YouTube began sharing ad sales with producers in 2007 and now has more than 2 million creators in its program. Last year, YouTube reported more than $28 billion in ad sales, before creator payouts. Yet growth has slowed this year, which analysts attribute to Apple Inc.’s restriction on ad targeting and TikTok’s rise.
Mohan said that creators can join YouTube’s partner program if they have more than 10 million views on Shorts and over 1,000 subscribers. Historically, YouTube has given 55% of its ad sales to creators and kept the remainder. With Shorts, YouTube will only share 45% of its ads program.
Tara Walpert Levy, a YouTube vice president, said the company changed its commission because it was better for building “a long-term business.”
YouTube also introduced a new feature called Creator Music that allows creators to license popular songs in videos easily and still make money. Previously, music rights holders took the entire cut of revenue from songs that played in videos. Popular music in clips has been a big driver of TikTok’s popularity.
To announce the feature, YouTube brought on stage Jason Derulo, a musician with a huge following on TikTok.
“To me, this announcement is going to shake the world,” he said about YouTube’s new feature.