[Asia Economy Reporter Jeong Hyunjin] YouTube and TikTok, which are fiercely competing over the short video service 'Shorts' under 60 seconds, are now clashing over creator revenue sharing. Starting June 1 (local time), YouTube will include creators who make Shorts videos in its existing monetization program, the YouTube Partner Program, and share a portion of ad revenue with them.
Although TikTok began sharing revenue first in May last year, it is reported that creators with over 100,000 followers are receiving less than $5 (about 6,100 KRW) in earnings, causing them to consider switching to YouTube.
◆ "Capture Young Users" YouTube Moves to Secure Content
From June 1, YouTube will include Shorts creators in the existing monetization program, the YouTube Partner Program. According to U.S. IT media TechCrunch and others, the eligibility criteria for revenue sharing, announced by YouTube in September last year, require creators to have at least 1,000 subscribers and over 10 million Shorts views within 90 days. Creators who meet these criteria must agree to the YouTube Partner Program terms by July 10 to be eligible.
Monthly ad revenue generated between YouTube Shorts videos is aggregated, and after deducting music copyright fees, the remaining revenue is shared. Revenue is distributed based on the proportion of total views that the creator's videos account for. Creators receive 45% of the allocated total amount. At the time of the announcement, YouTube emphasized, "The success of creators is the success of YouTube."
YouTube is offering more monetization opportunities to Shorts creators because younger users are consuming more short videos. According to a report by mobile analytics firm data.ai, cited by U.S. online media Axios, the global usage time of user-generated content streaming services like TikTok and YouTube reached 3.1 billion hours last year. Axios analyzed that "the increase in teenage users is mostly directed toward short video applications."
Until now, YouTube has helped create high-income 'internet superstars' by distributing a relatively high share of 55% of revenue to creators of long-form video content, according to Fortune. For example, MrBeast, the highest-earning creator last year with $110 million in revenue according to Forbes, falls into this category.
◆ "Dissatisfied with TikTok's Low Compensation... May Switch to Shorts"
This new YouTube policy is attracting attention because it is expected that creators might switch platforms from TikTok to YouTube Shorts for uploading original content.
Since TikTok and YouTube Shorts offer very similar short video services of 60 seconds, creators find it advantageous to post on the platform that shares more revenue. TechCrunch recently reported, "YouTube Shorts is ready to become TikTok's biggest competitor," adding, "If YouTube Shorts pays creators more than TikTok, they will want to upload original content on YouTube's platform."
TikTok started revenue sharing earlier than YouTube but is evaluated as having failed to win creators' hearts. Last May, TikTok announced 'TikTok Pulse,' a creator revenue sharing program, promising to provide compensation that creators would find valuable.
However, Fortune reported on May 24 that after interviewing seven TikTok influencers with over 100,000 followers, none had received more than $5 in revenue from TikTok. The revenue sharing conditions require creators to have over 100,000 followers, belong to specific categories such as cooking, fashion, or beauty, and have videos in the top 4% based on views and other factors, resulting in limited eligible content and revenue.
Sabrina Johar, a creator who started on TikTok last year and has 132,000 followers, told Fortune in an interview, "If I receive nothing, I really need to find a job, so I can't keep posting valuable information," and said she plans to focus on both TikTok and YouTube Shorts.
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