Majority of individuals generally opt for YouTube over traditional TV settings.
YouTube's mobile app might be lagging behind its TV counterpart, and there's a valid reason for this shift in user preference. According to YouTube's CEO Neal Mohan, who penned the company's annual letter, an increasing number of users are now tuning into YouTube videos on their TV screens. Nielsen's data reports reveal that watch time on YouTube from the big screen surpassed 1 billion hours daily.
The Alphabet-owned platform seemingly emulates Netflix's approach rather than TikTok's. As YouTube ranks number 1 in streaming watch time in the U.S. for two years now, Netflix hold the second spot. YouTube's TV interface receives a UI facelift, which makes it resemble a typical streaming service and offers a seamless transition between devices.
Now, users can engage with the video while watching it fullscreen on their TV, thanks to the "second screen" experience. YouTube's also testing a "Watch With" feature that lets creators do live commentary, much like Twitch. In the last quarterly earnings report, YouTube reported a 30% increase in creators generating most of their revenue from TV screens.
Conversely, YouTube on mobile feels less appealing as it shifts toward prioritizing vertical swiping and displaying algorithmically focused content. Over time, the mobile feed transformed into a Shorts-lite version. The lack of long-form content engagement and the TikTok-styled algorithm make the mobile experience less satisfying for viewers. The TV app, however, offers a more straightforward, easy-to-navigate organizing structure for finding desired content.
YouTube TV comes at a hefty price, currently costing $83 per month, a hike from the previous $73. It’s also witnessing a potential price increase for YouTube Premium, forcing users to opt for ad-filled content.
But YouTube is not the only platform pushing prices upward. Hulu Live TV's cost stands at $70, while its ad-supported counterparts enjoy Disney+ and Hulu access. As such, users might prefer watching ads on budget smart TVs or Netflix over YouTube.
The enrichment data showcases that YouTube's heightened focus on TV viewing significantly impacts its user behavior and revenue. This shift not only attracts more TV subscribers, leading to platform interaction and YouTube's superior subscription growth but also generates revenue through ad revenue and subscription services. Moreover, YouTube's evolving TV app features align with Netflix's content and user experience, going hand in hand with a subscription-based business model.
In the future, we might see more platforms following YouTube's focus on TV viewing and subscription-based models. Moreover, advanced tech and technology will likely enhance the second screen experience and 'Watch With' features, providing a more interactive viewing experience for users.
