Teenagers Choose YouTube Over Netflix: Piper Sandler Survey Reveals Video Consumption Trends

A recent survey conducted by investment bank Piper Sandler has revealed a noteworthy shift in the video consumption habits of teenagers in the United States. According to the survey, teenagers now watch more content on YouTube than on Netflix, marking a significant change in their media preferences.

Changing Trends in Video Consumption

The survey found that teenagers spend 29.1% of their daily video consumption time on YouTube, which is owned by Google. This surpasses their time spent on Netflix, which stood at 28.7%. Notably, this is the first time YouTube has overtaken Netflix in the preferences of teenage viewers. In comparison to earlier findings, time spent on YouTube has increased by nearly one percentage point, while Netflix has seen a decline of more than two percentage points.

YouTube’s Strength as a Free Online Video Provider

This shift highlights the increasing competitiveness in the streaming industry and underscores YouTube’s robust position as a provider of free online video content, particularly among young audiences. Piper Sandler analysts speculate that this change in consumption habits may be due to the improving quality of content on YouTube and the growing competitiveness within the streaming industry.

Teenagers’ Media Consumption Trends

Piper Sandler has been conducting surveys of American teenagers biannually since 2001, focusing on various aspects like their favorite brands, gadgets, snacks, and restaurants. In the most recent survey, which took place in September and included responses from over 9,000 teens with an average age of just under 16 years old, it was observed that the two leaders in daily video consumption were Netflix and YouTube, with Hulu ranking third at around 7% market share.

Increase in Usage for Prime Video and Disney+

The survey also revealed that Prime Video and Disney+ experienced an increase in their market share. This growth suggests that more teenagers are turning to these platforms for their video content needs. In contrast, traditional cable TV, HBO Max, and Hulu saw a decrease in usage compared to the spring, indicating a shift away from these services among the teenage demographic.

TikTok and Social Media

While the survey didn’t directly compare YouTube and Netflix to TikTok, it did explore teenagers’ preferences in social media. TikTok emerged as the favorite social media platform for 38% of the teens surveyed. Instagram led in terms of self-reported monthly usage. The survey further highlighted an increase in teenagers’ social media engagement, with respondents stating that they spend approximately four and a half hours per day on social media, a noticeable uptick from previous surveys.

Implications for Investors and Media Industry

Understanding how young people allocate their time and money can provide valuable insights into broader economic trends. The shift in video consumption preferences among teenagers suggests that the media landscape is continually evolving, and industry players need to adapt to changing consumer habits. YouTube’s surge in popularity among teens exemplifies its appeal as a go-to platform for accessible and engaging online content.

In conclusion, the Piper Sandler survey sheds light on the evolving media consumption habits of American teenagers, with YouTube surpassing Netflix in popularity, signaling the dynamism and competition within the streaming industry, particularly among younger audiences.