A new survey has revealed that American teens prefer YouTube for their streaming services, edging out Netflix (NASDAQ: NFLX). The Piper Jaffray’s fall 2019 survey on teen spending trends and brand preferences found out that teens spend 37% of their daily video streaming time on YouTube and 35% watching Netflix.
Piper Jaffray, an investment platform, notes that YouTube’s rising popularity among American teenagers is linked to the diverse content available on the platform. The surveyed teenagers indicated that they prefer YouTube due to content like music videos, video game streaming, and influencer videos from different celebrities. This is the first time YouTube overtook Netflix.
The Piper Jaffray survey further indicated that Hulu’s teen usage rates remained constant at 7% from the spring to the fall, while Amazon Prime’s remained at 3%. On the other hand, cable Tv continued to lose users, with teenagers spending 12% of their daily video time watching cable TV.
Analysts from the investment firm noted that the decline in cable TV could be attributed to the shift from traditional TV among many American households.
Netflix Stocks Dropping in 2019
It is important to note that Netflix has had a rough 2019, with stock prices remaining negative. Netflix stock price declined more than $110 a share in the last three months alone. As a result, the streaming giant’s stock price has dropped to 26% in the previous twelve months.
Netflix might be staring at a tough time ahead, considering the number of new streaming services expected to join the market by the end of 2019. Disney Plus streaming service, which is scheduled to launch in November, is seen as a significant threat to Netflix.
Teens Spending More on Food
In terms of spending behavior, the survey notes that food remains the top with 23%. Furthermore, most teens prefer Amazon (NASDAQ: AMZN) as the number one shopping platform at 52%.
On the other hand, about 91% of female teens preferred shopping for beauty in-store compared to online. 89% of female teens use online influencers as a source of discovery for beauty brands and trends with Kylie Jenner ranking in the second position of top influencers.
Erinn Murphy, an analyst from Piper Jaffray, pointed out that this year’s survey indicated that we had the lowest teen spending levels in eight years. The drop was mostly experienced in the categories of handbags and cosmetics as females reprioritize their spending with eating out and footwear and apparel. In terms of footwear, Crocs also achieved new heights as they were ranked as the 7th preferred footwear brand among teenagers.
This year’s survey was the 38th semi-annual study by Piper Jaffray, and it looked at spending trends, brand preferences fashion trends, technology, brand, and media preferences from 9,500 teens across 42 U.S. states with an average age of 15.8 years. The age groups contribute approximately $830 billion to U.S. retail sales annually.
Piper Jaffray Companies (NYSE: PJC) is a leading investment bank and institutional securities firm that aims to help clients Realize the Power of Partnership.