You are correct to an extent, but the simple undeniable fact is, within a week of YT announcing that they would start putting ads on Shorts, advertisers canceled 1 billion dollars with YT ads. There are companies that will advertise on Shorts, but they are low-paying ads, because of the kind of people that generally watch Shorts and not people with mature bank accounts that buy big ticket items. This is why you have to get millions of views on shorts to make any money.
YouTube is losing money on ads. How do I know this? Because if they were making money on them, they would not have to pour 100 million dollars out of their own pocket into the Shorts fund. Yes, they did do that. The Short fund was created back in May of 2021. YouTube only started putting ads on Shorts couple months ago. It pays to pay attention. Up until a couple months ago, YouTube was paying Shorts bonuses out of their own pocket. So you are wrong that it makes them more money than long-form content. Where do you think they got the 100 million dollars from? They took it from the revenue that long-form content creators were bringing in.
So why is YT pushing Shorts? Why did Walmart invest 10 billion dollars into developing its online store? For the same reason. In big business, it is super common for companies to take a massive gamble to stay relevant. For a long time, Walmart was the king of retail. But the world changed while the Walmart leadership sleep. Amazon.com blew by Walmart so fast that their heads spun off their shoulders. Before they knew it, they were way behind the pack. In their desperate effort to stay relevant, they spend billions building 500 new stores called Walmart Local Markets in small towns that were two small for super Walmarts. It was a complete failure and within three years, Walmart shut them all down and sold the buildings off. They lost billions. Then they made the decision to invest 10 billion into developing an online marketplace to compete with Amazon.
You see, not every corporate decision is a good one. Microsoft lost billions trying to gain a foothold in the smartphone marketplace. So don't automatically assume that just because YouTube decided to push Shorts that it is a god decision and affords proof that it is profitable. You are giving the YouTube leadership way too much credit. I don't think Walmart has a chance of catching Amaz, and I don't think YouTube has a chance of competing with TikTok and regaining ground from them. I think YouTube needs to wake up and realize that they have lost the market to TikTok in the same way Microsoft finally accepted that Google and Apple owned the smartphone market.
YouTube has a great market it still has a chance of owning, just like Walmart has their Superstore. Ther is no need for YT to burn down the store to chase after a market that someone owns.
I only know this because I put my own music in my videos and collect my ad money that way. So I was making money off Shorts before the creator fund. Copyright claim is my friend.