A crackdown on child advertising clipped Ryan’s World revenue this year. Hedging YouTube kept him at the head of the pack.
Kaji's content has matured of late, focusing on educational videos like DIY science experiments and at-home workouts. The constant? His place at the top of our annual list of highest-paid YouTube stars
Courtesy of Ryan KajiOn Thanksgiving day, as millions of children gathered around televisions and iPads to watch a socially distanced version of the annual Macy’s parade, one of them was cashing in on the spectacle. Ryan Kaji, the world’s highest-paid YouTube star, sat at home in Texas while the float of Red Titan— his superhero alter-ego — made its way down Fifth Avenue.
“It was so cool because it was big and it was flying. And it was on TV!” Kaji says with a giggle, remembering the moment he became the first YouTuber ever featured in the storied parade.
And his appearance in the procession wasn’t even the big win. Red TItan bedspreads, masks, toothbrushes and toys, as well items with Kaji’s human likeness, are sold at Amazon, Walmart, Target and other retailers. All of it gets pushed to nine Kaji-family YouTube channels, the biggest of which is Ryan’s World with 27.5 million subscribers. It’s mix of cute, educational family-friendly themes like a make-your-own Playdough tutorial, DIY science experiments and playtime with his twin sisters helps promote some 5,000 Ryan-themed products that generate more than $200 million at retail annually. Kaji’s cut makes up more than half of the $29.5 million payday that put him at the top of the 2020 Forbes list of the world’s Highest-Paid YouTube Stars.
The licensing deals turned out to be one of two perfectly timed hedges that have helped him claim the top spot on the ranking for the third year in a row, despite regulators targeting Web programming that is aimed at children. A year after the FTC disallowed targeted ads on content like Ryan’s World that appeals to kids, spot rates plummeted and now sit at least five times less than the rates paid for commercials that air alongside top adult programming.
“When COVID hit and the ad recession happened that affected everyone, kids' channels got a double whammy,” says Chris Williams, the CEO of Pocket.watch, the digital studio that works with creators like Kaji and Love, Diana on expanding to longer form content and merchandising.
Unlike the other programmers affected, including other stars on the Forbes ranking like Blippi and Nastya, Kaji was buffered by the merch sales as well as his expansion into television. Kaji’s cable series, Ryan’s Mystery Playdate, is in its third season on cable network Nickelodeon while a new streaming channel, Ryan and Friends, launched in September through Roku and other services. Last month, Super Spy Ryan debuted on Amazon Kids, the first original series for the kids-centric streamer that also came with a line of toys sold exclusively on Amazon. Nastya is in hot pursuit, with a licensing program that will include everything from musical instruments to pajamas in the works.
Still, though a millionaire before he could count his age in double digits, Kaji hasn’t lost sight of his real dreams: “I want to be a gamer,” he says, before his dad, Shion, cuts in and explains that he’s also learning how to code — and that the earnings are in trusts that he can’t touch until adulthood. Until then, he still has to fight his parents for screen time, including on You Tube.
“We are working on it,” Shion laughs.
