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YouTube is changing its rules for children's videos, an initiative that could have an impact on many content creators in the network.
SAN FRANCISCO – Three years ago, Samuel Rader quit his job to work full time on his YouTube channel "Sam and Nia", which features videos of his family life.
The chain created by the Texas-based couple – with videos of their Hawaii vacation, their pool setup and other content on "Christian Family Living" – has become one of the stars of the video service owned by Google with 2.5 million subscribers.
But the future is now uncertain for "Sam and Nia" and other "creators" of YouTube, as a result of an agreement with US regulators that will make it more difficult to obtain advertising revenues from videos and channels for children.
"I heard a minor panic attack when I heard it," said Rader, whose channel reported $ 2 million from commercials placed alongside the videos.
"I thought we needed to find a new source of income."
Earlier this month, YouTube agreed to pay a $ 170 million fine and change its handling of data collected from child victims of an agreement with the Federal Trade Commission of the United States. United.
YouTube will process the data of anyone viewing children's content on YouTube as coming from a child. It will also stop running full-featured ads on this content and will prohibit certain features such as comments and notifications.
The new rules, which are expected to come into effect in four months, have fueled fears of YouTube's creator community and "vloggers," such as the Raders, who are experiencing advertising revenues.
– Shock, grief, fear –
"There's a lot of shock, heartache and fear, for many creators it's their only source of revenue," said Melissa Hunter of Family Video Network, a consulting firm that also operates a group of channels on YouTube.
"They are people who create content in their homes, not big companies, they are small home-based businesses."
Many questions remain about YouTube's definition of children's content for children under the age of 12, which will be subject to the new rules.
Rader said that he had been informed that "we are a low-risk channel because our content does not target children".
YouTube is estimated to have millions of content creators on its network, sharing advertising revenue of more than $ 10 billion a year, although YouTube's share of content for children is uncertain.
Announcing the new policy, Susan Wojcicki, YouTube's Executive Director, acknowledged that "these changes will have a significant impact on the creators of families and children who create both fantastic content and thriving businesses. We are therefore striving to give the creators time to adjust before the changes take effect. "
Wojcicki added that YouTube "is committed to working with them throughout this transition and providing resources to help them better understand these changes," and would also create a $ 100 million fund dedicated to creation of original and thoughtful content for children ".
Critics of the internet giant said that YouTube stood as a destination for children and that it was leveraging the sale of advertising to toy makers and others.
FTC President Joe Simons said the regulation "prevents YouTube and Google from turning a blind eye to the existence of content for children" on its platform.
According to Hunter, creators of family content can collect between $ 30 and $ 100,000 a month, but "these families will do almost nothing on January 1" when the new rules come into effect.
– Stop targeting? –
YouTube and creators may still be able to generate revenue with video ads, provided that they are not targeted based on data collected on children, although they are much less lucrative.
"Advertisers are spending more on traceable and measurable placements," said Nicole Perrin, an analyst at the eMarketer research firm.
"I'm not sure that there is a way to respect that for kids without limiting some of the income on that side."
Shaun McKnight, whose Dallas-based company M-Star Media, has created several popular YouTube channels that have drawn millions of subscribers, said that he and his wife were anticipating the changes ahead.
"My wife and I thought it was too risky, so we pulled out," he said.
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