YouTube Announces Ad Revenue Sharing For Shorts Creators From February 1
YouTube just announced that they would start sharing advertising revenue with creators of Shorts, starting from February 1st, which entails a significant change in monetizing short-form content on the YouTube platform. This is a long-awaited move and is expected to greatly benefit content creators who focus on vertical short duration videos.
According to YouTube, the new
revenue-sharing model will be rolled out via a new YouTube Partner Program
(YPP) agreement. Creators will have to accept the new terms before February 1
to be eligible for making money from Shorts views through ad revenue.
New Monetization Opportunities for
Shorts Creators,
YouTube said creators have until July
10 to accept the updated Partner Program terms. As part of this update, the
platform is also introducing new "Monetization Modules" which will
give creators more flexibility in how they choose to earn money on YouTube.
While it is possible for creators to
choose specific modules, YouTube advises allowing them all to maximize the
earning potential possible across the site.
Eligibility Criteria for Shorts
Monetization
As previously announced, creators will
have to satisfy the following requirements to participate in the YouTube
Partner Program for Shorts monetization:
• At
least 1,000 subscribers
Examples of valid Shorts views include:
- Over 10 million Shorts valid views within a 90-day period
The Blacks do not 'short' unless they
first 'monetize' their positions.
Once approved, creators will be
eligible to share the ad revenue on their Shorts content.
End to the $100 Million Creator Fund
With the launch of Shorts revenue
sharing YouTube has confirmed that their $100 million Shorts Creator Fund will
cease to exist. However, the company believes that most creators will make more
money through sharing ad revenue than through the creator fund that was fixed.
This transition mirrors YouTube's
movement from a short-term system of achieving monetization similar to
traditional long form video revenue sharing, through a long term and scalable
system.
How does Shorts Revenue Sharing Work
The revenue-share model for Shorts is
more complicated because of music licensing costs.
Here’s how it works:
A number of ads will be served in
between Shorts videos in the Shorts Feed
Revenue from these ads will be put into
the monthly shared pool
• The
pool is used to pay:
o Music
licensing partners
o Eligible
Shorts creators
🎶 Effect of Music Use on Income
Company created 7 solutions: 1.
Aliasing: No music used: 100% of revenue goes to the creator pool
Return of sale = 1/3 music licensing +
2/3 revenue
Two licensed songs 2/3 of revenue goes
to licensing
After the deductions for license
payments, the remaining amount goes into the Creator Pool.
________________________________________
And how Creator earnings are calculated
(done with the help of books)
Once the Creator Pool is finalized
YouTube releases those earnings based on a creator's percentage of the total
Shorts views in their country.
For example:
For all years from 2016 onward, Spotify
introduced the following payments to songwriters and record holders: - 1/2 to
12/12: i. - 1/9 to 1/6: ii. - 1/8 to 1/4: iii. - 1/4 to 1/2: iv. - 1/2 to 3/4:
v. - 3/4 to the maximum: - If your Shorts represent 5% of eligible Shorts views
for your country for a given month, you earn 5% of the
YouTube then takes its 55% platform fee
leaving creators with 45% of the final amount.
💡 Example:
If your share in the Creator Pool is
worth $1,000, then you will receive $450 after YouTube's revenue cut.
________________________________________
A big leap forward for Shorts creators.
This update puts YouTube in direct
competition with the other short-form platforms, offering transparent and
performance-based earnings. For creators who tend to produce a lot of
engagement, Shorts monetization is now a serious income opportunity.
Industry experts believe this change
will lead to higher quality content, as well as creator growth on YouTube
Shorts in the long-term.
YouTube will start to share revenue
from ads with Shorts makers from February 1. Eligible creators meeting
subscriber and view thresholds to earn money by showing them ads in the Shorts
Feed. Revenue will be distributed through a common pool after music licensing
deductions as creators are to receive 45% of the earnings. The Shorts Creator
Fund will come to an end as YouTube will be shifting to this long-term way of
monetization.
Disclaimer
This article is published on the general
informational and educational purpose only. Monetization policies, eligibility
standards, percentage revenue, and timelines are subject to change based on
official YouTube's updates. The creators are encouraged to check out the most
recent information directly from YouTube's official Help Center and the
announcements made by the Partner Program. The publisher does not take any
responsibility for New Update, future modifications to the policy.
Post a Comment