YouTube brings revenue sharing for Shorts, new ‘Creator Music’ to make licensing easier

YouTube brings revenue sharing to Shorts, new ‘Creator Music’ that makes licensing easier

YouTube has announced a series of features aimed at attracting the next generation of creators and removing friction when it comes to monetizing the platform — specifically for those who post short videos. The announcement comes as YouTube faces increasing challenges from the growth and popularity of TikTok, particularly in the US market. YouTube will bring revenue sharing to the Shorts format by expanding its YouTube Partner Program (YPP) to these creators as well. In addition, a new Creator Music feature is planned, designed to make it easier to navigate the challenges of music licensing for content creators on the platform as a whole.

“We’re introducing the next chapter in how we reward creativity on our platform through the YouTube Partner Program. Beginning next year, authors who reach 10 million views of their Shorts within 90 days can apply for the partnership. They will receive all the benefits of YPP, including revenue sharing and the various ways creators can make money on our platform,” Neal Mohan, YouTube’s chief product officer, said at a special event held at the company’s Los Angeles office.

YouTube emphasized that ads on short videos work in a different way than on traditional longer videos – there is no dedicated ad before each short video. (Express photo)

“This is the first time that true revenue sharing has been offered for short videos on any platform at scale. Shorts ads are different from long forms. They are not attached to specific videos, but run between videos in the Shorts feed. So every month the revenue from all those Shorts ads will be pooled together and that payout will go to the creators of the Shorts and also cover the music licensing costs,” he added.

YouTube emphasized that ads on short videos work in a different way than on traditional longer videos – there is no dedicated ad before each short video. Instead, ads appear in the feed. Pooled revenue from these ads will be split between the creators, who will keep 45 percent of the revenue. Revenue is still decided based on the views a video gets. The revenue share remains the same even if they use music, according to the company.

It also means that YouTube is ending its creator fund, which helped monetize some of the creators of short videos. YouTube executives said the fund — which had a cap — can’t keep up with the growth it’s seeing in the short video. YouTube Shorts has over 30 billion monthly views from 1.5 billion logged in users, the company said.

(Image credit: YouTube)

The Shorts revenue-sharing program will begin rolling out in early 2023, though YouTube hasn’t specified which countries will get it first. It should be noted that YouTube Shorts was first launched in India in September 2020.

As for Creator Music, it will be a new destination for creators to find the songs they want to use in their videos. The feature will launch as a beta in the US this fall and roll out globally later. YouTube did not specify the catalog of songs, and it is precisely in this matter that it cooperates with selected independent publishers.

Creators will be able to browse through a growing catalog of songs and choose from a few simple options. They will have the option to buy a music license or go with the revenue sharing option. Right now, using music from record companies presents a number of challenges for many creators and the fear of penalties for copyright infringement. YouTube hopes its solution can help solve some of these.

“They can use these songs and still make money without having to worry about the financial sacrifice. Creators will also be able to choose from a revenue sharing option that allows creators and music rights holders to earn money from their content. This means that creators will split a portion of their revenue with artists and songwriters. Creators will gain access to an even larger catalog of popular music and face zero upfront costs,” explained Amjad Hanif, VP of Product Management, YouTube Creator Products, during the announcement.

When asked if the announcements mean YouTube will focus more on shorts, Tara Walpert Levy, vice president of the Americas overseeing YouTube’s content partnerships, emphasized that nothing is changing when it comes to the importance of long-form content.

“We wanted to make sure we could continue to be a one-stop shop for creators. We are also dedicated to all formats that help creators express themselves. We felt it was incredibly important to bring true revenue sharing to Shorts because it offers equal access to all creators,” she said. “We believe you should be able to make a living from any format,” she emphasized.


I am Sanjit Gupta. I have completed my BMS then MMS both in marketing. I even did a diploma in computer software and Digital Marketing.

Articles: 4745

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