Huge News for YouTube's Revenue Split

[Wreckless Eating]

As most of you know, YouTube's current system is to take 45% of all ad revenue that they serve on videos. Certain networks-particularly those from traditional media (TV, Movies, plus VEVO) always got a better deal than the 55/45 split that YouTube/Google offered most MCNs. Now they're leveling the playing field, but throwing one huge addition to the mix:

YouTube will use a revenue cap for ad sales, meaning any network that can exceed that cap gets to keep the excess. That means large MCNs with experienced ad sales teams can easily make more than the 55% under the current deal-which puts more money in their pockets as well as the pockets of creators. It gives MCNs a greater incentive to push for premium advertising and gives them a huge advantage over Adsense if they can consistently exceed that revenue cap.

Sources: here and here.

 

[JeriKane]

Hmm.... Late night reading again, but that sounds pretty good. I hope that's good. :x I wonder if it'll be hard to exceed that cap? Or...

Yeah, this sounds awesome. Good work, YouTube.

 

[PressRecord]

This is a much needed step in the right direction. Go YouTube.

 

[Munchito696]

As most of you know, YouTube's current system is to take 45% of all ad revenue that they serve on videos. Certain networks-particularly those from traditional media (TV, Movies, plus VEVO) always got a better deal than the 55/45 split that YouTube/Google offered most MCNs. Now they're leveling the playing field, but throwing one huge addition to the mix:

YouTube will use a revenue cap for ad sales, meaning any network that can exceed that cap gets to keep the excess. That means large MCNs with experienced ad sales teams can easily make more than the 55% under the current deal-which puts more money in their pockets as well as the pockets of creators. It gives MCNs a greater incentive to push for premium advertising and gives them a huge advantage over Adsense if they can consistently exceed that revenue cap.

Sources: here and here.

I'm with Creator X and debating on staying. This sounds like something that may be promising. I'm just not really convinced that I'm getting anything extra besides their music library right now, so giving up my percentage almost doesn't seem worth it.

 

[markkaz]

I'm not getting the same euphoria.

My understanding is that Google is lowering the minimum ad rates. If a network, which includes TV networks, are able to obtain higher ad rates, then it is beneficial.

What I understand to be happening on YouTube is they don't have enough ads to serve on the hundreds of thousands of channels that are partnered. I feel they are lowering the price in order to entice more advertisers or at least, spread out the current advertisers budgets over more videos.

For those who are only on YouTube/Adsense, I don't know if this will mean more or less earnings.

The article states that there will be a cap to the percentage that Google keeps of the revenue. Without stating what the actual amount is, I will save my enthusiasm.

Don't get me wrong, I am glad that it seems that Google is willing to address concerns of content creators and those such as Jason Calacanis and Mark Shuster.

 

[Wreckless Eating]

Channels with high CPMs are more likely to be pushed by MCNs so they can exceed the revenue cap. Our CPM is high since we push long form content with midroll ads on videos that get a lot of views. That puts us in a very good spot with our contract expiring in 7 weeks.