Netflix’s share of TV viewership is rising, but Disney remains on top

The news: Netflix saw a strong month for cross-platform viewership in June, with its share rising 11.8% month over month up to 8.4% of total TV viewership, per Nielsen’s Gauge. It’s the fourth largest media company by viewership behind Disney, YouTube, and NBCUniversal.

• Disney still leads in viewership among video services, accounting for 10.8% of June viewership. YouTube followed at 9.9% and NBCU at 8.5%.
• The strong month for Netflix can be attributed to the success of hit shows like “Bridgerton,” which was the most-streamed show in June, but also to the lack of blockbuster sports events on rival networks.

The horse race:

Netflix posted a strong quarter for viewership and subscriptions, but growth is likely to taper off in the coming months as the company’s password-sharing crackdown begins to deliver diminishing returns. However, the launch of WWE broadcasts on Netflix next year could buoy viewership.

Disney’s portfolio consists of some of the most-viewed digital video services like Disney+ and Hulu, which monthly viewers spend approximately 25 and 38 minutes watching monthly, respectively.

• ESPN is also a valuable asset under Disney’s umbrella, attracting digital live sports viewers.
• But Disney’s lead is threatened by the growth of YouTube, which dominates time spent among young users.
• Viewership of The Disney Channel, the company’s child- and teen-centric network, has plummeted over the past decade. Instead, children ages 2 to 11 watched three times more content on YouTube than they did on traditional TV and Disney+.

For NBCU, the Olympic Games are likely to provide a significant boost through July and August, especially since the Paris-hosted event is the first in several years with favorable broadcast timing for US audiences. However, Peacock is struggling: The company posted strong revenues but lost 500,000 subscribers in Q2.

Our take: Netflix, NBCU, YouTube, and Disney have more or less secured their places as the dominant media distributors, but shakeups in the coming months could affect which of those titans remains on top.