As YouTube Shorts gain traction, the company faces apprehensions about its core long-form video business, which generates the majority of its ad revenue. Employees are expressing worries that the surging interest in short videos might overshadow and potentially affect the acceptance of longer video content, which has traditionally been YouTube’s primary focus. YouTube Shorts was introduced as a direct competitor to TikTok after the latter was banned in some regions. Since its launch in 2021, Shorts has witnessed a significant uptick in viewership. Reports suggest that this issue has prompted discussions during the company’s strategy meetings.
Shorts videos currently offer limited advertising opportunities, while longer videos constitute the cornerstone of YouTube’s business model. The company did report a decline in advertising revenue last year but is now actively exploring ways to monetize Shorts and diversify its revenue streams.”