The Transition from Traditional TV to Streaming Services

Jul 1, 2024

The Transition from Traditional TV to Streaming Services

Key Speakers

  • Andrew Ross Sorkin: Introduction on streaming services' impact on traditional TV
  • Victoria Greene: Perspective on Netflix winning streaming wars
  • Alex Sherman: Insights on YouTube's dominance
  • Tom Rogers: Commentary on Netflix's value
  • Rich Greenfield: Analysis on streaming media growth
  • Kevin Mayer: Takes on competitors’ impact
  • Tara Walpert Levy: Observations on YouTube's evolving role
  • Brittany Broski: Commentary on YouTube's cost and accessibility
  • Michelle Khare: Insights from a content creator perspective

Netflix’s Impact

  • Traditional TV to Streaming Transition
    • Major cord-cutting phenomenon
  • Netflix’s Success in Streaming Wars
    • Viewed as the 'king' of digital content
    • Makes up more than 7% of TV usage in the US
    • Yet, not the most-watched platform

YouTube’s Dominance

  • YouTube’s Market Position

    • Founded in 2005, now leading streaming platform
    • More than half YouTube viewing on traditional TV
    • 15 consecutive months leading overall time watched
    • Worth approximately $400 billion
    • Second most visited website globally

  • Content Creation and Viewer Engagement

    • Over 271,000 hours of content uploaded daily
    • User-generated content preferred by younger viewers (Gen Z and Millennials)
    • Provides consistent and reliable content
    • Real-time feedback via comments and analytics
    • Major platform during COVID for social connection

  • Business Model and Revenue

    • Ad-based revenue model
    • $31.5 billion in global advertising revenue (2023)
    • YouTube’s Partnership Program paid out $70 billion to creators over three years

Comparison and Competitive Landscape

  • YouTube vs Traditional Media and Other Streamers

    • Younger audiences find YouTube's cost appealing due to free access
    • Major media companies use YouTube for promotion
    • Companies exploring YouTube for supplementary distribution
    • Talent from UGC world making inroads into traditional media

  • Strategic Use of YouTube by Media Companies

    • Examples of promotion via YouTube 'snackable' content like trailers and highlights
    • Efficient way to expand reach by leveraging existing audience on YouTube

Implications for the Future

  • Content and Consumption Shifts
    • Media companies must adapt to changing consumption habits, especially among younger viewers
    • Potential need for streamers, including Netflix, to develop YouTube strategies
    • UGC economy as a viable way for traditional media to supplement their content offering
  • Challenges for Traditional TV
    • High production costs for premium content
    • Competition for ad dollars with YouTube’s growing market share

Full transcript