alphabet inc‘s Google WELL Video Streaming Platform youtube announced “new ways” for its shorts creators to make money on Tuesday.
What happened: That Sundar Pichai-led company said in a blog post that short film-focused creators can apply to its YouTube Partner Program (YPP) starting in early 2023, as long as they reach a threshold of 1,000 subscribers and 10 million short views over 90 days.
Developing creator funding plans, YouTube Vice President of Creator Products Amjad Hanif said on the blog that in early 2023, current and future YPP YouTubers would be eligible for an ad-generated revenue share.
“Of the total amount allocated to creators, they keep 45% of the revenue, distributed based on their share of total short calls. The revenue share stays the same whether they use music or not.”
The revenue generated from ads will also help cover music licensing costs, according to Hanif.
See also: How to Buy Alphabet Inc (GOOGL) Stock.
Why it matters: “Instead of a fixed fund, we’re doubling down on the revenue-sharing model, which has boosted creators’ economies and allowed creators to capitalize on the platform’s success,” Hanif said. Previously, YouTube had announced a 100 million dollars Shorts Fund.
Shorts, started in Sept. 2020is YouTube’s answer tick tock, operated by China ByteDance. Short film creators have the option to add music from a library of songs.
TikTok, the leader in the short video segment, saw a 13% year-over-year increase in daily active users nearly 48 million in 2021. Pichai previously revealed that Shorts had 5 trillion views all time and more than 15 billion views per day.
Price promotion: On Tuesday, Alphabet Class A and Class A shares closed 2% lower in the regular session at $101.14 and $101.83, respectively, and were up 0.1% and 0.2%, respectively, in after-hours trade Benzinga Pro data.
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