YouTube Will Not Give any Revenue To Creators But It Will Run Ads
The video giant platform – YouTube has revised its terms and conditions for the policies of the ads. According to the new policy, YouTube Will Not Give any Revenue To Creators But It Will Run Ads even on those channels that are not part of YouTube’s partner program (YPP). Not only the ads will be running on not-monetized channels but also the content creators won’t get the revenue generated from ads on their (platforms) channels. The new policy will be actively taking place in the upcoming month i.e. June. Prior to this new policy, the ads were only running on the videos that were part of YouTube’s partner program (those channels’ that have required subscribers and watch time). Moreover, before this policy, the content creators were also given the shared amount of revenue generated from the advertisement.
After the new policy(YouTube Will Not Give any Revenue To Creators) of the video streaming giant starting from June 2021, the company will have the right to show ads on any of its videos on its platform without giving revenue to the creators. YouTube announced in its statement that it has the right to bring channels under YouTube’s partner program and to run ads on content (video) by its choice. Also, the company claimed that after this new update, the company will not affect the way users access it. Earlier, the company had set its guidelines regarding ads, which means to ensure brand safety and reach only to the high-quality videos that have been seen by maximum numbers of people.
Read More: YouTube generates 49% more in Ad revenue
Notably, it is important to keep one thing in mind that the presence of ads on videos can limit the growth of the new channel. This is because the viewers end up watching the videos after seeing the advertisement that disturbs them. However, according to small content creators and those who are just starting off; the new policy of video streaming is discouraging them as they are at the beginning level. Therefore, their chances of growth of channels will become more limited.
As per the new policy, the Indian content creators on YouTube that have viewers in the US, receiving their payments from the US will be considered “royalties” from the US tax perspective. The creators will also need to furnish their tax information by submitting it in Google’s AdSense portal. If the creators submit their tax details on Google’s AdSense, they can claims benefits under the tax treaty between India and the USA. This agreement can reduce the tax rate to 15 per cent of earnings. On the other hand, if content creators won’t submit tax info before the deadline of May 32, 2021, Google may deduct 24 per cent of their total earnings as a form of tax.
As a reminder, a similar change of policy from YouTube took place in the US in November 2020. However, as mentioned above, in the rest of the world the changes will take place after June 1, 2021.