UNITED STATES: In response to TikTok’s growing competition, YouTube has introduced a new mechanism for producers to monetize the short-form video.
On its video feature Shorts, the Google-owned streaming service said on Tuesday that it would start running ads and reward video producers with 45% of the proceeds. TikTok’s $1 billion fund for rewarding creators’ contrasts with its regular payout of 55% for videos that aren’t Shorts.
The YouTube creator Kris Collins, a former hairstylist who goes by Kallmekris, praised YouTube for allowing revenue-sharing for Shorts.
Other platforms are concentrated on giving people their 15 seconds of fame, which is fantastic. “YouTube, though, is employing a different strategy. They assist creators in producing content for many formats.”
The most popular video platform on the internet has had difficulty competing with TikTok. This app began by offering dance and lip-sync videos before ballooning to 1 billion monthly users. In response, YouTube released Shorts in late 2020, minute-long videos that get more than 1.5 billion monthly users.
To retain talent, YouTube established a $100 million fund in April to encourage creators to produce short videos. Various sources broke the news of the new revenue-sharing plan, which is intended to be a greater and more enduring enticement than the fund and something TikTok hasn’t yet been able to match.
According to Vice President Tara Walpert Levy, YouTube distributes a smaller percentage of profits to Shorts creators to balance out the large investment it made in creating the service. During the first half of this year, YouTube ad sales at Google reached $14.2 billion, an increase of 9% from the same period in 2021.
However, the most recent quarterly ad sales showed the weakest growth since the data’s disclosure started three years ago. Financial analysts claim TikTok is a factor, in addition to the global economic ones that are at work.