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YouTube Challenges TikTok By Offering Creators Of Short Films 45% Of All Ad Revenue

YouTube Challenges TikTok By Offering Creators Of Short Films 45% Of All Ad Revenue
As TikTok's market share grows, YouTube unveiled a new way for creators to monetize short-form video.
The streaming service, which is owned by Google, revealed on Tuesday that it would start running ads on its video feature Shorts and give video producers 45 per cent of the money. This contrasts with TikTok's $1 billion fund for paying creators and its standard distribution of 55 per cent for videos other than Shorts.
Kris Collins, a former hairstylist who now runs the YouTube channel Kallmekris, praised YouTube for allowing 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 most popular video platform on the internet has had difficulty competing with TikTok, an app that began by hosting dance and lip-sync videos before ballooning to 1 billion monthly users.
In response, YouTube released Shorts in late 2020, minute-long videos that draw more than 1.5 billion monthly viewers.
In an effort to retain talent, YouTube established a $100 million fund in April to encourage creators to produce the short videos. The New York Times broke the news of the new revenue-sharing plan, which is intended to be a bigger and more enduring lure than the fund and something TikTok hasn't yet been able to match.
According to Vice President Tara Walpert Levy, YouTube is distributing a smaller percentage of profits to Shorts creators in order to balance out the significant investment it made in creating the feature.
In the first half of this year, Google made $14.2 billion from YouTube ad sales, an increase of 9 per cent from the corresponding period in 2021.
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 factors.

Christopher J. Mitchell

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