For today’s episode of the Church Butler Lunch and Learn Podcast, our host, Kenny Jahng, talks about the behavior of the consumers regarding, digital media platforms. He will also share some facts about the modern TV trend.
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TRANSCRIPTION:
Hey, welcome back friends. This is Kenny Jahng with today’s episode of the Church Butler Lunch and Learn. Really happy to be here with you folks today. Want to share a couple of insights that have been published by Business Insider Intelligence. And it is really quite interesting to see some of the things that have been published in a recent presentation they did this year. It’s called The 14 Things You’ll Want to Know About the Future of Media, and I just wanted to take you through just a couple of the points, a couple of the slides. Not all of them are relevant, but I think some of these things are things that you should be paying attention to at this point. If you wanted to follow along with a couple of these things, it kind of paints a story that church leaders and communicators really need to start thinking about.
The first is this slide. With multitasking, we cram 31 hours of activity into each day. It’s amazing. 12 hours, half of the day is spent on media and tech consumption, right. The average person is sleeping seven hours a day, is cooking, eating, cleaning, drinking, grooming, socializing, out and about basically almost seven hours a day and goes to actually do real work five hours a day. Half of the time that we are living we’re doing tech and media consumption. Now we’re saying what are we doing during those 12 hours? Well, this is what we’re doing. Digital media is now the most consumed part of the day. Five hours fifty minutes a day we’re consuming digital media. Four hours a day, TV. An hour and a half, radio. Little less than half an hour reading print and then there’s another thing out there all right.
That is the habit of the average consumer today. That’s quite amazing. Almost six hours a day, we are on our phones, on our computers, on our tablets. That is quite amazing that’s also surpassed TV. The TV just used to be something that we as Americans, North American households really had on all the time. That’s obviously not happening anymore. Digital radio is growing steadily. That’s part of the trends, but it’s not the whole story, right? Weekly online radio listening for digital radio is now almost 53% of the U.S. is actually involved with digital radio. Kind of crazy. And this is not just the XM Radio in the car. This is obviously Spotify and Pandora etc.
Now, of our six hours a day that we consume media, remember we had five hours and fifty minutes in the right-hand column consuming digital media every day. Of that five hours and fifty minutes, six hours, we’ve seen that thing grow because of the growth of desktop and mobile usage and this chart shows mobile and desktop penetration usage by the U.S. population. You’ve seen here that it’s peaking out at about little over 250 million people. That’s the U.S. population. That means pretty much everyone now at this point has access to both desktop and mobile computing and the internet. We are basically online wherever we go, whatever household we’re in.
Now, here’s a very interesting thing. Over the next five years, you would think that digital media tech consumption is going to grow, grow and grow even further as TV dies off, radio dies off, etc. but that’s not the case. We are looking at a forecast here between 2017 and 2021. Only an 18-minute increase in digital media and tech that we are going to consume. So we’re talking about video consumption goes from five hours and six minutes a day on average to five hours and seven minutes. Audio is going to stay the same. Gaming is going to increase a little bit. Social media is going to continue to increase whether you can believe that or not. And there are the other forms of digital media that’s going to start to creep up there too. But social media and gaming are the two big pieces. Everything else is just pretty much flat. There’s just not enough time in the day to see the growth.
Now, what happens is that means everyone is competing for your attention. That six hours a day and it’s going to go to six and a half hours, not even six and a half hours, right? Six hours and eight to fifteen minutes a day are old media, traditional media as well as new media that are all trying to figure out how do we convert our content and our experience online and either maintain our audiences or shore them up or build the audiences if you’re new digital outpost. Now it’s interesting. Facebook, YouTube, Netflix are going to become the new major networks. They are going to be like ABC, CBS, Fox, CNN. They are becoming the old guard pretty quickly.
So what’s going to happen to TV? Let’s go back to the TV. This is an interesting chart. This shows the change in time spent watching traditional TV by age group and here’s the nail in the coffin, here’s the sounding bell that everyone needs to pay attention to. Look at this bracket. The last four lines correspond to ages 2 to 11, 12 to 17, 18 to 24, and 25 to 34. Basically, ages from 2 to 34, think of that age population, they are accelerating the collapse of TV. Anywhere from a dive of 25% less year over year to almost 40% less are watching TV. Those age groups are watching 25 to 40% less TV. That’s crazy. That means TV is dying really quickly. The other age groups are plateauing but these four critical groups, this is the next generation that’s up and coming, ages 2 to 11, 12 to 17, 18 to 24, and 18 to 34. This next whole age group is not watching TV at all.
So what’s going on? What is going on? They’re not watching traditional TV. They’re watching what we call modern TV networks. Right, so Netflix, Amazon Prime, Apple TV, Hulu are all taking over. This is crazy. 120 million subscribers are using Netflix and look at Hulu growth. The fact that they have accelerated their growth to almost 30 million. That means they have the potential to continue to grow. Same thing with Amazon Prime. Amazon Prime is obviously not growing or the driver for Amazon Prime Video is obviously not the video platform itself, it’s just Amazon and the relationship it has with households. But it’s interesting to see that even domestically Netflix is nearing 60 million people. Now, with 300 million people in the U.S., the population of the U.S. I wonder exactly, I’ve never even done this search. How many households number… Let’s see if you do the search in Google for a number of households in the U.S. How many would that be? 127.59 million households. 127.6 million households. 126.
The fact that Amazon Prime is nearing what looks like on a chart somewhere between 85, 90% of households. They’ve got over half the U.S. is subscribed to their platform. The fact that Hulu has over 30 million. They’ve got almost a quarter of the U.S. Apple TV if you look at just the U.S. installation, this is the white portion here on the chart that we’re looking at. So that’s 55 minus 30, that’s 25%, 25 million households. That’s one-fifth of the population of the households in the U.S. And then domestically Netflix, they’re somewhere around 50 something million, they’re nearing 60 million. That means they’ve got almost half the U.S. In fact, I saw a stat somewhere that Netflix has surpassed 50% of U.S. households. There’s still growth to be had because at some point all of TV is going to be replaced by these modern TV networks, these digital platforms. It’s really interesting to see what’s going on with the shift in behavior because it’s not just one to one how they’re replacing the TV networks.
In my house, we just signed up for YouTube TV in addition to Hulu + Live and Netflix. YouTube TV touts in their advertising that you can have six account screens going on at once and it’s completely geographic independent. You can be logged in at home or you can be logged in anywhere else. It’s not tied to your home address so the behavior is completely different from these modern TV networks. Now, it all comes out to value, right? This is really funny because paid TV, the traditional TV networks have got to be looking at this and seeing why people are fleeing their networks, why I left Verizon Fios TV. $150 plus bill every month down to paying 40, $50 a month. The average price for consumers per hour of viewing of the TV of the old networks, the paid TV versus Netflix. The old TV is going up in price and Netflix obviously is going down in costs per hour of entertainment of viewing.
Of course, consumers are going to flee the traditional media and go to these new modern TV networks. That also means since their reach is higher, the income is higher than they’re able to spend more on premium content if you’re seeing what’s happening across all the different services that you’re logging into. Everyone has exclusive content. Netflix, when I go into my Netflix queue, the recommendation engine is more than 50% content that Netflix has produced and provided exclusively on that platform. Same thing with Amazon Prime. Hulu is starting to pop up I think. Amazon Prime Video definitely. Programs like Jack Ryan which I believe is the first legitimate hit that has been self-produced is driving exclusive content, exclusive viewership to each of these modern TV networks. You’re seeing the spending of Netflix, Amazon, Hulu rivaling the traditional CBS, NBC, ABC, Fox expenditures on content. This is definitely something that says if you want to be optimistic about the growth of these platforms, look at how much Netflix is spending for content versus the old traditional networks. No wonder why people are continuing to be loyal and choosing to spend their time on Netflix than traditional TV networks.
Okay, what else is going on? This next thing is that everyone online is basically spending money with Google or Facebook. We’re going to capture a little bit of that and the rest of the advertising picture because from a church communications perspective you’re going to need to think about where you’re going to spend your money and how you’re going to spend your money, traditional versus digital. We’re going to talk about that in the next episode but this episode today, I want to recap just all the things that are happening with the consumer behavior, where people are spending time, where their attention is and just to show you, demonstrate with numbers where we should be thinking about spending our time in terms of publishing and advertising from a church perspective. I’d love to hear your comments. Put them below or also send a message to me, DM me and start a conversation.
And if you really thought this was interesting and valuable, please share this with another team member or another communicator that you might know in the space so that we can all start to have this conversation and learn together and figure out what we’re going to do with all of this shift, this complete change in behavior that consumers have that is relevant to our space as church communicators. I’m Kenny Jahng. Hopefully, this is a great thought-provoking episode for you. We’ll have more in the next one regarding advertising and the shift in advertising trends.
Until then, I’m Kenny Jahng. Remember, be social, stay social.
HIGHLIGHTS:
02:19 That is the habit of the average consumer today. That’s quite amazing. Almost six hours a day, we are on our phones, on our computers, on our tablets. That is quite amazing that’s also surpassed TV. The TV just used to be something that we as Americans, North American households really had on all the time. That’s obviously not happening anymore. Digital radio is growing steadily. That’s part of the trends, but it’s not the whole story, right? Weekly online radio listening for digital radio is now almost 53% of the U.S. is actually involved with digital radio. Kind of crazy. And this is not just the XM Radio in the car. This is obviously Spotify and Pandora etc.
04:05 Now, here’s a very interesting thing. Over the next five years, you would think that digital media tech consumption is going to grow, grow and grow even further as TV dies off, radio dies off, etc. but that’s not the case. We are looking at a forecast here between 2017 and 2021. Only a 18-minute increase in digital media and tech that we are going to consume. So we’re talking about video consumption goes from five hours and six minutes a day on average to five hours and seven minutes. Audio is going to stay the same. Gaming is going to increase a little bit. Social media is going to continue to increase whether you can believe that or not. And there are the other forms of digital media that’s going to start to creep up there too. But social media and gaming are the two big pieces. Everything else is just pretty much flat. There’s just not enough time in the day to see the growth.
07:19 So what’s going on? What is going on? They’re not watching traditional TV. They’re watching what we call modern TV networks. Right, so Netflix, Amazon Prime, Apple TV, Hulu are all taking over. This is crazy. 120 million subscribers are using Netflix and look at Hulu growth. The fact that they have accelerated their growth to almost 30 million. That means they have the potential to continue to grow. Same thing with Amazon Prime. Amazon Prime is obviously not growing or the driver for Amazon Prime Video is obviously not the video platform itself, it’s just Amazon and the relationship it has with households. But it’s interesting to see that even domestically Netflix is nearing 60 million people. Now, with 300 million people in the U.S., the population of the U.S. I wonder exactly, I’ve never even done this search. How many households number… Let’s see if you do the search in Google for a number of households in the U.S. How many would that be? 127.59 million households. 127.6 million households. 126.
13:06 Okay, what else is going on? This next thing is that everyone online is basically spending money with Google or Facebook. We’re going to capture a little bit of that and the rest of the advertising picture because from a church communications perspective you’re going to need to think about where you’re going to spend your money and how you’re going to spend your money, traditional versus digital. We’re going to talk about that in the next episode but this episode today, I want to recap just all the things that are happening with the consumer behavior, where people are spending time, where their attention is and just to show you, demonstrate with numbers where we should be thinking about spending our time in terms of publishing and advertising from a church perspective. I’d love to hear your comments. Put them below or also send a message to me, DM me and start a conversation.
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