YouTube’s New Monetisation Rules Shake Up Creator Economy

Sapatar / Updated: Jul 11, 2025, 16:45 IST 146 Share
YouTube’s New Monetisation Rules Shake Up Creator Economy

In July 2025, YouTube introduced a significant update to its monetisation policies under the YouTube Partner Program (YPP). The revised policy requires creators to meet higher eligibility thresholds, including a minimum of 1,000 subscribers and either 4,000 watch hours in the past 12 months or 10 million valid public Shorts views in the last 90 days. Previously, a lower benchmark applied for Shorts-only monetisation, which helped smaller creators enter the monetisation ecosystem. This move is expected to weed out low-effort or spam content but also poses a steeper hill for new entrants.


Revenue Sharing Adjusted: More Ads, New Splits

The new policy also revises how ad revenue is split between YouTube and creators. For Shorts, YouTube will now take a larger share of advertising revenue to cover music licensing fees, meaning creators may see reduced income unless their content performs exceptionally well. Long-form video revenue sharing remains unchanged at 55% to creators and 45% to YouTube, but the company has also increased its focus on premium advertisers, which may lead to stricter ad suitability checks.


Community Response: Mixed Reactions from Creators

The announcement has drawn mixed responses from the YouTube community. While large content creators have welcomed the changes as a way to improve overall content quality and increase CPMs (Cost Per Mille), smaller creators and newcomers fear they’ll be pushed out. Critics argue that YouTube is prioritising profit and advertiser trust over creator growth, especially in the Shorts format, which was previously seen as an easier entry point for monetisation.


Focus on Quality and Advertiser Confidence

According to YouTube, the policy overhaul is intended to enhance viewer experience, elevate quality standards, and build stronger advertiser confidence. The platform aims to attract more high-value brand deals, and this requires ensuring ads appear next to content that meets stricter guidelines. The policy update also aligns with YouTube’s broader strategy to compete with TikTok and Instagram Reels, which have been luring creators with better short-form monetisation models.


Opportunities Still Exist—But With Caveats

Despite the tightening grip, YouTube still offers a path to monetisation for those willing to adapt. The platform is promoting new features like channel memberships, Super Thanks, and product tagging, giving creators additional revenue streams. However, the success of these tools hinges on creators building deep audience engagement, not just going viral.


Conclusion: A New Era for Digital Creators

YouTube’s latest monetisation policy signals a shift towards a more professionalised, ad-safe content ecosystem. For creators, it’s both a challenge and an opportunity. Those who can maintain consistency, quality, and community engagement will likely thrive, while others may struggle to keep pace with the evolving landscape.