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Tuesday, January 31, 2023

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YouTube To Share 45% Of Its Shorts Revenue With Content Creators

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YouTube, governed by Google, has decided to allot large shares of advertising profit to popular content creators. The announcement was made made on Tuesday by YouTube’s chief product officer Neal Mohan at the annual creator event “Made on YouTube”. The initiative aims to come to par at Tik-Tok in the short-video industry. According to Mohan, from 2019 onwards, the company shall begin paying the creators a share of the revenue from Shorts, in accordance with the films with the most views. Mohan expressed that this is the first time that short-form content has been given a share of income.

As of now, the profitability of the share that will be given to the Shorts creators is blurry on account of YouTube’s lack of transparency, in terms of granting rewards. YouTube will combine the earnings of Shorts’ ad for every month and pay the creators 45% of the confidential proportion of the assigned total.

Popularly followed creators for a long time had an advantage of monetizing their content on YouTube’s main site that includes advertisements and having a share of the proceeds. In 2007, Google launched YouTube Partner Program (YPP) for this purpose. The only method of profit from short positions was the $100 million Shorts Fund that was established last year.

TikTok, recently, has been making high profits long before YouTube in the market, giving its users a platform to create and post short music videos. Alphabet unveiled the video unit’s sales in the fourth quarter of 2019, YouTube was progressing slowly in the quarterly revenue growth in the second quarter of the year financially.

CFO of Alphabet, Ruth Porat, said that YouTube faced challenges due to the shift in customer behavior in short videos and the company is testing different payment schemes for Shorts.

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