TV viewing fuels YouTube’s streaming dominance as CTV concentration rises

The news: People are spending more time watching YouTube on TVs than on any other device, including smartphones, as the platform’s user engagement surges.

In December, YouTube accounted for a record 11.1% of all TV watch time, per Nielsen, more than any other streaming platform.

Why the shift to TVs? YouTube has advantages over traditional TV networks since it’s available to anyone with an internet connection. It also doesn’t rely on prescheduled programming or require a cable subscription.

“For more and more people, watching TV means watching YouTube. … But the ‘new’ television doesn’t look like the ‘old’ television. It’s interactive and includes things like Shorts (yes, people watch them on TVs), podcasts, and livestreams,” YouTube CEO Neal Mohan said in a blog post.

Last year, YouTube changed its TV app layout to display comments and descriptions alongside video content. It also added episodic format options for creators and a Watch With feature for commentary over live events.

Changing the screen: YouTube is also capitalizing on the fact that most US adults—77.4%, per our forecast—use a smartphone while watching TV. Last year, it added second-screen smartphone features, including tools to leave a comment on a video that’s playing on the TV, purchase products, and adjust playback.

Direct connection: YouTube’s easy-to-access platform will benefit from the growing ubiquity of connected TVs (CTVs). We expect CTV users to reach 250.1 million in 2028, up from 233.9 million in 2024.

• As more consumers cut cable ties, YouTube could become the primary viewing platform for mass events like the Super Bowl and Summer Olympics.
• CTVs are also boosting YouTube’s social media features and accounted for 15% of all Shorts viewing in the US in Q4, per Alphabet’s most recent earnings call.

Our take: YouTube’s creator-driven ecosystem means that, unlike streaming platforms like Netflix, it doesn’t require showrunners and production teams, allowing for easy library expansion.

Maintaining a focus on app features could keep YouTube’s many mobile users engaged as it pushes to dominate in TV.