The 'YouTube king's' billion-dollar plan

At 27, Jimmy Donaldson, also known as MrBeast, has become the world's biggest YouTuber, with more than 430 million subscribers. From bizarre challenge videos, he is looking to expand his influence beyond the screen, building a multi-billion dollar entertainment conglomerate.

MrBeast's videos cost millions of dollars to produce but in return attract hundreds of millions of views, making him an icon of viral content. Along the way, he developed the Feastables chocolate brand, experimented with fast-food chains, and even collaborated on a novel.

Now, with a seasoned CEO on board, MrBeast wants to take Beast Industries further. It's more than just a video production machine; the "king of YouTube" wants to build a globally influential entertainment company that can compete with the likes of Disney.

Viral Video Machine

In early August, at Beast Industries headquarters in Greenville, MrBeast’s production team was hard at work figuring out how to start a fire with water, part of a $500,000 challenge video. The idea started with a YouTube title and thumbnail, which Beast hired a dedicated team to design. The creative team then refined the script, selected the number of contestants and the prize, and handed it off to the production team to execute.

Maddie Montana, the video's executive producer, said the estimated cost was around $2.6 million . Participants will go through seven challenges, including being catapulted into the air more than 80 feet. "As long as everything is on time, we're fine," Maddie said.

Videos on the MrBeast channel attract hundreds of millions of views. Photo: Amazon Prime Video .

This is a familiar formula with elaborately staged videos, huge costs but in return for great viral effectiveness. On average, each video posted on MrBeast's main channel reaches 250 million views within a year.

“There's no company in the world that can consistently create videos that exceed 100 million views like we can,” Donaldson asserts.

MrBeast's style is reminiscent of reality TV shows like Fear Factor or Survivor, but compressed to fit the short attention spans of the internet. He often shouts out titles at the beginning of videos, offers huge cash prizes, and then keeps viewers hooked with a surprise twist.

The explosion of views has made Donaldson the number one YouTuber in the world with more than 430 million subscribers, surpassing the population of most countries in the world. His secondary channels on TikTok, Instagram and X have also helped him reach more than a billion viewers in the past 90 days.

From YouTube boy to billion dollar corporation

Donaldson started out as MrBeast6000 as a teenager in Greenville. His first viral video was of him counting from 1 to 100,000 in less than 24 hours. His formula was “less is more” – investing big in one video rather than mass-producing.

Many of the YouTuber’s videos involve charitable acts, from donating thousands of dollars to delivery drivers and Twitch streamers to giving away 3 million coins to his 3 millionth subscriber. These contents reflect the influence of his mother, a former US Army lieutenant colonel, who wanted her son to be a positive role model.

Feastables has gained huge traction thanks to MrBeast's fame. Photo: Alamy .

By 2018, Donaldson was creating absurd yet intriguing challenges, like buying a car with millions of pennies. His 2021 remake of the Squid Game also became his most viewed video, with over 876 million views.

In parallel, Donaldson has ventured into business. He has partnered with the MrBeast Burger chain, founded Feastables, a chocolate and snack brand, and technology ventures like Viewstats. In 2023, Beast Industries' revenue will reach about $450 million , split evenly between video and Feastables. Feastables alone is expected to double in size in the next few years.

Beast Industries now has 450 employees, including more than 300 video creators. The company was valued at $5.2 billion in a funding round led by Alpha Wave Global. Donaldson also wants to take the company public in the coming years.

Cost issues and long-term ambitions

The success of MrBeast did not obscure Donaldson’s struggles when he first started his business. In 2024, Beast Industries lost more than $60 million , mainly because of the high cost of video production. Each video on the channel cost $3-4 million , while many projects worth $10-15 million were never released.

To professionalize, Donaldson hired Jeff Housenbold, former head of eBay and Shutterstock, as CEO. He set a goal of cutting $100 million in costs, transforming MrBeast from a cash-burning startup into a sustainable business. Housenbold likened Donaldson to “Mickey Mouse” and set an ambition to turn the business into “the new Disney” with a universe of characters, cartoons, comics, and even amusement parks.

Jeff Housenbold (left) is expected to help Beast Industries cut costs. Photo: Bloomberg .

Beast Industries has shown some early signs of improvement, including shrinking its back channel, reusing sets, seeking sponsorship deals, and cutting costs on its videos. Negotiated deals like a $25 million Lamborghini partnership promise to help the company balance the books.

However, Beast Industries has also been plagued by controversy over its service quality. MrBeast Burger has been sued over the quality of its food. Feastables has been accused of sourcing ingredients from suppliers that employ child labor, a claim Donaldson has denied. The $100 million- plus Amazon Prime Video show Beast Games has also been hit with allegations of poor working conditions and remains in litigation.

Still, Donaldson and his new CEO believe the combination of audience appeal and sound management will be a game changer. Housenbold predicts the company will nearly break even this year and could be profitable by 2026.

“Beast Industries didn’t succeed because I was a genius entrepreneur. We succeeded because I knew how to create YouTube content better than anyone else,” Donaldson said.

Source: https://znews.vn/ke-hoach-ti-usd-cua-vua-youtube-post1587722.html