Where people once got their car news, reviews, and opinions from a few recognizable media empires, today, that’s all changing. An explosion of YouTube channels has been seeing momentum as brands that aren’t just covering car culture but defining it.

Not only has this created a great deal of distress for those more established, older firms, but recently, even new car YouTube channels have experienced issues. They are suffering from a phenomenon that has been documented in several “Why I Quit” videos, which have served up more conflict between them than there is in Drake and Kendrick Lamar’s entire discographies.

A large number of the most well-known creators in the world are escaping the platforms they helped establish. They frequently go solo shortly after those previous channels were acquired for large sums of money. Some of the most well-known YouTube channels are being slowly killed off by profit-driven venture capitalists, according to the unending musings and arguments of influencers, commentators, and YouTubers.

Over the years, private equity has undoubtedly been held responsible for the demise of some of our most treasured brands, such as RadioShack and Toys R Us, but is there something particularly noteworthy happening in the automotive media space? Or is this merely a new chord added to an already awful song that everyone knows?

 

 

Early momentum

Recently, Donut Media—a YouTube channel that Matt Levin started in 2015 and has been steadily losing talent—has been the subject of a lot of discussion. With almost 9 million subscribers, Donut has seen many one-off viral videos over the years, but its James Pumphrey-hosted series “Up to Speed” has been a steady smash. In 2021, the private equity firm Recurrent Ventures purchased Donut Media.

However, this trend, as it exists, is much more widespread than that one medium. While it’s difficult to pinpoint the exact moment when this all began, Tiernan A.I., a former technical producer at Donut, claims that Alex Kersten was the canary in the coal mine.

Kersten had a significant role in Car Throttle, a 2009-founded automotive website that has amassed over 3 million followers on YouTube since launching in 2011.

However, Kersten departed the platform in 2022, having spent ten years there, in order to start his own YouTube channel, Autoalex Cars. Ethan Smale and Jack Joy, two other well-known hosts, also abruptly left Car Throttle in April of this year.

 

That, in my opinion, was the first significant one since not only did the person depart, but they also made their reasons known in public,” A.I. remarked.

Kersten left the company three years after Dennis Publishing, which at the time also controlled the well-known British auto magazines Auto Express and Evo, purchased Car Throttle. Car Throttle was once more purchased in 2023, this time by Crash Media Group.

Then, according to A.I., “there’s kind of like this slow percolation until you get the situation at Hoonigan.” The Ken Block-created brand Hoonigan was purchased by Wheel Pros, an aftermarket wheel manufacturer supported by Clearlake Capital, a private equity firm, in 2021. Wheel Pros rebranded as Hoonigan two years later, having removed most of the enthusiast-focused content that had previously characterized the site.

 

“I believe that many of us were somewhat horrified by that,” A.I. remarked.

 

If there was a turning point in this changing environment, it was when Vance Johnston was named president of Hoonigan. Many people believed that announcement—which showed Johnston in a shirt and tie—to be a sign that Hoonigan had completely lost contact with its fans. The information was posted in a thread mockingly referring to Johnston as “a true Hoonigan” on the /r/Hoonigan subreddit.

“Office seat wheels on carpet are the only tyres he’s slaying,” is the most popular comment.

Although fans wear a variety of uniforms, the internet’s reactionary treatment of Johnston was blatantly unfair. However, Hoonigan’s PR team could have done a better job of reading the room before approving that release. (Hoonigan did not answer a comment request.)

 

Donut departures

 

Although other brands have seen departures in the past, none have caused as much controversy as the highly visible exits of Zach Jobe and Jeremiah Burton from Donut Media.

The two made their exit known in June in a YouTube video announcing the start of their new channel, BigTime, and criticizing Recurrent Ventures, the private equity company that had purchased Donut Media in late 2021.

Burton and Jobe bemoaned the way the creative process had evolved—from experimenting and failing quickly to having to produce hits all the time. In the video, Burton stated, “We just got to the point where we were trying to make videos that we knew would do well.” Rather than producing videos that we merely enjoyed creating. Furthermore, it grows tiresome quickly to have to persuade individuals who are paying for it to produce the movies you desire, according to Jobe.
Those were probably the most well-known exits, but they weren’t the only ones; Jesse Wood, the brand’s CCO, left in February after working for Donut for eight years.

James Pumphrey is most likely the sole surviving member of the original group who arrived eight or nine years ago, according to A.I.

Pumphrey’s decision to bow out of Donut verified months of rumors since I last met with A.I. Prior to revealing his new brand, Speeed, which was introduced alongside Wood, Pumphrey released a lengthy video in which he offered the customary explanations and best wishes to those who are still around.

A.I. departed from Donut in January and released a video on YouTube last month offering his opinion on current events in the automotive media. Even well-known automotive creator Doug DeMuro, whose automotive channel boasts nearly 5 million members, has expressed his opinion.

Donut Media’s new editor-in-chief, Nolan Sykes, and creative director, Max Maddox, had a Reddit AMA to talk about the significant changes and allay everyone’s fears. They pledged to stick with the brand. Sykes declared, “I am bullheaded about adhering to the principles that made Donut successful in the first place.” “In the end, I want everything to be humorous, educational, and enjoyable. I also want to move quickly.

“I’ve had the privilege of working with all these brilliant, creative folks, and it’s wonderful to see them all growing into the next phase of their careers,” stated Matt Levin, cofounder and former CEO of Donut, in response to a request for comment. I’m really enjoying what Jeremiah and Zach are doing on Big Time, I can’t wait to see what James and Jesse have created with Speeed, and of course, I’m overjoyed that Nolan and Max will now have the opportunity to take center stage and start a new chapter in Donut history. Having a fondness for each of them, I have three times as many videos to peruse.

 

Other perspectives

 

Recurrent Ventures owns more automobile properties than just Donut. It also bought a significant portfolio of non-automotive media brands, including Popular Science and Bob Vila, along with The Drive, which debuted with great fanfare as part of Time Inc. in 2015.

The most contentious issue among fans, many of whom declare they won’t watch any more of the channel’s videos now that their beloved hosts have left, is the situation of Donut under the brand’s management. In spite of their objections, the Donut YouTube channel has amassed 8.8 million members as of right now, compared to the brand’s approximate 5 million subscribers at the time of Recurrent Ventures’ acquisition.

These new media organizations have a lot to learn about managing talent, according to Mike Spinelli, the head of content at Motorsport Network and former vice president of content at Recurrent Ventures.

He claimed that “talent is everything in TV and movies, where contract renegotiations are normal.” “However, I’m not sure if the media companies we’re discussing truly comprehend or are accustomed to handling talent in that manner.”

Anyone who has ever worked for a private equity-owned brand will likely tell you stories of pressure and meddling. Has Alanis King? King was an editor at Jalopnik before it was bought by Great Hill Partners. He is currently editor-at-large at Motorsport Network, which is owned by GMF Capital. King produced an extremely well-balanced film outlining her viewpoint on the state of the automotive media today.

According to King, “growing at the rates that investment firms want is really, really never possible.” “Those who create things comment, ‘Hey, that’s not possible.'” The folks providing the funding declare, “We don’t really care.” Make more of it. And all of a sudden you have this clash of expectations and ideals.

The persistent pressure also plays a part in the conspicuous lack of diversity in the automotive media. There is less time to develop fresh abilities or viewpoints when there is constant pressure to produce.

 

“You have two female hosts on this show,” King, who cohosted the Donut Racing Show podcast with Elizabeth Blackstock, US editor at Planet F1, would frequently find herself defending the podcast’s survival. Though it doesn’t perform as well as the main performance, which has been running for a lot longer, this show has voices that aren’t seen on camera in many other parts of your company. That’s significant,” King remarked.

 

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