Julia Stoll
Research expert covering TV and video media
Television industry in the United States - statistics & facts
With the advent of on-demand services, traditional TV has seen increased competition worldwide, particularly in the United States. Consumers are gradually canceling their cable or satellite subscriptions in favor of more flexible video streaming offers, such as Netflix, Disney+, and Amazon Prime Video. The viewer share of traditional TV only more than halved between 2022 and 2024, while streaming services grew in popularity, surpassing television consumption in the early 2020s. However, the majority of people opt for a combination of both TV and video streaming content, demonstrating that they complement each other.
Overall, the U.S. television market seems to have entered a time of transition rather than decline. Newer streaming platforms have made shows more accessible to many consumers, but networks that fail to adapt to these changes in consumer preferences are sure to lose their grip on the market.
Traditional TV’s downturn
TV was always one of the most popular media activity in the United States. However, estimates suggest that the share of hours per day watching traditional television will considerably decline in the following years, and adults will spend less than 40 percent of their video time with TV vs. digital video. What is more, younger people seem to devote significantly less time watching television than their older counterparts as alternative forms of entertainment have begun to greatly increase in popularity.Is there competition for tradititonal TV?
These falling viewership numbers do not necessarily mean that people are watching less TV series and movies overall, just that they are beginning to turn away from linear TV and move to on-demand services such as Netflix. Consumers in the U.S. have been particularly quick to adopt new viewing technologies. An while the number of TV households in the United States has been increasing over the last years, pay TV subscriptions are continuously falling, which indicates that consumers are pivoting away from traditional video sources.Advertising – a TV revenue driver
One of the industry’s major sources of income is advertising, a revenue stream which used to hover around 70 billion U.S. dollars each year but is expected to be half of that in the years to come. In contrast, connected TV advertising spending amounted to just six billion U.S. dollars in 2019, a figure which quadrupled by 2024. Companies like Procter & Gamble, Disney, and Berkshire Hathaway spend hundreds of millions of dollars each year on cable TV advertisements, and the country’s most popular programs charge hundreds of thousands of dollars for each 30-second advertisement spot. These tactics are now under scrutiny, seeing that the market and consumers are shifting to digital media.Overall, the U.S. television market seems to have entered a time of transition rather than decline. Newer streaming platforms have made shows more accessible to many consumers, but networks that fail to adapt to these changes in consumer preferences are sure to lose their grip on the market.
