Streaming services now command a greater share of viewers than cable, data published by Nielsen show.
That means apps like Netflix and other streaming platforms capture 38% of all television viewing, compared with 31% for traditional cable, the data show.
In a sign of streaming's rapid rise, as recently as May 2021, the shares were 26% for streaming and 39% for cable.
But as of last month, YouTube alone accounted for nearly 9% of all TV usage, while Netflix captured 8.2%.
Netflix touted the overall jump in streaming as a percentage of all TV viewing in its quarterly letter to shareholders Wednesday.
"Consumers have so many amazing entertainment choices — from movies and TV shows to sports and news to gaming and social media just to name a few," the company said. "We expect that competition will remain intense, including within streaming."
Netflix shares fell in Thursday trading as it reported weaker-than-expected revenue. Still, at least one analyst, Bank of America's Jessica Reif Ehrlich,said she considers Netflix stock a "buy," with a share price that is likely to increase in the coming years.
"Within the media ecosystem, we believe [Netflix's] depth/breadth of content positions them well to withstand the production reductions," Reif Ehrlich wrote.
The entertainment industry has slowed dramatically because of a stalemate between production studios and the writers and actors who help create content. The Writers Guild of America and film and TV performers represented by the SAG-AFTRA union are striking as they seek better compensation and stronger protections for their work.
It is the first time since 1960 that the WGA and SAG-AFTRA have engaged in strikes at the same time.
It remains to be seen what impact the work stoppages will have on the entertainment industry, but, at least for now, streaming platforms like Netflix have still managed to enjoy some wins.
Netflix announced it added 5.9 million new subscribers globally in the second quarter after its crackdown on password-sharing. The company said it expected to gain about that much in the next quarter, as well.
Rob Wile
Rob Wile is a Pulitzer Prize-winning journalist covering breaking business stories for NBCNews.com.
FAQs
TV Consumption
It's been two years since streaming first surpassed cable TV in July 2022 and, aside for some seasonal fluctuations, its share of TV viewing has continued growing steadily since then.
What is the number 1 streaming platform in the world? ›
Netflix continues to reign supreme in the world of streaming services, maintaining its position as the platform with the most subscribers. As of December 31, 2023, the service boasted an impressive 260.28 million subscribers globally.
Is streaming killing cable? ›
Streaming's impact on cable
However, the demise of cable TV is coming sooner than expected, largely due to competition from streaming services. According to Nielsen, this past July, for the first time, TV and cable combined made up less than 50% of total viewership, a record low.
Why are streaming services better than cable? ›
While streaming prices continue to increase, there are no taxes or hidden costs. You also don't have to worry about fees for leasing equipment, contracts (unless you do an annual plan) or waiting (or paying) for the cable guy to come out for repairs or installation.
Why are people switching to streaming services? ›
In an era where uninterrupted viewing is increasingly prized, it's no surprise that half of the respondents opt for streaming services without ads, willing to pay a premium for the luxury of seamless entertainment.
What is the #1 streaming device? ›
The Google Chromecast with Google TV is the best media streaming device because it supports a wide range of streaming services and presents content in a modern, unified interface. It supports every major streaming service and AV format.
Is Netflix losing customers in 2024? ›
The news: In the second quarter of 2024, Netflix added 8.05 million new subscribers, well past the expected 4.7 million. Quarterly sales increased by 17% year over year, with earnings per share (EPS) of $4.88 surpassing the $4.74 analysts expected.
Who is number 1 in streaming? ›
Netflix is the biggest streaming service in the world. The company reported 269.6 million global paid memberships as of March 31, 2024.
Why are people leaving cable? ›
Rising cable costs and the thousands of options for shows and movies on various streaming services have been key factors in the popularity of cord-cutting. As long as streaming subscriptions are more affordable than cable for the average household, it makes sense to move away from cable.
Why do people still pay for cable? ›
Watching live sports on cable was the main reason that has kept Americans from getting rid of cable as of 2022, according to 19.5 percent of respondents to a survey. Second common factor was watching live entertainment events, such as the award shows, with around 11.7 percent of people interviewed.
Some services have the feature to download and store content on the device, but even so, the content lasts for a limited time. You need an internet connection to access streaming services. In addition, having poor internet causes buffering and other streaming problems, which means an overall poor viewing experience.
Has streaming taken over TV? ›
Nielsen's Gauge Report found in June 2024 streaming accounting for a record high 40.3% share of TV usage. Also, according to Nielsen, for the week of July 1, streaming recorded over 313 billion viewing minutes across streaming platforms, the highest level of streaming consumption in a single measurement week.
What percentage of TV is streaming? ›
Streaming accounted for 40.3% of all TV usage in the U.S in June, per a monthly report from Nielsen. That marks not only the highest proportion of streaming viewership ever recorded in the three years Nielsen began tracking, but the best performance for any single category of viewership.
Is streaming done over the Internet? ›
In simpler terms, streaming is what happens when consumers watch TV or listen to podcasts on Internet-connected devices. With streaming, the media file being played on the client device is stored remotely, and is transmitted a few seconds at a time over the Internet.
When did streaming take over cable? ›
Within the same decade, rapid deployment of LTE cellular network and general availability of smartphones have increased popularity of the streaming services, and the corresponding apps on mobile devices. On August 18, 2022, Nielsen reported that for the first time, streaming viewership has surpassed cable.
