How Changes to the YouTube Partner Program in 2023 Affect Content Creators
Youtube is the go-to platform for video creators to reach a global audience and earn something in return. According to Similar Web, YouTube is the world's second-most-visited website, after Google, accounting for 34.1 billion website visits1 (at the time of writing this article). This indicates that there is a never-ending demand for video content on the platform. From the monetary perspective, during the last three years, YouTube distributed $50 billion to its creators and partners globally2. This financial backing, combined with YouTube's massive viewership, transforms the platform into an exceptional launchpad for individuals to not only share their creativity but also establish a successful career in video creation.
Youtube, given the scale it operates in, keeps updating and modifying their terms of use and policies to align them to the needs of its stakeholders- the advertisers, the creators and the audience. And because creators are at the core of it, any change to these policies directly impacts them. One such modification was recently made to its monetization policy. In this article, we will delve deep into the heart of the matter and dissect what this new policy means for creators in the YouTube ecosystem.
Understanding Youtube’s updated monetization policy
In mid-June 2023, YouTube expanded its YouTube Partner Programme. As per the update, creators will have earlier access to fan funding features that includes ‘super thanks’, ‘super chat’, ‘super stickers’, ‘channel membership’, and ‘shopping’. To get access to these, creators must have at least 500 subscribers and 3 valid public uploads in the last 90 days, along with either 3000 watch hours for long videos in the past year or 3 million views of Shorts within 90 days.
To initiate Fan Funding features, creators must first sign up for the updated partner programme and set up an active Adsense account. If the creator does not sign up and follow through the instructions, they won’t be able to monetize using Fan Funding even if they reach the mentioned thresholds.
Currently, the policy has only been implemented in the United States, United Kingdom, Canada, Taiwan, and South Korea, and gradually other nations will follow this update. Whatever the changes are, this will surely reduce the entry barrier for new creators willing to be a part of the Youtube Partner Program and make use of the Fan Funding features.
However, to actually earn from ads, creators will still have to follow the earlier threshold of having 1000 subscribers, 4000 watch hours in long videos, and 10 million views on shorts in the last 90 days. Once the threshold is met, the channel will undergo a month-long review before actual monetization.
There have also been certain changes made to the rules regarding profanity. It was made as a result of RT Gamer and ProZD outrage3 over YouTube's profanity policy of November 2022 according to which profanity used in the first eight seconds of video led to them being demonetized or age-restricted. Following this, YouTube released another significant update to its monetization policy in March 2023 that dealt with profanity. As per the new policy, profanity used in the first seven, eight, and fifteen seconds or a majority of the video may not be completely demonetized and might still generate some ad revenue. Also, strong profanity in background music or intro/outro segments may be monetized. However, YouTube has not clearly specified what ‘may’ entails. Now, let's examine how it is expected to affect the creators.
Exploring the opportunity for the creators
Growth of small creators
Whether it's gaining 500 YouTube subscribers or three million views on shorts in 90 days, this policy will be a doorway to growth for small creators who are just starting out. Additionally, creators who consistently post YouTube shorts rather than long-form videos will benefit, given that they can earn money through ads between shorts by accepting the shorts monetization module.
A 2022 State of Consumer Trends report by Hubspot4 showed that the creator economy is growing. 30% of 18–24-year-olds and 40% of 25–34-year-olds consider themselves content creators. Given the dominance of Youtube and what looks like minor flexibilities for the creators in the latest policy update, it might encourage creators to join the platform if they haven’t yet.
Recently, a group of YouTube creators named Channel Makers uploaded a video explaining the new policy and how it will help small content creators to build a loyal fan base. One of the YouTubers, Cyan Doragon who uploads gaming and reaction videos, commented that this change will be extremely beneficial for creators like him.
Nixon Kanali, who analyses tech products on YouTube said that this policy should have been launched much earlier to assist aspiring artists. Nonetheless, he claims that this new approach is incredibly beneficial because it allows small creators to start earning early. He also said that this will assist creators in transitioning from other social platforms to YouTube.
In addition to the new update, YouTube is expanding its shopping affiliate programme to US-based creators with 20,000 subscribers in the YouTube partner programme. Now, creators can earn commissions by promoting the brand of others. Andréa Matillano, a beauty designer, praises the programme's simplicity, which allows her to effortlessly launch her beauty products, check commission rates for related products from other brands and tag them on the videos. This programme presently benefits US creators and will expand to other nations in the future.
More options for monetization
Fan funding will assist the creator in diversifying their income beyond ads. Viewers can pay regular monthly fees in exchange for members-only privileges and get early access to content. Viewers will be able to directly communicate with the creator via Super Chats, Super Stickers, and Super Thanks, and this will offer creators a secure platform for earning. It will create an environment where the creator provides the content to the audience and in return is compensated for it directly by the subscriber and without depending on advertisers.
Challenges awaiting the creators
More competition
At first glance, the policy seems to be a fantastic opportunity for creators, but it brings along an element of competitiveness. With fewer eligibility criteria for monetization, many creators will likely look at YouTube as their initial source of income. Creators who were previously on the fence may take advantage of this opportunity to jump in, overwhelming the site with new content and opinions. The result? A digital conflict in which creators are so lost in competing and meeting the threshold that the platform might be swamped with potentially meaningless information. That brings us to the next point.
Low-Quality content
Following this competition, some YouTubers may focus more on quantity and begin producing content without taking creativity into account. This could overload the site with poor-quality content, lowering the overall user experience. This might also result in a low subscription count because the audience may not like excessive content from a channel or artist which fails to create actual value.
Beyond the fundamental difficulties, YouTube still has a long way to go. People from different parts of the country aren't able to monetize their channels due to their geographical conditions. For example, content creators in Kenya earn extremely few views, and even if it receives a million views, only some of those viewers may wait through the advertisements for more than 30 seconds, while others may have ignored them or use ad blockers. We believe that this demonstrates a geographic divide as there is a need for YouTube to try to broaden its emphasis on underdeveloped or developing countries. Also, as per the financial bill of Kenya 20235, content creators will be required to pay a 5% withholding tax on money earned through digital content. Therefore in such a situation, we see that YouTube's new policy might give Kenyan creators the tools they need to succeed in the digital sphere.
Strategy for creators to thrive under the updated policy
Creating Ad-friendly Content
Firstly, the creators need to produce content that does not violate community guidelines. It’s vital to research the topics thoroughly and create a detailed structure before uploading the video or shorts. The more the content is optimised, the easier it will be to generate revenue.
Focusing on both quantity and quality
As a creator, it's crucial to produce content that promotes dialogue and inspires more viewer interaction. As a result, the emphasis must be on producing high-quality material rather than flooding your channel with long videos or shorts.
Making use of other social media platforms
To generate interest and drive traffic to your YouTube channel, share shorter clips. These could be behind-the-scenes material or intriguing excerpts on social media. Social media sites like Instagram, Twitter, and TikTok can be effective methods for gaining new subscribers.
What's Next
Although we acknowledge that YouTube has and will be an avenue for creators to unleash their creativity; this freedom is constrained by community rules and advertising-friendly guidelines. According to YouTube's community guidelines enforcement report6, 6.4 million videos have been removed for violating community guidelines along with 1.9 billion comments. Adding to this data, 8.7 million channels have also been recently terminated from January to March 20237. As a result, there is a need for a platform that allows video creators the freedom to create, upload, and monetize their content as they like.
With the growing number of restrictions on platforms like Youtube, creators are now looking at alternatives to publish their content. Many of them have built their own video streaming apps to monetize their videos because it gives them more control over the content and the revenue. Moreover, video streaming apps for your own give you direct access to your most loyal subscribers and keep creating content sustaining on the monthly subscription charges. Skara is a no-code platform for video creators to easily launch their streaming website and app at the lowest time and cost. Just create an account, set up your brand, upload your content and launch your website and app. All of this within minutes.
Conclusion
Overall, Youtube’s policy update 2023 will undoubtedly bring about a change for aspiring creators. This policy might act as a road map for building a vibrant ecosystem where creators will have a significant impact on people's lives. In the end, everything depends on how you, as an artist, make the most of it; after all, you are the boss of your business.
FAQ
We have compiled a list of basic questions related to the new monetization policy of 2023. We hope this will answer a few of your queries.
Q. Is YouTube lowering its monetization requirements?
Yes, YouTube has lowered the eligibility criteria for monetization from mid-June 2023. Now, you only need 500 subscribers, 3 valid public uploads, 3000 watch hours, and 3 million views on shorts in the last 90 days to be qualified for the Youtube Partner programme.
Q. Will Youtube shorts be monetized in 2023?
Yes, revenue sharing for YouTube Shorts began on Feb 1, 2023. The creators will earn from the ads running in between the shorts.
Q. Will I be able to earn from ads with the new monetization policy?
The new monetization policy which came out in mid 2023 talks about the eligibility criteria for Partner Program only. To earn from ads, you still have to follow the previous terms which are covered under the old YouTube monetization policy i.e., to have 1000 subscribers, 4000 watch hours, and 10 million views on shorts.
Q. What effect does the profanity update have on creators?
The recent update on profanity is less strict. Profanity in the first 7 seconds may not lead to demonetization. Profanity in 8–15 seconds and strong profanity in background music may also qualify for ad revenue. Overall, this policy will give creators more freedom to express themselves.
Q. What is the major benefit of this new policy?
The major benefit is that you will get early access to fan funding with features like channel membership, super chat, super like, super thanks, and shopping. This will help you, as a creator, to build a strong community.
Q. What cannot be monetized on YouTube?
Financially abusive practices, such as exploiting monetization services for shady, fraudulent, or dishonest business dealings will not be monetized. Moreover, publishing anything that is against the community guidelines or getting three copyright strikes will lead to complete termination of your channel.
Q. Can I reapply for monetization after rejection?
Yes, you may do so. After your account is suspended for 30 days or if your YPP application is denied, you can reapply for the YouTube Partner Programme and monetization. You have 30 days following the suspension date to submit a new YPP application if your suspension appeal is denied. Therefore, if your first attempt fails, make another appeal video.
Sources:
- Similar Web Report
- YouTube has paid creators, artists & media companies over $50 bn in last 3 years
- YouTube Changes Monetization Policy After Content Creator Makes 'YouTube' Into a Swear Word
- The State of Consumer Trends in 2023
- Kenya Enacts 2023 Finance Bill
- YouTube’s Community Guidelines Enforcement report for Q4 2022
- YouTube Community Guidelines enforcement
