Introduction
Since 2006, YouTube has been my primary source for consuming content, learning new skills, discovering music, and watching comedy. When I was a kid, I'd get home from school, finish my homework, spend the rest of my night watching everything from viral comedy shorts like the legendary Shoes video to Jazon Mraz performing a concert in a Borders.
I wonder how much time I've spent on YouTube. I could use a calculator, but it's more fun to use GPT.
Assuming I spent 1 hour a day watching YouTube videos (adjusting for the days I spent 0 hours and the days I spent 4+ hours) over the past 17 years, that means I've spent about 37 days of my life watching YouTube videos over the course of 17 years. Whoa.
I'm a millennial. Meaning, I grew up with the internet. I don't have many memories of a world without it. Fast forward from 2006 to now (2023) -- not much has changed. YouTube is still my main source of entertainment, and I don't foresee that changing anytime soon. And it doesn't appear that I'm the only one.
YouTube vs. Streaming & Cable
Recently, YouTube's viewership on TV screens has witnessed a significant surge, accounting for 45% of all YouTube viewership. This marks a significant increase from the previous year when it was below 30%. This rapid growth has propelled YouTube from being a digital-only platform, often overlooked in discussions about broader entertainment and TV advertising, to becoming a direct competitor to the world's largest streaming services and cable networks.
As I mentioned, YouTube is my primary source of entertainment -- by far. I had a quick stint with Netflix, Hulu, and HBO Max, of course, but YouTube has consistently been my go-to entertainment source since I was in my teens. I learned how to play guitar on YouTube. I learned how to ride a unicycle on YouTube. I discovered some of my favorite artists on YouTube. I watched comedy, concerts, interviews, shows, lectures -- you name it. It's always been my main entertainment source and likely always will be. I imagine a significant portion of millennials and Gen Z share this inclination.
The Data
According to Nielsen data cited by The Information, time spent watching YouTube on TVs now surpasses that of any other individual network or streaming service. This data point signifies that YouTube has emerged as the leading platform for television consumption, outpacing traditional networks and other streaming services in terms of viewership on TV screens.
What It Means
This shift in viewership patterns underscores the increasing popularity and influence of YouTube as a preferred source of entertainment and content for audiences. While the pandemic likely contributed to the increase in YouTube viewership on TVs, it is not a temporary trend. YouTube has been actively working to capture a larger share of connected TV audiences. Even before the pandemic, viewership was on the rise.
When and Why Did This Happen
In March 2020, YouTube's viewership on TV screens experienced an 80% increase compared to March 2019, with ad spend following a similar upward trend. To enhance the viewing and search experience on TV screens, YouTube has introduced several user-friendly features, such as enabling the use of the YouTube mobile app as a remote control.
It is worth noting that YouTube's growth in TV viewership is not solely driven by YouTube TV, the company's paid TV offering. In fact, the majority of TV user growth comes from YouTube's free, standard service. Unlike other streaming services, YouTube doesn't have to bear the high costs associated with user acquisition, as it relies on user-generated content. Genius.
YouTube, which was often overlooked by advertisers and analysts when comparing streaming services, has experienced a significant shift this year. Advertisers now expect to allocate a larger share of their budgets to YouTube, including its standard service and YouTube TV.
NFL Sunday Ticket
While the main driver of growth is the standard YouTube, YouTube TV has also garnered considerable attention. Recently, YouTube made a substantial investment of $14 billion to secure the rights to the NFL Sunday Ticket, bringing a significant portion of the country's most-watched sport to YouTube TV.
Ad Revenue
This significant acquisition comes at a time when other streaming platforms are reducing their spending. However, YouTube can offset this cost with its substantial overall advertising growth, which increased from $15.1 billion in 2019 to $29.2 billion in 2022. Even back in 2020, YouTube was blowing Cable TV networks out of the water regarding ad revenue. Advertisers are ready and willing to pay to be a part of YouTube's platform. In an iSpot survey, YouTube TV ranked second (48%) behind Hulu (74%) when advertisers were asked which platforms they intended to allocate their spending to during the upfront season. The Information reports that YouTube could secure $7 billion in ad commitments during this period.
In Summary
YouTube has undeniably emerged and solidified itself as a titan in the digital realm. YouTube was founded with a steadfast commitment to user-generated content, a defining trait that has always propelled it well ahead of its competition. What's truly great about that is that it happened completely organically. YouTube didn't pivot or spend millions of dollars researching how to differentiate their product. They've always been propelled by user-generated content -- and they dominate.
Not only that, YouTube has weathered disruptions in the entertainment industry, such as writers' strikes, with relative ease. This is because the platform thrives on organic content creation, reducing its reliance on traditional industry structures.
In essence, YouTube's success story is built on the bedrock of innovation and creativity, where the fusion of user-generated content and cutting-edge technology has dominated the digital entertainment landscape for decades. It cemented its status as the iconic platform that has revolutionized the way we consume content. YouTube is the unrivaled GOAT of the long-form content consumption world.