The competition between YouTube and TikTok has grown quite intense in the past few months. With several viewers and creators turning towards TikTok, YouTube has come up with a new strategy.
The Google-owned streaming service said on Tuesday that it will be giving video creators of the platform 45 per cent of the total revenue generated from its video feature – Shorts.
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It is standard practice for the company to share 55 percent of the revenue for content created on the main website and with this development, there will be parity on all of its platforms. This move is expected to counter the $1 billion fund that TikTok has for paying creators, according to Reuters.
Earlier this year, YouTube introduced a $100 million fund for creators who will be making videos on the Shorts feature. The 45 per cent share is a further addition to the already established plan.
According to New York Times, the advertisement revenue has gone up by around 9 per cent in the last year for YouTube and the official figure was somewhere around $14.2 billion.
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“YouTube is sharing a smaller proportion of sales with Shorts creators to offset its significant investment in developing the feature”, Vice President Tara Walpert Levy told NYT.
However, when it comes to users, TikTok has become a major competition in the space. The application, known for extremely short videos and viral dance content, already has 1 billion users.
The Shorts feature was launched as a direct competition and these new moves are being considered to be the push that the new venture needs to excel in the market.