New Cash Machine! Creators Can Earn Revenue Through YouTube Shorts Starting February 1st

YouTube has just announced that content creators can start generating ad revenue in Shorts. (photo: dock. youtube)

JAKARTA - YouTube has just announced that creator content can start generating ad revenue on Shorts starting February 1. This step, according to the company's promise in September last year, is currently under development.

In preparation for the upcoming changes, YouTube has begun rolling out new requirements for all creator content in the YouTube Partner Program. Creators must agree to the new terms by July 10 to remain in the program.

With the change, creators can earn money from ads serving between videos in Feed Shorts. Although the new revenue-sharing model will replace the YouTube Shorts Fund, the company expects that most Shorts Fund recipients will be able to make more money with the new revenue-sharing model.

Previously, creators could sign up for the program if they achieved 1.000 subscribers and 10 million Shorts views over 90 days.

In addition, creators must also approve one of the monetization modules. The first module is called the Watch Page Monetization Module where content creators can earn money from ads served on long-form videos and YouTube Premium.

The next module is called the Shorts Monetization Module, creators can earn money from ads that play between Shorts in Shorts Feeds and YouTube Premium. The final module is called the Commerce Product Addendum, for features like Channel Memberships and Supers.

Citing TechCrunch, Tuesday, January 10, YouTube recommends that creators accept all modules so that they earn full income on the platform. Creators who created Shorts and have received the new Shorts Monetization Module will be eligible for a shorts ad revenue share on their Shorts views starting next month.

Then How Is Shorts Revenue Sharing?

Quoted from Engadget, the formula that YouTube has devised to determine how much each creator earns is quite complicated because of the involvement of music licenses.

When YouTube users watch Shorts, the company will display ads between the clips in the Shorts Feed. YouTube says the money generated by the ads will be used to pay music licensing companies and creators through a shared pool, aka Creator Pools, which the companies will share at the end of each month.

The amount of money that ultimately goes to the creator pool will depend on the number of music tracks the creator features in their Shorts video.

If a creator uploads a clip without music, all revenue associated with that video goes to them. Conversely, for single-track Shorts videos, one-third of the associated revenue will go toward paying for the license.

Then, YouTube will determine how to distribute the funds. Companies will distribute funds based on the creator's share of total Shorts views.

So when a creator contributes 5 percent of all eligible Shorts views in their respective country during February, they'll earn 5 percent of the money in that fund, regardless of whether the creator uses licensed music in Shorts or not.

Later, YouTube will take a 55 percent cut of its revenue, leaving 45 percent of what's left for creators. If a creator's contribution to the Creator Pool is 1.000 US dollars, equivalent to IDR 15 million in one month, the creator will get 450 US dollars, equivalent to IDR 7 million.