YouTube Shorts has quickly grown into one of the most powerful platforms for short-form video creators, competing directly with TikTok and Instagram Reels. As of September 2025, YouTube has rolled out major monetization updates that are reshaping how creators earn from Shorts. These changes bring both exciting opportunities and stricter rules, especially around AI content, originality, and creator revenue sharing.
In this blog, we’ll cover everything you need to know about the new Shorts monetization updates, how they impact creators, and the best strategies to maximize your income.
1. The Rise of AI in Shorts Creation
One of the biggest announcements in September 2025 is YouTube’s integration of advanced AI tools into Shorts. Features like “Edit with AI” and “Extend with AI” now allow creators to:
- Automatically edit raw footage into clean, short drafts.
- Generate video backgrounds, transitions, and animations.
- Extend existing Shorts with AI-generated content, letting creators remix or continue popular clips.
These tools are designed to lower the barrier for creators who may not have editing skills. But YouTube has also made it clear: AI should enhance creativity, not replace it. Shorts that are fully auto-generated without meaningful input risk demonetization.
2. Stronger Crackdown on Low-Effort Content
Starting July 2025 and expanding through September, YouTube updated its monetization policies to address the flood of low-effort, repetitive, and mass-produced Shorts.
The new system flags and reduces revenue from:
- Repetitive templates uploaded in bulk.
- AI “slop” (auto-generated videos with no creative input).
- Stitched content reused without commentary or transformation.
Creators are still free to use AI tools, but they must add their own creativity, context, or storytelling. Simply copying and pasting AI-generated material won’t cut it anymore.
This is part of YouTube’s push to protect advertisers and reward originality.
3. “Extend with AI” Feature for Remixing
A brand-new Extend with AI feature allows creators to take a 5-second moment from an existing Short and extend it with AI-generated content. For example, if a comedy clip ends with a punchline, another creator can add a follow-up gag using AI continuation.
- The original creator’s Short stays intact.
- The extended version becomes a remix, credited separately.
- Creators can opt out of being remixed if they don’t want their content used.
This feature builds a collaborative culture, giving creators fresh ways to engage audiences and grow virally.
4. Monetization Mechanics: How Money Flows
YouTube Shorts monetization continues under the Shorts Monetization Module, but there are a few clarifications as of September 2025:
- Revenue Pool System – Ads run between Shorts in the feed. All revenue is pooled and shared among creators.
- 45% Revenue Share – Eligible creators receive 45% of their share, after accounting for music rights.
- Engaged Views Count – Payment is based on “eligible engaged views,” not raw views. This means watch time and interaction matter.
- Music Deduction – If copyrighted music is used, part of the ad revenue goes to music rights holders before creators are paid.
5. Monetization Thresholds
To join Shorts monetization, creators must:
- Have 1,000 subscribers, and
- Achieve 4,000 watch hours in the past year OR 10 million Shorts views in the past 90 days.
There are discussions about a “lower entry tier” for new creators (around 500 subscribers), but the standard threshold remains the safest bet.
6. Reporting Glitch in September 2025
Some creators noticed that millions of Shorts views were not showing up in their monetization tab after September 9, 2025. YouTube has confirmed a temporary reporting freeze in the monetization dashboard. While real views still count, the dashboard may under-report revenue temporarily.
This highlights why creators should always track performance using both Analytics and estimated revenue, not just one metric.
7. Other Policy Updates
Alongside Shorts monetization, YouTube introduced smaller but impactful changes:
- Updated Ad Guidelines – Stronger profanity in the first few seconds of a video may now still be eligible for ads, depending on context.
- YouTube Studio App Update – Older versions (23.32 and below) are no longer supported. Update to access the new monetization features.
- Inspiration Tab Rollout – A new “Inspiration” tab in YouTube Studio helps creators discover trending Shorts ideas.
8. Risks for Creators
While opportunities are growing, there are risks creators must prepare for:
- Stricter Enforcement – Low-effort or copy-paste AI content may get demonetized.
- Revenue Fluctuation – The pooled ad system means CPMs and revenue can swing widely.
- Threshold Confusion – New creators must ensure they meet eligibility rules; assumptions about lower thresholds can cause delays.
9. Opportunities for Creators
On the bright side, the updates also open up exciting opportunities:
- AI as a Creative Partner – AI editing, remixing, and background tools allow even solo creators to produce high-quality Shorts faster.
- Remix Culture Boost – The “Extend with AI” feature could turn viral trends into long-running content chains, giving creators more exposure.
- Quality Rewarded – Original storytelling, commentary, and creativity will stand out even more.
10. Tips to Maximize Shorts Monetization
To thrive under the new September 2025 monetization rules:
- Audit your channel – Delete or unlist low-effort or repetitive Shorts.
- Focus on originality – Add your own voice, commentary, or narrative even if using stock footage or AI.
- Adopt new AI tools wisely – Use “Edit with AI” as a shortcut, but polish manually.
- Optimize for engagement – Hook viewers in the first 3 seconds to boost completion rates.
- Experiment with remixes – Use “Extend with AI” to collaborate or continue trending Shorts.
- Diversify income – Don’t rely solely on ad revenue; push merch, affiliate links, memberships, and long-form videos too.
- Stay updated – Policies and thresholds can shift fast; check Creator Insider updates regularly.
Conclusion
The September 2025 YouTube Shorts monetization update is a mix of AI empowerment and authenticity enforcement. While new tools make content creation faster and more exciting, YouTube is equally serious about maintaining quality.
For creators, the formula is clear: be original, be creative, and use AI wisely. Those who balance innovation with authenticity will thrive in this new era of Shorts.
Short-form video is no longer just about going viral; it’s about building a sustainable creative career. If you embrace these updates with strategy and originality, Shorts can be one of the most powerful revenue streams available today.
