Alphabet’s YouTube announced a $100 million fund to pay content creators who make hit videos on its new short-form video feature Shorts.
YouTube said it will launch the fund in the coming months and start paying video creators this year and 2022.
The investment comes as video platforms are racing to attract young creators who are building huge fan followings — and big earning potential — by filming short comedy skits and dance routines, Reuters reported.
Viral app TikTok started the trend of publishing short-form video clips targeting young audience. Other apps such as Facebook-owned Instagram’s Reels, Snapchat Spotlight and YouTube Shorts have started copying the business of ByteDance-owned TikTok.
YouTube said the new fund will pay thousands of creators each month whose videos on Shorts receive the most engagement from viewers.
The streaming video site added it will begin to test ads on Shorts.
As the market for short video features becomes more crowded, platforms have used creator funds as a way to court more users.
TikTok launched a creator fund in July and later increased its funding to $1 billion in the United States over three years.
Snap awards $1 million per day to users who post top content on Spotlight.
