YouTube recently introduced a number of changes that are sure to take competition to TikTok as well as Instagram by making creators on the platform happy. It was two years ago that YouTube introduced Shorts in India and since its inception, the format has grown a community of more than 1.5b monthly logged-in users globally, generating 30 billion views per day, four times more than a year ago. What’s making YouTube Shorts a big success? Here’s what Ajay Vidyasagar, regional director, APAC, YouTube Partnerships, told us.
Now that Shorts is part of the YouTube Partner Programme, what kind of ad revenue can creators expect to generate, and do you think the move will bring in more creators to the platform?
We’ve always believed in sharing our success with creators. That’s why we launched the YouTube Partner Programme (YPP) all the way back in 2007. That meant that creators could, for the first time, share in the revenue and earn money from their content. But at that time, we only had one creative format: the traditional horizontal video. Today, creators are pushing the boundaries of video with new formats, from live to Shorts.
So, while nothing changes with our commitment to long form, we wanted to make sure that these new creative formats were also being rewarded. That’s why we’re opening the YouTube Partner Programme to Shorts creators and bringing revenue sharing to Shorts.
An example of YouTube Shorts. Picture: Google
We also want to support creators who are even earlier in their YouTube journey. A new level of YPP with lower requirements will offer earlier access to fan funding features like Super Thanks, Super Chat, Super Stickers and Channel Memberships. To reward creators across a range of formats, we’ll have paths for long-form, Shorts and Live creators to join this new tier in 2023.
Our revenue sharing business model for ads has always been tied to creator success: YouTube only succeeds when our creators do, and that is now true for Shorts creators too. We’re also launching Super Thanks for Shorts in beta to thousands of creators, with a complete rollout expected next year. Viewers can show their appreciation for their favorite Shorts, and creators can interact with their fans through purchased, highlighted Super Thanks comments.
We expect the majority of our Shorts Fund recipients to earn more money under this new model, which was built for long term sustainability. Instead of a fixed fund, we’re doubling down on the revenue sharing model that has supercharged the creator economy and enabled creators to benefit from the platform’s success. Revenue sharing on Shorts ads is yet another way for creators to make money — it adds to our full suite of products, which enabled us to pay creators, artists and media companies over $50b over the past three years.
Unlike the YouTube deal, the revenue sharing model for Shorts allows YouTube to keep 55 per cent revenue (instead of the usual 45 per cent). Any reason for keeping two different revenue models?
Shorts is a brand-new product, so we’ve had to come up with a new structure for it, just like we did for long-form or fan funding.
⚫ We built this model in a way that we can reward all Shorts YPP creators, not just those that happen to appear next to an ad.
⚫ The creation process is also different. We supply the creation tools, and have simplified the complexities of music licensing, given how critical music is to Shorts. The revenue share for Shorts is 45 per cent, whether or not music is used.
⚫ We’re making huge investments in Shorts, so this model was built for long term sustainability.
Why should an established creator put out Shorts instead of long videos? What’s in it for them?
Community, careers and creativity must be multiformat to meet the needs of the viewer. As YouTube introduces new products, we’ve seen the birth of a new trend unique to the platform: “The rise of the multiformat creator and artist.” Moving seamlessly between different video formats on YouTube — from Shorts, Longform and Live — these multiformat creators and artists create an infinite flow of content combinations to maximize their creativity, reach, community connection and revenue.
Every creator on YouTube has their own definition of success, whether it’s to express themselves creatively or build a pathway to fame and fortune. That’s why YouTube offers creators a range of video formats for them to use as they see fit — from VOD to Shorts to Live — all while earning money from multiple revenue streams.
This new generation of multiformat creators is taking full advantage of every format, tool and product at their disposal — from video formats to analytics. And, this is reflected in real results. Consider this: with the launch of Shorts, channels uploading both Shorts and long-form are seeing better overall watch time and subscriber growth relative to those only uploading long-form. We truly believe that multiformat creators on YouTube are leading the way for what’s next in the video industry.
What have been some of the high points for YouTube Shorts in India?
Not just entertainment, Shorts are transforming the way we learn! Whether it’s sharing social messages or decoding complex topics like law, science, film editing and even farming, creators are leveraging the power of Shorts to connect viewers to helpful and purposeful information, ideas and inspiration.
We’re proud that creators who represent the true flavour of their districts / regions are having their moment in the sun. Celebrating their history and traditions, unique cultures and even distinctive local quirks, these creators are able to connect with a wide diaspora through relatable content, shared interest and even nostalgia.
Beyond Tamil, Telugu, Marathi, Punjabi, Haryanvi, Bhojpuri, Bengali and many other languages, we’re even seeing content being created even in various dialects: from Bellary, the Godavari region, Mallapuram, Thrissur, Palakkad, Kanyakumari, Sivagangai and Madurai.
Part of the magic of Shorts is not only watching new trends but participating and reshaping their direction through a unique blend of culture and creativity. This has manifest in delightful ways from regional instruments and sounds synced to popular beats and lyrics to popular global hits reimagined in native languages.
Now that popular songs can be used in short and long videos without having to worry too much about revenue going to copyright holders of the music, what kind of change will that bring to the way creators work?
Music is essential to Shorts and across YouTube — over the years, we’ve seen how creators can give classics new life, or bring a local hit to the global stage. But the complexities of music licensing has meant that most long-form videos that feature music don’t result in the creator getting paid. So, in recognising an opportunity to build a bridge between the music industry and creators on our platform, we’re redefining how music can be featured in creator videos.
We’ve introduced Creator Music, a new destination in YouTube Studio that gives YouTube creators easy access to an ever-growing catalogue of music for use in their long-form videos. Creators can now buy affordable, high-quality music licenses that offer them full monetising potential — they will keep the same revenue share they’d usually make on videos without any music.
And for creators who don’t want to buy a license up front, they’ll be able to use songs and share revenue with the track’s artiste and associated rights holders. Creator Music, currently in beta in the US and expanding to more countries in 2023, will offer a streamlined process for creators—they’ll be able to instantly see the terms for their song selection.
We believe Creator Music will mean more amazing creator-artist collabs, more new tunes in viewers’ playlists, and more ways for artists to break through — all while continuing to put money in creators’ pockets.
At a glance
⚫ Shorts are generating 30 billion views per day, four times more than one year ago
⚫ YouTube Shorts are being watched by over 1.5b logged-in users every month globally
⚫ In April 2022, Shorts containing content sampled from long-form videos generated 100b-plus views
⚫ With the launch of Shorts, artist and creator channels uploading both Shorts and long-form are seeing better overall watch time and subscriber growth relative to those only uploading long-form