Streaming has surpassed cable and network TV as the industry leader.
Streaming has surpassed cable and network television as the dominant force in the industry. The streaming future has effectively transitioned into the streaming present. In May, Americans engaged with streaming services more than with cable and broadcast networks, according to a report released by Nielsen on Tuesday. This occurrence marks the inaugural instance of such an event transpiring over an entire month.
Nielsen initiated its comparison of streaming viewership against traditional network and cable television in 2021. At that time, despite the rapid ascent of streaming, the disparity between the two was significant: Nearly two-thirds of all television viewing was dedicated to cable and broadcast, while only 26 percent was allocated to streaming. The lead has now collapsed. Here is an analysis of how streaming has surpassed traditional television.
Younger viewers were the initial adopters of streaming services, which is to be expected. However, another demographic has also transitioned: individuals aged 65 and older. Older viewers engage with television extensively, accounting for a significant one-third of total viewing among all demographics. In recent years, there has been a significant migration towards streaming services, especially those that offer free access without the need for a subscription. For instance, since 2023, individuals aged 65 and older represent the most rapidly expanding demographic for viewing YouTube on television. Nielsen reported that their YouTube watch time experienced a growth of 106 percent compared to May 2023. The viewing figures for YouTube among this demographic are comparable to those of children under 11, another cohort known for their substantial television consumption, particularly of YouTube content.
Older viewers have embraced free streaming services such as Tubi, Roku, and Pluto with enthusiasm. In May, the three services represented 5.7 percent of total television viewing time across all age demographics, surpassing the combined viewership of Disney+ and Hulu. According to Brian Fuhrer, a senior vice president of product strategy at Nielsen, the free platforms “have ads, but, for that demo, it’s not particularly jarring because they’re used to watching ads.”
Cable companies have ceased original programming initiatives. Cable television consumption has experienced a more pronounced decline compared to network television over the past four years, with an overall decrease of 39 percent, according to Nielsen. What has astonished industry analysts is the extent to which media companies have contributed to the acceleration of the decline. Cable networks such as USA, TBS, and MTV were once abundant in original programming, yet they now feature a limited number of scripted shows. This is attributable to the swift reallocation of budgets by media executives, who are directing their investments towards streaming services. Consequently, numerous channels function as zombie networks, primarily broadcasting endless reruns of “Law & Order: SVU,” “The Office,” or “Jaws.” Consequently, audiences began to disengage, mirroring the actions of advertisers. Currently, executives at NBCUniversal and Warner Bros. Discovery are decisively abandoning cable, as both companies are divesting the majority of their cable assets into independent entities.
Subscriptions to niche streaming services — such as Hallmark+, BritBox, and Crunchyroll — have experienced significant growth in recent years, occupying a space that was previously held by specialty cable networks. In contrast to cable, broadcast television has demonstrated notable resilience, experiencing a decline of 20 percent over the past four years, which is approximately half the decrease observed in cable. “It’s akin to the fluctuations of high tides and low tides,” Fuhrer remarked regarding network television. “The significant occurrences in broadcasting are at their peak, comparable to historical highs.” However, the lows are indeed lower.
However, even those significant events — historically the mainstay of broadcast — are no longer solely confined to that medium. NBC extensively advertised the network’s Olympics coverage on its streaming platform, Peacock, for instance. The Super Bowl achieved a new ratings record this year, a development that caught many industry insiders off guard given the game’s one-sided nature. However, a significant factor was present: For the first time, Fox, the entity holding broadcast rights to the game, also provided a live stream of the game on Tubi. Over 13 million individuals tuned in to the game on Tubi. The Oscars were streamed on Hulu for the first time in March. As September approaches, two additional fundamental components of broadcasting are set to decline. New episodes of “Jeopardy!” and “Wheel of Fortune” are set to premiere on Hulu and Peacock this fall, alongside their continued syndication broadcasts. The recent maneuver may signal the potential for a significant transaction in three years, as those game shows could transition exclusively to streaming platforms.
Netflix and YouTube have emerged as the predominant beneficiaries. In 1999, during a period when internet speeds were sluggish and cable and broadcast media dominated, Ted Sarandos attended a job interview with Reed Hastings, one of the co-founders of Netflix. At that juncture, Netflix’s operations were centered around the distribution of DVDs enclosed in red envelopes, which were dispatched to its subscribers. Eight additional years would pass before Netflix commenced its streaming of movies and television shows. However, it remains the pioneer in streaming, and its unique position in Hollywood today is indisputable. In May, Netflix represented approximately 8 percent of total television viewing time. The company has been overshadowed by a single competitor: YouTube, which represented approximately 13 percent of total television viewing time. The winners have not yet concluded their endeavors. “What we really are focused on,” Sarandos stated this year, “is the 80 per cent of TV watching that is not on Netflix or YouTube today.”
