YouTube to start display ads on the non-monetized channels, but won’t pay to video creators

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Google updated their YouTube terms of service in the United States which will allow the YouTube to display ads on the video channels not being monetized. There are many YouTube channels not able to achieve the 1,000 subscribers and achieve 4,000 hours of valid public watch, these channels does not meet the minimum requirement for the monetization enabled or “partner status” and can’t be used for displaying ads. The creators of these videos were never been able to get monetization enabled or “partner status”. Now, Google will utilize these YouTube channels for displaying ads and won’t pay to the original video creator.

These YouTube channels will generate income for Google. YouTube will start putting ads on non-monetized channels and start earning, but won’t pay anything to the original video creators. This is going to be another good source of money for YouTube.

Google YouTube have updated the terms of service in the US in a such a way that will enable them to show ads on the video published under the channels without having monetization enabled or “partner status” on the YouTube Partner Program.

For general user’s it is hard to achieve 1,000 subscribers, achieve 4,000 hours of “valid” public watch hours in the past 12 months. Which is necessary requirement for a channel for getting it enabled for getting into the YouTube Partner Program?

Unless your channel is eligible, no ads will be shown on your video content. The new terms of service update will enable YouTube to display ads on the videos in such YouTube channels without giving ads revenue to the content creator.

New YouTube terms reads “Right to Monetize. You grant to YouTube the right to monetize your Content on the Service (and such monetization may include displaying ads on or within Content or charging users a fee for access). This Agreement does not entitle you to any payments. Starting November 18, 2020, any payments you may be entitled to receive from YouTube under any other agreement between you and YouTube (including for example payments ​under the YouTube Partner Program, Channel memberships or Super Chat) will be treated as royalties.  If required by law, Google will withhold taxes from such payments.”

This terms of service update will enable Alphabet-owned streaming platform to place ads before, during or after any unmonetized content. Now, YouTube won’t give ads share to the creator of the videos.

As per the report Alphabet recorded $5 billion in ad revenue in Q3 of 2020 alone. This move has been seen as undoubtedly a body blow to smaller channels. The small video creator created large amount of content on the YouTube.

As per one report almost 90% of content uploaded to YouTube never surpasses the 1,000 view barrier. So, such content is going to be a Gold mine for YouTube.