Kumu Says It Will Pivot to Developing User Generated Content

Kumu will cease production of original shows and content developed with partners and will instead focus on developing the talents of the creators already on its platform. The company said the shift is “a significant step forward to streamline Kumu into its focus in the creator economy; creating a sustainable space for people to create authentic connections.” 

In a brief statement sent to Esquire Philippines, the Filipino-founded social media app said the decision was made to reallocate resources in order to concentrate on its three key priorities: “bridging the gap in the creator economy, making the app a stable and sustainable platform for all its users, and maintaining the safety to which the user base has become accustomed. The company said all three are needed to “achieve their long-term goals and better serve the community.”

ALSO READ

Kumu's Total Funding Reaches P5 Billion After Completing Series C

These Are the Top Revenue-Generating Startups in the Philippines for 2021

“Navigating the ever-changing digital landscape was always going to be tough, especially since we are experiencing the slowest pace of growth since our inception,” said Kumu founder and CEO Roland Ros. “Over the last few years, we have built the business around producing different shows and partnerships that did not yield the expected results. With this, we are refocusing our resources and time on nurturing and developing the talent we come by on the app itself, which also opens up doors for our partners.” 

Launched in 2018, Kumu is a social media app with a major focus on livestreaming. Users broadcast a variety of content, sometimes in partnership with brands, to other users across the globe. It has become one of the most downloaded apps on both the Google Play Store and Apple App Store and has since expanded to include features such as e-commerce and payments. 

In 2021, Esquire Philippines ranked Kumu one of the top revenue-generating startups in the Philippines, based on publicly available data.

However, based on Kumu’s statement, it seems it was not spared the effects of the pandemic, which has crippled many businesses since the onset in the first quarter of 2020.

“After two and a half years since the onset of the global pandemic, companies from various sectors are poised to accelerate their most robust recession recovery,” Kumu said. “Despite major developing economies in Asia continuing to grapple with COVID-19 and what is likely to be its long-term impact, businesses have been presented with new solutions and opportunities—but not without cost.

“As this unique financial pressure increases, it continues to reshape the path of global economic activity, providing an opportunity for a rapid rebound, albeit with uneven and volatile growth. This has prompted innovation-focused tech companies such as homegrown social entertainment app Kumu to evolve their strategic business focus.”

Kumu said the pivot is merely the company “circling back to the foundations of the app”— fostering a safe digital environment so talents can find organic audiences and cultivating these talents for greater opportunities.

Ros said the decision to “reallocate resources” on user-generated content instead of producing its own shows is based on the goal of regaining “strong market positioning and prompt sustainable growth for years to come.”

“It’s still a difficult decision we had to make because we enjoyed experimenting and exploring all these possibilities with our partners,” Ros said. “And there are a lot of other sacrifices that come along with the shift. After much consideration, we’ve found that this is the way to ensure the ‘kumunity’ thrives in the long term.”

Kumu has established partnerships with a number of different brands, programs, personalities, and traditional media platforms over the years in order to expand its user base outside of its own community. These partnerships include online literature platform Wattpad, broadcast network ABS-CBN through its reality TV show Pinoy Big Brother, noontime variety show Eat Bulaga!, TV5, and many others.

The company has so far raised over $100 million after an undisclosed Series C funding round in October 2021.