When Streaming Killed the TV Star

Change is the only constant...in the 1950s television replaced radio as the dominant form of entertainment. Then came cable television and HBO in the 1970s. Then it was the internet...and YouTube in 2005. Since then, broadcast television and cable have been losing ground to streaming services like YouTube, Netflix, Hulu, etc.; first slowly and then quite rapidly. The future that was long anticipated finally arrived last month. The New York Times reports that in May, "more Americans watched television on streaming than on cable and network television combined." It was the first time that happened over a full month.

Looking at the chart above, Americans were still consuming entertainment primarily through television even as late as five years ago. But streaming has made rapid strides in recent years. And ironically, it may be due to Boomers. As the NYT notes, "It’s no surprise that younger viewers were the first to jump to streaming. But another group has since made the leap as well: viewers over the age of 65." They are the fastest growing age group for streaming services, according to Nielsen. Older viewers watch a lot of television and are drawn to free platforms like Tubi, Roku, and Pluto. 

If the streaming vs television race is all but over, the winners within streaming are just as clear. Not all streamers are equal...YouTube is the undisputed king of streaming capturing 12.5% of all viewing time in May, followed by Netflix (7.5%) and Disney (5.0%).

What's next for the winners? Well, Ted Sarandos, Co-CEO of Netflix, says "What we really are focused on is the 80 percent of TV watching that is not on Netflix or YouTube today.”

The ascension of streaming as the primary form television consumption reminds us of the change seen in the music industry a few decades ago. On August 1, 1981 MTV (Music Television) went live and swiftly revolutionized the way people experienced music by playing (back then) music videos 24/7. The impact of a new technology on existing media was captured eloquently in the Buggles' icon video "Video Killed the Radio Star" (which was played heavily in the early days of MTV). And its message applies just as much to the next incumbent technology.   

What is Bangladesh?

That's a question Amy Schneider will likely not forget anytime soon. The 42-year-old engineering manager's 40-game winning streak, second only to Ken Jennings' 74-wins way back in 2004, came to a dramatic end after she couldn't correctly guess the game's "Final Jeopardy." Librarian Rhone Talsma, however, did know what was the only country whose name ends with an "H", and overtook her to become the new champion. The popular Schneider had "rocketed to TV fame over the past two months...and even led to a bump in ratings for the long-running game show; earlier this month, “Jeopardy!” was the most-watched non-football program on TV." But don't feel too bad for her, she leaves "with $1,382,800, the fourth-highest regular season winnings ever behind Jennings ($2.5 million), James Holzhauer ($2.4 million in 32 games) and Matt Amodio ($1.5 million in 38 games)."

For those still curious about Bangladesh, here's a few key factoids:

                                Source: Leading Edge

TV Ratings: DNC Beats RNC

TV viewership (according to Nielsen):

Night 1: DNC (19.7mm) vs RNC (17mm)
Night 2: RNC (19.4mm) vs DNC (19.2mm)
Night 3: DNC (22.8mm) vs RNC (17.3mm)
Night 4: DNC (24.6mm) vs RNC (23.8mm)

Nights 1-4: The DNC averaged ~20.6mm TV viewers/ night, about 12% more than the RNC's ~19.3mm.