[Asia Economy Reporter Jeong Hyunjin] YouTube, a video sharing service provider, has introduced advertisements to its short video service 'Shorts' and decided to pay 45% of the revenue to the creators. This move is interpreted as an effort to secure creators' income, attract users with high-quality content, and counter the rapidly growing Chinese video platform TikTok in the social networking service (SNS) market.
According to Bloomberg and others on the 20th (local time), YouTube held a 'Made on YouTube' event in Los Angeles, California, USA, and announced ways for creators to generate revenue through Shorts. Shorts is a short video service launched by YouTube in 2020 with 15-second videos in response to TikTok's rapid rise.
YouTube stated that with this announcement, it will introduce ads in Shorts and provide 45% of the revenue to creators. Ads will be placed between videos, and revenue will be distributed based on the proportion of views Shorts receive.
Additionally, Shorts creators will be allowed to join the existing monetization Partner Program (YPP). YPP is the first program that enabled creators to earn revenue from content since 2007. Currently, there are 2 million creators included in the program. Shorts creators can apply for membership if they achieve 1,000 subscribers and 10 million Shorts views within 90 days.
Neil Mohan, YouTube's Chief Product Officer, explained, "This is the first plan to fund short-form online videos," and added, "We hope YouTube becomes the place that provides the greatest support in the digital environment." He said, "Creators can participate whether they want to create the next big work or just need help covering costs."
YouTube's announcement is seen as a move to counter TikTok. The growth of TikTok has significantly shaken the SNS market once led by US IT companies. According to data.ai, a global mobile app market analysis site, the average monthly usage time per user of the YouTube app in the first quarter of this year (based on Android phones, excluding China) was 19.4 hours, trailing behind TikTok's 23.6 hours.
IT media TechCrunch reported, "TikTok has started experiments with revenue sharing for creators and advertisers, but the focus is more on advertisers than creators, and only the top 4% of creators can earn money through the TikTok Pulse program," adding, "If creators can earn more money on Shorts than on TikTok, they will produce original content on the YouTube platform."
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