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The report comes just after YouTube confirmed it was removing Logan Paul from the Google Preferred group, which could reportedly slash his ad revenue by 50 percent. But following public outcry, Youtube removed Paul's videos from Google Preferred and placed Paul's subscription projects "on hold".

Paul, who originally rose to internet fame on Twitter's now-defunct Vine, currently has about 15.7 million subscribers for his YouTube channel, 16.6 million followers on Facebook, 16.2 million on Instagram, and 4.1 million on Twitter.

YouTube's staff recently released a post in which conveys its apology for Logan Paul's controversial Japanese suicide forest video.

"While parents have a responsibility to take care of their children, we can't be everywhere at once", she said.

The new approach will be applied to videos that are part of Google Preferred, a set of popular YouTube channels Google sells to advertisers at a higher prices, these people said. YouTube also gave his channel a strike (3 strikes in a 3-month period means YouTube could terminate the account).

Paul has neither uploaded new content nor addressed YouTube's decision to cut ties with him as of yet.

The video has since been removed from YouTube but Paul and his friends filmed the body, included it in the vlog, and make insensitive comments and jokes.

The backlash was immediate and fierce, and resulted in Paul pulling the video and issuing an apology.

A spokesperson for YouTube tells The Verge and Polygon that "we built Google Preferred to help our customers easily reach YouTube's most passionate audiences and we've seen strong traction in the past year with a record number of brands".

YouTube concluded its statement by admitting it had taken a long time to respond to the issue. It wrote, "We'll have more to share soon on steps we're taking to ensure a video like this is never circulated again". She noted: "That body was a person someone loved".

One theme I've heard when I talk to those people: This ultra-premium version of YouTube is likely to favor big, established media companies instead of the home-grown YouTube stars like Logan Paul.

"We expect more of the creators who build their community on @YouTube, as we're sure you do too". Google says Paul violated its Community Guidelines by posting his tasteless video.