A new YouTube shorts monetisation programme went live on February 1, 2023, as part of a bid to lure creators and viewers to the platform and away from competition TikTok. The scheme is based on a new revenue share model because adverts are inserted as users scroll through the short-form videos from a range of channels. On the classic version of YouTube with longer videos adverts are shown at the beginning, end and middle of individual videos.
Shorts creators will now receive 45% of revenue generated via the platform, as opposed the 55% on the longer videos. There are also deductions for music licensing. To receive ad income, they must have at least 1000 subscribers and hit various viewing criteria too. Previously, creators had been paid out of a $100mn fund, limiting what they could earn.
Explaining the new scheme, Nicky Rettke, vice-president of product management at YouTube, told the Financial Times that the shorter, vertical videos on Shorts were drawing in a younger viewership. “We have seen more viewer growth with Shorts, and that creates more inventory for us and more opportunity for advertisers,” she said.
The growth of YouTube Shorts is interesting given the growing political pressure on TikTok in the US, Europe and elsewhere due to its parent company’s connections to Chinese authorities. (That FT article notes it has already been banned in India.) Moving to Shorts, or at least posting content both there and on TikTok, is probably a wise move from creators who do not want to be left exposed if there are further sanctions against TikTok. Adam Tinworth discussed this issue in a recent episode of “The Addition Podcast.”