US Adults Are Set To Spend More Time Streaming Video Content Than Watching Traditional TV
Source: Insider Intelligence
In a new forecast from Insider Intelligence, US adults will spend more time streaming video content than watching traditional television for the first time this year. According to early estimates, 53% of video-watching time (3 hours and 11 minutes) will be spent on digital videos on Netflix, TikTok, YouTube, and others, compared to less than half on traditional TV (2 hours and 55 minutes). As most would expect, Netflix and TikTok lead the charge with around 33 minutes of daily watch time.
It’s No Surprise
The shift shouldn't come as much of a surprise. Streaming services and social media platforms offer an endless variety of content that can be watched anytime and anywhere. The convenience of binge-watching shows and creator-generated videos, coupled with algorithm-powered recommendations, provides a personalized viewing experience that traditional TV simply can't offer. In addition, social media platforms create an easily shareable experience, with users often sending viral clips to their friends and family.
Digital Video Will Accelerate
The shift toward digital video will accelerate as younger generations, like Gen Z, mature, and social media platforms move beyond mobile devices. TikTok and YouTube have made significant efforts to move to bigger screens. The TikTok App has been around for a while now, while YouTube recently brought Shorts, its fastest-growing format, to connected devices. TikTok also launched a partnership with IMDb that could foreshadow its eventual entrance into premium content like YouTube, which added premium content to its offering with the launch of Primetime Channels.
The demand for creator content doesn’t seem to be slowing down, either. With more people becoming creators and investing in more video content, more eyeballs will drive to the platforms they are posting on.
What Could Happen With US Advertising Dollars
This year, it’s expected that over 66 billion dollars will go into US television advertising. Streaming services and social media platforms should expect to eat into that more over the next few years as advertisers want to reach audiences that are most engaged. That’s not only a good thing for these entities but also for creators, who are creating content on TikTok and YouTube, that have ad revenue share programs.
Live Sports Is Key
One thing that traditional TV has going for itself is its stronghold on live sports, a significant driver of viewership. A majority of sports programming still lives on traditional TV. In fact, the top 94 most-watched broadcasts of 2022 were sporting events, with the National Football League (NFL) claiming 82 of the spots.
However, this hold may loosen up in the future as Amazon, Apple TV, and YouTube move deeper into live sports. Amazon Prime is coming off a successful first season as the rights owner for NFL Thursday Night Football, Apple TV recently added Major League Soccer (MLS) Season Pass, and YouTube is gearing up for its first season as the rights owner for NFL Sunday Ticket.
