Is the YouTube channel you’re watching right now owned by private equity? A YouTuber investigates

If you’re a YouTube enthusiast, I have bad news for you: some of your favorite channels might be owned by private equity companies.

How does private equity relate to YouTube?

In a 12-minute video, Micro, a YouTube channel known for its microeconomics content, broke down exactly what this means. Essentially, a large portion of YouTube watch time is on channels owned by private equity firms, which in turn have raised billions of dollars from investors like Amazon and Softbank.

Some channels like Donut Media, Veritasium, and Task and Purpose have been acquired publicly. Others, such as Dude Perfect and Coco Melon, have been acquired more privately, with no public disclosure. According to Mirco, the reason private equity firms are interested in YouTube channels is their growth and profitability potential, which makes them seem highly investable.

Micro also claims that, currently, legacy media companies are threatened by new media. For them, private equity acquisitions are a form of self-preservation. The fact that YouTube channels already have an established audience makes it a lot easier to scale and monetize. Thus, private equity operations have dramatically increased. Firms like BlackRock manage over $12 trillion.

The video also notes that the rise of private equity can have a substantial impact on YouTube content. The increased overheads that come with a private equity acquisition mean that they need more revenue to stay profitable. This, in turn, puts pressure on channels to produce more content and take on more sponsorships. According to Micro, this can lead to these creators gravitating towards “safer” and more generic content.

Moreover, acquired channels often move away from one creator and build out a team to ensure that one person isn’t the be-all and end-all of the investment. This has the disadvantage of reduced viewership and a lack of fan support, as they struggle to adjust to the new content. Micro says this has led to the former hosts of big channels leaving to start independent channels.

What does this mean for creatives?

With this uptick in predictable, cookie-cutter-type content, could we be seeing a decline in YouTube creativity? Netizens, who made their feelings clear on Reddit, seem to think so.

“Honestly, it’s pretty easy to spot corporate content imo,” one wrote. “Like it’s just so bland most of the time. It doesn’t have any personality behind it you know?”
“Another dead giveaway is when they start collaborating with big companies instead of other YouTubers, schools, small businesses,” a second replied.

While a third emphasised that we should keep in mind that “these are only the channels which have been publicly acquitted by P.E. firms. There are likely even more channels which we are unaware have already been acquitted or are in the process of being acquitted.”

Is the future of entertainment doomed, or are we all just being a little too dramatic? In all honesty, it’s impossible to tell.