Please ensure Javascript is enabled for purposes of website accessibility
Free Article Join Over 1 Million Premium Members And Get More In-Depth Stock Guidance and Research

A Foolish Take: Americans Are Watching More Digital Video Than Ever

By Leo Sun - Updated Apr 14, 2019 at 10:38PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Americans are watching over two hours of digital video every day.

Americans spend over 11 hours per day consuming digital content, according to a Nielsen survey from last year. That's up from about nine and a half hours back in 2014. A recent eMarketer survey also revealed that Americans spent over two hours per day watching digital videos in 2018 -- and it expects that figure to continue rising.

Minutes spent on digital platforms.

Data source: eMarketer. *Excludes time watching video via social networks. Chart by author.

That's good news for streaming leaders like Netflix, Amazon ( AMZN 0.75% ), and Alphabet's ( GOOG -0.18% ) ( GOOGL -0.20% ) YouTube, but it's dire news for traditional media companies, many of which are still scrambling to launch their own video-streaming platforms.

Meanwhile, the popularity of digital music platforms explains why Amazon, Google, and Apple started their own music services. However, expanding into the digital media market is a costly strategy that requires companies to pay high licensing fees or produce their own original content.

Yet social networks, which are expected to grow at a slower rate than video platforms, are also entering that market with integrated video like Facebook Watch and Snap Originals for Snapchat. How these platforms will fare isn't clear, as these networks are generally associated with maintaining social connections instead of watching video content.

Check out all our earnings call transcripts.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis – even one of our own – helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Alphabet Inc. Stock Quote
Alphabet Inc.
GOOGL
$2,834.34 (-0.20%) $-5.69
Amazon.com, Inc. Stock Quote
Amazon.com, Inc.
AMZN
$3,415.17 (0.75%) $25.38
Alphabet Inc. Stock Quote
Alphabet Inc.
GOOG
$2,845.40 (-0.18%) $-5.01

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
624%
 
S&P 500 Returns
140%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 12/06/2021.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Our Most Popular Articles

Premium Investing Services

Invest better with the Motley Fool. Get stock recommendations, portfolio guidance, and more from the Motley Fool's premium services.