Why does YouTube take 45% of ad revenue from creators?

In the broader content industry, creators often receive much less than 55% of gross revenue. Many are lucky to get 20%, so YouTube's split is considered exceptionally good by industry standards, especially given the scale and reach of the platform.

The 45% cut also covers the substantial costs of hosting videos and maintaining the necessary infrastructure. Running servers and providing a seamless user experience involves significant expenses, which YouTube must manage to keep the platform operational.

While some creators feel the split is high, it's important to note that compared to other platforms, YouTube's revenue distribution is relatively favorable. For example, Twitch takes a larger percentage from its creators, making YouTube's 55/45 split seem less harsh in comparison.

YouTube functions as a massive ad agency, where brands pay Google to display their ads on the platform. This model allows YouTube to provide viewers with free access to content. The revenue split reflects the costs associated with running the platform and delivering these ads.