YouTube’s new feature, announced late yesterday, the Jewels-powered "gifts," is pretty much a page out of TikTok’s playbook. Similar to TikTok"s "Live Gifting" feature, where viewers send digital items during live streams to support creators, YouTube Jewels allows viewers to buy virtual currency to send creators gifts that appear in real-time during vertical live streams. These digital gifts, purchased in "Jewel" bundles, are converted into "Rubies" for creators, where each Ruby equals one cent. So, if a creator receives 100 Rubies, that"s $1 earned.
TikTok’s Live Gifting has been around for a while and works similarly. Viewers buy "Coins," which they can send as virtual gifts like pandas, sun creams, and more, each with a certain value. These Coins convert into "Diamonds" for creators, which can then be cashed out, although TikTok does keep a percentage of these earnings.TikTok’s feature has proven successful, with the platform reaching over $10 billion in consumer spending last year. However, it hasn"t been without controversy, as critics argue that it may encourage excessive spending, especially among younger viewers.
YouTube Jewels have one big restriction: only U.S. creators and viewers can use it for now. YouTube also clarified that this feature would only work on vertical live streams via the mobile app. This vertical-only restriction seems to be YouTube"s attempt to make the live experience more interactive for a mobile-first audience, mirroring TikTok"s success in short, vertical video content.
Whether this feature will take off, especially with competition from TikTok and even Twitch (which has long had virtual gifting options), remains to be seen. But with TikTok"s model showing real revenue possibilities, it"s no surprise YouTube is giving this a shot too.
The video giant has been making waves in 2024 with some exciting updates. One of the biggest changes is that they"ve finally rolled out 5.1 surround sound for videos on any TV that supports it. This means you"ll get a more immersive experience when watching YouTube content on supported devices. And it’s not just about sound—smartphone users can also cast videos to a TV while still using their phones for browsing and interacting with comments.