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Black Consumers and Media Consumption: Incl Impact of COVID-19 - US - May 2020

OVERVIEW
What you need to know
Key issues covered in this Report
Definition
EXECUTIVE SUMMARY 
Market overview
Top takeaways
Impact of COVID-19 on Black consumers’ media consumption
Figure 1: Short-, medium- and longer-term impact of COVID-19 on broadcast and cable/satellite and Black consumers TV, May 2020
Figure 2: Short-, medium- and longer-term impact of COVID-19 on streaming/OTT services and Black consumers, May 2020
Figure 3: Short-, medium- and longer-term impact of COVID-19 on newspapers/magazines and Black consumers, May 2020
The insights
Streaming services battle cable/satellite for Black consumers’ media consumption
Figure 4: Black consumers’ media service subscriptions, December 2019
Black consumers still subscribe to cable, but the numbers are dwindling
Figure 5: Cable and satellite household subscribers, by total and Black, 2015-19
Black consumers prefer to use traditional rather than new devices to consume content
Figure 6: Black consumers’ media consumption, by device, December 2019
Advertising that does not entertain or inform is an unwelcome disruption
Figure 7: Black consumers’ behaviors toward advertising/commercials while consuming media, December 2019
Black consumers’ subscription choices to streaming or cable driven by value
Figure 8: Black consumers’ TV content consumption behavior, by media service subscriptions, December 2019
The opportunities
Integrate relevant messaging within high-quality programming
Figure 9: Black consumers’ path-to-purchase media behavior, by select media, December 2019
Give consumers greater control in creating entertainment content subscriptions
Figure 10: Black consumers’ TV content consumption behavior, December 2019
What it means
THE IMPACT OF COVID-19 ON BLACK CONSUMERS AND MEDIA CONSUMPTION
What you need to know
Figure 11: Short-, medium- and longer-term impact of COVID-19 on broadcast and cable/satellite TV and Black consumers, May 2020
Figure 12: Short-, medium- and longer-term impact of COVID-19 on streaming/OTT services and Black consumers, May 2020
Figure 13: Short-, medium- and longer-term impact of COVID-19 on newspapers/magazines and Black consumers, May 2020
Opportunities and Threats
Sequestered consumers had the time to discover new content on new services
Figure 14: HBO Insecure TV program free premiere on YouTube announcement, April 13, 2020
Black-consumer targeted media outlets can fill an information void using new platforms
Figure 15: BET Saving Ourselves COVID-19 Relief Effort announcement, April 21, 2020
Figure 16: Tweet from media personality/political pundit Tiffany Cross, March 22, 2020
Independent producers may find a wider audience on streaming services
Figure 17: Instagram feed featuring Babyface and Teddy Riley Verzus media battle, April 20, 2020
Impact on the media market
Streamlined and cancelled advertising will further stress Black media
Cable and satellite TV services will see accelerated cancellations
Free content draws new subscribers; content value will determine retention past the short term
Audio services see rise in at-home consumption, may expand audience across all devices post-lockdown
How the crisis will affect Black consumers
Memories of the last long recovery will cause Black consumers to evaluate their entertainment spending
Figure 18: Unemployment, by total and Black workers, January 2007-May 2020
Figure 19: Median household income (inflation adjusted), index to 2007 dollars, by total and Black households, 2007-18
Mature Black consumers will feel the loss of trusted local news
Young Black consumers will be first to shed services
Figure 20: Jalailah Harmon sponsored tweet for Scooby movie promotion, May 20, 2020
How a COVID-19 recession will reshape the media industry
Terrestrial radio will accelerate shift toward syndication
Cable networks will double-down on streaming options
COVID-19: US context
THE MARKET – WHAT YOU NEED TO KNOW
Black households include extended family relationships and more children on average
The broadband digital divide continues to close
Black consumers are cutting the cable cord while streaming service subscriptions rise
THE BLACK POPULATION AT A GLANCE
The total Black population includes 44.3 million people
Figure 21: US population, by race and Hispanic origin, 2019
Half of Black households include one adult
Figure 22: Households, by detailed type, by total and Black, 2019
Black families include more children than all families
Figure 23: Average number of people per household, by race and Hispanic origin, 2019
MARKET FACTORS 
Black household income lags behind the US median
Figure 24: US household median income, by race and Hispanic origin, 2019
At-home access gap to broadband internet is closing
Figure 25: Broadband internet subscriptions, by race and Hispanic origin, 2015-18
Black adults less likely to complete their college degree
Figure 26: Educational attainment, by race and Hispanic origin, 2019
Black college-degreed workers less likely to work from home
Figure 27: Share of workers by race and Hispanic origin who are able to work from home, 2017-18
MARKET PERSPECTIVE
Black cable subscribers are cutting the cord
Figure 28: Cable and satellite household subscribers, by total and Black, 2015-19
Black consumers lag in using streaming services
Figure 29: Video streaming service use, top five streaming services, by Black indexed to all, October 2018-December 2019
Netflix is the clear streaming video winner among Black viewers
Figure 30: Video streamed or downloaded services, 2015-19
Black viewers keep cable for access to culturally related content
Figure 31: Top 10 cable networks, by total and Black indexed to all, October 2018-December 2019
Streaming music tops internet usage
Figure 32: Online activities, media, by total and Black indexed to all, October 2018-December 2019
Newcomer YouTube Music is the favorite among Black listeners
Figure 33: Digital music services used and pay subscriptions, by total and Black, October 2018-December 2019
Black consumers see advertising as informative and entertaining
Figure 34: Attitudes toward media and advertising, by total and Black indexed to all, October 2018-December 2019
KEY TRENDS – WHAT YOU NEED TO KNOW 
Content providers offer free programming to gain and retain viewers
Black media creates wellness space in response to COVID-19
Temporary, yet rising Black unemployment due to the coronavirus pandemic may impact subscriptions
BLACK MEDIA AND COVID-19 RESPONSE
Essence launches wellness content in response to the coronavirus pandemic
Figure 35: Essence Wellness House, April 1, 2020
Cable networks air town-hall specials to address COVID-19 impact on Black Americans
WHAT TO WATCH
Access to free/low-cost content may lead to cable cancellations
Entertainment spending among the top choices to eliminate in an economic downturn
Figure 36: Extra money in household spending and eliminated household spending areas from loss of income, October 2019
THE CONSUMER – WHAT YOU NEED TO KNOW 
Streaming services have taken over cable subscriptions
Black consumers prefer anytime viewing on traditional devices
Streaming and cable subscribers are mostly happy with their subscriptions
TV time equals downtime for some, social time for others
Black consumers expect high-quality content across all platforms
Messaging makes the difference in making advertising effective
MEDIA SERVICE SUBSCRIPTIONS
Streaming services are primary source of content
Figure 37: Media service subscriptions, by total and Black indexed to all, December 2019
Young women subscribe to the most services
Figure 38: Media service subscriptions, by gender and age, December 2019
Middle-income households subscribe to streaming and cable at similar rates
Figure 39: Media service subscriptions, by household income, December 2019
Streaming services offer greater choice for parents and their kids
Figure 40: Media service subscriptions, by parental status and kids’ age groups, December 2019
CONTENT CONSUMPTION PREFERENCES
Media platform source varies, but consumption still accessed on traditional devices
Figure 41: Media consumption, by device, December 2019
Lifestage determines TV program device usage
Figure 42: Media consumption – television, by device, by key demographics, December 2019
Lifestyles and routines determine radio listenership
Figure 43: Media consumption – radio, by device, by key demographics, December 2019
Newspaper access is primarily via print, but online is gaining traction
Figure 44: Media consumption – newspapers, by device, by key demographics, December 2019
Magazine format and content drive device use
Figure 45: Media consumption – magazines, by device, by various demographics, December 2019
Podcasts are perfect for on-the-go listening
Figure 46: Media consumption – podcasts, by device, by key demographics, December 2019
ATTITUDES TOWARD TV, VIDEO AND AUDIO SERVICES
Value in streaming and cable services lies within content
Figure 47: Attitudes toward TV services, December 2019
Streaming and cable subscribers find value in their respective preferred platforms
Figure 48: Attitudes toward TV, video and audio services, by media service subscriptions, December 2019
Young viewers happiest with bundled streaming services
Figure 49: Attitudes toward TV services, by age, December 2019
Parents find content for everyone in the home with streaming and cable
Figure 50: Attitudes toward TV services, by parental status, December 2019
TV CONTENT CONSUMPTION BEHAVIOR
Anytime and appointment TV is important to Black viewers
Figure 51: TV content consumption behavior, December 2019
Streaming subscribers more likely to be social in person and online
Figure 52: TV content consumption behavior, by media service subscriptions, December 2019
Content engagement drives viewership; social media and advertising a minor diversion
Figure 53: TV content consumption behavior, by age, December 2019
Parents of young kids stream content alone for downtime
Figure 54: TV content consumption behavior, by parental status and kids’ age group, December 2019
ATTITUDES TOWARD MEDIA CONTENT
Better content on streaming platforms change viewership
In their own words
Figure 55: Attitudes toward media content, December 2019
Everyone loves TV 2.0, especially video streamers
Figure 56: Attitudes toward media content, by media service subscriptions, December 2019
Mature Black consumers least likely to pay attention to advertising
Figure 57: Attitudes toward media content, by age, December 2019
PATH-TO-PURCHASE MEDIA BEHAVIOR
Television grabs attention, personalized and engaging ads drive familiarity
Figure 58: Path-to-purchase media behavior, December 2019
Young Black adults show greater consumer reaction across more media
Figure 59: Path-to-purchase media behavior, by age group, December 2019
Black parents open to information more likely to react to advertising
Figure 60: Path-to-purchase media behavior, by parental status, December 2019
APPENDIX – DATA SOURCES AND ABBREVIATIONS
Data sources
Consumer survey data
Consumer qualitative research
Abbreviations and terms
Abbreviations
APPENDIX – THE CONSUMER 
Figure 61: Cable and satellite household subscribers, by total and Black, 2015-19
Figure 62: Video streaming service use, top five streaming services, by total and Black, October 2018-December 2019
Figure 63: Video streamed or downloaded services, 2015-19
Figure 64: Top 10 cable networks, by total and Black, October 2018-December 2019
Figure 65: Online activities, media, by total and Black, October 2018-December 2019
Figure 66: Digital music services used and pay subscriptions, by total and Black, October 2018-December 2019
Figure 67: Attitudes toward media and advertising, by total and Black, October 2018-December 2019

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