May 2023 marked a significant milestone in the history of streaming, as it officially surpassed traditional broadcast and cable television viewing for the first time. According to Nielsen's latest report, the combined viewing of broadcast and cable accounted for 44.2% of total TV watched in the U.S., while streaming services achieved a remarkable 44.8%. This shift highlights the growing dominance of streaming platforms in the entertainment landscape, a trend that has been building over the years.
The data comes from Nielsen's Gauge, a monthly report that tracks TV consumption trends, which has been running for four years. This report indicates that streaming usage has skyrocketed by 71% since its inception in May 2021, whereas traditional broadcast viewing has declined by 21% and cable viewing has seen a substantial drop of 39%. Notably, 10.9% of all viewing falls into various miscellaneous categories, underscoring the diverse ways in which audiences are consuming content today.
Nielsen notes that the rise of free streaming services has played a pivotal role in this surge. Platforms like YouTube have experienced an impressive 120% increase in usage over the past four years, consistently ranking as the most-used streaming platform. In May 2023, YouTube alone contributed to 12.5% of all TV viewership measured by Nielsen, marking the highest share ever recorded for a streaming service.
Even smaller streaming platforms are carving out a significant presence in the market. Nielsen's report highlighted that services such as PlutoTV, Roku Channel, and Tubi collectively accounted for 5.7% of total viewing in May, outperforming any individual broadcaster. This trend indicates a shifting landscape where viewers are increasingly turning to a variety of streaming options beyond traditional networks.
The timing of this streaming milestone coincides with the summer months, a period when football is out of season and many broadcast shows are on hiatus. Despite this seasonal impact, Nielsen anticipates that streaming will continue to thrive and maintain its upward trajectory in the coming months.
Another highlight from the Gauge report is the performance of Netflix, which has emerged as the leading subscription video on demand (SVOD) service since the report's inception. Netflix has recorded a 27% increase in viewing since 2021, notably achieving the biggest streaming day in history on Christmas 2024, coinciding with two NFL games. In May, the most-watched streaming program was the final season of "You," which marked a full-circle moment for Netflix, as it originally acquired the series from Lifetime and subsequently produced it in-house for its later seasons.
As the landscape of television viewing continues to evolve, the data from Nielsen underscores the undeniable shift towards streaming services, highlighting their growing importance in the entertainment industry.
