Seeding the YouTuber Ecosystem – Today $5B in Asia

DJMAC YouTube Head of Spaces - Seeding the YouTuber Ecosystem

The future was uncertain when I joined YouTube in February 2009 as one of Asia Pacific’s first dedicated YouTube executives. Our most prominent YouTuber was a cat named Maru, who entertained us with his box-diving antics. Monetization was limited. In those early years, with a passionate and dedicated team, we were seeding the YouTuber ecosystem—today estimated to be about $5B in Asia. A YouTube impact report by Oxford Economics found that in 2022, in Japan alone, the economic impact of YouTube was approximately $4B.

On 23 April, YouTubers celebrated International Creator Day. 19 years ago, the first video was uploaded to YouTube. A year and a half later, on October 9, 2006, in a $1.6B leap of faith,  Google acquired YouTube, a video site with limited monetization and under pressure from traditional media. Today, in Q1 2024, Alphabet’s YouTube posted quarterly advertising revenue of $8.1B, contributing about 10% of Alphabet’s total income in the quarter.

At the end of April this year, I chatted with Tyson Batino about my experiences seeding and scaling the YouTuber ecosystem in Japan for his Scaling Japan Podcast. Tyson speaks with experienced business people in Japan, and I was honoured to join that list of guests. Listen below for the full interview, or search for Tyson’s podcast where you listen to your podcasts.

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Seeding the YouTuber Ecosystem – YouTube in 2009

Before Hikakin came to the stage to set the model for YouTubers in Japan, YouTube was a platform mainly focused on cat videos and user-generated fan content. Before tackling the bigger mission of seeding and developing a new ecosystem, we had to stabilize the platform and user operations, manage copyright claims from traditional media companies, and establish policy over our operations. In 2009, we had a small five-person team dedicated to implementing all this, and I was the new YouTube Online Sales and Operations Manager.

To shift YouTube from a platform of video sharing to a platform where creators could find an audience, express themselves, and monetize that expression, we had to develop a program from the ground up, attracting and developing creators along the way. 2011 was a pivotal year as we pivoted to focus on and help create a community of YouTubers.

We started by outreach to early creators on the platform and began to develop a narrative about the YouTube/Creator partner program. An early example was Hikakin, today one of the top YouTubers and the face of success with the platform. While he was first rejected for the YouTube Partner Program, he didn’t give up, motivating him to work harder. When we realized his potential and started interacting, he had just 10,000 subscribers to his channel; he can now reach 13.7 million.

Seeding the YouTuber Ecosystem - Early Promo Video
Make-up YouTuber Sasaki Asahi in one of our first promotions for the YouTube Partner Program in 2011.

YouTube’s partner managers would talent scout potential YouTuber talent, reach out, and help them develop content and channel management strategies. We created promos and information videos and expanded to events and other outreach, including visits by early YouTube make-up sensation Michelle Phan to inspire new creators. Hikakin commented that Michelle’s visit and speech inspired him to engage on YouTube. Other programs like NextUp, in partnership with Digital Hollywood University, trained and supported up-and-coming creators.

The Team

We were building a team of passionate members who were often creators themselves. From a small team of 5 people, the team grew to approximately 50 in the next three to four years. Beginning with the first members to onboard and manage partners, we identified individuals with a passion for YouTube and, in many cases, creators already. Soon, we had a team of music experts, partner managers, events experts, writers, event hosts, directors, cameramen, and other video creators. They all shared a specific DNA tied to the YouTube platform. We would learn to create ourselves by tapping into the expertise around us.

Seeding the YouTuber Ecosystem - Creator Training for Team Members
Four early team members are still active at YouTube or other significant content platforms in Japan and Korea. Many of YouTube’s early team members have gone on to solid careers across the industry. Seeding the YouTuber ecosystem includes a network of former employees.

Expanding Regionally

The YouTube content operations team was headquartered in Tokyo. Still, we expanded the partner program across the Asia Pacific region over the following years, eventually with teams in all major markets and hubs, with services and programs aimed at seeding the YouTuber ecosystem in the local market. While YouTube is a global service, the ability to understand and adapt the service to the needs of local users and creators has been critical to its success.

Seeding the YouTuber Ecosystem - Regional Expansion
An early event outside Japan—”Seoul Tube” in 2012—was our first local event for the new creator ecosystem in Korea. Soon, K-pop and other Korean content would become a staple on the YouTube platform.

YouTube Spaces – Learn, Connect, and Create

In 2014, we established two hub “studios” called “YouTube Spaces” in Tokyo and Mumbai. Designed as homes for creators, they allowed them to learn, connect and create. They could master the tools and techniques to grow their YouTube channels and produce better content.  They connected with other creators and often collaborated with traditional media, leveraging free studio space and equipment to make their videos. We provided themed programs with elements of learn, connect, and create, including collaborations with Toei Studios for Japanese “jidaigeki” period-themed videos, horror master Guillermo del Toro, superhero legend Stan Lee and many others.

When creators couldn’t join us in Tokyo or Mumbai, we produced “Pop-up Spaces” across the leading markets in Asia – bringing creators together to learn, connect and create in Seoul, Bangkok, Hyderabad, Jakarta, Sydney and Taipei.

Seeding the YouTuber Ecosystem - YouTube Space Tokyo
YouTube Space Tokyo – a home for Japanese creators to learn, connect and create.

Seeding the YouTuber Ecosystem – Legacy

The Oxford Economics report for YouTube Japan Impact Report published in 2023 suggests over 90,000 full-time workers are employed today due to the YouTube ecosystem. Thousands of YouTubers can make a living on the platform while finding their creative voice and audience. It has provided a platform free of traditional media challenges but one which is now embraced equally by YouTubers and traditional media companies alike. In early 2009, this was still just a dream. The hard work and passion of the early YouTube team to seeding the YouTuber ecosystem allows many YouTubers and businesses to reap the rewards today.

On a personal note, in 2018, I moved to Discovery Japan, where, as General Manager and President of the local business, I applied the lessons of YouTube with the team to expand a new revenue stream and build a sandbox for Discovery content. With just two pay TV channels in Japan then, and the relatively low pay TV penetration, YouTube became an essential platform for experimenting with new content never seen in Japan and attracting new audiences. In addition to the monetary rewards, we grew our overall audience and awareness in Japan tenfold, primarily through YouTube and other social media. This audience data could then be fed into our content planning, distribution and sales.

Access my Media Strategy page for further information about my experience in the media and entertainment industry and my current media strategy consulting and advisory.

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