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When Chris Townsend鈥檚 Dad Stephen was diagnosed with bowel cancer in December 2023, he knew he had to do something to cheer him up.

The 62-year-old underwent surgery in January and was preparing to embark on six months of gruelling chemotherapy and had time on his hands.

It was then that his son, who is the managing director of Manchester-based What Media, had a moment of inspiration.

鈥淒ad was sitting in the hospital with not much going on and was really apprehensive about the chemo,鈥 he said.

鈥淚 thought it would be nice if I could do something to distract him so I went on Cameo.鈥

Cameo was founded in 2016 by a trio of US entrepreneurs – Steven Galanis, Brit Martin Blencowe and Devon Townsend 鈥 and has created millions of video messages.

Chris Townsend explained: 鈥淚 got The Royle Family actor Ricky Tomlinson to do a personalised message for 拢75.

鈥淚 wrote three or four sentences but Ricky Tomlinson turned it a seven-minute message. It was really improvised and he made a number of TV recommendations for Dad to watch.

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鈥淚t took less than 24 hours to turn the video around and really lifted my Dad鈥檚 spirits.鈥

I canvassed the views of my LinkedIn network and this was not an isolated experience.

Digital marketing executive Joe Seager and some friends clubbed together to get a personalised message from Cameo for a friend鈥檚 40th birthday.

鈥淚t was from a wrestler called Mick Foley,鈥 he said. 鈥淚 ordered well ahead of when I needed it, expecting it to take some time, but it was done and back with me in a little over an hour.

鈥淭he video was around three minutes long which is longer than some of the short messages I’ve seen as examples on the site and the birthday present was well received. An all-round good experience I would certainly consider doing again.鈥

Nathan Selby is a director of channel marketing agency Resultful and has used Cameo twice to get personal messages from drag queen Cheryl Hole and Amanda Lovett from The Traitors.

鈥淏oth were super easy to deal with and absolutely nailed the brief without any prompts,鈥 he said. 鈥淚 have heard of people having bad experiences though, whereby their 鈥榗eleb鈥 reads off a script for 10 seconds and that鈥檚 it. Both of the above delivered a good 90 seconds+ for about 拢30.鈥

Cameo

They鈥檙e the sort of gushing testimonials that contributed to Cameo鈥檚 meteoric rise with thousands of 鈥榮tars鈥 joining the platform and producing millions of memorable videos.

The accolades and investment quickly followed.

In 2020 the startup topped Fast Company鈥檚 list of the 鈥榃orld鈥檚 Most Innovative Social Media Companies鈥.

When Cameo announced a $100m Series C funding round in March 2021, it took the company鈥檚 valuation to just over $1 billion and transformed it into a unicorn.

The company’s charismatic co-founder Galanis was even identified by Goldman Sachs as one of the 鈥100 Most Intriguing Entrepreneurs of 2021鈥.

In a recent podcast interview he revealed his nickname at kindergarten was ‘the Mayor’.

Actors turned to it during the pandemic with James Buckley 鈥 who is best known for playing Jay Cartwright in the Channel 4 comedy series The Inbetweeners聽鈥 reportedly becoming a 鈥楥ameo millionaire鈥 on the back of all the video messages he was producing.

Sports stars and politicians have also found Cameo a lucrative source of income with Reform UK leader Nigel Farage charging around 拢70 ($90) for a typical 40-second birthday message or pep talk.

According to the small print, 75 per cent of the booking fee goes to the celeb and the remaining 25 per goes to Cameo. It鈥檚 the ultimate 鈥榳in-win鈥.

However, Cameo has just hit a high-profile roadblock after its 鈥樌暇牌凡 Cameo鈥 service fell foul of authorities in the US.

Launched in 2020, 老九品茶 Cameo allows businesses to hire celebrities to record videos endorsing their goods or services.

Now Cameo鈥檚 owner 鈥 Baron App Inc 鈥 has just been told to pay $100,000 in penalties after New York Attorney General Letitia James secured a bipartisan, 30-state settlement for failing to ensure consumers knew that videos promoting products were paid endorsements.

Dragons’ Den star Steven Bartlett fell foul of the UK authorities when two adverts he featured in for Huel and Zoe were banned after the Advertising Standards Authority said they were misleading.

Huel and Zoe promoted the products on Facebook and despite the 鈥榮ponsored鈥 label on the ad, the ASA declared the ads didn鈥檛 go far enough to demonstrate he鈥檚 an investor in Zoe and director of Huel.

In the case of Cameo, what raised eyebrows was that its finances meant that they couldn鈥檛 even afford to pay the original $600,000 penalty – just three short years after becoming a unicorn.

So what went wrong at Cameo and what does it mean for the wider tech sector?

The first thing to say is Cameo is still very much open for business.

I browsed the website today and for 拢365 you can get a personalised message from actor Tom Felton, who played Draco Malfoy in the Harry Potter series, or 拢190 from former Chelsea captain John Terry.

If your budgets are a bit tighter, you can get a message from ex-Southampton footballer Matthew Le Tissier for just 拢27.

The second thing to say is I reached out to Galanis on LinkedIn for a comment but he didn鈥檛 respond – although he has remained active on the platform.

He鈥檚 continued to give talks and last week advertised for a 鈥榬ock star full stack engineer鈥 to join Cameo.

One theory about Cameo鈥檚 current travails is it was a tech company for the pandemic.

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People stuck at home turned to it for some light relief and celebrities unable to work signed up to it to earn extra income.

However when the pandemic ended, so did Cameo’s appeal.

The company’s problems have been widely discussed on forums like Reddit.

One contributor calling himself 鈥楽evargmas鈥 wrote: 鈥淚t has definitely gone downhill. I looked for a couple of different people that my wife would have been surprised by.

鈥淚 was going to put together a montage when she finished grad school but I couldn鈥檛 find a single person that I looked for. Even when you sort by highest amount, the names on there are not that impressive, which is understandable.

鈥淚f you were a celebrity and stuck at home during Covid, what better way to spend your time and earning some extra dollars and probably hearing some funny stories.

鈥淏ut now Covid has ended and celebrities are either working or travelling, essentially is situations that don鈥檛 allow them to drop what they鈥檙e doing and make a quick 30-second video, they probably suspended or deleted their accounts.鈥

In last week鈥檚 episode of The Rest is Entertainment podcast, journalist Marina Hyde described it as a 鈥榮mall and gimmicky business鈥 while her co-host Richard Osman said 鈥榠t might be the most 21st Century story of all time鈥.

Osman, a former presenter of the BBC One TV quiz show Pointless, claimed Cameo鈥檚 growth was hindered by its inability to attract the bigger stars.

鈥淲hat happens is what always happens in these stories,鈥 he added. 鈥淵ou start to grow, people start investing in you and they need you to grow more and more and more and more.鈥

He described Cameo as a 鈥榬eally nice business鈥 but the problem was 鈥榚veryone wants to be Elon Musk鈥.

In order to chase growth they launched an advertising arm where celebrities would endorse your products, which is where it came unstuck.

The videos weren鈥檛 聽properly disclosed as paid endorsements, which violated endorsement rules issued by the Federal Trade Commission (FTC) and New York鈥檚 consumer protection laws.

It was during this process that Cameo鈥檚 financial challenges were laid bare as it emerged the company was unable to pay the initial $600k fine.

I’ve not been able to find any reference to the fine and Cameo’s apparent cashflow problems on Galanis’s various social media accounts.

History will ultimately decide whether Cameo is more than just the tech startup for a pandemic, but its story is another stark reminder of the topsy turvy nature of the world of tech.