YouTube presents a new plan to share revenue from advertising with content creators (creators) who make videos on the Shorts* platform.
*YouTube's short video function is similar to TikTok that focuses on short-duration displays.
It is understood that the video streaming service will introduce advertisements in Shorts and plans to give 45% of the revenue earned to creators for their content contributions.
YouTube's unusual move is believed to be a 'brave' move to compete with TikTok, which has emerged as the most popular short video platform today.
A creator Kris Collins or known as Kallmerkirs praises the YouTube program that offers revenue sharing.
He explained that while other platforms focus on giving 15 seconds of fame to creators, YouTube takes a different approach by helping content creators earn a shared income.
For the record, TikTok channels $1 billion in funding for creators while YouTube distributes nearly 55% of revenue to content creators on its main service.
However, the revenue sharing plan with the creator of Shorts is new.
Meanwhile, YouTube's ad sales generated $14.2 billion for its parent company Google in the first half and the video service's new plans are sure to make an impact next year.
As of this writing Google shares are down 1.87% at $101.14 ahead of the FOMC meeting.
