In the most recent months, the competition between TikTok and YouTube Shorts has intensified considerably, since many users and creators have started using TikTok. YouTube has developed a new approach for creators to make money on short-form videos, as it faces intensifying competition from TikTok.
Google’s streaming service said on Tuesday that it will give creators of the platform 45 percent of the total revenue generated from its video feature – Shorts.
At the annual creator meeting “Made on YouTube,” YouTube chief product officer Neal Mohan announced on Tuesday that starting next year, the business will pay a share of the revenue from Shorts, which will be allocated according to the videos with the most views.
“This is the first time real revenue sharing is being offered for short-term video at scale,” Mohan said.
Earlier this year, YouTube introduced a $100 million fund for creators who will be making videos on the Shorts feature. The additional 45 percent share is an addition to the current arrangement.
According to the New York Times, YouTube’s ad revenue increased by almost 9% in the previous year, and the official total was close to $14.2 billion.
“YouTube is sharing a smaller proportion of sales with Shorts creators to offset its significant investment in developing the feature”, Vice President Tara Walpert Levy said.
However, since the data’s disclosure started three years ago, the most recent quarterly ad sales showed the slowest growth. Financial analysts have stated that TikTok is a factor in addition to global economic considerations.