Streaming Accounts for Half of US TV Viewing, Surpassing Broadcast and Cable

Nielsen's "Gauge" report for July found that streaming accounted for nearly half of all TV viewing in the U.S., surpassing broadcast and cable viewership combined. This marks a significant shift in how Americans are consuming TV content.

Nielsen's "Gauge" report for July revealed a significant shift in American TV consumption habits. Streaming accounted for nearly half of all TV viewing in the U.S., surpassing both broadcast and cable viewership combined [2]. This marks a substantial change in how Americans are engaging with television content.

The report found that streaming contributed 47.3% of total TV viewing in July, significantly higher than the combined 40.6% from broadcast and cable. Within the streaming category, YouTube maintained its lead with a 13.4% share, followed by Netflix with 8.8% and Disney with a 4.7% share [2]. The most watched title in streaming was Squid Game, with 5.4 billion viewing minutes, while Peacock's Love Island USA was the runner-up with 5.3 billion viewing minutes [2].

The growth of streaming services has been accompanied by a decline in traditional TV viewership. Cable made up 22.2% of total TV viewing in July, while broadcast's share was 18.4%. Broadcast viewing was slightly helped by an increase in news viewing, such as ABC World News Tonight, and MLB Home Run Derby on ESPN was the top cable telecast for July [2].

The shift towards streaming has also had an impact on ad spending. According to a report from Media Dynamics, ad spending continued its shift away from linear TV to streaming during this year's upfront ad-buying season. Streaming took in $13.2 billion during the latest upfronts, up nearly 18% over last year, while linear TV's total prime-time ad sales amounted to $17.8 billion, down 3.2% from last year [1]. The average cost per thousand impressions (CPM) for streaming was $27.25, down 7.6% from last year [1].

The rise of free ad-supported streaming services (FASTs) has also played a role in the shift. FASTs, which offer a mix of ad-supported content and premium programming, have become an advantage for buyers, allowing them to reduce their CPMs [1]. However, streaming services are beginning to feel some pressure due to the growing popularity of FASTs and increased supply from ad-supported tiers from premium providers [1].

This trend is expected to continue, with streaming services continuing to grow in popularity and viewership. As more consumers turn to streaming for their TV content, it is likely that we will see further shifts in ad spending and the overall TV landscape.

References:
[1] https://www.yahoo.com/news/articles/streaming-continues-ad-revenue-gain-120000459.html
[2] https://seekingalpha.com/news/4486952-streaming-makes-up-for-about-half-of-all-tv-viewing---nielsen