YouTube to serve ads on content from channels that aren't in YPP

Furthermore, YouTube's updated Terms of Service clearly states that users are not allowed to collect or harvest any information that might identify a person (for example, usernames or facial recognition data) unless permitted by that person.

YouTube has added a new section, "Right to Monetize", to its updated Terms of Service. The new section states that YouTube will roll out ads on a limited number of videos from channels not yet in the YouTube Partner Program (YPP), but, they won't receive a share of the revenue from these ads.

For those who may not be aware, YouTube Partner Program gives creators greater access to YouTube resources and enables revenue sharing from ads being served on the content.

"We added this new section to let you know that, starting today we'll begin slowly rolling out ads on a limited number of videos from channels not in YPP. This means as a creator that's not in YPP, you may see ads on some of your videos. Since you're not currently in YPP, you won't receive a share of the revenue from these ads, though you'll still have the opportunity to apply for YPP as you normally would once you meet the eligibility requirements," says the new section.

Further, as per the updated terms, any payments from YouTube to U.S. creators will be considered "royalties" from a U.S. tax perspective, effective November 18, 2020, and that Google will withhold taxes from these payments if it is required by law.

"Some creators may be required to submit tax information in AdSense and may be subject to U.S. withholding taxes if required by law. U.S. creators will be generally unaffected by these withholding taxes as long as they provide valid documentation. If you have further questions, you may want to seek professional tax advice," YouTube said.

Furthermore, YouTube's updated Terms of Service clearly states that users are not allowed to collect or harvest any information that might identify a person (for example, usernames or facial recognition data) unless permitted by that person.

"We periodically update our Terms of Service to make sure they are clear, easy to understand and meet the needs of our partners, advertisers and viewers. Starting today, we're rolling out an updated Terms of Service in the United States," YouTube wrote in a blog post.

For creators outside the U.S., the new Terms of Service will be effective by the end of next year.