YouTube unveiled a new way for creators to earn money from short-form videos as competition from Chinese short-form video hosting service TikTok intensifies.
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| YouTube Shorts. Photo: variety |
On Tuesday, the google-owned streaming platform announced that it would introduce advertising on its video feature Shorts and pay video creators 45% of the revenue.
That compares with its standard 55% distribution for videos outside of Shorts, and TikTok’s $1bn fund for the payment of creators.
YouTube has hustled to compete with TikTok, the app that got its start hosting lip-sync and dance videos, and has shockingly grown to one billion monthly users.
Towards the end of 2020, YouTube responded with Shorts, minute-long videos that pull more than 1.5 billion monthly viewers.
According to Reuters:
In April, YouTube created a $100 million fund to entice creators to make the bite-sized videos in its bid to hang onto talents. The new revenue-sharing plan, first reported by New York Times, is meant to be a bigger and more sustainable lure than the fund and something TikTok has yet to match.
Google generated $14.2 billion in YouTube and sales during the first half of this year, up 9% from the same period in 2021.
YouTube intends to share a smaller proportion of sales with creators of Shorts to offset its huge investment in developing the feature, said Tara Walpert Levy, YouTube Vice President of Americas.
The most recent quarterly ad sales, however, showed the slowest growth since disclosure of the data started three years ago. Though, global economic factors could be blamed for this.
