YouTube Will Start Sharing Ad Revenue With Popular Creators

YouTube by Google by Alexander Shatov Via Unsplash
YouTube by Google by Alexander Shatov Via Unsplash

YouTube is still trying to catch up to TikTok in the short-video market, the Google-owned streaming platform says it will start handing over a more significant margin of advertising revenue to popular creators.

Neal Mohan, chief product officer for YouTube, said on Tuesday at the annual creator event “Made on YouTube,” that starting next year, YouTube will pay a portion of revenue from Shorts, distributed based on the videos that get the most views.

“This is the first time real revenue sharing is being offered for short-term video at scale,” Mohan said.

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YouTube said that every month it will pool together ad revenue from Shorts. Of that sum, an undisclosed percentage is allocated to creators, 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 portion of the revenue thanks to the 2007’s YouTube Partner Program (YPP).

Until now, the only way to make money in Shorts was through a $100 million Shorts Fund that was launched last year.

“Starting in early 2023, Shorts-focused creators can apply to YPP by meeting a threshold of 1,000 subscribers and 10M Shorts views over 90 days,” YouTube said in a blog post on Tuesday.

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

In the new revenue-sharing model on Shorts, creators will receive the same amount of money regardless of whether their videos include copyrighted music, which requires YouTube to pay licensing fees.

“This lets us remove all the traditional complexities involved with music licensing,” Mohan said.

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