YouTube Shorts, the short-form video section launched by YouTube in 2020, has garnered substantial popularity since its global release in 2021. However, it now raises concerns among YouTube employees who fear it might overshadow the platform's core business of long-form content.
As reported by the Financial Times, YouTube staff are worried that Shorts could cannibalize the company's long-video revenue, which remains a primary income source. Recent strategy meetings at YouTube have discussed the possibility that long-form videos, being more profitable, might be diminishing in popularity as audiences gravitate towards short-form content.
Short-form videos, exemplified by platforms like TikTok and Instagram Reels, appeal to users due to their quick, easily digestible nature. While YouTube introduced Shorts to tap into this trend, the ad revenue from short videos falls short of what long-form content generates. The challenge for YouTube is to find a way to monetize Shorts effectively.
YouTube has acknowledged these concerns but maintains that Shorts is intended to complement, not compete with, other formats on the platform, such as livestreams and audio. The company believes that offering diverse content formats creates a positive cycle that draws new viewers to different formats.
Despite these concerns, YouTube cannot ignore Shorts' popularity and its trend within the industry. Joseph Teasdale, head of tech at Enders Analysis, views Shorts as a defensive move, with YouTube prioritizing Shorts' exposure to its massive user base, even if it affects ad revenue temporarily.
ALSO READ: Fake Signal and Telegram apps unleash China-backed spyware on Android devices
In the past year, YouTube reported its first quarterly decline in ad revenue. To address this, YouTube must strike a balance between Shorts' appeal and its long-form content's revenue potential. This may involve exploring new revenue-generating features and incentives for content creators to invest in Shorts.
To ensure Shorts' continued growth, YouTube may need to invest in creator partnerships, create incentives for exclusive Shorts content, and explore additional monetization options. Balancing the evolving landscape of short and long-form content is essential for YouTube to maintain its position in the digital content market.
ALSO READ: ChatGPT Classroom integration guide: OpenAI provides educators with valuable resource
