YouTube will share revenue with Shorts creators as TikTok surges

YouTube’s chief product officer, Neal Mohan, left, with YouTube stars Cassey Ho, center, and iJustine, front second right, at Nasdaq on May 5, 2016.

Rommel Demano | beautiful pictures

As YouTube tries to beat TikTok in the short video market, Google-the company with the ownership says it will begin transferring a larger portion of ad revenue to popular creators.

Neal Mohan, YouTube’s product manager, said Tuesday at the annual event for creators “Made on YouTube“, Starting next year, the company will pay a portion of the revenue from Shorts, distributed based on the videos that receive the most views.

“This is the first time that a real revenue share has been offered for short-term video on a large scale,” said Mohan.

The lucrative opportunity for Short Shorts creators remains unclear, as YouTube is providing limited information about payments. YouTube says it will lump together ad revenue from Shorts every month. Of that amount, an undisclosed percentage is allocated to the creator and YouTube will pay them 45% of that amount.

Popular creators have long been able to make money on YouTube’s main site by running ads in their videos and keeping a share of the revenue. Google launched the YouTube Partner Program (YPP) in 2007 to allow that to happen.

So far, the only way to make money in Shorts is through $100 million Shorts Fund was launched last year.

“Starting early 2023, creators with a focus on Shorts can apply for the YouTube Partner Program by meeting the threshold of 1,000 subscribers and 10 million Shorts views in 90 days,” YouTube said. in one blog post on Tuesday.

“We started with the Short-Term Fund as a first step, but the creator fund couldn’t keep up with the incredible growth we’re seeing in short-form video,” said Mohan.

What is ByteDance?

YouTube is feeling pressure from TikTok, which is gaining market share by providing an outlet for people to create viral short videos with music. In the second quarter, YouTube saw its slowest quarterly revenue growth since Alphabet started breaking sales of its video unit in the second quarter. 4th quarter of 2019. Company says it is testing monetization models for Shorts, Chief Financial Officer Ruth Porat speak Previously YouTube was challenged by change in consumer behavior favoring short videos.

In the new revenue sharing model on Shorts, creators will receive the same amount regardless of whether their video includes copyrighted music or not. This requires YouTube to pay a licensing fee.

“This allows us to remove all the traditional hassles associated with music licensing,” says Mohan.

YouTube video creators regularly earn 55% of their revenue from ads that play before or during their videos. In Shorts, ads are not attached to specific videos but run between videos and in the Profile feed.

Mohan said Shorts has 30 billion daily views and 1.5 billion logged-in viewers per month, which is unchanged from the number the company shared in April.

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