More and more viewers are cutting the cord in favor of less expensive streaming packages. But YouTube, owned by Alphabet (GOOG, GOOGLE) has succeeded by imitating the one thing that consumers seem to be abandoning.
YouTube TV, the online pay TV service that allows viewers to watch live channels and access local broadcast networks like ABC, CBS, FOX and NBC, first launched in 2017. Since then, its breadth of content , as well as its price of just over $70 per month has made it attractive to consumers looking for a cheaper replacement for their cable packages.
"Our users tell us that they want to be able to watch all their favorite content in one place and they want to be able to manage all their subscriptions in one place," said Christian Oestlien, vice president of product management at YouTube. he told Yahoo Finance. "There's a little bit of subscription fatigue."
According The last thing you watch on Nielsen television report, YouTube, which also includes the main digital platformachieved its thirteenth consecutive month as the most watched streaming service on television screens during the month of February.
In total, YouTube jumped to 9.3% of total U.S. TV viewing, the top platform, up from 7.9% in the prior-year period. It also achieved considerable pace compared to Netflix's 7.8% market share.
Broadcast and cable continued to see annual declines, contributing to a combined 50.9% of total television viewing, down from 54% in February 2023.
It's a significant feat for YouTube considering the fragmented media landscape.
On average, American consumers subscribe to four streaming services and spend about $61 a month, according to the latest Digital Media Trends report from Deloitte. Additionally, 68% of consumers surveyed pay for a TV subscription or live TV streaming plan to access channels that are not available to stream.
YouTube TV has capitalized on that demand.
The platform is now the largest pay TV streamer on the market after recently exceeding 8 million subscribers priced at $72.99 per month. Hulu from Disney + TV live (DES), which costs $76.99 per month, is the next closest competitor with 4.6 million subscribers. to the quarter ending December 30.
"We have the ability to offer that full experience," Oestlien said, referring to the success of not only YouTube TV but also the popularity of the platform's digital arm with features like YouTube Shorts, a competitor to Instagram Reels and TikTok, as well as viral content. content creators like Mrbeast. "I think it has resonated with consumers."
