YouTube Shorts expands revenue sharing to include music creators and publishers

This expansion provides a structured monetization path for music rights holders in short-form video, a sector where licensing has historically been dominated by flat-fee agreements or promotional exposure. By integrating music directly into the ad-revenue pool, YouTube strengthens its competitive position against TikTok, which does not currently offer a direct ad-revenue split for music creators. For the streaming ecosystem, this signals a shift toward performance-based music compensation in vertical video. Industry observers should watch for changes in the 'Shorts RPM'—currently averaging $0.03 to $0.10 per 1,000 views—as more high-value music tracks enter the revenue-sharing pool.

The expansion of the music revenue sharing model follows a series of strategic pivots by YouTube to prioritize its short-form ecosystem. Per Digiday in January 2026, YouTube CEO Neal Mohan confirmed that Shorts now averages 200 billion daily views, prompting the platform to integrate image posts and AI-generated clips into the feed to mirror TikTok’s functionality more closely. This growth is supported by a tiered YouTube Partner Program (YPP). According to reports from Nexora and FlowShorts in April 2026, creators with 500 subscribers can access fan-funding features, but the full ad-revenue sharing tier still requires 1,000 subscribers and either 4,000 long-form watch hours or 10 million Shorts views within a 90-day window.

Financial data from Mid-2026 suggests that while Shorts views are high, the 'Creator Pool' mechanic results in significantly lower payouts than long-form content. Per MilX in May 2026, most creators earn an RPM between $0.03 and $0.10, compared to the $2.00 to $12.00 range often seen in long-form video. The inclusion of music publishers in the revenue split further dilutes individual creator payouts; for example, one revenue-share track can split the 55% platform side into equal 27.5% portions for the creator and the rights holder, after accounting for a potential 5% deduction for public performance rights, as noted in Audiodrome's April 2026 analysis.

This move also addresses ongoing tensions between streaming platforms and the recorded music industry. In January 2026, Music In Africa reported that YouTube Music faced friction with Billboard after declining to share specific streaming data for chart rankings. By formalizing a revenue-sharing path for artists within Shorts, YouTube aims to incentivize labels to keep their catalogs available as the platform transitions from an 'audio-as-promotion' model to a 'content-as-revenue' engine.