses for Cameo, a service that allows anyone to request a custom video from a celebrity or influencer for a friend and have it delivered promptly. During the COVID lockdowns, Cameo became a sleeper hit and raised investment valuing it at $1 billion in 2021.

However, it has faced challenges since then. Although the platform continues to produce videos with an eclectic mix of celebrities and influencers, it seems to be struggling with financial woes.

Last month, Business Insider reported that Cameo had settled with 30 US states after breaching Federal Trade Commission rules on celebrity endorsements. Although initially fined $600,000, Cameo demonstrated in court filings that it couldn’t pay that amount and settled for just $100,000, split between 30 states.

Despite these issues, Cameo continues to offer a range of actors, comedians, and influencers for custom videos. UK names include Miriam Margolyes (£134), ex-footballer John Terry (£197), singer Gareth Gates (£47), and presenter Ben Fogle (£71).

In the US, options include ‘NSync’s Lance Bass (£235), “Breaking Bad” actor Dean Norris (£193), and former stars of the US version of The Office like Brian Baumgartner (£154) and Kate Flannery (£150).

However, the platform has struggled to attract and retain A-list celebrities or top-tier influencers. The risks associated with using the app are a deterrent for big names. People have scripted videos attempting to trick celebrities into saying offensive remarks or used them for more sinister purposes.

Last year, a “Russian-aligned group” commissioned and spliced together Cameo videos to falsely portray US celebrities calling Ukrainian president Volodymyr Zelenskiy a corrupt drug addict. Participants included Elijah Wood and Mike Tyson, who have since suspended their Cameo presence.

Cameo takes a 30% cut of the creator’s fee for handling the sale, transaction charges, and video distribution. While the biggest creators have avoided the platform, smaller creators find it a viable and low-effort source of income.

“I toggle it off quite a lot of the time, which closes the booking window when I’m busy, and you can pick and choose the ones you want to do,” says one stand-up comedian who preferred to remain anonymous. “I don’t have any negative experiences from using the app.”

Another deterrent for well-known personalities is the platform’s association with fringe or failed politicians. Nigel Farage has been active on Cameo since 2021 and remains a controversial figure.

In the US, disgraced former Republican Congressman George Santos reportedly earns more from Cameo than he did in office, while Mike Flynn, a far-right nationalist, was also a Cameo regular.

One major issue is that Cameo tends to attract novelty buyers rather than repeat customers. For instance, the Subterfuge WhatsApp group hasn’t had another incident requiring a Cameo video since the Farage incident three years ago.

Tech analyst Joseph Teasdale from Enders Analysis suggests Cameo was a pandemic phenomenon. Celebrities could record selfie videos when other work wasn’t possible, and a Cameo video made for a great experiential gift when other options were limited.

“When your selling point is that your suppliers are famous and desirable, you run into a problem,” Teasdale explains. Celebrities are the ones attracting users, so they capture most of the value being generated.

Big names prefer platforms like TikTok, YouTube, and Instagram, where they can secure more consistent revenue from ads and subscriptions rather than one-off novelty videos.

As a result, Cameo caters mainly to smaller creators, influencers, and B- or C-list celebrities. For them, it’s a useful service for some extra cash and requires less risk than more prominent platforms.

Despite many challenges, some creators remain loyal. Nigel Farage, despite his political career and the backdrop of violent far-right riots in the UK, continues to keep up with his Cameo requests. At the time of writing, his latest video was completed at 10.30pm on Tuesday.

Source: Business Insider, Enders Analysis