MrBeast's Squid Game Recreation: The Cost of Viral Fame

The Phenomenon of "Squid Game" and Its YouTube Recreation

Initially, widespread discussion centered around “Squid Game,” the South Korean psychological thriller that achieved unprecedented success on Netflix, attracting 142 million viewers. Subsequently, attention shifted to a recreation of the show’s deadly competition, produced by YouTuber MrBeast, which garnered 142 million views within just eight days. Importantly, no actual fatalities occurred during the recreation.

MrBeast's Elaborate Recreation

Jimmy Donaldson, known as MrBeast, a 23-year-old recently recognized as YouTube’s Top U.S. Creator for the second consecutive year, meticulously constructed sets and designed costumes for 456 contestants. This effort aimed to replicate the visual aesthetic of the original Netflix series as closely as possible. Mirroring the premise of the show, the final remaining competitor stood to win a substantial cash prize – $456,000 in Donaldson’s version.

Factors Contributing to Popularity

Several factors explain the near-equal popularity of Donaldson’s “Squid Game” compared to the original series, measured by view counts. A primary reason is the accessibility of YouTube, which is a free platform, unlike the subscription-based Netflix.

The Financial Cost of Virality

However, Donaldson’s viral success came at a significant financial cost. He revealed on Twitter that the 25-minute video required an investment of $3.5 million to produce. In contrast, the nine-episode Netflix series had a total production cost of $21.4 million, averaging approximately $2.4 million per hour-long episode.

Resource Disparity

Even highly successful YouTube creators like Donaldson are limited by the resources available to them when compared to a global, publicly traded company such as Netflix. Consequently, it is becoming increasingly challenging for creators specializing in shocking, stunt-based content to achieve truly unprecedented feats, such as recreating “Squid Game.”

The Premise of "Squid Game" and its Relevance

For those unfamiliar with the series, released in September, “Squid Game” presents a compelling premise: individuals burdened by insurmountable debt are offered a desperate opportunity – to compete in a fight to the death for a chance to win immense wealth. Director Hwang Dong-hyuk crafted this narrative as a response to South Korea’s debt crisis, but the theme resonates internationally. The United States, for example, currently holds $1.73 trillion in student loan debt, a figure that has increased by over 91% in the last decade.

The Elite's Entertainment

Within the narrative of “Squid Game,” a clandestine group of wealthy elites orchestrates the games for their own amusement, essentially paying impoverished individuals to risk their lives in a deadly competition, provided they consent to the rules.

MrBeast's Performative Philanthropy

In a less extreme manner, MrBeast’s videos operate on a similar principle. He distributes substantial sums of money to everyday people, provides entertainment to millions of viewers through his unique brand of philanthropy, and subsequently benefits financially from their engagement.

Lacking Emotional Depth

Predictably, MrBeast’s “Squid Game” recreation lacked the emotional depth and suspense that characterized the original Netflix show. With no genuine risk for the participants, the stakes felt considerably lower, akin to a casual viewing of “Wheel of Fortune.” Donaldson, however, has pioneered and refined a specific style of YouTube content: undertaking outrageously absurd challenges to attract viewership, recognizing that watch time directly translates to revenue.

Increasing Costs and Financial Risks

However, the cost of capturing audience attention using this model is steadily increasing over time. As the creator economy expands, the budgets of some YouTubers are also growing. Yet, given the inherent instability of this line of work, incurring significant debt could prove perilous. While Netflix’s “Squid Game” has already generated at least $891.1 million – nearly 42 times its production budget – Donaldson may not fully recover his investment in the “Squid Game” recreation.

The Escalating Costs of Viral Content Creation

Donaldson, as detailed in his video “How I Gave Away $1,000,000,” initially entered the realm of large-scale content through a $10,000 brand agreement with Quidd, a digital collectibles platform. This began with a video documenting a donation to an individual experiencing homelessness, subsequently leading to ongoing commissions from Quidd and a snowball effect of increasingly ambitious projects.

Currently, Donaldson’s videos frequently feature substantial investments, exemplified by titles such as “I Ate A $70,000 Golden Pizza,” “Last To Leave Circle Wins $500,000,” and “Donating $100,000 To Streamers With 0 Viewers.”

MrBeast disclosed to the creator-focused YouTube channel Colin and Samir that his monthly video production expenses reach $4 million. While some videos exceed expectations in performance, others fall short. He revealed that the creation of “I Sold My House For $1” exceeded $1 million in cost, yet generated less than $500,000 in revenue from advertisements and sponsorships.

However, as long as certain videos achieve greater success than anticipated, occasional underperforming content doesn’t pose a critical threat. He stated to Bloomberg last year that mastering viral video creation is primarily about maximizing output, potentially leading to limitless earnings.

Forbes estimated Donaldson’s YouTube income between June 2019 and June 2020 at $24 million. It’s important to note that YouTube isn’t his sole revenue stream; he also operates MrBeast Burger, a ghost kitchen, streams on Twitch, and engages in brand collaborations.

In an interview with Logan Paul, Donaldson explained that the majority of his earnings are reinvested directly into his video production. He described operating with extremely narrow profit margins, consistently channeling income back into content creation.

A significant challenge with this clickbait-driven model is the potential for audience desensitization to high-budget videos, necessitating a continuous escalation of extravagance from creators.

Comedian Demi Adejuyigbe experienced a similar dynamic with his annual videos celebrating “September” by Earth, Wind, & Fire.

His initial viral video in 2016 showcased a simple dance in his bedroom, accompanied by a self-made shirt proclaiming “SEPT 21” and “THAT’S TODAY.” Subsequent iterations incorporated balloons, a children’s choir, and eventually a mariachi band. This year, facing the increasing difficulty of outdoing previous efforts, he opted for a final, all-out production, successfully raising over $1 million for charity. However, these “September” videos aren’t Adejuyigbe’s primary focus.

Viral recognition likely contributed to opportunities in Hollywood, where he secured writing credits for shows like “The Good Place” and “The Late Late Show with James Corden” while developing his annual “September” videos.

Safiya Nygaard, a fashion and beauty creator, provides another illustration of this trend. Initially gaining prominence as a video producer at BuzzFeed, she transitioned to an independent channel to gain greater control. Nygaard distinguished herself through “bad makeup experiments,” such as “Melting All My Nude Lipsticks Together” and “Mixing All My Foundations Together.”

Over time, these experiments evolved into “Melting Every Candle From Bath & Body Works Together” and “Melting Every Lipstick From Sephora Together.” The latter involved over 600 lipsticks, resulting in a substantial bill that prompted the Sephora cashier to verify the purchase with Nygaard’s bank.

Reaching the point of purchasing every lipstick at Sephora presents a natural limit to further escalation. Nygaard now updates her YouTube channel, boasting nearly 10 million subscribers, less frequently, while increasing her presence on Instagram Reels and TikTok. Even TikTok content can involve significant expenses, as demonstrated by a video featuring Balenciaga’s $1,350 toe-heels.

Creators like Nygaard and Adejuyigbe have successfully diversified beyond this high-cost, potentially low-yield content strategy. However, Donaldson’s channel relies heavily on these large-scale productions, requiring a continuous pursuit of increasingly extreme concepts to maintain its position within the YouTube landscape.

Financing the Creator Ecosystem

Traditionally, startups secure funding through venture capital. Currently, a shift is occurring, with firms now viewing successful content creators as viable investment prospects, particularly as the expenses associated with video production continue to rise.

SignalFire, a venture capital company, identifies creators as the rapidly expanding segment of small businesses. Some firms, like Slow Ventures led by Sam Lessin, are actively pursuing this concept.

A Novel Investment Approach

Recently, Slow Ventures committed $1.7 million to Marina Mogilko, the personality behind the YouTube channel Silicon Valley Girl. This investment grants them 5% of her creator earnings over the next three decades.

While investing directly in individuals may appear unconventional, the question arises: is providing financial support to artists inherently negative, assuming all parties act in good faith?

This model shares similarities with the established practices within Hollywood. Production companies routinely invest in scripts, talent, and marketing campaigns, despite the risk of box office failure.

The Unique Challenges Faced by Creators

However, creators differ fundamentally from traditional startups. A significant concern is the potential for burnout when constantly striving to surpass previous achievements.

Venture funding could potentially alleviate some financial pressures on creators. Conversely, it might introduce additional stress stemming from the need to satisfy investor expectations.

Acknowledging Creator Burnout

Susan Wojcicki, CEO of YouTube, recognized the increasing prevalence of burnout among creators in a 2019 letter.

“Many creators have expressed concern about taking breaks, fearing a negative impact on their channel’s performance,” Wojcicki stated. “Taking time off is perfectly acceptable, and your audience will likely understand, as they value you as an individual.”

YouTube’s product development team discovered that creators often experience increased viewership upon returning from breaks.

Differing Perspectives on Consistency

However, Drake McWhorter voiced a contrasting opinion to CNN at the time.

“YouTube operates like a relentless treadmill,” McWhorter explained. “Any pause in activity can be detrimental to a creator’s visibility.”

While achieving virality is more accessible than ever, sustaining audience engagement and generating income online requires a dedicated and consistent audience.

The Economics of Scale in Content Creation

With MrBeast now producing YouTube videos with budgets comparable to Hollywood films, yet achieving only a “razor-thin” profit margin, a critical question emerges: who truly benefits within the creator economy?

The success of projects like “Real Life Squid Game” may ultimately prove more advantageous for platforms like YouTube, or even Netflix, than for the creator, Donaldson, himself.