After a Restructuring, Digital Publisher Kyra Is Growing Up

Five-year-old digital publisher Kyra, responsible for youth-focused YouTube and TikTok brands like Rag Report and now-defunct PAQ, has done a lot of growing up this past year. The 30-employee company is fresh off the back of a restructuring, and it's also made investments in original content, built up its talent and set up a new podcast division—all of which will spur the company to exceed $10 million this year, according to its CEO. Partly, this was in response to a Vice report accusing Kyra of creating a hostile work environment for young Black creators. Since then, the publisher has realigned its priorities and reorganized into three departments: original programming, branded content and talent management. “We've restructured the business to really address some of those issues,” said Kyra CEO Devran Amaratunga Karaca, referring to complaints by Black talent that the publisher's staff performed racial microaggressions, offered low pay and issued stringent contracts. “We take full responsibility” for “the hurtful nature of the situation,” he added in response to the allegations. Kyra underwent an external investigation, instituted sensitivity protocols, and created a diversity and inclusion committee. The company also hired its first head of people, London-based Anna Suwik. Before the recent changes, Kyra lacked clear departments and had little management structure, said Karaca. Now, with three explicit arms of the business and a staff with defined roles and managers, “that sort of thing won't happen again.” According to ad agencies and industry onlookers, Kyra is poised to be an emerging player in the media landscape. “They do seem to have a niche for a Gen Z audience. And the way they are specifically orienting towards TikTok, I think that's a differentiator,” said Jess Richards, executive vice president and managing director of commerce at Havas Media. Kyra said its brands have 78 million social media followers, netting 750 million monthly video views across platforms. Here's how Kyra makes money. Original programming The original programming arm of Kyra is the least profitable department at the moment, but Karaca sees Kyra’s own content as the key to future growth. The company, which previously ran YouTube shows, is now focused primarily on TikTok and podcasts as areas for content development. Kyra’s newest TikTok brand, Rag Report, currently has 21,100 followers and features trendy clips of fashion and celebrities. Karaca said the TikTok account’s growth has been tenfold every week since launching in December. “We think that we can build a significant audience on that platform, super engaged and really interested in fashion and style,” he said. Kyra is also planning to launch a slate of original podcasting programs aimed at younger people. While much of the operation has yet to be announced, Karaca is excited to tap into another way to reach young audiences as "a really big opportunity to create high-growth properties." Industry experts see the new properties as opportunities to solidify Kyra's brand. Richards said while the current value proposition of Kyra is uncertain in the industry, “some of the bigger launches that they have coming up will help establish [them].” Branded content Kyra Studios, the branded content arm of Kyra, launched in September. Kyra has already partnered with brands such as headphone maker Sennheiser to produce campaigns targeting young people. “We see a lot of the legacy media companies perhaps not creating specific content for the platform,” Karaca said. With a roster of TikTok famous talent and original programming on the social network, brands have approached Kyra to help them build audiences on the platform. Melanie Rhoads, group director of strategic accounts for social media at Nexstar Inc., said, “getting the actual creative [for TikTok] has been hard” for brands. TikTok videos have specific dimensions, and a community of users who expect engaging and interactive content. She explained: “A lot of brands want to just reuse their TV commercial spots or videos that are running on YouTube or display. ... The best brands are tapping into creating ads that are similar to the endemic nature of TikTok, using the quick videos, having a lot of sound, really making it feel like it's an organic experience rather than an ad.” Talent management Kyra manages 10 content creators, including newly signed Nintendo Grl (with 6 million followers on TikTok). “We saw talent and the power of the audiences that they build. The engagement and everything around them is so significant,” Karaca said. To capitalize on engagement, Karaca said Kyra encourages talent to sell direct-to-consumer products such as a cosmetics line for a beauty and fashion influencer. “It’s allowing them to tap into and authentically engage" with the audience, he said. The other revenue stream for talent management is partnerships with companies such as Spotify and YouTube for exclusive programming with the talent. Looking forward “We were affected [by the pandemic] like everyone else, and we had to pivot and change what we were doing,” Karaca said. Still, with the branded content studio, restructure and new original programming, he is optimistic. “We'll come out the other side of the pandemic in a pretty strong position and be more efficient, more focused and stronger as a team to move forward," he said.

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Youth-Focused Publisher Kyra Uses TikTok and Talent Management to Propel Growth

With 3 new departments and a restructuring, it's bouncing back from a work environment scandal

Rachel Winicov

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Rachel Winicov