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April 8, 2024

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More viewers are cutting the cord in favor of less expensive streaming packages. But Alphabet-owned YouTube (GOOG, GOOGL) has seen success by mimicking the one thing consumers seem to be ditching.

YouTube TV, the internet pay-TV service that allows viewers to watch live channels and access local broadcast networks like ABC, CBS, FOX, and NBC, first launched in 2017. Since then, its breadth of content as well as its price of just over $70 per month has made it attractive to consumers looking for a cheaper replacement for their cable packages.

“We hear from our users that they want to be able to watch all their favorite content in one place, and they want to be able to manage all of their subscriptions in one place,” Christian Oestlien, vice president of product management at YouTube, told Yahoo Finance. “There’s a bit of this subscription fatigue.”

According to Nielsen’s latest TV viewing report, YouTube, which also includes the main digital platform, notched its 13th consecutive month as the most-watched streaming service on television screens during the month of February.

In total, YouTube jumped to a platform-best 9.3% of total US TV viewing, up from the prior-year period’s 7.9%. It also delivered a sizable beat compared to Netflix’s 7.8% market share.

Broadcast and cable continued to see yearly declines, contributing to a combined 50.9% of overall TV viewing — down from 54% in February 2023.

It’s a significant feat for YouTube considering the fragmented media landscape.

On average, US consumers subscribe to four streaming services and spend about $61 per month, according to the latest Digital Media Trends report from Deloitte. Additionally, 68% of consumers surveyed pay for either a TV subscription or live streaming TV plan to access channels not available on streaming.

YouTube TV has capitalized on that demand.

The platform is now the largest pay-TV streamer on the market after recently surpassing 8 million subscribers at a price point of $72.99 a month. Disney’s Hulu + Live TV (DIS), which costs $76.99 a month, is the next closest competitor with 4.6 million subscribers as of the quarter ending Dec. 30.

“We have the ability to deliver that complete experience,” Oestlien said, referencing the success of not only YouTube TV, but also the popularity of the platform’s digital arm with features like YouTube Shorts, a competitor to Instagram Reels and TikTok, along with viral content creators like Mr. Beast. “I think it’s resonated with consumers.”