Trends in Traditional TV

Nielsen has now been publishing quarterly reports on TV viewing habits since 2011. Comparing the latest report for the 4th quarter of 2016 to the original 2011 report shows a major decrease in the hours spent by younger Americans in watching traditional television – which is defined as the combination of both live viewing and time-delayed viewing of network television content.

The changes differ by age group and don’t paint a pretty picture for the traditional TV market:

  • Teens (12-17) watched almost 14 hours per week of television, but that’s down almost 11% from 2015 and down 38% from five years.
  • Younger Millennials (18-24) watched 15.5 hours per week of TV, and that’s down 39%, or 1.5 hours per day over 5 years.
  • Older Millennials (25-34) watched 22 hours per week, and which is down 26.5% over five years.
  • Gen-Xers (35-49) watched almost 40 hours per week and have seen a 10% drop over five years.
  • Baby Boomers (50-64) watched 43 hours per week and have had a slight increase over five years of 1.6% in viewing time.
  • 65+ viewers watched 52 hours per week which is up 0.6% over 2015 and is up 8.4% over five years.

So what are the younger people doing other than watching traditional TV?  The numbers for 19-24 year old users is interesting.

  • They spend 15.5 hours per week watching traditional television (including time-shifting).
  • They spend 20.8 hours watching subscription-based OTT content like Netflix or Amazon.
  • They spend another 17 hours watching something else, which includes things like DVRs, video on social media, or free web content like YouTube.
  • That’s an average of 53 hours per week, about the same amount of screen time as those over 65 watching traditional TV.

This same group also uses a variety of different screens. That includes an average of 9.2 hours per week watching video on a PC or laptop, 1.5 hours per week watching on a tablet and 1 hour per week watching on a smartphone. The rest still use a television screen, even if the content is not a traditional TV feed.

The good news for the whole industry is that young people are not tuning out from watching video content – they are just watching a lot less traditional television. And that means less of the major networks, less sports, and less of all of the various networks found on cable systems. They have decided, as a group that other content is of more interest.

It’s soon going to be harder for Nielsen and others to quantify the specific types of content viewing because the lines are starting to blur between the various categories. If somebody watches a live feed of a basketball game or a traditional network show on Sling TV that is basically the same as watching traditional TV. But on that same platform you can also watch streaming movies in the same manner as Netflix. And traditional broadcasters are doing something similar. For example, CBS All-access not only includes traditional CBS programming, but there is new content like the new Star Trek series that is only going to be available on-line.

We’ve known for a long time that younger viewers are not watching television in the same way as older generations, but these numbers really highlight the differences. Those over 65 years old are watching four times more traditional television than teens. And viewing hours for younger viewers are steadily dropping while older viewers are watching as much or more TV than five years ago. You only have to trend this forward for a decade to foresee continued dramatic drops in total TV viewership.

For years there has been hope in the industry that as kids age and get families and buy homes that they will return to the traditional pay-TV packages. But numerous surveys have shown that this is not happening. It seems that the viewing habits of youth influences viewing habits for life. And that creates a real challenge for the advertising-supported pay TV model. TV advertisers are only reliably reaching older viewers, and yet most advertisers still believe that TV advertising is one of their most effective tools. But each year TV advertising is going to reach fewer and fewer younger viewers, and at some point the advertisers are going to be forced to look elsewhere.

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