Youtube Shorts Might Harm YouTube’s Core Business, According To Senior Personnel

Youtube Shorts Might Harm YouTube’s Core Business, According To Senior Personnel

Senior YouTube employees have expressed fear that the company’s main business may be harmed by Shorts, the Alphabet-owned company’s response to the short-form video app TikTok.

Since its introduction in 2021, Shorts has racked up more than 2 billion users, but, according to various sources aware with the data, it has driven viewers away from the platform’s more typical longer films.

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According to these insiders, recent YouTube strategy meetings have discussed the possibility that long-form videos, which generate more cash for the firm, are “dying out” as a format.

Short-form video has become more popular among consumers as a result of phone usage and TikTok’s explosive rise, especially among younger audiences.

Since the firm began disclosing its performance separately in 2020, YouTube announced its first-ever quarterly loss in ad revenue in October of last year. The platform recorded further drops in the ensuing two quarters as compared to the corresponding times in the prior year.

However, YouTube said in July that second-quarter ad sales increased 4.4% to $7.7 billion. This accounted for about 13% of Google’s advertising income.

Despite this recent growth, YouTube employees are worried about internal corporate data that suggests content producers are producing less long-form videos. This trend is reportedly being driven by a lack of user demand and commissions from brands who favor short-form material for product placement.

A senior staff member compared the trend of fewer people watching longer YouTube videos to how fewer people are reading books since it takes more time and concentration.

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Shorts, according to a statement from YouTube, were “designed to complement, not compete with, all the other formats creators use” on the site, including audio and livestreams.

“We are really happy with its early success. The statement continued, “Offering different channels creates a virtuous loop that attracts new viewers to varied formats. This is not a zero-sum game.

The majority of income for many artists comes from brand arrangements to promote products in videos, even though YouTube has a revenue split scheme with creators that offers creators on Shorts and Long-form 45 and 55 percent, respectively.

Chlo Swift, a hair stylist influencer with almost 60,000 YouTube followers, said, “I’m doing a lot of ads for other brands that are focused on short-form content, so I can take them and post them on all these social media platforms.”Long-form content requires so much more time to produce.