Shorts could end YouTube’s long-form video business

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San Francisco. YouTube’s TikTok rival shorts could eat away at the Google-owned video streaming platform’s core long-form video business.

According to a report in The Financial Times, a veteran YouTube staffer said that the short-video platform Shorts could kill its own core business.

Google recently announced that Shorts now has over 2 billion logged-in monthly users, giving it an edge over competitors like TikTok and Instagram Reels.

“Recent YouTube strategy meetings have discussed the risk that long-form videos, which generate more revenue for the company, are ‘dying’ as a format,” the report said late Sunday.

YouTube staff believe content creators are making fewer long-form videos due to a lack of consumer interest and commissions from brands that prefer short-form content for product placement.

YouTube says Shorts was designed to complement, not compete with, creators of all other formats like audio and livestreams.

Although YouTube’s advertising revenue has improved, it has been declining year-over-year for three consecutive quarters.

The company is still figuring out how to make the most advertising money from the shorts.

The latest YouTube Shorts account for YouTube Shorts, announced last year, is used by over 1.5 billion monthly logged-in users.

In its results for the second quarter of 2023, Google reported that YouTube brought in $7.67 billion in advertising revenue. This is 4 percent more than the same period last year.

The company introduced advertising on shorts late last year.

YouTube now has to support shorts as it gains immense popularity, investing in creators and encouraging them to create exclusive content.

(IANS)

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