Short videos are a trend that YouTube also joined with its YouTube Shorts format. Despite being a success, since it has more than 2 billion users since its launch in 2021, this trend could jeopardize the YouTube business, owned by Alphabet, Google's parent company.
According to a report by the Financial Times, some of the platform's longest-serving executives are concerned about this trend, as short videos provide far less ad revenue than long-form videos. And if this preference - inherited from the great success of TikTok - is consolidated on YouTube, the company's benefits may suffer in the short or medium term.
The data indicates that the platform has experienced a decrease in the production of long-form videos by content creators. This change in behavior is attributed to the decline in public interest in this type of format, something confirmed by ComScore's statistics: the public prefers the Shorts format, in the same way that on Instagram they opt for Reels to the detriment of photographs. All this coincides with the worldwide rise of the 15-second video model created by TikTok.
Not surprisingly, YouTube reported that in October 2022 it had suffered its first quarterly drop in ad revenue, and experienced two more year-on-year drops. Of course, in the second quarter of 2023 revenues increased to 7,700 million dollars (4.4% more). YouTube 'shorts', which are short videos recorded in vertical format, receive more than 2,000 million visits from users registered in the 'app' per month, as detailed by the platform at the beginning of August.
Some Google executives fear that traditional videos are "dying" and that consumers prefer only content in 'shorts' format. One characteristic that makes them a more common type of content among users is that, since it is the same type of video -short and in vertical format-, it can be published on several social networks simultaneously.
YouTube has also noted that, in addition to declining viewership, content creators are posting fewer long-form videos. This is because, according to sources, ad brands favor short-form content more. Short-form videos, however, get fewer clicks from ads on e-commerce websites, which hurts YouTube's business.
YouTube has stated that Shorts was "designed to complement, not compete with, all the other formats creators use" on the platform. Those responsible for the platform insist that the long-form experience has not been neglected. Additionally, the platform has branched out into other areas, such as subscriptions and podcasts, which offer longer content that has proven popular.
In any case, the landscape has changed a lot for YouTube. From clearly leading the Internet video distribution market for many years against rivals like Vimeo, it now competes against a giant like TikTok and a very popular platform like Instagram and its Reels. Changing consumer preferences are reshaping the technology and media landscape.
Ultimately, the challenge for YouTube and other platforms is finding the right balance between short and long content formats to keep both creators and audiences engaged. The short-form video revolution is here to stay, and technology companies must adapt to stay relevant in this new media landscape.
