Press "Enter" to skip to content

Why Big Networks are About to Collapse


I want to make a prediction today I want
to make a prediction today about
business on why I believe YouTube
Netflix Hulu Amazon is going to put is
going to put the major the four major
networks out of business and I’ll tell
you why based on some numbers on what’s
happening that’s why I believe the four
major networks we’re talking CBS NBC ABC
and I’m missing one Fox I think they all
need to be very very paranoid right now
there’s a good book back in the days was
written at I think Andy Grove wrote this
book it’s called only the paranoid
survive highly recommend it was written
like an 89 or 90 so the stories are kind
of old but it’s good to read it it’s
very important to be paranoid and those
major networks need to be paranoid
here’s why so the first thing I did I
said okay I am no longer watching TV i
watch everything out of a cell phone and
you know this is what i watch stuff out
of i don’t watch TV anymore and if i’m
not watching anything on this i may
watch a movie on Apple TV or Netflix I
get my ESPN highlights on my phone I get
my politics on my phone I read news on
Twitter I get everything on the phone so
I don’t really have a TV need anymore
what for why would I have a TV so I said
I’m really curious this was the first
question as I said I am really curious I
wanted to process this issue how old is
the average TV viewer now every number I
give you I have links on the bottom that
I highly suggest you go click on every
one of those links and see the stats
everything I give you is from the links
on the bottom how does the average TV
viewer today so I pulled up this one
link from Nielsen Nielsen is the one
that gives the ages on how old is the
average person that watches Fox how does
the average person that watches
such-and-such and I thought a study that
showed in 1991 these numbers are
staggering how old would you say the
average TV viewer was in 1991 watching
Fox Fox average age in 1991 watching Fox
you ready
the average age for Fox in 1991 was 29
ABC was 37 NBC was 42 and CBS was 45 and
I see the chart on the picture that’s
been put up so we have Fox 29 ABC
87 ABC 42 CBS 45 this is a 1991 the
average age in 2015 for the same exact
channels you’re about to be shocked
right now for Fox is 49 for ABC it’s 50
for NBC 50 for CBS is 59 years old what
does this mean to you listen TV and I’m
and I’m not saying this with no
unemotional connector to the different
audiences age all of a sudden I’m not
trying to being considered TVs about to
the F TV was a human being their viewers
are about to die in 30 years because in
30 years you’re talking 79 84 84 89 life
expectancy today roughly is between 80
to 85 years old TVs about to die in 80
years
why Stevie’s about to die in eight years
so then I said I’m really curious to
know how much TV people watched
different age categories so I want to
know how much TV
someone in there six how much of you do
boomers watch Millennials Gen X Gen Y
want today Y how much your TV teens
watch look at the numbers you’ll be
blown away by the numbers so teens ages
12 to 17 years old
watch roughly 17 hours of TV per year
now this is a drop of 11 and a half
percent last year meaning last year they
watch more TV roughly 19 hours and four
years ago these same teens were watching
30% more TV four years ago so teens 12
to 17 about 17 hours a week pay
attention to that number age number of
hours millenials ages 25 to 34 watch
roughly 21 hours per week a decline of
24 percent from 2011 Gen Xers watch
roughly 28 and a half hours of TV per
week this is ages 35 to 49 years old so
you kind of be able to relate it for
your own self it’s down 11% from 2011
adults above 50 to 64 years old watch 39
hours and they haven’t really dropped up
they only dropped off two minutes per
week over last year and 2% over 2011 and
boomers ages 65 and up let’s just say
ages 65 enough they’re watching 47 and a
half hours of TV per week
is up 5% over 2011 what does this mean
to you here’s what it means to you if I
was an analyst working for Fox if I was
an analyst working for NBC ABC or CBS
I’ve been looking at the same thing why
are we putting so much money in hopes of
TV doing well when TV viewership is
going down and YouTube is blowing up to
have 31 million people that are watching
what are we doing though we got to get
these numbers in place we got to make
some adjustments and they’re not now
they can’t afford to do that because I
think CBS is owned by Viacom as it cbss
with Viacom and an NBC is owned by a
Comcast and G combine their own NBC and
an obviously em you see they want a
bunch of different things within it so
to them to lose a little bit of money is
not a big deal these guys are not gonna
be concerned about NBC Fox all this
other stuff but it’s NBC Fox CBS and ABC
don’t figure out a way to go compete
with the Netflix the Hulu the YouTube
and the Amazon of the world they’re
about to be crushed
watch just last year two years ago
Amazon went into the movie side to start
competing with Netflix because they
notice we need to compete with Netflix
and Jeff Bezos was brilliant he may be
in his late 40s early 50s but he’s
sitting there saying I need to see
what’s going on next so he’s not a guy
that’s older already you know what forty
five billion dollars saying to himself
oh we’re already good we’re already
hungry but that’s about to happen to the
major networks very quickly let me give
you some interesting stats to be
thinking about again today I’m little
bit strange when it comes onto digi
notes I like strange facts and and you
can call me crazy for that there’s
certain facts that I just really am
curious about let me give you some
interesting facts about what I’m talking
about today cable TV has been on a
decline of viewership every single year
for the last five years now five million
people five million people from 2010 to
2013 cancelled cable TV let me say one
more time five million people from 2010
to 2013 completely canceled TV here’s
some numbers for you
caples gone if you’re watching cable and
most of us on average you know will pay
$60 a month for cable while netflix is
now $7.99 why are we buying cable what
are we not gonna have on cable that we
have on YouTube Netflix what like
yesterday Super Tuesday was taking place
for politics yesterday I missed
everything you know where’s the first
place I want to watch the reruns
hey go watch Donald Trump second you
know a speech that he gave at dingo
watch what Ted Cruz say you should have
seen how much Marco Rubio bache watch
what Bernie watch what Hillary said on
my drive home everything was on YouTube
boom boom boom didn’t see anything
nothing was on TV was all on here
estimate a number of active users in
u.s. 294 million watch TV 200 million on
Facebook active 235 million on Google
YouTube combined together so why cancel
cable cost of cable has gone up
seventy-seven percent since 1996 while
viewership has gone down and
subscribership has gone down since 1996
now here’s another stat about Netflix
that’s just mind-boggling to me 65
percent of Netflix viewers 65 percent
listen 65 percent of Netflix viewers or
between 16 to 24 years old 65 percent
two out of three people that watch
Netflix are between 16 to 24 years old
no wonder Netflix is a great stock tumba
no wonder they’re doing so well they
went after a market that’s developing
they went after a younger market that’s
developing YouTube we roughly want they
roughly get 6 billion hours of video
watch per month on YouTube
81% of Millennials use YouTube 58% of
Gen Xers use YouTube 43% of boomers use
YouTube you notice boomers use more TV
Gen Xers Millennials use more YouTube
and to always pay attention what the
future is gonna happen is always look at
the youngest generation what they’re
doing if you can find out what the
youngest generation is doing they’re
controlling the next 30 years if you’re
paying attention to the oldest
generation that’s a decline that’s
what’s about to happen with that gen
whatever that product is if there’s a
product that they need retirement that
is on an increase but if it’s something
that’s media that’s on a decline and so
Netflix came out with original series
called house of cards
then he saw Hulu coming up with the
original series then he saw Amazon
coming up with original series and I
think YouTube now if you go look at
YouTube just search YouTube a little bit
there’s several links that say YouTube
has a lot of private talks that they
haven’t said publicly yet with Hollywood
on them producing some incredible movies
that they’re gonna launch on YouTube for
you and I to watch I think they just
came out YouTube Redis one $9.99 a month
right YouTube and they’re predicting 3%
of their users are gonna buy YouTube
read at $9.99 a month and you got to see
how that whole revenue generating system
that they have a place YouTube is
planning on revolutionize it because
YouTube is starting to realize it there
is a certain level of paranoia with
YouTube towards Netflix Netflix towards
YouTube so both of our like if we need
that food that I hope they don’t do this
I hope these guys don’t do this I hope
we don’t know about this out there and
they’re both kind of helping each other
because they’re doing the same things
that they’re doing but YouTube just got
a bigger platform right now Netflix just
figured out a way to put tap money into
it but you’re dealing with Google
founders that are that are visionary
founders that they’re gonna figure out a
way to compete with Netflix so then you
continue and you look at these things
and you say okay well Pat what does this
mean let me give me some math here I was
having a conversation on a conference
call yesterday with a handful of people
on mentor on a weekly basis and I said
guys you got to know and study trends on
what’s happening in different
marketplace and myself I’m gonna
Financial Industry insurance industry so
just recently MetLife sold off their
4,000 agents to MassMutual for roughly
400 million dollars
MetLife sold 4,000 agents to MassMutual
for 400 million dollars it’s a hundred
thousand dollars per agent is what
they’re paying for because the life
insurance industry is dying with
distribution they need a lot of
distribution the average agent ages 59
years old and so we’re sitting there
saying that’s the number the average
agents age with our companies 33 years
old and they’re buying a market that may
not be selling for more than five years
they may not be training anymore for
five years was a really wise investment
we’ll see why MassMutual that was it
MassMutual made the right choice or did
MetLife make the right choice and we
were talking about age and I said look
think about it this way here’s something
to be thinking about how many feature
films would you say come out every
weekend how many feature films come out
every week you’re Marty what would you
say every weekend
how many feature movies come every
weekend two to three how about we say
four okay so if we got four features
that come out every weekend
how many features come out per year so
if you got fifty weeks in a year 52
weeks in a year fifty-two times four is
200 let’s just say 200 features that are
coming out per year how many hours is
the average movie two hours two times
200 is how many hours 400 hours
Hollywood produces 400 hours of feature
movies that go into theater every single
year YouTube makes 400 hours of new
content every minute every minute
YouTube produces 400 hours of new
content every single minute while
Hollywood takes one year to make that
and put in the theater what does that
tell you I think there’s a trend there I
think there’s some numbers to be
thinking about there I think is to sit
down and realize when you’re looking at
the media side you know whether you’re
involved in it whether you’re looking at
it and whether you’re starting to
realize that how its communication being
education being communicated to people
how are we seeing how Khan Academy went
from what it was to not Khan Academy
having three billion three million
viewers and all these people that are
studying what is going on with you –
what is going on with Netflix what is
going on with Hulu Amazon it’s just to
know that exactly what happened with
blockbuster exactly what happened to
Circuit City exactly what happened to
Borders and many other companies I have
a feeling it’s about to happen at the
highest highest level with major media
companies and it’s going to open up a
complete new platform to start realizing
that education is being watched through
YouTube education is being watched to
the phones and if we don’t adjust if we
don’t adjust in your own business
because this to me you’re watching
saying so who cares pad I mean why am i
why do I care about something like this
let this be something in your own
business to know that if you don’t make
adjustments in your own business because
sometimes it’s very comfortable to have
a full belly it’s very comfortable to be
satisfied with the kind of money you
have and what kind of status Jelena you
know what you’re doing you’re doing well
now you’re going home at 3 o’clock in
the afternoon
going on one o’clock you’re golfing two
three times a week because you’re
already there and so you’re losing your
edge and then all of a sudden boom
Google comes and Yahoo is not paying
attention
Google’s just a regular guy that Google
becomes what they are Oh
Facebook comes and I no one’s talking on
MySpace
boom Amazon comes and no one’s talking
about you know borders Barnes and Noble
boom
you know iPhone comes and no here CEO
the other days emotional saying I think
we did everything right or blackberry we
did everything right and then look what
happened when Nokia I mean there was a
time everybody what happened with these
smartphones it’s when you don’t pay
attention thinking you are in you are
not gonna get knocked up by another guy
that’s when you get knocked out moral
the story here today keep adapting keep
improving key pre strategizing keep
figuring out a way to get better keep
figuring out a way to make yourself
sharper tighter keep your mind in shape
with information with current
information with things and trends that
are taking place that could potentially
affect your business and look at some
parallels with other industries that you
can use to put into your business that
can help you effectively grow at a
faster pace to have an edge on everybody
else that’s when you get paid to do as
an entrepreneur there’s a reason there’s
a reason there’s a reason a lot of
people go boom
victory collapse boom boom victory
collapse there’s a reason for this is
not supposed to happen to everybody but
this generally happens because right
here you’re thinking you’re in you
normally can touch your untouchable and
then you collapse this is when you got
to figure out a way and not get too
comfortable and figure out ways to
adjust improve adjust improve adjust
improve adjust improve adjust improve
and the next thing you know you’re one
of the big guys in the marketplace then
you have targeted from a bunch of other
people that want to come after you but
at that point you can pick and choose
what things you want to do next because
in reality if I come if you know some of
these MB see if they really want to do
to have a big platform to be able to do
it but they need to write strategies in
place to be able to make the next next
move so for you take the time out every
once in a while sit down and say what
can I learn from other industries that
can you know be a complete educational
thing for me to apply into my business
so with that being said look what do you
think do you really think you know these
major TV networks are gonna be gone
not gonna watch TV anymore do you think
any of these stats have any meaning to
you is there any factual is there any
real valid case that’s being made in
this video today if you do comment on
the bottom what do you agree or not or
disagree I want to hear from you
especially those that are agreeing and
disagreeing what do you think about it
what are your thoughts about it what are
some things that you have that you want
to share that maybe I don’t share in
this video I’m really curious to hear
about you would that being said if you
haven’t subscribed to this channel
please do so and thanks for watching take care
Please follow and like us: