AM/FM Radio Is Overtaking Traditional TV As More Americans Turn To Streaming
Three years ago, Duncan Stewart, Director of Research with Deloitte’s Technology, Media, and Telecommunications Practice, made a surprising forecast. By 2025, he predicted that AM/FM radio audiences would overtake TV among Millennials. Stewart’s prediction occurred four years early.
Among persons 18-34, AM/FM radio now beats TV in average audience and weekly reach
In 2018, TV’s persons 18-34 average audience was +25% bigger than AM/FM radio. Things have changed quickly. According to Nielsen’s Q2 2021 Total Audience Report, AM/FM radio’s persons 18-34 average audience is now +12% greater than television.
AM/FM radio’s weekly persons 18-34 reach of 82% is significantly larger than television’s 57%. Each week, almost half of U.S. persons 18-34 are not reached by live and time-shifted TV. U.S. AM/FM radio reaches +44% more persons 18-34 than live and time-shifted television.
Persons 18-49 TV audiences are down -38% since 2018
Nielsen’s Total Audience Report reveals the weekly reach of live and time-shifted TV has dropped from 82% in 2018 to 66%. Today, one out of three American persons 18–49 never watch linear TV in a typical week.
Persons 18-49 weekly time spent to live and time-shifted TV is down -45% over the last four years. Combined with a -20% loss in reach, Nielsen reports TV’s persons 18-49 average audiences are off by -38%.
AM/FM radio beats TV 85% to 66% in persons 18-49 weekly reach
AM/FM radio’s +29% reach advantage over TV among persons 18-49 means putting AM/FM radio in the media plan supplements campaign reach. AM/FM radio’s daily time spent among persons 18-49 is only half an hour less than TV’s and that gap is narrowing quickly.
In three years, AM/FM radio ratings will overtake TV among persons 18-49
In 2018, AM/FM radio’s 18-49 average audience was 63% of television’s. In Nielsen’s latest Q2 2021 Total Audience Report, AM/FM radio’s 18-49 average audience is now 79% of TV. At this current pace, AM/FM radio’s average audiences will overtake TV in three years.
Cord cutting is a major driver of TV’s audience collapse
The MRI Simmons “How Americans Watch TV” report reveals 46% have cut the cord. Another 11% are “cord tepid,” meaning they have cut back on their cable TV package or are contemplating “cord shaving.” Only 42% of Americans are “cord content.”
Streaming is now “TV”: Half of Americans say streaming has replaced traditional TV
MRI Simmons finds a major shift has occurred in the American mindset about streaming. Once thought as an “add on” to regular TV, streaming is increasingly seen as America’s primary television platform.
From 2018 to 2021, those who use video streaming and say “streaming has replaced traditional TV” has surged from 37% to 49%. The number of Americans who stream that perceive “streaming as an addition to TV rather than a replacement” dropped from 63% in 2018 to 51% in 2021.
While a huge number of Americans have abandoned traditional TV for streaming, AM/FM radio remains the dominant audio platform
According to Edison Research’s Q4 2021 “Share of Ear,” AM/FM radio has a massive 76% share of U.S. ad-supported audio. AM/FM radio audience shares are over 7 times larger than ad-supported Pandora and ad-supported Spotify combined.
Key findings:
- In 2018, TV’s persons 18-34 average audience beat AM/FM radio by +25%. Today, AM/FM radio’s persons 18-34 average audience beats live and time-shifted TV by +11%. AM/FM radio has a significant 18-34 weekly reach advantage over TV (82% to 57%).
- Since 2018, U.S. live and time-shifted television’s persons 18-49 average audience is down -38%, driven by a -20% loss in reach and a -45% erosion in time spent.
- AM/FM radio’s persons 18-49 average audience will overtake live and time-shifted TV in three years. At present, AM/FM radio has a weekly reach advantage of 85% to 66%. AM/FM radio’s persons 18-49 average audience has grown from 63% of TV’s in 2018 to 79% today.
- Linear TV erosion is fueled by cord cutting and streaming. For those who steam, half say it has replaced traditional TV.