YouTube’s New Monetization Rules Explained: How Creators Could Earn From Videos, Premium and Shorts

YouTube’s monetization system can look complicated, especially when the platform uses terms such as “Net Revenue,” “Premium Pool,” “Individual Share Calculation” and “Pooled Ad Revenue.” However, the basic idea is easier to understand.

The latest monetization terms separate creator earnings into different categories, including regular YouTube videos, YouTube Premium, Premium Lite and YouTube Shorts.

For creators, one of the biggest differences is clear: eligible regular video revenue carries a 55% creator share, while Shorts revenue carries a 45% creator share under the Shorts Monetization Module.

But these percentages do not mean creators simply receive 55% or 45% of every dollar YouTube earns. The actual calculation happens through different revenue pools and eligibility rules.

Regular YouTube Videos: A 55% Creator Share

For regular YouTube content, the agreement refers to a Content Watch Page.

This is essentially the page mainly dedicated to playing and presenting a creator’s content. It can include a normal video watch page, a channel page and related recommendations or advertisements.

However, the regular video monetization module does not cover the feed-based YouTube Shorts experience.

When eligible advertisements generate Net Revenue on a regular video’s Content Watch Page, YouTube will pay the creator 55% of that applicable Net Revenue.

For example, if the applicable Net Revenue from advertisements is ₹1,000, a simplified calculation would give the creator ₹550.

The remaining ₹450 would represent YouTube’s share.

The important point is that the calculation is based on Net Revenue, not necessarily the total amount originally paid by an advertiser.

What About Embedded Videos?

The agreement also covers the YouTube Video Player, which refers to YouTube’s embedded player used on websites and applications outside the YouTube service.

For example, if your YouTube video is embedded in a news website or another application and advertisements are associated with its playback, the applicable regular video monetization rules may apply.

This means eligible revenue can come from more than just someone watching your video directly on YouTube.

YouTube Premium Creates a Different Revenue System

YouTube Premium users generally do not see traditional advertisements, but creators can still earn from their viewing activity.

Instead of an individual advertisement generating revenue for a particular video, YouTube uses a subscription revenue pool.

According to the terms, the YouTube Premium Pool is 30% of applicable Net Revenue attributed to the relevant content.

The creator’s share is then determined using the Individual Share Calculation.

In simple terms, YouTube looks at how much eligible content a Premium subscriber watches and distributes the relevant pool based on that viewing activity.

A Simple Example

Suppose applicable YouTube Premium Net Revenue in a country is ₹10 lakh.

Thirty percent would create a Premium Pool of:

₹10 lakh × 30% = ₹3 lakh

Now imagine your videos account for 1% of the relevant eligible watch time.

Your attributed amount would be approximately:

₹3 lakh × 1% = ₹3,000

Under the regular content module, the creator share would then be 55%:

₹3,000 × 55% = ₹1,650

This is only a simplified example. Actual calculations can vary depending on country, eligible content and YouTube’s applicable policies.

Why Watch Time Matters for Premium

The key idea behind the Individual Share Calculation is simple:

Your content’s watch time ÷ total eligible Creator Content watch time

The more time Premium users spend watching your eligible content, the greater your potential share of the relevant revenue pool.

This makes audience retention especially important for creators.

A video that keeps viewers watching for longer can contribute more watch time than a video that receives the same number of clicks but is watched for a much shorter period.

Premium Lite Has Its Own Pool

The agreement also includes YouTube Premium Lite, a separate subscription offering.

For Premium Lite, the agreement defines the Premium Lite Pool as 60% of applicable Net Revenue attributed to eligible content.

The creator’s share is then calculated according to the applicable rules.

For regular content, the agreement provides a 55% creator share of the amount attributed to the creator.

So the basic structure is:

Premium revenue → applicable pool → creator’s attributed share → 55% creator share

The same basic concept applies to Premium Lite, although the size of the pool is different.

Shorts Follow a Different Monetization Model

YouTube Shorts are treated separately.

The Shorts Monetization Module specifically applies to videos shown through the YouTube Shorts feed-based player.

For Shorts, the creator share mentioned in the agreement is:

45%

This is different from the 55% creator share under the regular content module.

Shorts advertising also works differently from traditional long-form videos.

Instead of treating an advertisement as being directly attached to one particular Short in the same way as a traditional video ad, Shorts advertising revenue is handled through the Shorts revenue-sharing system.

Eligible creators receive their share according to the applicable Shorts rules.

Views Are Extremely Important for Shorts

For Shorts subscription revenue, the agreement uses an Individual Share Calculation based on views.

The basic idea is:

Your eligible Shorts views ÷ total eligible Creator Shorts views

This means your share depends heavily on how many eligible views your Shorts receive compared with the overall Shorts ecosystem.

For example, imagine all eligible Creator Shorts collectively receive 100 crore views.

If your Shorts receive 10 lakh eligible views, your portion of the overall pool would be calculated using that relationship.

This is why Shorts creators generally need strong and consistent view performance.

Shorts and YouTube Premium

Premium subscribers can also contribute to Shorts-related subscription revenue.

For Shorts, the agreement defines the YouTube Premium Pool as 30% of applicable Net Revenue attributed to Shorts Content.

The creator’s attributed share is then determined according to the Shorts view-based calculation.

After that, the applicable creator share is 45%.

Premium Lite follows a similar structure, with the Premium Lite Pool defined as 60% of applicable Net Revenue attributed to Shorts Content.

Again, the creator share under the Shorts module is 45%.

The 90-Day Eligibility Rule

There is another important condition for Shorts creators.

You do not automatically become eligible for Shorts revenue simply because your videos receive some views.

The agreement says that creators must meet the minimum view threshold specified in the Shorts Monetization Policies.

YouTube measures the relevant views over a 90-day period ending on the 15th day of the calendar month before the month for which earnings are being calculated.

The exact minimum number of views is not provided in the agreement text itself. Therefore, creators should check the applicable Shorts Monetization Policies for the actual threshold.

The simple idea is:

Meet the required threshold → eligible for applicable Shorts revenue sharing.

Do not meet the threshold → not eligible for that revenue share for the relevant month.

Third-Party Content Can Change the Calculation

Creators should also pay close attention when using other people's content.

A Short may include third-party material such as licensed music, video clips or other copyrighted content.

If YouTube determines that third-party content contributed to the Short, the views may be divided on a fractional basis according to the applicable Shorts Monetization Policies.

In simple terms, the uploader may not necessarily receive full credit for every view.

Part of the value of the Short may be attributed to the parties whose content contributed to it.

For creators, this makes original content particularly important when building a sustainable monetization strategy.

Not Every View Is Automatically Eligible

Another important point is that the number shown as total views does not necessarily mean every view will be used for revenue calculations.

The agreement says YouTube will exclude ineligible views according to its Shorts Monetization Policies.

Therefore, creators should distinguish between:

Total views

and

Eligible views used for monetization calculations.

These numbers may not always be identical.

What Creators Should Remember

The new structure can be reduced to a few simple points.

Regular eligible videos:
Creators receive a 55% share of applicable Net Revenue.

Regular YouTube Premium:
A Premium Pool is created, the creator’s share is calculated based on eligible viewing activity, and the applicable creator share is 55%.

Regular Premium Lite:
A separate Premium Lite Pool is used, followed by the applicable creator-share calculation.

YouTube Shorts:
The creator share under the Shorts module is 45%.

Shorts Premium and Premium Lite:
The creator’s attributed share is calculated under the Shorts system, with a 45% creator share.

The Bottom Line

YouTube’s monetization system is not simply “YouTube keeps X% and the creator gets Y%.”

Instead, YouTube first determines the relevant revenue pool, then calculates how much of that pool is attributable to a creator’s content based on factors such as watch time or views, and finally applies the applicable creator revenue share.

For creators, the message is straightforward: original content, eligible views, strong watch time, audience retention and consistent performance remain extremely important.

And for Shorts creators in particular, understanding the 45% revenue share, 90-day eligibility requirement and rules around third-party content can help avoid confusion about how Shorts earnings are actually calculated.

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