In a groundbreaking development, Americans in the previous month dedicated more time to consuming content on streaming platforms such as Netflix than to viewing content on cable television and broadcast networks. Furthermore, the time spent on streaming services surpassed the combined viewing time of cable and broadcast channels. This information comes from Nielsen and was initially highlighted by The New York Times.
Although streaming has been favored over cable since late 2022, this represents the first instance where the hours on streaming platforms exceeded those of cable and broadcast TV combined. In the past month, streaming accounted for a 45% share of total viewing hours nationwide, while cable and broadcast TV together represented a 44% share.
Older viewers are turning to streaming platforms
One compelling statistic from the report indicates that this remarkable milestone is not solely due to younger viewers abandoning cable. Instead, it stems from older Americans finally embracing streaming. However, these older viewers are not necessarily engaging with HBO and Netflix in large quantities. Conversely, the report indicates that they are increasingly drawn to free streaming services like Tubi, which may be influenced by two key factors.
First, it’s reasonable to believe that many Americans aged 65 and older are more budget-conscious or economical regarding their entertainment choices. Secondly, platforms such as Tubi offer a wealth of classic television content that may be attracting these viewers. For example, Tubi features an entire category labeled Nostalgia TV filled with classic titles like Kojak, Murder, She Wrote, Gilligan’s Island, I Dream of Jeannie, and many others.
The NYT reports:
Older viewers have a significant presence in television viewership, contributing to one-third of all viewing. They have been migrating to streaming services rapidly over the past few years—especially those that are free and require no subscription. For instance, since 2023, viewers over 65 represent the fastest-growing demographic for watching YouTube on television.
Quality programming is more prevalent on streaming platforms
Simultaneously, it is well-known that cable and broadcast TV are struggling to compete with streaming services in producing captivating content. In essence, this is not only a financial issue but also a matter of quality. Not long ago, high-caliber content would frequently premiere on cable TV before transitioning to streaming platforms like Netflix. Mad Men and Breaking Bad serve as notable examples. Currently, however, premier quality TV series seem to launch almost exclusively on streaming platforms, including Succession, Hacks, Ted Lasso, and The Handmaid’s Tale.
The rationale behind this trend is likely twofold. Firstly, streaming services generally offer creators greater artistic liberty during production, along with more flexibility regarding violence and language. Secondly, companies like Netflix and Apple are not hesitant to allocate substantial funds that broadcast networks might be unwilling to match. Consequently, this creates a cyclical dilemma. In earlier times, networks like NBC had no qualms about spending $1 million per episode for each lead actor on Friends. While this was a substantial investment, the benefit was that the show gained immense popularity and attracted millions of viewers. Now, as audiences shift away from broadcast TV, justifying large expenditures on a show becomes increasingly challenging.
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