This update can actually be an annoyance source for YouTube creators. This week, YouTube has announced an update to its Terms of Service which, most notably, includes a new provision that will enable YouTube to insert ads into content that’s not part of the YouTube Partner Program.
This means, if you chose not to put ads in your YouTube video, YouTube’s probably going to do it anyway, however, you won’t gain any subsequent revenue from those ads unless you sign up to YPP.
In light of the YouTube monetization program, YouTube explains: “Starting today, we’ll begin slowly rolling out ads on a limited number of videos from channels not in YPP. This means as a creator that’s not in YPP, you may see ads on some of your videos. Since you’re not currently in YPP, you won’t receive a share of the revenue from these ads, though you’ll still have the opportunity to apply for YPP as you normally would once you meet the eligibility requirements.”
Moreover, many YouTube creators over the years have opted not to put ads into their YouTube clips. Back in 2017, reports suggested that Australian musician Gotye had turned down over $10 million in revenue on his YouTube channel because he refused to insert ads into his clips.
In other words that means, people could view a creators’ content without disruption- but now, it looks like YouTube’s going to eject ads in clips no matter what. It is recommended that creators sign up for the YouTube monetization program.
Moreover, it is difficult to estimate how many YouTube videos this change will have an effect on, however, it could lead to an important increase in available ad space on the social media platform.
That will provide YouTube with a lot more revenue opportunities, and it could also more possible ways for advertisers to reach relevant audiences.
In addition to the YouTube monetization program, YouTube has also added a new clarification to explicitly ban the harvesting of facial recognition data from YouTube clips, on the other side, the US creators who are a part of the YouTube Partner Program will now also see their revenue payments from YouTube treated like royalties, from a tax perspective.
YouTube says: “Google will withhold taxes from these payments if it is required by law. US creators will generally be unaffected by these withholding taxes as long as they provide valid tax documentation in Adsense.”
These changes will go into effect starting from today in the US, and also will come into effect for other nations in mid-2021. For more information about the full rundown of each specific YouTube, ToS update click here.