Something intriguing is brewing beneath the surface at BBTV Holdings Inc. (OTCQX:BBTVF). While analysts are busy dissecting the company's recent Q2 2023 earnings call, a sleeping giant is stirring – YouTube Shorts. And it has the potential to inject a staggering $90 million into BBTV's Base Solutions revenue stream. Annually.

BBTV, the world's largest professional creator network, boasts an impressive roster of over 5,000 creators and commands the attention of over 600 million monthly viewers. Yet, the company's Q2 report showcased a 27% decline in revenue compared to the previous year. But hidden within those figures, obscured by the initial struggles of short-form monetization, lies a sleeping giant with the potential to transform BBTV's fortunes.

YouTube Shorts, the bite-sized video format, is rapidly gaining traction, accounting for 52% of BBTV's total views in Q2. Now, here's where it gets interesting. Google, YouTube's parent company, has finally started monetizing Shorts, albeit at lower rates than traditional long-form content. However, Google has publicly stated its intention to bridge this monetization gap, envisioning comparable RPMs (revenue per thousand views) for Shorts in the long run.

"This is where the $90 million comes in. BBTV estimates that once YouTube Shorts monetization reaches maturity across its entire library, it could generate this significant sum annually for its Base Solutions, assuming current market rates. Imagine the impact on BBTV's bottom line – a potential revenue surge exceeding 40% of its current annual revenue."

Skeptics might argue that this is a distant dream, contingent on Google's ability to successfully monetize Shorts. However, early signs are promising. BBTV reported a 16% sequential increase in Shorts RPM, outpacing the average 12% increase observed over the past three years. This indicates that the monetization engine is revving up, albeit gradually.

YouTube Shorts Growth

YouTube Shorts is rapidly becoming a dominant force in BBTV's viewership, presenting both a challenge and a massive opportunity.

Moreover, BBTV is strategically positioning itself to capitalize on this burgeoning opportunity. The company has been aggressively onboarding micro-content creators, fueling the growth of its Shorts viewership from a mere 20% a year ago to a commanding 52% today. This proactive approach underscores BBTV's confidence in the long-term potential of Shorts.

Adding another layer of intrigue is BBTV's recent acquisition of Outloud Media. This strategic move grants BBTV a foothold in the multi-platform arena, particularly Facebook, expanding the reach of its creators and unlocking new revenue streams beyond the YouTube ecosystem.

"While the market focuses on BBTV's short-term challenges, a quiet revolution is underway. YouTube Shorts, fueled by Google's monetization efforts and BBTV's strategic positioning, is poised to become a cash cow. The sleeping giant is awakening, and those who recognize its potential early on stand to reap substantial rewards."

This isn't just about BBTV; it's about the future of online video content consumption. The world is embracing short-form videos, and BBTV, with its finger on the pulse of this trend, is strategically positioned to ride the wave. The $90 million figure might seem ambitious, but given the speed at which the digital landscape is evolving, it could prove to be a conservative estimate in the not-too-distant future.

Fun Fact: BBTV's network generates billions of video views each month. That's more than the population of the entire world watches several times over!