YouTube has recently updated their Terms of Service (T.O.S.). The changes have already taken effect in the US and will in other countries by mid 2021. Why is this important? Agreement to their new terms and conditions will make it difficult for small content creators, or people living outside the US, to profit off music and videos they post to the platform.
“Competition is always a good thing. It forces us to do our best. A monopoly renders people complacent and satisfied with mediocrity.” — Nancy Pearcy
In order to make money now, content providers must meet certain eligibility requirements for YouTube’s Partner Program (YPP). Some of these requirements include: Having at least 1,000 subscribers, having 4,000 valid public watch hours in a 12 month period, posting new content once every six months, and being located in one of the partner program’s qualified areas.
Spur of competition
Due to these new restrictions, it’s likely a growing number of producers will start seeking out already established or upcoming alternatives to YouTube. One of these contenders is Dailymotion, which doesn’t have quite as strict preconditions to earning income. You don’t need a certain number of subscribers or hours your videos are watched, once you upload a video, you start making money with them, it’s as simple as that.
Vimeo, with their Video on Demand, over-the-top (OTT) subscription, and live pay-per-view (PPV) services, has proven on average to surpass the revenue made from YouTube during the same timeframe. The other upside to uploading videos to Vimeo is viewers aren’t bombarded with annoying advertisements that distract them from enjoying it.
Once these new policies are introduced globally, coupled with the already small compensation for intrusive ad placements on YouTube videos, there’s a good chance both creators and their viewership will start transitioning to these other providers and more new and exciting services will begin to emerge. When you have competition in an industry, the ultimate winners will always be the customers.