In the newly added section called “Right to Monetize” to Terms of Service, creators grant the right to monetize their content on the service, and the creators will not be entitled to any payments.
This update is essentially impactful for creators who are not a part of the YouTube Partner Program. YouTube will now be rolling out ads on some videos from creators who are not a part of YPP, and consequently, these creators will not receive any revenue gained from these ads, since they are not a part of YPP.
Few creators mention the change is unfair on YouTube’s part, as the platform should figure out a way to share the ad revenue. One of the suggestions mention a system that shares the ad revenue but does not provide other perks of YPP.
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One of the reasons for growing engagement on content from such channels was an ad-free viewing experience, which also boosted the efforts towards reaching the threshold to become eligible for YPP and gain revenue.
Along with impacting creators, this change will also have an effect on the user experience. Users will see a lot more ads than they used to, spoiling their viewing experience. The push seems to be attracting more users into buying YouTube Premium and increasing the number of ads distributed on the platform.
For monetizing creators in the US, payments from YouTube will be considered as royalties, and some creators may be required to submit tax information in AdSense and may be subject to US withholding taxes if required by law.
The platform mentions US creators will be generally unaffected by these withholding taxes as long as they provide valid documentation. YouTube will provide more information on the subject to creators outside the US, as the terms become available for them next year.