On February 1, YouTube will start paying producers of Shorts a portion of the advertising income, the company announced on Monday. YouTube is beginning to push out new terms for all producers in the YouTube Partner Program in order to get ready for the impending transition. Creators who choose to continue in the program must accept the new conditions by July 10th.
Creators will be able to make money from adverts that are seen in-between videos in the Shorts Feed thanks to the significant update to YouTube’s Partner Program. The YouTube Shorts Fund will be replaced by the new revenue sharing model, although according to the business, most of the recipients of the Shorts Fund would make more money under the new scheme. As previously announced, creators who fulfill the new Shorts-specific requirements of 1,000 subscribers and 10 million Shorts views over a 90-day period are eligible to apply to the program.
Creators are required to agree to particular monetization modules as part of the new agreements. The “Watch Page Monetization Module” is the first module, and it enables producers to monetize their long-form videos and YouTube Premium content with advertising. The next module, dubbed “Shorts Monetization Module,” enables you to monetize your channel by running adverts between YouTube Premium and Shorts in the Shorts Feed. The “Commerce Product Addendum,” the final module, is for features like Channel Memberships and Supers.
To maximize their earnings on the platform, YouTube advises authors to accept all of the modules. Beginning next month, creators who produce Shorts and have embraced the new Shorts Monetization Module will be eligible for revenue sharing on their Shorts views from Shorts advertisements.
Due of music licensing, the specifics of the Shorts income share are a little complicated. The combined monthly earnings from the adverts that run in between the Shorts will be used to pay the makers of the Shorts and pay for music licensing. According on views and music usage across all watched Shorts, a share of the overall earnings will be distributed to the creative pool. All of the money associated with views of a Short uploaded without music goes to the creator pool. In the event that a creator uploads a Short that includes music, the Creator Pool and the music partners will divide the revenue from views of the Short according to the number of tracks used.
The creator pool is then distributed among the makers. According to YouTube, money will be distributed to monetized Shorts creators based on their proportion of all Shorts views in the Creator Pool. A creator will receive 5% of the money in the creator pool if they received 5% of the eligible views out of all the Shorts uploaded by monetizing creators. 45% of the revenue allotted to creators for shorts will go to them. For instance, a creator who receives $1,000 from the pool of creators will receive $450.
The fact that non-original Shorts are not qualified for revenue sharing should be noted. Shorts that use unedited film or television clips, footage that has been reposted on YouTube or another platform, compilations without any original material, or any of these things are considered non-original. Additionally unsuitable for income sharing are shorts that receive fictitious or artificial views, such as click or scroll bots that operate automatically.
With these planned modifications, YouTube Shorts will likely overtake TikTok as its main rival. Creators are encouraged to produce original material for the YouTube platform if they can earn more money through YouTube Shorts than via TikTok. Up until this point, no short-form video platform has completely figured out how to split ad income, giving Shorts a sizable advantage over the competition.