MrBeast and Beast Industries CEO on Building a Multibillion-Dollar Empire

The New York Times

The Origin Story of MrBeast [00:01:08]

• Early obsession with virality [00:01:33]
  • Jimmy Donaldson started making videos at age 11, driven by a deep curiosity about why some content went viral and others didn't. [00:01:41]
  • He spent his teenage years studying YouTube algorithms and what makes people watch and consume content. [00:02:05]
  • His mother initially thought his YouTube obsession was "crazy" and urged him to go to college. [00:02:32]
• A glimpse into the past: Scheduled videos [00:02:51]
  • A video recorded by a teenage Jimmy Donaldson in 2015, scheduled for upload in 2025, shows his early aspirations for 1 million subscribers and doing YouTube as a job. [00:02:58]
  • He humorously revealed he made several such videos during high school when he was supposed to be studying. [00:03:56]
  • At the time of recording that specific video, he had 8,000 subscribers and 1.8 million views, which now seems "crazy." [00:03:33]

Cracking the Attention Economy [00:04:24]

• Understanding social media algorithms [00:04:43]
  • Donaldson explains that social media algorithms are a reflection of what people want to watch and consume. [00:05:05]
  • To create content that appeals globally, it must tap into intrinsic human emotions and experiences, avoiding culturally specific themes. [00:05:31]
  • An example given is a video where an ex-couple was offered $300,000 to spend 30 days chained together, a concept universally understood. [0005:48]
• Evolution of video length and audience attention [00:06:12]
  • While platforms like TikTok thrive on short, fast-paced content, YouTube, especially in the US, sees longer videos (25-30 minutes) performing better. [00:06:55]
  • Over 50% of YouTube watch time now occurs on television, leading to a demand for longer, more engaging content. [00:06:59]
• The business of content creation [00:07:23]
  • The growth into a business happened gradually over 16 years, consistently expanding since Jimmy was 11. [00:07:28]

The Landscape of Modern Fame [00:07:45]

• Fragmented fame in the digital age [00:07:51]
  • Social media algorithms have led to more niche content and fragmented fame, unlike the mainstream appeal of traditional celebrities like Tom Cruise. [00:08:11]
  • MrBeast's videos average 200 million views, but this is an anomaly; most creators achieve a few million views, indicating a diverse rather than centralized celebrity landscape. [00:09:05]
  • Building trust with an audience over time is crucial for sustained success, as viewers return to content they know will be good. [00:09:48]

The MrBeast Work Ethic [00:10:08]

• Intensive work schedule [00:10:11]
  • Jimmy Donaldson films for 27-28 days a month and works every day, dedicating himself to creating content. [00:10:18]
  • With a production team of 300 people, he aims for optimal use of his time by constantly filming for the MrBeast channel. [00:10:02]
• "Ultra grind mode" and focus on storytelling [00:11:13]
  • A recent tweet about entering "ultra grind mode" signifies a refocus on improving content quality and telling more impactful stories. [00:11:36]
  • While large prizes and spectacles are common, the goal is to create narratives that make people "feel things," as viewers can become numb to constant giveaways. [00:11:57]
• Constantly raising the bar [00:12:21]
  • The team constantly improves numerous "levers" in video production, from camera quality and editing to prize pools and set design, leading to subtle but noticeable enhancements over time. [00:12:56]

Multi-Platform Strategy and Audience Engagement [00:13:34]

• The importance of diverse platforms [00:14:01]
  • To reach the widest audience, creators should be present on all major platforms (YouTube, TikTok, Instagram) as each serves a fragmented audience. [00:14:03]
  • However, YouTube is deemed "infinitely more dominant" for building a deep community and a sustainable business due to longer watch times and audience depth. [00:14:16]
  • Different platforms attract different demographics, for example, Instagram with a larger female audience, making a multi-platform approach essential for global reach. [00:15:12]

Personal Consumption and Social Impact [00:15:35]

• Intentional content consumption [00:15:53]
  • Jimmy intentionally curates his social media feeds to prioritize educational and beneficial content, actively using features to "trick" algorithms into recommending desired videos. [00:16:01]
  • He believes in using his platform for positive influence, inspiring good and supporting charitable causes like Team Trees and Team Seas. [00:16:35]
• Social media and child development [00:16:41]
  • Donaldson acknowledges concerns about social media's impact on children but differentiates YouTube from other platforms like TikTok, citing YouTube's higher prevalence of educational content. [00:17:19]
  • He emphasizes that social media can be positive when used for educational or philanthropic purposes, such as inspiring children to participate in tree-planting events. [00:17:40]

The Business of Beast Industries [00:18:02]

• Company valuation and IPO aspirations [00:18:13]
  • Beast Industries is valued at $5.2 billion, with plans for an IPO to allow global viewers to become company owners. [00:18:18]
• Key business divisions [00:20:10]
  • Media Division: Accounts for half of the revenue, including the primary MrBeast YouTube channel, TikTok and Instagram shorts, Beast Games (season 2 airing in January), animation projects, and other emerging channels. [00:20:12]
  • Consumer Products and Services Division: Also accounts for half of the revenue, featuring: [00:20:32]
    • Feastables: The world's largest ethically sourced chocolate brand. [00:20:34]
    • MrBeast Labs: Toy brand, with an action figure currently ranked as the number one action figure in America. [00:20:41]
    • Lunchly: A snack product. [00:20:46]
    • Joint venture with Jack Links for beef jerky. [00:20:51]
    • Beast Mobile: A forthcoming phone company. [00:20:57]
    • Financial services platform: Focused on financial literacy and global access to information. [00:20:59]
  • Global Creator Platform: A future two-sided marketplace connecting creators with Fortune 1000 marketers for efficient demand generation. [00:21:12]
• Global reach and ethical initiatives [00:21:49]

  

  • Beast Industries is a global media company, with 70% of its viewership outside North America. [00:22:02]
  • Feastables chocolate is ethically sourced, paying farmers a living income reference price to combat child labor on cacao farms, a cause Jimmy is passionate about. [00:24:22]
  • The company plans to build schools globally for children freed from child labor, demonstrating a commitment to positive change. [00:26:06]

Evolution into Legacy Media [00:27:15]

• Strategic move to streaming platforms [00:27:45]
  • The decision to partner with platforms like Amazon for "Beast Games" is driven by the format suitability; YouTube is for individual videos, while streaming platforms are for multi-episode series. [00:27:54]
  • Longer-form content on streaming allows for more complex storytelling and deeper audience investment. [00:28:09]
  • Streaming also targets an older demographic that might not be as active on YouTube. [00:29:51]
• Lessons from Beast Games [00:31:04]
  • The first season of Beast Games, featuring 2,000 contestants competing for a $10 million prize, highlighted the challenge of having many unhappy participants. [00:31:51]
  • For season 2, the number of contestants was reduced, and efforts were made to select participants more familiar with MrBeast's content and expectations. [00:32:00]
  • Housenbold emphasizes that such large-scale productions are "investments" that build a global audience and brand loyalty, making subsequent seasons more efficient. [00:29:14]

Future Vision and Role Models [00:32:36]

• Mission and impact [00:32:56]
  • Beast Industries aims to be the most impactful entertainment brand globally, creating content that entertains, inspires, and educates. [00:33:00]
  • The goal is to make kindness viral and use their storytelling ability to make the world a better place. [00:33:14]
• Inspirations and ethical stance [00:33:36]
  • Jimmy Donaldson draws inspiration from figures like Elon Musk for his ambition and ability to push boundaries across industries, and Steve Jobs for his obsession with product excellence. [00:34:05]
  • He avoids controversial political topics to maintain a positive role model image for his young audience and focus on areas where he can create tangible change, like ethical sourcing. [00:24:16]
• Personal journey and family involvement [00:34:37]

  

  • Jimmy recounts defying his mother's expectations by secretly pursuing YouTube instead of college, eventually making enough money to hire her. [00:35:10]