YouTube & Netflix Vs. That stadium

From the ongoing loss of NBCUniversal’s Peacock to Warner Bros. Discovery’s WBD dropping both CNN+ and HBO, streaming’s business has been less treacherous than linear TV’s over the past two years. Streaming brand for NetflixNFLX’s invasion of ad market. And let’s not even get started on the writers’ strike and macroeconomic uncertainties.

so what can Are we sure now? Unless we’re talking about live sports — and the foundation is loosening — the latest audience figures reaffirm that streaming is where and how consumers want to watch TV.

This is not a Covid story – streaming continues unabated

While there have been enough complaints about the Nielsen ratings, there is no disputing that the streaming growth that exploded in the early stages of the Covid outbreak continues unabated. That’s what it calls in its latest monthly report The Cage, Nielsen now has streaming at 36.4% of all TV viewers, followed by cable at 31.1% and broadcast at 22.8%. Virtual MVPD viewing such as Fubo and Sling TV are excluded from this analysis.

The biggest change since last fall is that streaming’s share has grown nearly 16% since last September. While broadcast and cable benefited from college and pro football last fall, cable’s basketball and hockey playoffs and the start of the baseball season did nothing to stem linear TV’s downward slide in viewership. Total linear TV viewing for both broadcast and cable also fell 5%. It further confirms the challenges in that world.

Streaming isn’t a wild scrum — YouTube and Netflix stand above the crowd

If you browse streaming apps available on smart TVs or connected TV devices (does anyone really? Do That?), with over 10,000 options on the market, it can feel overwhelming and overwhelming. But the truth is, even among the „established” streaming platforms right now, YouTube and Netflix dominate. YouTube accounted for 8.5% of total TV viewing in May, while Netflix was second at 7.9%. Hulu and Prime Video come in at less than half of these percentages. Among the „name brand” major media company streaming services, none gained 2% of TV viewers and HBO Max (RIP) and the Peacock Fast service („free ad-supported TV”) trailed Tubi. Paramount+ doesn’t even rise to this level, living in Nielsen’s dreaded „other” category.

The streaming hierarchy appears to be more entrenched than the oligopoly that dominated the television broadcasting world for decades. In that case, networks tend to trade spots based on running at least a few successful shows. This is a huge mountain for major media giant streaming platforms to climb today. Moreover, the economics of linear and streaming worlds will further reinforce this. WBD’s reporting change Re-licensing its high-end HBO properties to Netflix instead of keeping them exclusive to Max. These direct-to-consumer offerings may face a similar global future TV Everywhere – Remember that attempt? I don’t think so. These services will certainly have a place in the TV ecosystem, but much of the exposure and monetization of studio content will still come from multi-platform staging and syndication, with the largest „first-run” streaming audiences among the market leaders.

Faster services have absorbed themselves into the mainstream streaming ad business

Speaking of Tubi, The Gauge reports that it has expanded its monitoring of individual fast services to include Roku Channel along with Tubi and PlutoTV. At a fraction of the content costs of Peacock, Disney+ or Paramount+, these services have carved out a niche in audiences and advertising. These services do not rely on original production or hits. Simply put, 1% of TV viewing share for DUB or Pluto TV is much cheaper than the same 1% for Disney+ or Peacock. But even as these fast platforms become more established, more challenges lie ahead. WBD plans to enter this arena with its own Fast service, so will WBD’s deep content library be licensed elsewhere in the Fast market? Expanding a broad array of independent AVOD and FAST services makes economic sense, but financial markets would be doubtful One of the roll-up leaders is Chicken Soup for the Soul Entertainment. Consumers have spoken clearly – they want faster services. But it remains to be seen how much this business will help offset the linear TV decline.

Expect the media company’s original production and library licensing to face tough times

For streaming market leader Netflix, original programming is included Only 4% in its US content offerings in 2016. It rose to 11% in 2018 and 50% by the summer of 2022. It is predicted to be 75% By the end of 2024. Short-term pressure from the Writers Guild of America strike aside (and the possibility of a merger with SAG-AFTRA), Netflix’s growing focus on original programming won’t just keep original content competitors under pressure. But as Netflix’s non-original space shrinks, subsequent library licensing deals may be difficult. All of this suggests the continuing (and never-ending?) attraction of optimizing the mix of both subscriber and advertiser dollars — a revenue village needed to be successful no matter how many viewers watch.

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