YouTube to reward Shorts creators with share of ad revenue

YouTube Shorts has amassed over 30 billion daily views, 1.5 billion monthly logged-in users

YouTube unveiled a new way for users who create content through its Shorts video platform to make money.

Beginning in early 2023, current and future Shorts creators who apply to YouTube's Partner Program (YPP) will be eligible for ad revenue sharing. 

"In Shorts, ads run between videos in the Shorts Feed. So, every month, revenue from these ads will be added together and used to reward Shorts creators and help cover costs of music licensing," Amjad Hanif, YouTube's vice president of creator products, said in a blog post on Tuesday. "From the overall amount allocated to creators, they will keep 45% of the revenue, distributed based on their share of total Shorts views. The revenue share remains the same, no matter if they use music or not."

YouTube Partner Program chart

Shorts-focused creators can apply to YPP by meeting a threshold of 1,000 subscribers and 10 million Shorts views over 90 days. (Photo courtesy of YouTube) (YouTube)

Shorts-focused creators can apply to YPP by meeting a threshold of 1,000 subscribers and 10 million Shorts views over 90 days.

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Since its launch in September 2020, YouTube Shorts has amassed more than 30 billion daily views and 1.5 billion monthly logged-in users. Prior to Tuesday's announcement, Shorts creators made money through a $100 million YouTube Shorts Fund launched last year. 

YouTube Shorts vs TikTok

TikTok logo is seen displayed on a phone screen with YouTube Shorts logo in the background in this illustration photo taken on September 22, 2020 in Krakow, Poland. (Photo Illustration by Jakub Porzycki/NurPhoto via Getty Images) (Photo Illustration by Jakub Porzycki/NurPhoto via Getty Images / Getty Images)

The move comes in an effort to compete with TikTok, which surpassed 1 billion monthly active users globally last year. The Chinese-owned social video platform unveiled a $200 million creator fund in 2020, with plans to expand it to $1 billion in the U.S. over three years.  

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The YouTube Partner Program, which launched back in 2007, currently shares 55% of ad revenue with eligible creators who make long-form videos. Over the past three years, YPP has paid creators, artists and media companies over $50 billion.

Silhouettes of mobile device users are seen next to a screen projection of YouTube logo in this picture illustration taken March 28, 2018.(REUTERS/Dado Ruvic/Illustration) ((REUTERS/Dado Ruvic/Illustration) / Reuters Photos)

In the second quarter of 2022, Alphabet reported that ads on YouTube generated $7.34 billion in revenue.  

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In addition to expanding the YPP to Shorts creators, YouTube has launched a "Super Thanks for Shorts" tipping feature. The feature is in beta for thousands of creators with a complete rollout expected next year.