Google subsidiary YouTube has announced a number of changes to how it will share advertising revenue with users and collaborate with music industry rights holders.

And even if on Tuesday evening German time, of course, none of those responsible mentioned the name of the enormously popular rival from China: Some changes should undoubtedly also help to strengthen the short video offer Shorts compared to Tiktok - or to alienate users from the competitor .

Benjamin Fisher

Editor in Business.

  • Follow I follow

From the beginning of next year, those “creators” who mainly create shorts should also have access to YouTube's partner program.

Users participating here have the opportunity to earn money from the advertising shown before or in their videos.

According to YouTube, there are now more than two million users.

As a result of the change, users with more than 1000 subscribers and 10 million shorts views within 90 days can apply.

The program also applies to this group for longer videos on Youtube.

Like Tiktok, YouTube had previously set up a fund for shorts, from which money was paid out to popular users based on certain criteria.

YouTube's advertising revenue totaled around $28 billion last year.

However, growth had weakened recently.

According to estimates by the market research group Insider Intelligence, Tiktok is likely to almost triple its advertising revenue this year to almost $6 billion in the US alone.

Participation in advertising revenue on shorts

Youtube announced on Tuesday evening that shorts users who are part of the partner program would like to share in the income from the advertisements displayed between the short videos.

Since the ads are not directly related to individual videos, they are to be collected and, among other things, paid out after deduction of an unspecified part for the licensing of the music on shorts.

In each billing period, 45 percent of the portion that can be attributed to users, based on their share of the total number of shorts views, is to be distributed to them.

For longer videos on YouTube, the user share is 55 percent.

The share of revenue remains the same, regardless of whether users install music in the videos or not, YouTube said.

Shorts has been available worldwide since July 2021 and, according to YouTube, has 1.5 billion monthly registered users as of April 2022.

In the summer of 2020, Instagram also launched Reels, a Tiktok-like format with a focus on clips that were initially 15 seconds long.

With a view to music and its use in videos by users, YouTube also announced a new form of licensing.

The traditionally complex and sometimes very expensive process of obtaining the rights to use a song from the respective rights holders - label, publisher, distributor and, depending on the constellation, the performers and songwriters - has often been an obstacle for "creators". Youtube manager Christophe Muller, responsible for licensing issues related to Youtube, quoted in a separate message.

In future, rights holders from the music industry will be able to offer their works in the new music library called "Creator Music" - either for a one-off payment due before use, the amount of which they determine, or as part of a model where the licensing itself is free of charge and around 27

5 percent of the advertising revenue goes to the rights holder.

Youtube retains 55 percent, the remaining 27.5 percent goes to the video creator in this model.