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Chronicles

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Leaked audio: YouTube will lower the barriers to entry for its partner program and bring ads to Shorts, paying creators 45% of ad money vs. 55% for YouTube ads

The video platform will let more creators earn payments and place ads in Shorts, its TikTok competitor, according to audio from an internal meeting.

New York Times Nico Grant

Context & Ripple Effects

Shorts monetization has been the missing piece since YouTube launched its TikTok competitor: it first papered over the gap with a $100M fund for top creators paid through 2022, and by April had begun testing ads on Shorts as overall ad growth slowed. The leaked internal meeting audio now reveals how those threads tie together — a lower bar for Partner Program entry and a dedicated ad-revenue split for Shorts.

The 45% figure is the news that matters: it formalizes a two-tier take rate inside one platform, and the related coverage shows YouTube confirming the structure weeks later with eligibility set at 1,000 subscribers plus 10M Shorts views in 90 days.

First-order effects

  • Creators who previously earned nothing from Shorts — only the top tier got fund payouts — can now qualify for ad revenue at 1,000 subscribers and 10M Shorts views per 90 days, while every Shorts view carries a 10-point lower payout rate than long-form YouTube video.

Second-order effects

  • TikTok faces pressure to match a transparent, scalable revenue share with its own smaller creator payments, and advertisers gain a new short-form inventory pool priced against YouTube's established long-form auction.

Third-order effects

  • The move replaces discretionary creator funds with formulaic revenue sharing as the standard for short-form platforms — a durable split between long-form and short-form take rates that regulators and creators' advocates increasingly scrutinize as a [[/concepts#regulated-platform-take-rate|regulated platform take rate]] question.

The trend: Short-form video platforms are converging on ad-revenue sharing with lowered entry thresholds, replacing one-off creator funds as the primary retention tool against TikTok.

Discussion

  • @pkafka Peter Kafka on x
    YouTube is still the only big video player that gives the people who make its videos a direct cut of the ad money the videos make. Now extending that to its TikTok clone. https://twitter.com/...
  • @nicoagrant Nico Grant on x
    Scoop: YouTube will soon announce the largest expansion to its partner program in years, letting more creators make money from the platform. It will also bring ads to Shorts, its TikTok rival, and give creators 45% of those earnings. https://www.nytimes.com/...
  • @nicoagrant Nico Grant on x
    It is interesting that YouTube will take a bigger cut of the ad dollars from Shorts than long videos. It comes as YouTube's growth has slowed down, which may or may not be a coincidence. https://www.nytimes.com/...
  • @nicoagrant Nico Grant on x
    These steps, expected to be announced on Tuesday, are part of YouTube's bid to guard its role as the most popular place for video personalities — amid the meteoric rise of TikTok. Other details on shopping & how music in YouTube videos will change inside. https://www.nytimes.com/…