Streaming Reaches Historic TV Milestone, Eclipses Combined Broadcast and Cable Viewing For First Time

In May 2025, streaming services surpassed traditional broadcast and cable TV for the first time, capturing a record 44.8% of total TV viewership, a 71% increase since May 2021. YouTube now accounts for 12.5% of all television viewing, and FAST services like PlutoTV, Roku Channel, and Tubi collectively represent 5.7%, exceeding individual broadcast networks. While traditional TV has declined, streaming's growth is also fueled by traditional media companies expanding their streaming platforms and simulcasting major events, though the balance may shift back as the broadcast season returns.

Analysis

The television landscape marked a significant inflection point in May 2025, as streaming platforms collectively captured 44.8% of total TV usage, surpassing the combined share of broadcast (20.1%) and cable (24.1%) for the first time, according to Nielsen’s The Gauge report. This milestone underscores a dramatic 71% surge in streaming consumption since May 2021, contrasting sharply with declines of 21% in broadcast and 39% in cable viewership over the same four-year period, although traditional TV has shown notable resilience. YouTube (Alphabet) has emerged as a particularly dominant force, commanding 12.5% of all TV viewing in May 2025—its highest share to date and marking its fourth consecutive monthly increase—reflecting a growth of over 120% since 2021. Netflix maintained its leadership in the SVOD segment for four straight years, with its viewership climbing 27% since May 2021 and demonstrating strong content engagement, including leveraging the 'Netflix Effect' for licensed titles. The Free Ad-Supported Streaming TV (FAST) sector also exhibited robust expansion, with PlutoTV (Paramount), Roku Channel (Roku), and Tubi (Fox) jointly accounting for 5.7% of TV viewing in May, a share larger than any individual broadcast network during that interval. Traditional media companies are actively contributing to this secular trend by evolving into streaming-first entities, expanding platform accessibility for services like Hulu, Paramount+, and Peacock, and utilizing simulcasts of major sporting events. Furthermore, the widespread adoption of ad-supported tiers across virtually all subscription-based platforms is reshaping the advertising ecosystem by creating new avenues to reach streaming-centric consumers. While Nielsen suggests this shift in viewership dominance by streaming may see temporary fluctuations, particularly with the seasonal return of football and new broadcast seasons, the long-term trajectory unequivocally favors continued streaming growth.

Key Decisions for Investors

• Investors should consider prioritizing exposure to streaming platforms demonstrating consistent market share gains and robust user growth, such as YouTube (Alphabet) and Netflix, and also to companies effectively capitalizing on the rapidly expanding Free Ad-Supported Streaming TV (FAST) segment like Roku, Paramount, and Fox.
• It is crucial to evaluate traditional media companies (e.g., Comcast, Disney, Paramount, Fox, Warner Bros. Discovery) based on the efficacy and pace of their strategic pivot to streaming-centric models, closely monitoring subscriber growth in direct-to-consumer offerings and the successful integration and monetization of ad-supported tiers.
• The pervasive expansion of ad-supported streaming tiers across nearly all major platforms signifies a critical evolution in media monetization; investors should therefore assess companies based on their ability to capture this growing advertising revenue stream and adapt to the changing television landscape.