Revenue Generation Analysis of PewDiePie on YouTube

INDIVIDUAL QUANTITATIVE LITERACY CASE STUDY
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Table of Contents
Introduction......................................................................................................................................3
Background......................................................................................................................................3
Revenue of PewDiePie with proper diagram and table...............................................................4
Strategic relationship between Patreon and PayPal.........................................................................6
Numerical extrapolating of PewDiePie along with revenue statement.........................................8
Conclusion.......................................................................................................................................9
Reference list.................................................................................................................................10
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Introduction
YouTube is one of the greatest online platforms where creator effectively showcases their talent
and generates revenue. The purpose of this assessment is to analysis revenue generation activity
using YouTube. In order to understand revenue generation process, a YouTube channel i.e.,
PewDiePie has been selected to understand strategic relationship between Patreon, PayPal and
other revenue vectors in a systematic order. Apart from revenue generation, a synthetic revenue
model with respect to PayPal and Patreon has been demonstrated in a table including revenue
statement and inclusive of gross net figure.
Background
PewDiePie is a YouTube channel created by a Swedish person known as Felix who was born in
24th October 1989. The channel was created in the year 2010 and gain 60 thousands subscriber
by the end of 2011. According to Money Nation, it has estimated that Net worth of PewDiePie
was about 18.7 million dollar by 2011 (Peng, 2018, p.78). In 2012, the channel successfully
gained 1 million subscribers by 2012 and most of the videos were regarding gaming.
Year Subscribers
2011 60000
2012 1 million
2013 4 million
2014 19 million
2015 33 million
2016 50 million
2017 60 million
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2018 77 million
Table 1: Number of subscriber per year
(Source: Created By Researcher)
From the above table, it can be stated that PewDiePie is one of the top influencer across world.
Presently, PewDiePie rank world’s number one YouTube channel based on subscribers. In the
year 2015, it has been found that channel became the first to receive 10 billion video views and
appeared in Forbes list of richest YouTube star. In the year 2014, channel has more than 4.1
billion views and earn about 42 million dollar according to Money Nation. As per the report by
Money Nation, PewDiePie became the first YouTube channel to reach 50 million subscribers
and net worth was whopping 90 million dollar in the year 2018. From the above table, it can be
said that YouTube is one of the great way to earn money through new content. Similarly, it has
been evident that a Swedish channel became number one channel in YouTube, which was started
in 2010. Furthermore, it has been stated that within a span of 8 years, channel successfully earn
most subscriber across world (Soha et al. 2016, p.452). Moreover, it is comparatively 2.5 times
than Hillary Clinton.
On the other hand, it has been evident that Patreon and PayPal is another source of revenue
generation. Most of the payment has been made through Patreon and PayPal; currently Patreon
takes about 5% of processed payments. In addition, creators can take 95 % of revenue that they
make from subscriptions.
Revenue of PewDiePie with proper diagram and table
PewDiePie rank number in terms of subscription in YouTube and comes under top 10 influences
across world. It has been evident that his subscription growth is comparatively higher as
compared to other YouTube creator. According to the statistics, PewDiePie earning over the year
from YouTube view is approximately 114 million dollar.
Years Earning (million Dollar)
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