The trend set by TikTok would be threatening YouTube’s core business. By launching Shorts as an alternative to attract new audiences who prefer short videos, the company would have jeopardized the traditional format that earns it the most.
According to a report from Financial Timessome high-level executives at YouTube expressed their concern about Shorts. Sources close to the company confided that employees have discussed the risk of short videos cannibalizing the platform’s core business. The long videoswhich typically offer more monetization options, would be in danger of disappearing.
Although YouTube posted a rebound in ad revenue over the past quarter, internal data reveals that lThe creators give priority to Shorts. Short videos have better opportunities in front of an audience accustomed to consuming fast, powerful and entertaining content. Brands know this and prefer to pay to position a product in Shorts rather than in a long video.
According to ComScore data, YouTube has lost attention from users in all age groups (except those over 55 years old). The trend of consuming short videos is welcomed by many youtubers. Not only do they earn better brand-sponsored content, but video requires less editing work.
“A lot of influencers and content creators don’t have that big, wonderful energy of personality that lasts 30 minutes,” says Fumi Desalu-Vold, a youtuber with more than 677,000 subscribers. “But in a minute, boom, they take it out. They’re likeable and relatable.” Short videos also help avoid burnout syndrome, which has forced many to leave their channel for a while permanently.
YouTube and the fear of losing relevance
Although YouTube has called Shorts a plugin, current consumer trends could make it a competitor to its other formats. The drop in attention in the new generations The landscape is changing for tech giants, who have to come up with new products to stay relevant.
One of the most successful examples is Reels, Instagram’s answer to TikTok. The new section debuted in 2020 as an addition to the platform and in less than three years it became a pillar of Meta’s revenue. The short videos generated more than 10,000 million dollars in the last year, according to the latest financial results of the company.
Susan Li, Meta’s CFO, stated that three-quarters of the company’s advertisers place ads on Reels. The company run by Mark Zuckerberg faced a similar situation to that of YouTube in 2022, when some investors questioned the impact Reels would have on revenue from ads in the Facebook feed, one of the most lucrative sections.
Reels is still far from surpassing what was obtained by the news feed, however, the new format has already changed the concept of Instagram. The platform has given greater importance to stories or videos, leaving static content in the background.
YouTube mentions being satisfied with the success of Shorts, since offering different media creates “a virtuous circle” that leads its viewers to new formats. Currently, the social network offers 55% of the income in long videos compared to 45% in short ones. The figure could be reversed if the consumption trend continues.