YouTube has announced a new Shorts Fund to pay $100 million to its top creators. The TikTok-like feature aims to provide more support and incentive for their efforts.
“Since Shorts is a new way to watch and create on YouTube, we’ve been taking a fresh look at what it means to monetize and reward creators for their content. We’re introducing the YouTube Shorts Fund, a $100M fund distributed over the course of 2021-2022. Anyone is eligible to participate in the fund simply by creating unique Shorts that delight the YouTube community,” says YouTube.
YouTube will offer the new Shorts fund to clips with the most engagement and views every month. But creators must create original, exclusive content for Shorts and follow Community Guidelines.
In comparison, the Snapchat Spotlight funding pays $1 million daily to its most engaging clips.
“The Shorts Fund is the first step in our journey to build a monetization model for Shorts on YouTube. This is a top priority for us, and will take us some time to get it right. […] We’ll expand our Shorts player across more surfaces on YouTube to help people find new creators, artists and Shorts to enjoy. We will also begin to test and iterate on ads to better understand their performance,” adds YouTube.
YouTube aims to build an ads structure on top of its current model to feed its monetization stream. This initial funding is to build interest only. And it also stops YouTube users from migrative to TikTok and similar content providers.
TikTok still has the attention and most app downloads among short-video apps. But YouTube now gives top creators more money. And it offers more potential revenue for those maximizing their efforts.
If TikTok will fail to catch up, its top stars will eventually try to make more millions on YouTube.
TikTok’s most famous star Charli D’Amelio has even signed a new content agreement with Snapchat. Other top creators will also jump to alternative apps if TikTok will not match their offer.
These recent funds from rival apps adds pressure to TikTok and its monetization strategy.
As YouTube expands Shorts, now at 6.5 billion daily views, and add more monetization options, TikTok must provide real, significant income for its top stars.
YouTube has also announced new upcoming TikTok-like features for Shorts.
“Earlier this year, we previewed a new feature that will allow you to remix audio from videos across YouTube – which includes billions of videos – and we’re excited to share this experience is starting to roll out to everyone that has access to our Shorts creation tools soon. This means you can give your own creative spin on the content you love to watch on YouTube and help find it a new audience,” adds YouTube.
Creators can opt-out of Shorts audio permissions during upload or via YouTube Studio.
YouTube will also add the following Shorts features:
- longer clips (up to 60 seconds in length)
- the capacity to add clips from your Camera Roll
- new basic filters, such as color correction
YouTube is the clear online video leader. Its huge audience reach and more established monetization tools poses a real danger of TikTok losing its top spot in the short-video list.