Tips Music Pushes YouTube For Revenue Share On Shorts Amid Low Monetisation

Indian music label Tips Music Limited is advocating for a shift in how rights holders are paid for content used in YouTube Shorts, suggesting that the current flat licence fee model be replaced with a revenue-sharing arrangement over the medium to long term. The proposal comes as Shorts continue to generate heavy view volumes but comparatively low monetisation for rights owners.

During the company’s Q3 FY26 earnings call, Sushant Dalmia, Chief Financial Officer at Tips Music, said the existing fixed-fee approach for Shorts licensing is insufficient and that a profit-sharing system tied to actual revenue could better reward music labels. “It won’t happen on an immediate basis, but over the medium to long term, that model would move from a fixed fee to a revenue share,” he said.

Tips Music Chairman and Managing Director Kumar Taurani echoed the sentiment, arguing that YouTube should explore new monetisation pathways,whether through increased advertising on Shorts, subscriptions or premium features,to allow profit sharing with rights holders. “They should give us a profit-sharing basis… we must take some money from there,” he said, noting that the current situation reflects a global challenge but emphasising that Tips is performing comparatively well.

However, both Taurani and CEO Hari Nair of Tips acknowledged that any change ultimately depends on YouTube’s willingness to revise its revenue structure. Until then, platforms may continue with flat licence models while labels maintain existing arrangements.

The discussion around revenue share for Shorts highlights broader debates about how user-generated content (UGC) monetisation works for music. Indian labels such as T-Series, Zee Music Company, Saregama and Sony Music India already benefit from UGC on short-form platforms through systems like YouTube’s Content ID, which identifies and monetises clips featuring licensed music. At the same time, licensing on platforms like Instagram relies on catalogue access without a direct Content ID-style match.

Experts say shifting from flat licence fees to a revenue-sharing model could better align rights holders’ interests with platform growth, particularly as short-form content continues to dominate online engagement despite its relatively low direct monetisation.