YouTube unveiled a new way for creators to make money on short-form video, as it faces intensifying competition from TikTok.

The Google-owned streaming service announced Tuesday that it would introduce advertising on its video feature Shorts and give creators 45 percent of the revenue. That compares with its standard distribution of 55 percent for videos outside of Shorts, and TikTok's $1 billion fund for paying creators.

"We want YouTube to be the place that gives (creators) the greatest support within the changing digital landscape," said YouTube Chief Product Officer Neal Mohan.

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(Edited by : Sangam Singh)