Over the past few months, rivalry between TikTok and YouTube has intensified considerably. YouTube has developed a new approach in response to the number of viewers and artists moving to TikTok. The Google-owned streaming service said on Tuesday that it will pay platform-based video producers 45% of the overall income from its video feature, Shorts.
The firm typically distributes 55% of the money from content produced on its own website, and with this change, there will be parity across all of its channels. According to Reuters, this action is intended to challenge TikTok’s $1 billion fund for rewarding creators. YouTube announced a $100 million fund earlier this year for producers who would be producing videos for the Shorts section. The additional 45% stake is an addition to the current strategy.
According to the New York Times, YouTube’s ad revenue increased by almost 9% in the previous year, with an official total of about $14.2 billion. Vice President Tara Walpert Levy told the New York Times that ‘YouTube is sharing a reduced percentage of sales with Shorts creators to offset its large investment in establishing the service’.
However, TikTok has grown to be a significant rival in the market when it comes to consumers. There are currently 1 billion users of the app, which is known for its incredibly brief films and popular dancing videos. These new initiatives are thought to provide the new business the boost it needs to succeed in the market because the Shorts feature was released as a direct competitor.
Post Your Comments