The Youth Drain
Earlier this week I wrote about the digital divide with younger demos migrating to mobile devices and how it impacts the near future of media companies. PwC (Price Waterhouse) just released the U.S. edition of their annual entertainment and media outlook. Today, 1 in 5 audio minutes originates from the smartphone (Edison Research data) and that is in the very early days of the connected car. PwC projects that four years from now 85 million vehicles (globally) will be equipped with Apple CarPlay, Android Auto and Mirrorlink which is a consortium of car companies. The connected car puts the pedal down on the smartphone as the portable entertainment hub, especially among millennials and younger. They stream more, are discovering podcasts and listening to AM/FM radio less.
The need for audio media to follow the millennial audience and pivot beyond the transmitter was reinforced by The Wall Street Journal CMO column posted later in the week. It focuses on the need for big media companies to embrace the rapid shift to digital. This chart - the Millennial Exodus - from the Journal shows a 30% drop among 18-24 year old TV viewing since 2012. 25-34 is off nearly 20%.
While I was on the University of Michigan campus this week at student orientation for my son, the college announced that this coming year will be the final one in which they provide free basic cable TV. According to student housing, students now watch TV on their computers and have found their own sources for video - Netflix, Hulu, YouTube, etc.- rendering the expense by the university on cable TV unnecessary. That says more than any graph about the on-demand future and the portability of content.
Steve Goldstein will be moderating AM/FM/Podcast: Radio's Pathway to Podcasting, a key panel at Podcast Movement in Chicago on Thursday July 7, with Larry Rosin/Edison Research, Traug Keller/ESPN Audio, Greg Strassell/Hubbard Radio, Sarah Van Mosel/Acast, and John Rosso/Triton Digital.
On Friday July 8, I will be hosting a breakout session with compelling data about podcast listening in a short attention span world: "They Aren't Listening to Your Entire Podcast - 7 Ways To Fix It."