YouTube’s management is reportedly concerned with the growth of it’s short-form video, Shorts, as it’s poaching the popularity of long-form videos.
As it’s evident that many users are interested in short-form videos, advertisers, too, are leaning toward this format. This effectively kills the spending on long-form video format, which is the core business of YouTube.
Shorts Killing the Long-Form Videos
YouTube has revolutionized the online entertainment business by letting users share and watch interactive videos for free, even until now.
But with people getting busier in their daily lives, they’re leaning more toward short-form videos for quick entertainment and are gradually neglecting long-form content, which YouTube thrives on.
Well, watching their interest, YouTube did manage to get on the trend of making short-form videos – called Shorts and competing directly against TikTok and Instagram. And this initiative is now killing YouTube’s core business – long-form videos.
As noted by the Financial Times, a senior YouTube staff at recent strategy meetings has “discussed the risk that long-form videos, which produce more revenue for the company, are ‘dying out’ as a format”. Also, internal data shows that creators are “making fewer long-form videos, driven by a lack of consumer appetite”.
This affects YouTube significantly, as longer videos are crucial for more advertising revenue, as they attain a “higher click-through rate on adverts to e-commerce sites.” This aside, the new trend is also pushing advertisers to spend more on short-form content, resulting in cutting their budget for long YouTube videos.
How YouTube will control this situation is yet to be seen, as the company has already been triggered by ad revenue drops in three of the last four quarters. The platform has begun cracking down on ad blockers and has increased it’s Premium price in the US recently.
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