With YouTube’s current battle with Tiktok for the market of vertical videos, the company is about to add a new feature that might make them come out of this battle. They’re getting ready to add monetization, which will be heavily implemented for shorts, YouTube’s vertical short form format, it is reassuring that the new feature will help shorts creators make money.
Shorts will join the YouTube Partner Program in early 2023, making it possible for creators who meet the requirements to begin receiving a portion of the revenue earned by Shorts’ advertising. Additionally, YouTube is making it simpler for creators who don’t meet program requirements to profit from tips, subscriptions, and merchandise sales. The end goal is to provide creators with more and better revenue opportunities than TikTok in an effort to attract and keep some of the creators who are now going to YouTube’s competitors.
The announcement comes a year after YouTube’s chief product officer Neal Mohan announced a “long-term monetization effort” and approximately 18 months after Shorts’ first introduction. The popularity of shorts seems to be rising quickly, according to Amjad Hanif, vice president of creative products at YouTube. The feature receives 30 billion daily views and 1.5 billion people are watching them. Although it hasn’t quite reached TikTok’s level of attention, Shorts frequently feels like a TikTok clone. However, YouTube generates more income than TikTok does.
Up until this point purchases, and tips were the main ways that YouTube monetized shorts. Many creators believe those methods are insufficient, and they are identical to how TikTok and Instagram monetize their own vertical videos. On the Decoder podcast, Hank Green summed up creator funds by saying, “I despise them,” to Nilay Patel of The Verge.
Green and YouTube creators advocate for the traditional YouTube monetization model, in which creators receive 55% of all revenue produced by their videos while YouTube retains 45%. Many creators have made a living off of YouTube thanks to that revenue split, and despite some complaints about the site, it has generally worked. According to Green, “YouTube’s monetization product launch for shorts has to be soon.”
However, shorts aren’t exactly getting the whole YouTube deal. The site is switching the split of its earnings, keeping 55% for itself and giving creators 45%. Hanif explains that a portion of the additional funds will be utilized to cover the cost of the music used on the platform so that creators can use anything in the collection without worrying about licensing issues. In either case, YouTube believes that it offers producers a better bargain than they would get anywhere else.
Additionally, YouTube is attempting to make it simpler for creators to make money on shorts, particularly those who haven’t yet reached the requirements to join its Partner Program, which includes 1,000 subscribers and either 10 million short views in the previous 90 days or 4,000 longform watch hours overall. The company is launching a new tier that will allow creators to access features like the Super Thanks tipping option and paid channel memberships without taking part in the ad program.
Hanif won’t disclose the precise qualifications for that tier, only that they would be significantly less strict than the current ones. As a result, he says, “many creators who have waited a little bit longer to join the program will be able to join considerably earlier and start getting paid much sooner than they were in the past.”
The ad model for conventional YouTube videos, or what Hanif refers to as “longform YouTube,” is quite simple. Users watch an ad before or during a video after clicking on it, and the makers of the video receive a portion of the money made from that ad view. Who created that ad and who gets the money is beyond dispute.
Written By Lance Santoyo
Edited by Sheena Robertson
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