YouTube Shorts are officially bringing in more ad revenue per watch hour than traditional long-from videos. Here’s what it means for artists and creators.

Shorts take the lead

At Alphabet’s latest Q3 earnings call, YouTube revealed that Shorts now generate more revenue per watch hour than long-form content in the US. The bite-sized vertical clips that were once seen as YouTube’s answer to TikTok are now driving more revenue for creators than the platform’s traditional videos.

Alphabet’s total revenues broke the $100 billion mark for the first time, with YouTube’s ad revenues reaching a massive $10.3 billion in Q3 2025- up 15% year-on-year. It’s a clear sign that YouTube continues driving revenue for Google, and Shorts are becoming an increasing part of that success.

YouTube Music keeps climbing too

Beyond ads, Alphabet’s subscriptions, platforms, and devices segment (which includes YouTube Music, YouTube Premium, and YouTube TV) saw serious growth of 21% YoY to $12.9 billion. While the numbers of YouTube Music and Premium subscribers weren’t revealed, it was confirmed that total paid subscriptions across Google passed 300 million, led by growth in YouTube Premium and Google One subscriptions. Back in March, Google revealed there were 125 million paid YouTube Music and Premium subscriptions.

Phillip Schindler, Google’s Chief Business Officer, reiterated a well known fact: paid subscribers generate significantly more profit than ad-supported users. Still, YouTube remains committed to both types of users.

Last month, YouTube revealed that it paid $8 billion to music rightholders between July 2024 and June 2025. That puts YouTube close to Spotify’s $10 billion payout for 2024, proving just how powerful YouTube has become for artists.

YouTube sets new record with $8 Billion paid to musicians and labels

The rise of Shorts for artists

This isn’t just a financial milestone for Shorts, it’s a major shift in how creators and artists can earn on YouTube. Shorts are no longer just a tool for discovery, but they can also bring in serious revenue. 

For musicians, this means more than just visibility. If Shorts are now earning more per watch hour than long-form videos, artists who actively post Shorts could see better returns from their content. Combine that with the platform’s increasing payouts to the music industry, and YouTube Shorts aren’t just a promotional tool anymore, they’re a viable revenue stream.

The takeaway

More than ever, Shorts are now worth your time. With YouTube paying $8 billion to music rightsholders, there are now multiple ways to build a sustainable income on the platform. The creators who experiment, post consistently, and use Shorts strategically stand to benefit most.

If YouTube’s Q3 results prove anything, it’s that the platform’s short-form future is only getting brighter. For artists, it’s never been a better time to use Shorts.

You can get your music onto Shorts for free with RouteNote and start earning today!