As TikTok's market share grows, YouTube introduced a new mechanism for producers to monetize short-form video, source Reuters.
The Google-owned streaming service revealed on Tuesday that it would start running ads on its short-form video content and offer creators 45% of the profits. This contrasts with TikTok's $1 billion fund for paying producers and its usual payout of 55% for videos other than Shorts.
The most popular video platform on the internet has had difficulty competing with TikTok, an app that began by offering dance and lip-sync videos before expanding to 1 billion monthly users.
According to Vice President Tara Walpert Levy, YouTube is distributing a smaller percentage of profits to Shorts creators in order to balance out the large investment it made in creating the feature.