YouTube dominates US TV viewership, beating out Netflix, according to latest Nielsen data

by adminGoogle

The news: YouTube accounted for 9.7% of all TV viewership in the US in May, the largest share ever for a streaming platform, per Nielsen’s “The Gauge” report.

  • Netflix, the second largest, had 7.6%.
  • Among streaming platforms alone, YouTube holds nearly 25% of the market share. Its 9.7% share was up slightly from the prior month (see chart below).

YouTube, founded nearly 20 years ago, has transformed media consumption. Once known for user-generated content, it now dominates not just the internet, but also the living room.

The advertising picture: Of course, YouTube’s lead has also attracted substantial ad revenues.

  • In 2023, YouTube earned $31.5 billion from advertising, an 8% increase year over year and a staggering 271% rise over six years.
  • In the first quarter of 2024, ad revenues climbed 21% YoY to $8.1 billion.

Charging ahead: The platform has intensified its crackdown on ad blockers, in part to allow the ad-free YouTube Premium to flourish. The offering now boasts over 100 million subscribers.

Last week, YouTube Premium announced features including AI-powered “jump ahead” for videos, picture-in-picture mode for Shorts on Android, smart downloads for offline Shorts viewing, and a redesigned watch page, while also providing early access to experimental tools like conversational AI and enhanced 1080p HD video quality.

The industry’s mixed feelings: Media companies like Netflix, Disney, and Warner Bros. Discovery are divided in their views on YouTube; some see it as a complementary platform, while others consider it a threat, siphoning off viewers and affecting the cultural zeitgeist.

  • Disney closely monitors YouTube’s influence on younger audiences and has considered adding user-generated content to Disney+, according to CNBC.
  • Netflix sees YouTube not as a direct competitor but as catering to different viewer needs, with both platforms successfully hosting content like “Cocomelon.” However, Netflix’s ad-supported tier does compete with YouTube for ad dollars.
  • Amazon has taken a more direct approach by partnering with YouTube star MrBeast to create exclusive content, hoping to draw his massive following.

Our take: YouTube’s vast reach and ability to attract advertising dollars make it a formidable player in media; while traditional companies mull how to compete, its dominance continues to grow.

  • The platform’s success hinges on maintaining a strong audience connection with user-generated content and personalized recommendations.
  • As YouTube experiments with episodic and scripted series, its threat to traditional Hollywood becomes even more pronounced.