In 2023, YouTube has more than 2.70 billion monthly active users with users investing their time watching both short and long-form content. Google has stated that the short-form content - Shorts has more than two billion active monthly users.
YouTube Premium has integrated multiple features including no ads, newly introduced AI features, and games to sustain their subscriptions. Premium users can queue up videos, according to their preferences, and watch content across different devices - Android, iOS, and Web without interruptions, where they left off. YouTube has also launched Smart Downloads that will add recommended videos to the library directly when connected to Wi-Fi.
Tech giant Alphabet, the parent company of Google, reported a total ad revenue of $59.6 billion for quarter three on September 30, 2023. Out of which, YouTube made $7.95 billion in ad revenue marking an increase of 12.5% than last year. The total ad revenue for the company increased by 9.5% while YouTube decreased ad revenue by 1.9% last year compared to 2021.
Revenue sharing on Shorts
The platform began sharing ad revenue with Shorts creators on February 1 as it rolled out new terms for all creators in the YouTube Partner Program. Monetizing partners can earn money from ads viewed between videos in the Shorts Feed. This new revenue-sharing model has replaced the YouTube Shorts Fund. As per the update, creators can apply to the program if they meet a new Shorts-specific threshold of 1,000 subscribers and 10 million Shorts views over 90 days.
The platform distributes earnings based on the creator pool allocated to monetizing Shorts creators based on their share of total Shorts views. If a creator garners 5% of eligible views out of all Shorts uploaded by monetizing creators, they will then receive 5% of the revenue in the creator pool. Creators will keep 45% of their allocated Shorts revenue. For instance, if a creator is allocated $1,000 from the creator pool, they will be paid $450.
Creator-focused AI integrations
In addition, the video-sharing platform's focus has been to modify itself by integrating AI features like the conversational tool that helps users get answers regarding the videos they watch, along with getting video recommendations and topics summarizer in the comments section to help the creators understand their audiences better.
It began testing Dream Screen, a new experimental feature that allows users to create AI-generated video or image backgrounds for their Shorts simply by typing an idea into a prompt. YouTube Studio will tap generative AI to spark video ideas and draft outlines to help creators brainstorm. The insights will be personalized for each channel and based on what audiences are already watching on YouTube. Alongside this, the platform is bringing Aloud into YouTube, an AI-powered dubbing tool that will help creators open up their content to the world.
- YouTube partners with Arizona State University and Crash Course to launch a program for students to earn college credits.
- YouTube brings in more updates in contract terms for the YouTube Partner Program, new metrics in Analytics Studio, Shorts revenue sharing, and more.
- YouTube Podcasting Head Kai Chuk announces that podcasts will be added to YouTube Music due to the popularity of podcasts.
- YouTube CEO Susan Wojcicki steps down; Neal Mohan takes over.
- YouTube is expanding its Analytics for Artists tool adding YouTube Shorts-related data to the “Total Reach” metric letting artists know their audience reach.
- YouTube upgrades its Ad-Friendly Guidelines for Inappropriate Language.
- YouTube saw a fall in ad revenue of about 2.6% year over year by making $6.69 billion in advertising revenue in 2023 compared to $6.87 billion in 2022, according to an Alphabet report.
- YouTube launched new Premium features- more control and access, ad-free, offline, background play, and an uninterrupted music listening experience.
- YouTube announced the shutdown of Stories and the company shifted its focus to Shorts, Community posts, and live videos.
- YouTube tests a feature that will help creators dub their videos in other languages with the help of the AI dubbing service - Aloud.
- YouTube stands for transparency by upgrading its guidelines which requires fans to make it obvious in their channel name that they don't represent the company or artist that their account is about.
- YouTube tests 'Stable volume,' - to keep the volume at a consistent level.
- YouTube, in order to, combat spam issues on Shorts makes the links ‘unclickable’ in Shorts comments section, Shorts descriptions, and the vertical live feed
- YouTube Music announces a feature- Samples which will help users view samples of new music.
- YouTube upgrades its rules surrounding controversial issues - abuse, eating disorders, etc. which creators can still monetize if not in graphic detail.
- YouTube announced Dream Screen, which will aid users in creating an AI-generated video or image background using text.
- YouTube introduces YouTube Create- an app that will provide users with easy and free tools to make Shorts and long-form content.
- YouTube rolls out new mobile-based playback, song search, and creator-friendly tools- a feature that will highlight the “like and subscribe” buttons when a creator says those words.
- YouTube introduces a new advertising package called “Spotlight Moments.”
- YouTube launches the Shorts Innovation Program for News which will provide financial grants to news organizations along with other support for making short-form content.
- YouTube makes shopping easy by letting creators now, add timestamps to videos for their tagged products and tag their affiliate products.
- YouTube has launched 37 mini-games called ‘Playables’
- YouTube updates its guidelines on monetizing adult content i.e videos with nudity while breastfeeding and non-sexually graphic dancing.
- YouTube has expanded its bitrate version of 1080p HD video quality to Android, Web, and smart TVs.
- YouTube Premium is testing a conversational AI tool and summarize topics in the comments of a video.