YouTube canceled its top star’s show on Tuesday over his anti-Semitic jokes, complicating its efforts to court television advertisers while also retaining its edgy video stars.

YouTube, a unit of Alphabet Inc.’s Google, distanced itself from its most popular creator—27-year-old Felix Kjellberg, who goes by PewDiePie—after The Wall Street Journal reported he made anti-Semitic jokes or showed Nazi imagery in nine videos since August. Walt Disney Co., which helped run Mr. Kjellberg’s business, severed ties after the revelations.

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