- 1 year ago
Could Roblox be the next YouTube? From massive growth to betting on the metaverse, the blocky platform is following a familiar path. Join us as we explore how Roblox mirrors YouTube's early days, from professionalizing creators to aging with their audience. Both started as "weird" but could Roblox evolve into the next digital giant?
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00:00Hi, this is Dave, the founder of Roblox.
00:03Our story begins in 1989 with this simple block.
00:07Welcome to WatchMojo, and today, we're counting down our picks for the things that Roblox is doing
00:11that remind us of YouTube's early days.
00:14For this list, we're breaking down why the blocky behemoth could very well take the crown
00:18as the Internet's next all-powerful content platform, just like YouTube once did for video.
00:23Hey guys, the Attorney General says Roblox is putting kids in danger.
00:27It warns the company to make changes or shut it down.
00:32Number 10. The next digital giant?
00:35The story of Roblox begins in 1989 with this simple block.
00:39We programmed a 2D simulated physics lab called Interactive Physics,
00:44which would later go on to influence our approach to building the groundwork for Roblox.
00:49Before we get into the specifics, let's zoom out.
00:52Roblox is quickly cementing itself as a true digital colossus,
00:55a platform that's not just for gamers, but for all sorts of interactive experiences.
01:00Industry analysts are noticing the parallels between today's Roblox
01:03and YouTube back in its early breakout days.
01:06The Roblox world is growing faster than ever before.
01:09Creators are creating new genres, deeper narratives,
01:12and more diverse experiences that are opening up entertainment paths
01:16into worlds of play never thought possible.
01:19The overwhelming scale of Roblox's daily use rivals some of the most popular social media platforms,
01:25and its momentum makes it a serious contender in the race for attention online.
01:29Roblox is no longer just a kid's game.
01:31It's morphing into a global giant with eyes on the broader media landscape.
01:34We're enabling the creation of more human forms that allow for greater self-expression,
01:40unleashing the limits of the imagination to enable anyone to be who they want to be.
01:46We're building a platform for a new generation,
01:50one that enables people to create and share experiences through play.
01:54Number nine, betting on the metaverse.
01:56Building the metaverse requires a type of creative, innovative thinking
02:00that only comes when you're firing on all cylinders.
02:02So now it's a company-wide...
02:04Okay, so that's why they gave the break.
02:06They're building the metaverse right now.
02:08Alright, what does the Roblox metaverse mean?
02:09Why does Roblox keep saying metaverse?
02:12Alright, we're about to get filled with knowledge!
02:15Ow!
02:16While metaverse might sound like a buzzword,
02:18Roblox is one of the few companies actually building it in real time.
02:21The platform offers shared, persistent, and deeply social virtual spaces
02:25where people interact, create, and socialize,
02:28just like science fiction always promised.
02:30Roblox's open-ended nature lets users host concerts,
02:33launch virtual clothing lines, or even attend lectures,
02:36making it more metaverse-ready than most competitors.
02:38Are you...
02:39How y'all feel about this little Yachty one?
02:41I don't know.
02:43Not giving.
02:44Go ahead.
02:45I see where you was going with it,
02:47but I just don't feel like that just yelled Yachty.
02:50Me, personally, I get it's like a six.
02:52I'm gonna give him a seven.
02:54Yeah, I feel like a six.
02:56Because I see the vision.
02:58I just feel like it was missing the...
02:59You know what I'm saying?
03:00With companies and celebrities starting to experiment in Roblox's digital worlds,
03:04it's easy to see how this ecosystem could mirror YouTube's sprawling influence in video,
03:08but for all things immersive and interactive.
03:11Dude, look!
03:11The 8th Annual Bloxy Awards took millions on an epic journey through the metaverse.
03:15What is the metaverse?
03:15I'm literally gonna...
03:16I'm going to do harm to somebody.
03:18I don't know who, though.
03:19Join thousands of passionate developers looking to build a future social nexus.
03:23I don't know what that means.
03:24I don't know what to do.
03:25I don't know what to take my anger out of them.
03:27Number 8.
03:27Big Losses, Big Potential.
03:29I look very closely at bookings.
03:31I mean, that's just an indication of how much people are just spending on the platform,
03:35buying Robux, which is the virtual currency that fuels the economy in the game.
03:40It's no secret that Roblox Corporation has posted some eye-popping net losses recently,
03:45which may send traditional investors running for the hills.
03:47But if you rewind the clock, you'll remember that YouTube operated at a loss for years
03:51before turning into a money-making machine.
03:54The logic here is simple.
03:55Platforms that disrupt industries often burn cash to grow and dominate.
03:59Loop.
04:00And so when you see, like we talked about earlier, a move of 50% in a direct listing on day one,
04:06it gives us a little bit of pause about what the near term could bring.
04:10But I still think you've got a company that has great growth prospects,
04:13they have a very stable user base, and they really own that pre-teen demo.
04:17Roblox's willingness to prioritize scale, user engagement, and creator empowerment,
04:22rather than short-term profits, is exactly the same strategy that propelled YouTube from startup to superstar.
04:27Well, we own a fair amount of time, and what's really fun and interesting about the time on our platform,
04:34which is over 9 billion hours spent per month, really, in the last quarter,
04:39that time is not solo time, that's not time scrolling at night with short-form video,
04:46that's time being with friends.
04:49Don't let those red numbers fool you.
04:50The long-term bet on Roblox could pay off in a big way, echoing the rise of YouTube.
04:55Emphasis on could.
04:56We've been sharing for a long time, we want to reinvent the way people build and consume games,
05:03and that there's enormous area for technical innovation in how creators can build games on our platform.
05:10Recently, we've seen more viral hits.
05:12Last summer, we were talking about Dressed to Impress.
05:15This summer, we're talking about Growing a Garden, which I love.
05:18There's several gardeners in my own family.
05:21Number seven, winning over advertisers.
05:23Think of it as, like, Facebook on steroids.
05:26It's a new kind of futuristic way to socialize online.
05:29Today, we're used to doing it on phones and tablets and computers,
05:33but not too far from now, we're going to have augmented reality and virtual reality headsets
05:38from companies like Facebook, Apple, Samsung, Google,
05:41that lets you really feel immersed in these digital worlds that are being created right now.
05:46No tech platform can claim the digital crown without advertiser love,
05:50and Roblox is making major headway here.
05:52Brands are realizing that, just like YouTube, Roblox gives them direct access to Gen Z,
05:57and soon Alpha, on their own turf.
05:59Advertising on Roblox isn't just pre-rolls or banners.
06:02It's interactive, creative, and often weaved directly into the experiences themselves.
06:07Roblox and video game development software maker Unity are both having huge months.
06:11They're up 60% and 40% respectively,
06:14and the metaverse is showing no signs of slowing,
06:16Nike making a big push with the launch of Nike Land on Roblox.
06:19It's a virtual world where players will be able to play games and design products all in Nike gear.
06:24From Nike's custom virtual worlds to concert sponsorships and digital merch,
06:28advertisers are sensing the limitless potential,
06:31just like they did during the early YouTube creator boom.
06:33This shift could potentially hold the key to skyrocketing revenue,
06:36and a content gold rush in the making.
06:38Considering that Roblox also monetizes its users with Robux,
06:42this actually gives Roblox a higher yield per user.
06:45I think what's going on in terms of this is to say,
06:48listen, we all know that the metaverse is going to be there,
06:51and there's going to be a significant amount of consumers,
06:53especially the younger ones, like you were saying,
06:55that are interested in this, right?
06:56And so because these are the digital natives,
06:59they're basically born swiping left and right,
07:02and so this is going to be their world.
07:04We know that.
07:04Number 6. Professionalizing Creators.
07:07Millions of experiences are available on this platform,
07:10so meaning everything from games to concerts,
07:13and users make the games with tools provided by the company,
07:18and then they share in the revenue a 70-30 split with the company.
07:22Roblox makes most of its money by selling a digital currency called Robux,
07:26which can be used to buy virtual goods.
07:28Both companies gave their creators tools to go pro.
07:30On YouTube, that meant channels and monetization programs.
07:33On Roblox, it means a full suite of development tools
07:36that lets indie devs act like mini-game studios.
07:39In the early days, Roblox developers were hobbyists tinkering with blocks.
07:43Today, they're becoming serious professionals,
07:45just like the first wave of YouTube stars.
07:47This is Cole.
07:48These are his two best friends.
07:50They all live in the same apartment,
07:52and they claim to make millions off Roblox.
07:56Yes, this game.
07:58Roblox offers a full ecosystem for monetization,
08:00advanced analytics, developer tools,
08:03and even partnerships with major media companies.
08:05Top creators earn big bucks, hire teams, and launch studios,
08:09all while maintaining direct-to-fan connections.
08:12By empowering a new generation of creative entrepreneurs,
08:14Roblox is following the same pattern
08:16that turned YouTube vloggers into household names and millionaires.
08:19Tell me about your Roblox business.
08:20Yeah, so I run a marketing agency for brands that come to Roblox.
08:26We worked with Nicki Minaj and SpongeBob when they came to Roblox,
08:29and we built basically all the video content around that,
08:31like these trailers for it, social media campaigns and all that.
08:34You know, we've made 450 videos probably now,
08:37done like well over 100 million views.
08:39Okay.
08:40Number five, aging with their audience.
08:42All right, so here we are in front of the elephants.
08:44The cool thing about these guys is that they have
08:49really, really, really long fronts, and that's cool.
08:55YouTube grew up alongside its fans,
08:57evolving from amateurish vlogging and cat videos
08:59to serious news, education, and even Hollywood-quality content.
09:03Roblox is now following the same playbook.
09:05Our story begins in 1989 with this simple block.
09:10We programmed a 2D simulated physics lab called Interactive Physics,
09:14which would later go on to influence our approach
09:17to building the groundwork for Roblox.
09:19Kids who started off building obstacle courses on Roblox a decade ago
09:22are now designing complex multiplayer adventures
09:25and even launching digital fashion labels within the platform.
09:28Roblox is expanding its appeal with adult users,
09:30older teens, and established developers
09:32embracing its toolset to create experiences
09:34that are no longer just for kids.
09:36As its audience matures, Roblox matures right along with them,
09:40opening the door to decades of cultural relevance.
09:42Since 2006, we've expanded Roblox onto new devices
09:46and hardware ranging from smartphones to VR.
09:50We have hundreds of millions of people playing,
09:53imagining, and building together,
09:55and it's growing faster every day.
09:58Number four, the same growing pains.
10:00Louisiana's top prosecutor is taking on
10:02one of the most popular online sites for teens and kids, Roblox.
10:07Attorney General Liz Murrell says the platform
10:09has become a hunting ground for predators,
10:11and now she's taking her fight to court.
10:13Both YouTube and Roblox have wrestled with moderating
10:15their massive user-generated universes,
10:18occasionally stumbling, yes, but occasionally innovating too.
10:21YouTube famously battled copyright claims, demonetization,
10:24and controversies around inappropriate content.
10:27Roblox faces similar struggles with in-game safety,
10:29chat moderation, and keeping its ecosystem healthy.
10:32The attorney general filed a lawsuit against Roblox,
10:36accusing the online platform of failing to protect kids from predators.
10:40It created, curated, and perpetuated an online environment
10:47where child sex predators thrive, unite, hunt, and victimize kids.
10:54These challenges are signs of real growth.
10:56They prove the platforms are so essential to culture and creativity
10:59that bad actors show up.
11:00Like YouTube, Roblox is investing heavily in safety,
11:03trust, and content curation,
11:05knowing these problems are what separate potential from future dominance.
11:09You know, I think what we're always trying to do
11:11is have products that are age and developmentally appropriate for our users.
11:15So in this case, if you're calling your friend
11:17that you know in real life a butthead,
11:19and they know that you're joking,
11:20but you've done that through facial age estimation and trusted connections,
11:23then we don't really think there's a safety risk there, right?
11:26Whereas if you're calling someone in a game server a butthead,
11:29maybe that's a bullying issue or a harassment issue.
11:31From piracy to brand safety controversies,
11:33both companies have had to wrestle with the challenges that come with open platforms.
11:37And like YouTube, Roblox has faced skepticism that it's just a fad.
11:41Spoiler, it's not.
11:42Games like this are not helping.
11:45They are the problem.
11:49Well, the attorney general is urging parents to stay involved
11:52in what their kids are doing online.
11:54And if something seems off, report it to police.
11:57Number 3. Silicon Valley Neighbors.
12:00Geography matters more than you'd think.
12:02YouTube was founded in San Bruno.
12:04Roblox? San Mateo.
12:06Just a 15-minute drive apart.
12:08Call it a coincidence or call it the birthplace of two digital revolutions.
12:12Both YouTube and Roblox call California's Silicon Valley home,
12:15sitting amid endless VC money, top-tier tech talent,
12:18and a vibrant culture of startups that aim to change the world.
12:21The same innovative and risk-tolerant environment
12:23that nurtured YouTube through its explosive growth
12:25and Google acquisition is fueling Roblox today.
12:29With access to the latest tech breakthroughs,
12:31close ties to other digital giants,
12:32and an endless pipeline of entrepreneurial minds,
12:35it's no wonder Roblox is channeling YouTube's meteoric rise.
12:38We work continuously to get the platform closer to our ultimate vision.
12:43We soon allowed our players to begin outfitting their avatars
12:46with shirts, body colors, faces, hair, head shapes, and more.
12:51This is a huge hit for our players, to say the least.
12:54Number two, building on user-generated content.
12:57Imagine a place where everyone has to follow a similar set of rules.
13:03Everything's as fair as possible.
13:05That's definitely not the real world.
13:08But in a game, that's kind of what you want.
13:11Growing up, I always wanted to make a video game.
13:17Arguably the biggest link between these two powerhouses
13:20is their unwavering faith in user-generated content.
13:23YouTube democratized video creation,
13:25giving rise to everything from viral shorts
13:27to fully-fledged series and independent journalism,
13:30all completely crowd-sourced.
13:31Roblox does the same, but for interactive experiences,
13:34letting anyone become a creator, game designer,
13:37or entrepreneur with minimal barriers to entry.
13:40And we recently hit all-time highs,
13:42not just for Roblox, but for gaming around the world as a whole.
13:46A few weeks ago, Grow a Garden had over 20 million people
13:50playing at the same time,
13:52which makes its way into the Guinness Book of World Record.
13:54The results are mind-blowing.
13:56Millions of games and worlds as varied as their creators' imaginations.
14:00This content model creates not just consumer engagement,
14:03but true community ownership and platform loyalty,
14:05exactly the secret ingredient
14:07that turned YouTube into a cultural juggernaut.
14:10Our vision was to make something
14:12that really wasn't on Roblox just yet.
14:16Emergency Response is an authentic police role-play game.
14:20You wanted players to choose
14:22how realistic they would like to play.
14:24They could customize the car to be their own town,
14:27their own state.
14:28They could use similar tools and gear.
14:30Before we continue,
14:32be sure to subscribe to our channel
14:33and ring the bell to get notified about our latest videos.
14:37You have the option to be notified
14:38for occasional videos or all of them.
14:40If you're on your phone,
14:41make sure to go into your settings
14:43and switch on notifications.
14:47But when Roblox first launched in 2006,
14:52the gaming platform had struggled to find its footing.
14:55It really started to capture a big audience
14:57in the last few years
14:59as there were more devices out there
15:03that were specifically for kids
15:05or that were very kid-friendly.
15:06Finally, let's remember,
15:08neither YouTube nor Roblox was an overnight hit.
15:10In fact, Roblox predates YouTube by a year,
15:13launching in 2004.
15:14Both were dismissed as weird or fringe at first.
15:18YouTube was the home of low-res, shaky cam videos,
15:20amateur vlogs, and out-there experiments.
15:22Roblox was often derided as Lego for computers
15:25or a crummy alternative to mainstream video games.
15:28Roblox is a social game.
15:31So if you sign on and you start playing
15:33and you realize that there are all these characters
15:35in these games,
15:36behind these characters are people,
15:37but you don't know any of them,
15:38you realize, well, this would be more enjoyable
15:40if I invited my friends.
15:41It becomes sort of a social and invite game.
15:43And so one new addition to Roblox
15:46can mean three or four new people down the line.
15:49But out of that weirdness grew innovation.
15:51Both platforms became safe spaces
15:53for experimentation, creativity, and connection.
15:56That willingness to be strange, to embrace the weird,
15:59is what let ordinary people make something extraordinary.
16:02And as history has shown us,
16:03sometimes the weirdest ideas end up changing the world.
16:07Developers make money from the amount of Robux
16:09used in their games
16:10and the engagement time of premium users.
16:13Roblox takes 30% of those profits.
16:15As of July, 2020,
16:18more than 345,000 developers
16:20are monetized on the platform.
16:22Do you think Roblox will become the next YouTube?
16:25Or is the internet only big enough for one king?
16:27Sound off in the comments below.
16:29Kim built a first-person shooter.
16:32They also built
16:33a medieval fortress,
16:34yacht racing game,
16:35urban deathmatch,
16:36cursed graveyard,
16:37tall ship,
16:38tower defense,
16:38starfighter,
16:39coaster,
16:39railgun,
16:40dump truck,
16:40RTS,
16:41wingsuit,
16:41RPG,
16:42tank,
16:42killer robot.
16:43Roblox.
16:44What will you build?