Titled My Response, the 11-minute long video sees Kjellberg apologise for his comments while still blaming the media for how they covered the story.
"I'm sorry for the words that I used, as I know that they offended people," Kjellberg says. "And I admit that the joke went too far."
However, the apology does not come until four minutes into the video, which is mostly made of him bagging the media in a Trump-like way.
"I think most internet personalities will agree with me that the media generally doesn't like us very much," Kjellberg says near the start of the video. "Old school media does not like internet personalities because they are scared of us."
He goes on to pick apart the Wall Street Journal's argument, comparing it to British tabloid The Sun and slamming the newspaper for not calling his comments "jokes".
While many of his fans have leapt to his defence, citing him as a satirist and that the media is over-hyping the comments, several commentators say that this attitude is what leads to racist behaviour becoming socially acceptable.
"The alt-right doesn't dress too dissimilarly from hipsters working in PR, and baby-faced Kjellberg quips about Jews in the style of your little brother making fart jokes," wrote Kristy Major of The Independent.
"It makes discrimination against religious minorities appear socially acceptable, culturally passable, normal."
Neither YouTube nor Disney have released any comment on re-starting a relationship with the star.
