Photo Credit: YouTube Shorts
YouTube Shorts has reached a pivotal milestone—it’s revenue per watch-hour now matches that of regular long-form YouTube videos in the United States and other countries.
YouTube CEO Neal Mohan shared the news at the MoffettNathanson investor conference, stating, “It’s something that we have been working on for a while and it’s a testament to both the viewer side, but also the quality of the ad products that we build for our advertisers.” The news signals a major shift in the economics of short-form video for the largest video service in the United States. It also signals trouble for TikTok, should the service not be able to strike a deal should President Trump tire of kicking the ban can down the road.
In Q1 2025, Shorts viewership jumped 20% year-over-year, likely thanks to the widely publicized TikTok ban that went into effect on January 19. While TikTok’s unavailability was short-lived, many users (both viewers and creatives) sought different platforms to avoid interruptions from a potential platform ban. Around 70% of YouTube channels now upload Shorts content.
In some countries, Shorts’ monetization rate exceeds that of YouTube’s core business, thanks to more ad impressions, AI-powered ad targeting, and higher general usage compared to long-form videos. With Short-form video becoming a primary discovery tool for new tracks, artists, and trends—YouTube Shorts is poised to become a trendsetter that surpasses TikTok. Overall music watch time on YouTube is growing 10% year-over-year since December, with Shorts driving a significant portion of that engagement.
TikTok’s dominance in short-form video was built on the back of its viral discovery engine and creator-friendly ecosystem. However, YouTube’s ability to offer equivalent or even superior monetization, combined with its robust rights management and established music partnerships, presents a formidable challenge for the embattled Chinese-owned social media site.
With YouTube’s massive reach now surpassing mobile on connected TVs and its ongoing investment in music and podcasting—the platform is positioned to capture even more of the lucrative short-form video market. YouTube Music and Premium now has over 125 million subscribers, including free trials.
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