The news: Streaming watch time outpaced cable and broadcast combined for the first time ever.

• Streaming accounted for 44.8% of TV viewing in May, per Nielsen, compared with broadcast’s 20.1% and cable’s 24.1%.
• 12.5% of TV time went to YouTube—up from 10.8% in January—followed by Netflix at 7.5%.

YouTube’s big screen push: YouTube’s investments in connected TV (CTV) offerings are paying off.

• Its share of watch time marks four straight months of growth and the biggest share any streamer has ever held, per Nielsen.
• YouTube’s viewing stats are partially driven by users spending more time watching on CTVs than on any other device, including smartphones.

Asking too much? While cable and broadcast TV remain major media players, subscriptions are declining. Cost may be to blame.

• Less than half (49%) of consumers have a cable or satellite TV subscription, per Deloitte, down from 63% in 2022.
• Subscribers of those services spend an average of $135 per month, compared with an average of $69 for four paid streaming services combined.

Why it matters: Streaming platforms increasingly offer short-form video and personalized recommendation algorithms that linear TV can’t match. Three-quarters of Gen Zers said short-form video is their most-watched vertical content type, per Toluna, meaning CTV services that prioritize this could get more engagement.

Free ad-supported television (FAST) could also help streamers gain traction considering about half (47%) of consumers think they pay too much, per Deloitte. PlutoTV, Roku Channel, and Tubi made up 5.7% of total TV viewing in May, per Nielsen, more than any individual broadcast network.

Our take: With TV viewership increasingly fragmented, advertisers that abandon cable and broadband entirely could leave many consumers behind. Brands should use a hybrid placement model that makes selective investments in linear TV while using streaming to reach younger cord-cutters, helping to retain flexibility as user habits fluctuate.