Streaming Viewership Surpassed Cable and Broadcast Combined for the First Time Ever in May, Nielsen Finds

Nielsen's Gauge report indicates that streaming surpassed broadcast and cable combined for the first time in May, capturing 44.8% of total TV viewership compared to 44.2%. This milestone reflects a 71% increase in streaming usage since May 2021, driven by platforms like YouTube (up 120%) and free ad-supported services, while broadcast and cable declined by 21% and 39% respectively. Netflix also saw a 27% increase in viewership since 2021, boosted by events like streaming NFL games, solidifying streaming's growing dominance in the media landscape.

Analysis

Nielsen's May Gauge report marks a significant inflection point in U.S. television consumption, with streaming platforms collectively capturing 44.8% of viewership, narrowly surpassing the combined 44.2% share of broadcast and cable for the first time. This milestone underscores a dramatic shift in viewing habits since May 2021, evidenced by a 71% surge in streaming usage contrasted with a 21% decline in broadcast and a 39% drop in cable viewership. The growth in streaming is substantially fueled by free services; YouTube, for instance, experienced a 120% increase in viewership over four years, achieving a record 12.5% share of all TV viewing in May. Furthermore, free ad-supported services like PlutoTV, Roku Channel, and Tubi collectively accounted for 5.7% of viewing, outpacing individual broadcasters. Netflix (NFLX) also demonstrated robust growth, with its viewership increasing 27% since 2021, highlighted by events such as streaming two NFL games on Christmas 2024, which became the biggest streaming day in history, and the success of original content like "You." While the current milestone coincides with the summer hiatus for traditional programming, Nielsen anticipates streaming will sustain its leading position. The per-ticker sentiment for Netflix (0.8) is notably strong, aligning with its reported successes, while Roku (ROKU) (0.5) reflects a more neutral to positive sentiment, likely tied to its role within the broader, growing free streaming ecosystem.

Key Decisions for Investors

• Investors should consider overweighting exposure to leading streaming platforms, particularly Netflix (NFLX), given its demonstrated content strength and viewership growth, and evaluate opportunities in companies like Roku (ROKU) that are well-positioned within the rapidly expanding free ad-supported streaming TV (FAST) segment.
• Monitor the impact of exclusive content, especially live sports, on subscriber acquisition and engagement for streaming services, as this appears to be a critical driver of viewership, exemplified by Netflix's record streaming day with NFL games.
• Closely observe viewership trends in the upcoming quarters, particularly as traditional broadcast schedules resume, to assess the durability of streaming's market share dominance and the competitive responses from cable and broadcast entities.