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Youtube to pay video creators 45% ads revenue

Youtube to pay video creators 45% ads revenue

Google-owned video-sharing platform, Youtube, will begin paying popular creators of short videos 45 per cent of advertising revenue.

According to CNBC, Youtube chief product officer, Neal Mohan. said this during the company’s annual creator event “Made on Youtube”.

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

The move is coming after Youtube discovered that Tiktok is gaining the market by providing an outlet for people to make short viral videos with music.

Youtube did not disclose how it arrived at the 45 per cent share for Short video creators, it however said the shared ads revenue between the creators and the company will be monthly.

Google’s YouTube Partner Program launched in 2007 was the only way popular creators on the platform could make money by running ads in their videos and keeping a portion of the revenue.

Until now, the only way to make money in Shorts was through a $100 million Shorts Fund that was launched in 2021.

“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.

Regular YouTube video creators earn 55% of revenue from ads that play before or during their videos. In Shorts, ads aren’t attached to specific videos but run in between videos and in Shorts feeds.

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.

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