Streaming video has experienced a tremendous surge in the United States, and the widespread adoption of digital connectivity during the pandemic has played a significant role in its growth. As Americans dove into new content options in mid-2020 to stay occupied during the COVID-19 pandemic, streaming platforms became a popular choice. Recent data from Nielsen sheds light on how Americans are engaging with TV and showcases the impact of streaming on the viewing landscape.

The Rise of TV-Connected Devices:

According to Nielsen, a remarkable 85% of US households had at least one TV-connected device as of mid-January 2023. Additionally, more than one-third of homes (35.5%) relied solely on a broadband internet connection for accessing TV content, commonly known as "BBO homes." Nielsen's research has consistently shown that these households tend to be younger, larger, and have slightly higher incomes than the average.

Shifting Viewing Habits:

While TV viewing time has largely stabilized to pre-pandemic levels, the distribution of that time has undergone a meaningful shift. In Q4 2022, the average US adult spent 294 minutes per day with TV, a slight decrease from 303 minutes in Q4 2019. However, the time spent with TV-connected devices nearly doubled during the same period, reaching 106 minutes. This increase accounted for approximately 36% of the total time spent with TV, surpassing cable for the first time.

The Impact on Traditional Broadcast and Cable:

The rise of streaming has affected both broadcast and cable TV, although cable has experienced a more significant impact. Time spent with content accessed through an internet connection has come at the expense of traditional broadcast and cable programming. Notably, homes that receive TV programming through cable and satellite services have also embraced non-traditional content. In Q3 2022, adults in these homes spent 69 minutes per day with TV-connected devices, up from 40 minutes in Q3 2019. Interestingly, this increase did not detract from viewing minutes of broadcast or cable, which remained stable during that period.

Racial/Ethnic Viewing Patterns:

Nielsen's data highlights a persistent racial/ethnic viewing gap in TV consumption. Black adults continue to watch significantly more traditional TV compared to Hispanic and Asian-American adults. In 2022, Black adults spent an average of 3 hours and 42 minutes per day watching live TV, twice as much as Hispanic adults (1 hour and 42 minutes) and nearly three times that of Asian-American adults (1 hour and 15 minutes). Black adults also demonstrated a preference for DVR playback and TV-connected devices, spending more time on these platforms than their Hispanic and Asian-American counterparts.

The rise of streaming video has transformed the TV landscape in the US, driven by the widespread adoption of digital connectivity and the availability of diverse content options. Nielsen's data provides valuable insights into how Americans are engaging with TV, with streaming increasingly becoming the preferred choice for many households. As businesses and advertisers adapt to these shifting viewing habits, understanding the influence of streaming platforms and tailoring strategies to reach streaming audiences will be crucial for success in the evolving media landscape.

Note: For a more detailed analysis of Nielsen's data, please refer to their official report.