Streaming surpasses broadcast and cable TV viewing in US for first time

Nielsen reported that streaming services surpassed broadcast and cable television in U.S. viewership for the first time in May, capturing 44.8% of total TV usage. YouTube led streaming platforms with 12.5% of all television viewing, while free ad-supported services collectively accounted for 5.7%. This shift reflects a broader trend towards on-demand content, impacting advertisers and content creators as traditional TV viewership declines, with broadcast and cable accounting for 20% and 24% respectively.

Analysis

Nielsen's May report indicates a significant milestone in U.S. media consumption, with streaming services capturing 44.8% of total TV usage, thereby surpassing broadcast (20%) and cable (24%) television viewership for the first time. This shift underscores a four-year trend of growing dominance by platforms such as Google's (GOOGL.O) YouTube, which alone commanded 12.5% of all television viewing in May, and Netflix (NFLX.O). Notably, free ad-supported streaming services, including Paramount Global's (PARA.O) PlutoTV, Roku Channel (ROKU.O), and Fox's (FOXA) Tubi, are also gaining traction, collectively accounting for 5.7% of TV viewership. This evolution, accelerated by increased home entertainment demand during the COVID pandemic, reflects a fundamental change towards on-demand content consumption, presenting new challenges and opportunities for advertisers and content creators within the transforming television landscape.

Key Decisions for Investors

• Investors should assess the continued strength and growth trajectory of leading streaming platforms like Google (GOOGL.O) and Netflix (NFLX.O), which are at the forefront of this viewership shift.
• The expanding market share of Free Ad-Supported Streaming Television (FAST) services, now at 5.7% collectively, warrants attention on companies such as Paramount Global (PARA.O), Roku (ROKU.O), and Fox (FOXA) as potential beneficiaries.