YouTube in challenge to TikTok to give Shorts creators 45% of ad sales

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ICYMI: YouTube will introduce advertising on its video feature Shorts and give creators 45% of the revenue from next year, the Google-owned streaming service announced

streaming service announced Tuesday that it would introduce advertising on its video feature Shorts and give video creators 45% of the revenue. That compares with its standard distribution of 55% for videos outside of Shorts, and TikTok's $1 billion fund for paying creators.

The internet's dominant video site has struggled to compete with TikTok, the app that got its start hosting lip-sync and dance videos and has subsequently burgeoned to 1 billion monthly users.A YouTube logo seen at the YouTube Space LA in Playa Del Rey, Los Angeles, California, United States October 21, 2015. REUTERS/Lucy Nicholson/File PhotoYouTube responded in late 2020 with Shorts, minute-long videos that attract more than 1.5 billion monthly viewers.

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 said.

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