Shillong, September 4: YouTube’s short-video platform, Shorts, could potentially affect the primary, long-form video business of the Google-owned video streaming platform, as per reports in The Financial Times.
Google recently revealed that Shorts has amassed over 2 billion monthly users who are logged in, positioning it ahead of competitors like TikTok and Instagram Reels.
Veteran YouTube staff have expressed concerns that Shorts might “cannibalize its core business.” Long-form videos, which generate more revenue for YouTube, are reportedly being discussed as a format that could be declining.
YouTube staff believes that content creators are producing fewer long-form videos due to reduced consumer interest and preferences from brands favoring short-form content for product placement.
YouTube has stated that Shorts was intended to complement, not compete with, other formats used by creators on the platform, including audio and live streams.
Despite improvements, YouTube’s ad revenue had been declining year-over-year for three consecutive quarters. The company is still working on monetizing Shorts effectively.
The latest data indicates an increase in YouTube Shorts usage from the 1.5 billion monthly logged-in users reported last year.
In the second quarter of 2023, Google reported that YouTube generated $7.67 billion in advertising revenue, a 4 percent increase compared to the same period the previous year.
Advertising was introduced on Shorts late last year, and YouTube is now focused on supporting Shorts’ growing popularity by investing in creators and encouraging them to produce exclusive content.
