Valuetainment

00:00:00.000 Today we're going to talk about the death of cable media.

00:00:01.940 It's been slow, but it's now accelerating.

00:00:03.820 And three things that are holding it back from going out of business today.

00:00:07.080 And if one of them pulled out, cable would be done within seconds.

00:00:20.160 Okay, so if you give value out of this video, give it a thumbs up and subscribe to the channel.

00:00:23.480 Let's get right into it.

00:00:24.260 Yesterday, I'm doing Russell Brand's podcast.

00:00:26.620 And him and I are talking.

00:00:27.660 He's grown now into having millions and millions of followers.

00:00:31.160 And this guy was a former A-lister.

00:00:33.140 Oh, not the shirt, you know, inside of you.

00:00:35.780 If you know what I'm talking about from Forgetting Sarah Marshall, he's an A-lister.

00:00:39.440 He's now a small media company getting tens of millions of eyeballs on a monthly basis.

00:00:43.860 So imagine an A-lister and a former insurance guy, finance guy, start media companies.

00:00:49.100 And now they're getting more eyeballs than some traditional mainstream cable.

00:00:52.800 This doesn't make any sense.

00:00:54.400 How big of a disruption is it?

00:00:55.920 They should have never allowed guys like us to get into it.

00:00:58.600 But I'm going to give you numbers here today for what to be thinking about.

00:01:00.660 All right, so let's take a look at some data.

00:01:02.020 Last year in July was a historic month because that was the first month we're streaming past cable.

00:01:08.100 Nobody thought it was going to happen, but it finally happened.

00:01:10.820 However, look how dramatically the numbers changed from last July to today.

00:01:16.500 We just got the report from Nielsen.

00:01:18.580 I want to show this to you.

00:01:19.540 This is last year.

00:01:20.900 When you look at this data, it shows July 2022, cable 34.4%.

00:01:26.800 It's the purple line that you see there.

00:01:29.280 And the blue, streaming, passed it up 34.8%.

00:01:32.760 However, if we go look at the Nielsen report that just came out last month, here's what you'll notice.

00:01:38.300 Now you'll see streaming went from 34.8% to 38.7%, but cable dropped from 34.4% to 29.6%.

00:01:48.160 And on the streaming side, they got the top with YouTube, then Netflix, then Hulu, then Prime Video, then Disney, Max, Tubi, Peacock, Roku, Paramount, Pluto.

00:01:56.280 The point is, you're no longer watching cable.

00:01:58.680 So the same way cable TV is being disrupted, the therapy industry is being disrupted.

00:02:02.500 Why?

00:02:02.840 Because for many years, people didn't want to go see a therapist because they were embarrassed of sitting in a waiting room,

00:02:07.600 and they're waiting for meeting the person, and the co-worker says,

00:02:10.280 Oh, you're coming here too?

00:02:12.640 Yes.

00:02:13.340 Is everything okay?

00:02:14.660 Is everything okay?

00:02:15.680 I just need to talk to somebody.

00:02:16.700 You know what I'm saying?

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00:02:36.980 Depression is high because, one, we have to be around people to talk to somebody.

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00:03:08.020 As a matter of fact, if I was to ask you right now, do you watch cable?

00:03:11.640 You may say, I do.

00:03:12.960 What do you watch on cable?

00:03:15.180 You may say, sports only.

00:03:17.340 Exactly.

00:03:17.740 There's three things that's holding cable from being done within seconds.

00:03:23.580 One is people who watch sports.

00:03:25.080 Number two is older people that watch news on CNN, Fox, MSNBC.

00:03:30.280 These are people that like to consume their news from TV.

00:03:32.980 But you know what the most important one is?

00:03:34.560 Do you know what percentage of all cable TV advertising money comes from Big Pharma?

00:03:40.440 What do you think is that percentage?

00:03:42.220 You think it's 5%?

00:03:43.380 You think it's 10%?

00:03:44.400 30?

00:03:44.840 It's a big number.

00:03:46.000 40?

00:03:46.820 50?

00:03:47.420 There's no way, Pat, it's 50.

00:03:48.960 What if I told you, according to Statista, the number is 75% of the funding?

00:03:54.460 Do you realize two countries are the only ones that allow Big Pharma to advertise?

00:03:58.500 Us and New Zealand.

00:03:59.600 If a president changed the laws that Big Pharma can no longer, listen, no longer advertise on any kind of cable TV or streaming, cable TV would go out of business like this.

00:04:12.220 At least 90% of them would disappear because where would they get their money from?

00:04:15.880 And all these guys that are paying $5, $10, $15 million, their salary is gone.

00:04:19.940 They got to go figure out a way how to make the money on podcasting.

00:04:23.140 Insane number when you think about 75%, but let me continue with more data for you.

00:04:27.300 So what you're looking at here is number of people paying for cable and how it's declining.

00:04:30.660 And if you look at 2013, it's $100 million and a half.

00:04:34.180 It stays steady.

00:04:35.140 And then all of a sudden, it goes to $90 million in 2018.

00:04:38.140 Then 2020, they have $78 million.

00:04:41.040 But something happened called COVID, if you remember, because I know it was three years ago.

00:04:44.660 It drops from $78 million to $65 million two years later.

00:04:49.120 And now it's $60.5 million, and they're simply giving a projection of what's going to be happening.

00:04:53.940 They're being very nice to cable how it's going to go from $60 to $56 to $53 to $50 to $47.

00:04:59.040 But you get the idea.

00:05:00.080 Now, meanwhile, look at OTT.

00:05:02.060 OTT is over the top, like Netflix, Hulu, membership type of things.

00:05:06.080 Look what it's done from 2017 until today.

00:05:08.360 If you look at 2017, you'll see $72.59 billion.

00:05:12.120 So it went from $72.59 billion to 2022, $260 billion.

00:05:17.740 It's projected to be at around $400 billion by 2027.

00:05:21.660 Again, this is not good news for cable.

00:05:23.880 But let's continue.

00:05:24.780 So here's another question for you.

00:05:26.120 How many streaming services memberships do you have?

00:05:28.380 Is it just one?

00:05:29.200 Some tells me you've got more than one.

00:05:30.520 86% of us, you and I, have more than one streaming service subscription.

00:05:35.260 Check this out here.

00:05:36.120 Only 14% of Americans subscribe to only one.

00:05:38.900 38% subscribe to two.

00:05:40.500 27% of three.

00:05:41.380 12% to four.

00:05:42.800 9% of you watching this have five or more you're paying for on a monthly basis.

00:05:46.320 Good for you, by the way.

00:05:47.220 So now, when we're looking at cable, you may be saying,

00:05:49.180 Pat, it's dead based on what the stuff you're showing me here.

00:05:51.440 I know, but let's take a look at a couple other industries

00:05:53.280 on how gradually it happened and why this one is accelerating.

00:05:57.360 Let's take a look at newspapers first.

00:05:59.060 The end of newspapers began in 1990s with the rise of the Internet.

00:06:02.320 Five signs of why newspapers declined.

00:06:04.500 Number one, Internet.

00:06:05.380 Number two, the decline of advertising revenue.

00:06:07.600 Number three, the changing demographics of readership.

00:06:09.740 Number four, the rise of social media.

00:06:11.520 Number five, the increasing cost of news production.

00:06:14.600 So, matter of fact, let's just bring it back to you.

00:06:16.120 How many people you know that actually read a newspaper?

00:06:18.940 I know one person in this building reads a newspaper, and it's me,

00:06:21.900 because I read the Wall Street Journal.

00:06:23.200 I actually love it.

00:06:23.780 I like to come to my office, open it up, read what's going on,

00:06:26.680 because I like doing that, right?

00:06:27.980 That's a habit I've had in financial services.

00:06:29.860 But how many people you know yourself?

00:06:31.180 If you do take a picture, there ain't too many of them.

00:06:33.260 You know how people consume their news nowadays?

00:06:35.220 Twitter, which is social media.

00:06:36.740 You've got internet site, podcasts.

00:06:38.840 You've got streaming services.

00:06:40.400 And last but not least, it's cable, which we know what direction cable is going.

00:06:43.520 Next one is landlines.

00:06:44.620 When's the last time you made a phone call with a landline?

00:06:46.560 I'm actually serious.

00:06:47.160 We were actually talking here.

00:06:48.700 I can't tell you.

00:06:49.620 I can't remember the last time I made a phone call with a landline.

00:06:52.100 Literally, I couldn't tell you.

00:06:53.440 It's got to be 2009, the last time I made a phone call.

00:06:56.020 When's the last time you made it?

00:06:57.020 What happened to landlines?

00:06:58.160 Check this out with this data.

00:06:59.840 So this is 2008 till today.

00:07:01.720 Ready?

00:07:02.420 2008, the green is landline.

00:07:04.760 The blue is cell phones.

00:07:05.840 Look at green.

00:07:06.520 80% of us had a landline.

00:07:08.520 Today, it's 28%.

00:07:09.800 In 2008, less than 20% had a cell phone.

00:07:12.920 Today, it's 71%.

00:07:14.160 Matter of fact, don't you wonder what the other 29% is doing without a cell phone?

00:07:17.900 They have to be either six years old.

00:07:19.440 They have to be either 93 years old, but what do they do not having a cell phone?

00:07:23.480 But look what happened to landlines.

00:07:24.980 At one point, everybody had it like this.

00:07:28.420 Massive disruption disappeared.

00:07:30.600 So what caused it?

00:07:31.320 Let's take a look.

00:07:32.000 Once cell phones became affordable, convenient, and reliable, it was game over.

00:07:34.980 Cost of landlines versus unlimited calling plans.

00:07:37.600 Then features of mobile phones, text messaging, internet access, apps, game over.

00:07:40.940 I remember I had a Nextel, and it wasn't unlimited.

00:07:43.360 All of a sudden, my phone bill would be $600 a month.

00:07:45.680 I'm a salesperson, so I was like coming up in business.

00:07:47.860 Then Nextel came out with unlimited plan, $199 a month.

00:07:51.220 It was insane.

00:07:52.520 Then somebody else said $149.

00:07:54.120 Then Nextel came back, $99.

00:07:56.000 And then nobody cares about unlimited anymore.

00:07:58.140 You can make as many calls as you want, but it's been a massive disruption.

00:08:01.220 So here's another one.

00:08:02.100 Music.

00:08:02.480 How do you consume your music?

00:08:03.540 What do you listen to?

00:08:04.140 Do you listen to YouTube, iTunes, Spotify?

00:08:06.440 Do you remember this thing back in the days that cavemen used to listen to?

00:08:10.080 It was called a disc CD.

00:08:11.740 Do you remember that?

00:08:12.200 Check this out with the numbers here, what it's looking like, and how they peaked in

00:08:16.380 the massive drop-off.

00:08:17.700 According to Statista, in 1983 is when you'll see compact discs being sold.

00:08:23.160 And by the way, the data here is by the millions, okay?

00:08:25.420 So it goes and it peaks in the 2000s.

00:08:28.240 Nearly a billion discs sold every single year, but very quickly, it went all the way back down

00:08:34.520 to today.

00:08:35.380 When's the last time you bought a CD?

00:08:37.160 And you work out with a disc?

00:08:38.260 Can you imagine you go to the gym and you see somebody with a, you know, the old disc

00:08:41.620 players, we would run, it would skip.

00:08:43.480 Do you remember that?

00:08:43.940 Where you would kind of try to run without, if you're 40, you know exactly what I'm talking

00:08:47.020 about.

00:08:47.480 That doesn't belong anywhere today because we listen to our music and work out like this.

00:08:53.200 Of course, unless if your name is Vincent O'Shanna, you still listen to discs.

00:08:56.440 So if you look at this year, podcast popularity, percentage of people in the US 12 plus ever listened

00:09:00.740 to a podcast.

00:09:01.540 Back in 2006, it was around 11%.

00:09:03.760 Today, it's 55%.

00:09:04.980 And then the number, if you look at, according to Statista, that number, the 11% number that

00:09:09.540 is now 55, 57%, it's 162 million people listening to podcasts right now.

00:09:15.540 You know what that's doing?

00:09:16.640 This is how the whole conversation started with Russell Bryant and myself.

00:09:19.460 A-lister, business guy, finance guy, podcast, getting more eyeballs than many of these guys

00:09:24.360 on TV.

00:09:25.220 What happened there?

00:09:26.080 It's what you call a massive disruption taking place to cable.

00:09:29.100 So look, we talked about how newspapers got replaced by the internet.

00:09:31.420 We talked about landlines by cell phones, CD players by iPhone, cable by stream, and you

00:09:36.140 see what podcasters are doing today.

00:09:37.520 This is not going away.

00:09:38.520 And it's led to the creator economy, which means you get to choose who you want to listen

00:09:41.780 to today.

00:09:42.660 Back in the days, the only people that were able to get on the big screen TV, they either

00:09:45.920 had to do a lot of favors, they had to be related to somebody, they had to be connected

00:09:49.900 with somebody.

00:09:50.700 You couldn't, and it didn't mean they were the best people.

00:09:52.700 It's just those were the people that got the job because they knew somebody.

00:09:55.380 It meant maybe the best person was out there, but didn't have a way of getting to know

00:09:59.580 the guys.

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00:10:02.560 And now, any classic donut is a dollar when you buy any size original or dark roast coffee.

00:10:06.760 Get a deal on the iconic duo with a Tim's dollar donut, plus tax at participating restaurants

00:10:11.000 for a limited time.

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00:10:12.320 See app for details.

00:10:13.200 It's time for Tim's.

00:10:15.120 So they never excel to the top, if that makes any sense.

00:10:17.560 Today, the market is wide open.

00:10:19.360 Whoever is the best rises to the top.

00:10:21.680 Competition galore.

00:10:22.820 Who wins?

00:10:23.760 The audience wins because you get to pick and choose who you want to watch.

00:10:26.780 Buy which videos you like.

00:10:28.300 And if you don't like it, you don't pay for it.

00:10:30.180 You go to a different channel.

00:10:31.400 That's real competition.

00:10:33.240 Finally, we have some of that competition in media.

00:10:35.640 And FYI with cable.

00:10:37.280 We're going to talk about the creative economy on another video and what kind of money is

00:10:40.060 being made and what's the possibilities out there and what direction it's going.

00:10:43.200 But here's what we have to know here with cable.

00:10:45.120 Old folks, it's a timeline. 1.00

00:10:47.460 Okay?

00:10:47.820 I'm 44.

00:10:48.820 I ain't going to live forever.

00:10:50.020 You ain't going to live forever.

00:10:51.080 Old folks watching news, they are not going to be living forever. 0.72

00:10:53.640 So what is that timeline, right?

00:10:54.820 10 years?

00:10:55.520 20 years?

00:10:56.080 30 years?

00:10:56.600 Okay.

00:10:57.020 But let's set that aside.

00:10:57.900 Sports.

00:10:58.620 Who's starting to pick up sports deals?

00:11:00.400 A lot of these streamers.

00:11:01.800 Do you know how scary that is?

00:11:02.900 If these guys start signing up with them and if some basketball teams are now doing their

00:11:06.780 own streaming, their own OTT?

00:11:08.880 Wait a minute.

00:11:09.400 What if every MLB team, every NHL team?

00:11:12.080 That's a scary thought.

00:11:13.300 Of course it is.

00:11:14.160 That's the direction it's going.

00:11:15.220 But one noble law by a candidate, a president, who comes out and says, moving forward in America,

00:11:20.940 Big Pharma can no longer advertise on TV or streaming services.

00:11:25.820 75% of cable TV money goes away.

00:11:29.200 What do you think they're going to do?

00:11:30.420 They're already struggling.

00:11:31.760 How do they make their money?

00:11:32.760 They would have to revamp their entire business model.

00:11:36.760 And that's a massive revamping to be done.

00:11:40.000 So if I were you and you were thinking about investing into a cable TV stock, I'm not giving

00:11:45.280 you any advice.

00:11:46.120 Even though I'm a financial advisor, Series 7, I'm telling you, this is not advice.

00:11:49.640 I'm just telling you.

00:11:50.500 You may want to think twice about it because the game is changing in a very, very major

00:11:56.220 way.

00:11:56.880 Having said that, if you got value out of this video, give it a thumbs up, subscribe to the

00:11:59.920 channel.

00:12:00.380 I got another video I want you to watch on the subscription industry and what it's done,

00:12:05.140 the size of it.

00:12:05.800 If you've never seen it, click here to watch it.

00:12:07.340 Take care, everybody.

00:12:08.040 Bye-bye, bye-bye.

The Death of Cable TV - 3 Reasons Why It’s Still Alive

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