Nielsen released its 2014 Total Audience Report on Wednesday, and it highlighted something many already assumed: Americans are growing increasingly enamored with streaming services like Netflix and Hulu.
More than 40% of U.S. homes now subscribe to a streaming service, according to the report. The biggest chunk of that, of course, is Netflix, which is in 36% of homes across the United States. Netflix is trailed by Amazon Instant Video, which 13% of U.S. households subscribe to. (Amazon Instant Video comes free with Amazon Prime, so it is unclear if all subscribers are using the platform for video streaming. Still, bottom line: Netflix is the dominant force here.)
According to Nielsen, Americans are spending more time consuming media but less time watching live TV. However, we still watch a lot of live TV. The average adult spends 4 hours and 51 minutes watching live TV each day, which is down 13 minutes from last year, the report stated.
Households that use streaming services also have access to the greatest amount of technology; people in these homes consume 2 hours and 45 minutes of TV each day using connected devices, such as video game consoles or smartphones. Households that don’t subscribe to streaming services spend just 1 hour and 57 minutes in front of these screens, according to the report.
The study defines a household as “a home with at least one operable TV/monitor with the ability to deliver video via traditional means of antennae, cable STB or Satellite receiver and/or with a broadband connection.”
Broadcast, satellite and cable networks are slowly fading in a shift known as cord-cutting. Cable networks, for one, saw big ratings declines in the latter half of 2014. Ratings among adults dropped 9% last year, which is a threefold increase from 2013’s decline.
Of course, live watching still accounts for the greatest chunk of TV consumption, so the demise of traditional TV is not imminent — but the trends are clear.