YouTube CEO Neal Mohan revealed at the MoffettNathanson investor conference that Shorts monetization has surpassed YouTube’s core business in certain countries. “It’s something that we have been working on for a while and it’s a testament to both the viewer side, but also the quality of the ad products that we build for our advertisers,” Mohan said. The update marks a turning point for YouTube’s short-form video strategy and hints at growing pressure on TikTok amid ongoing uncertainty about its U.S. future.
In Q1 2025, Shorts viewership jumped 20% year-over-year—likely influenced by the brief but widely discussed TikTok ban that started on January 19. Though TikTok’s service resumed shortly after, many creators and viewers explored alternatives like YouTube Shorts to avoid future disruptions. Today, about 70% of YouTube channels upload Shorts.
In some regions, Shorts generates more revenue than traditional YouTube videos, thanks to higher ad impressions, AI-driven targeting, and stronger viewer engagement. Short-form video is now a central tool for music discovery, pushing YouTube Shorts into a competitive spot once dominated by TikTok. Since December, overall music watch time on YouTube has grown 10% year-over-year—driven in large part by Shorts.
TikTok’s early success came from its viral algorithm and creator-friendly environment. But YouTube’s edge in monetization, rights management, and label partnerships now poses a serious threat. With its reach expanding through connected TVs and growing subscriber numbers for YouTube Music and Premium—now over 125 million—YouTube appears poised to further reshape the short-form video landscape.
