Kim’s app offers makeup tips; Kylie’s has a radio station. (Courtesy of Whalerock Industries)
This story first appeared in the Oct. 9 issue of The Hollywood Reporter magazine. To receive the magazine, click here to subscribe.
Early
in the morning of Sept. 14, the Kardashian sisters launched a suite of
subscription-based lifestyle apps. By that afternoon, all four apps —
one each for Kim Kardashian West, Khloe Kardashian, Kendall Jenner and
Kylie Jenner (Kourtney Kardashian’s will launch later this year) — shot
to the top of Apple’s App Store charts, led by Kylie’s, the most
downloaded free app in the U.S. for two straight days.
The
Kardashian sisters’ ability to attract an audience has been well
documented. But digital media observers are closely watching the
performance of the E! stars’ apps as the landscape shifts away from
ad-supported services to stand-alone subscription offerings. “We’ve been
living in a world where there’s been one pure-play big bundle, and now
we’re going to find out over the next several years how big the
marketplace is for niche subscriptions,” says BTIG analyst Rich
Greenfield. “In the mobile world, there’s a way for content creators to
have a direct connection with fans without the gatekeepers that have
historically gotten in the way.”
Kylie Jenner (FilmMagic)
Former
ABC chairman Lloyd Braun is behind the Kardashians’ mobile push through
his Whalerock Industries TV production and digital media company.
Whalerock has plans to create as many as a dozen of these apps over the
next year, including one with Howard Stern.
The
Kardashian apps are free to download but each charge $3 a month to
subscribe to exclusive content: Kylie, 18, has a curated radio station;
Kim, 34, offers makeup tutorials; and Khloe, 31, hosts an organizing
series called Khlo-C-D. Accompanying websites tease some free content
with the promise of more with a credit card number. “Our north star is
that the fans have to feel like they’re getting three or four times the
value of what they’re paying,” says Whalerock presidentJeff Berman of
the strategy.
Berman
isn’t commenting on the apps’ early performance, but a security breach
two days after launch revealed that more than 600,000 people had signed
up for Kylie’s channel in that period. (The breach was patched quickly.)
The apps collectively attracted more than 1 million subscribers during
their first week, sources confirm to THR.
The
challenge for Whalerock will be maintaining a steady stream of new
subscribers. Two weeks after launch, Kylie’s app had fallen out of the
top 100 on the App Store’s list of most downloaded free apps. But
Whalerock head of digital Jared Heinke says the early performance
already has exceeded the company’s expectations. He adds: “We’re going
to earn every subscription — in the first week, the first month, the
first year.”
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