London, Jan 21: In a significant shift in digital media consumption, TikTok and YouTube have solidified their positions as the top video platforms for Millennials and Gen Z in the United States, according to Omdia's latest consumer survey.
This rise has seen these platforms surpass traditional contenders like Instagram, Facebook, and Netflix in popularity among the 18-35 age group.
TikTok's Rapid Growth
In 2024, TikTok reached an impressive milestone with over 1.9 billion monthly active users worldwide, including 145 million in the USA alone. The platform is also leading the charge in video advertising revenues, generating a staggering $63.3 billion globally-including China-almost doubling YouTube's $33.3 billion. In the United States, TikTok's advertising revenue alone soared to approximately $8 billion.
Audience Engagement Insights
Maria Rua Aguete, Senior Research Director at Omdia, emphasized the transformative impact of platforms like TikTok and YouTube on media consumption trends in the USA. Notably, the survey revealed substantial audience overlap between these platforms: 92% of TikTok users also engage with YouTube each month, and a remarkable 61% use it daily.
Comparatively, Instagram Reels and Facebook Video attract 76% of TikTok users monthly, with daily engagement at 50% for Instagram and 44% for Facebook. Rua Aguete noted that if a TikTok ban were to occur in the USA, many users would likely transition to YouTube and Meta platforms rather than exploring new alternatives.
Shifting Viewing Habits
The research also highlights a noteworthy trend in viewing preferences. While TikTok, Facebook, and Instagram primarily cater to mobile users, YouTube viewing on TVs has jumped to 52% in the USA-a figure expected to rise as connected TV usage becomes more widespread.
Cultural Impact and Regional Trends
Omdia's findings also indicate that TikTok holds a significant cultural influence within Hispanic communities in the USA, with Hispanic users showing higher engagement levels compared to their non-Hispanic counterparts.
Looking southward, Latin America's subscription video on demand (SVOD) market is projected to grow from 154 million subscriptions in 2024 to 174 million in 2025, adding an impressive 20 million new subscribers within a year.
Netflix continues to lead this regional market, finishing 2024 with 51 million subscriptions and expected to reach 57 million by 2025 and potentially 70 million by 2029. The platform's success is attributed to its ad-supported tiers and robust investments in Spanish-language content, which currently makes up 48% of regional SVOD revenues. Disney+ follows with a 12% share, while Paramount+ holds 8%.
Disney+ subscriptions are anticipated to hit 20 million by 2025, boosted by the Q2 2024 merger of Star+ and Combo+ along with the launch of an ad-supported tier.
Rua Aguete underscored Netflix's stronghold in Latin America, stating, "Netflix not only leads globally but is cementing its dominance in Latin America. Its investments in Spanish-language content and advertising models are driving growth across the region." The landscape of video consumption is evolving rapidly, with TikTok and YouTube firmly at the forefront for younger audiences.
