YouTube will enable content creators to monetize their videos using legally licensed music.

YouTube is developing a new initiative that will enable content creators to monetize their long-form videos as long as they include legally obtained music.

At today’s Made on YouTube event, the company announced that it would be opening up a catalog of popular music for content producers to utilize in their films without having their revenue suffer as a result. This new service is called Creator Music. There are a few different-alternatives available to creators. They can either license-tracks directly and keep all of the cash (less the 45 percent cut that YouTube gets), or they can share revenue with the license holders. According to YouTube spokesperson Susan Cadrecha, the creators’ 55 percent portion of the payment will be prorated-based on the number of licensed-tracks included in their video if the creators choose to split the revenue with artists. If they utilize only one channel, they will retain 27.5 percent of the profits, but if they use two tracks, they would only receive 18.3 percent. Videos are subject to additional deductions, such as a performance rights fee, and the rights holders receive the remainder of the money after such deductions.

Creators on YouTube have traditionally been required to use music that is available without paying royalties whenever they include music in their videos to avoid having their videos demonetized. If you use even a tiny bit of a song by a major artist without their permission, a video could be taken down entirely, or at least a portion of it could have its audio muted. The new program is being tested in the United States and will roll out to other nations the following year.

According to Billboard, YouTube has agreements with more than fifty record labels, publishers, and distributors; however, it does not appear that any big record labels are among those parties. According to YouTube’s statement to the publication, “several hundred thousand” songs would be made available for licensing through Creator Music. One person who appears to be enthusiastic about it is Jason Derulo.

Creator Music is one of the most significant announcements from YouTube’s event that took place today. It is another move made by YouTube to attract producers to its platform. The firm said a week ago that it would change how users make money on Shorts, the platform’s imitation of TikTok. Precisely, it would eliminate the creator fund and replace it with an ad revenue-sharing program to better compete with TikTok. The revenue split for short videos is the reversal of the revenue share for long-form videos, with artists receiving 45 percent of revenue while YouTube retains 55 percent.

Update September 21st, 9:16 AM ET: Updated to include additional details about revenue sharing.