YouTube is following through on its plan to ape one of TikTok‘s most lucrative revenue streams. After announcing an on-platform currency called Jewels during a presentation in September, YouTube is now rolling out the new feature among members of its Partner Program.
Jewels will only be available on vertical live streams launched through the YouTube app or third-party streaming software, according to The Verge. When Jewels are sent as gifts to streamers, they are converted into “rubies” that are valued at one cent apiece. The cost to buy Jewels — and, by extension, the exchange rate to rubies — may change as YouTube offers discounts on the currency.
If you’ve spent some time watching vertical streams on TikTok LIVE, you’ll notice the similarities between Jewels and the Coins TikTok uses to power its virtual gifts. TikTok streamers have earned considerable revenue from fan gifts, so it’s not surprising to see YouTube try something similar. Perhaps the Google-owned hub is looking to create its own class of streamers who pretend to be NPCs and earn thousands per hour in the process.
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The shift to virtual currencies isn’t just happening on TikTok Live. From Roblox‘s Robux to Fortnite‘s VBucks to Instagram’s Gifts, it feels as if every platform with a significant foothold in the creator economy is pivoting away from cold hard cash.
There is a psychological phenomenon that supports that trend. When money is converted to a currency that doesn’t align with real-life dollars and cents, people tend to spend more. This is something casinos have understood for a long time.
YouTube has experimented with live revenue streams other than Jewels, but the new product could serve as a replacement for some of those earlier monetization models. For example, creators who enable gifts will no longer be able to receive Super Stickers from their fans.
Whether gifts are doled out via Stickers, Chats, or Jewels, the ultimate takeaway is the same: Live content is a key pillar in the multiformat approach YouTube likes to promote, and taking a page out of TikTok’s book is a surefire way to increase earnings. Just ask Pinkydoll.
