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The
Google-owned streaming service announced Tuesday that it would
introduce advertising on its video feature Shorts and give video
creators 45% of the revenue. That compares with its standard
distribution of 55% for videos outside of Shorts, and TikTok's
$1 billion fund for paying creators.
Hairstylist-turned-YouTube-creator Kris Collins, who goes by
Kallmekris, lauded YouTube for offering revenue-sharing for
Shorts.
"Other platforms are focused on getting people their 15 seconds
of fame, which is great," she said. "But YouTube is taking a
different approach. They're helping creators make stuff in
multiple formats."
The internet's dominant video site has struggled to compete with
TikTok, the app that got its start hosting lip-sync and dance
videos and has subsequently burgeoned to 1 billion monthly
users.
YouTube responded in late 2020 with Shorts, minute-long videos
that attract more than 1.5 billion monthly viewers.
In April, YouTube created a $100 million fund to entice creators
to make the bite-sized videos in its bid to hang onto talent.
The new revenue-sharing plan, first reported by the New York
Times, is meant to be a bigger and more sustainable lure than
the fund and something TikTok has yet to match.
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.
Google generated $14.2 billion in YouTube ad sales during the
first half of this year, up 9% from the same period in 2021.
But the most recent quarterly ad sales reflected the slowest
growth since disclosure of that data began three years ago.
Though global economic factors are at play, financial analysts
have said TikTok also is a factor.
(Reporting by Dawn Chmielewski; Additional reporting by Paresh
Dave; Editing by Lisa Shumaker)
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