One of the reasons is that young people, especially young men, are

betting on sports matches, and watching live TV contests where

they have “skin in the game.” In some countries, up to one third of

all TV viewing by the youngest viewers is due to this factor.

Let’s Talk Sports and Millennials.Let’s Talk Sports and Millennials.

Not all millennials are watching sports on TV. In fact, they are less

likely to watch TV sports than older viewers in the US. As can be

seen in the chart on right, about 13% of viewers 18-34 watched no

sports in 2014, while the comparable !gure for those over 35 is

about 4%. But if we "ip those numbers on their head, we see a

much more important truth: 87% of American millennials ARE

watching TV sports (and an astonishing 96% of Americans over 35

do so.)1

87%of Americanmillennials arewatching TV sports

96%of Americans over35 do so too

”Millennials arestill watchingabout 3.2 live

Although the average age of sports viewers is rising2, when we look

at reach (as opposed to time spent), the percentage of millennials

who watched the NFL in the 2016/2017 football season actually rose

two percentage points, to 67%. That’s right: two thirds of all

millennials watched the NFL last season.3 Although millennials are

slightly less likely to de!ne themselves as “committed” sports fans

(38% compared to 45% for Gen X) those fans are still watching

You Can Bet on It. Young people are watching less traditionalTV these days, but the sports category is an island of relative

strength.

No Sports, pleasePercentage by Age Group, average over Q4 2013 to Q3 2014

DUNCAN DUNCAN STEWARTSTEWART

Will Young People Continue to Watch TV, Especially TV Sports?DirDireeccttor oor of Rf Reseeseararch,ch, DEL DELOITOITTETE

Men

Women

0 4 8 12 16

18-34

35-54

55+

about 3.2 livegames per

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about 3.2 live games per week.

But what about ratings? According to the same study, NFL ratings for millennials declined 9% in that

season, which certainly sounds troubling. But when put into context, that may not be so bad: total live

and time shifted US TV viewing by 18-24 year olds fell by 11%and 16% year over year in the

quarters that matched the NFL season. And in the four Nordic countries, total TV viewing by roughly similar age groups fell between 25-35% in 2017 compared to 20164. Moving on from American football,

NBA basketball saw ratings rise in the last year. In fact, for the 18-34 year old demographic, viewing was

up 14% year over year5.

Now Let’s Talk About Gambling.Now Let’s Talk About Gambling.

Globally, gambling is an industry of roughly half a trillion dollars. Betting on sports tends to be about 40%

of the total market, or around $200 billion per year. One report estimates sports betting will grow nearly

9% per year between 2018 and 20226. In the UK, sports betting had £14 billion in turnover in 20177. In the

four Nordic countries, legal gambling of all kinds was about 6 billion euros in 20158. One estimate (which

seems high to me) says that US betting (mainly illegal) on professional and college football is $93 billion

annually9. For comparison purposes, 2017 NFL revenues from all sources was about $14 billion in 201710,

which suggests the wagering market is 4-5 times larger than all gate admissions and TV rights combined.

So, gambling on sports is a big deal…but what does this have to do with TV viewing? In 2016 and 2017, I

conducted a series of focus group discussions with 200 millennials in France, Sweden, Denmark, Finland,

Norway, Canada and Ireland, with the majority of the subjects being in France and the Nordic. The focus

groups had both qualitative and quantitative aspects. In our Nordic focus groups, there were several

striking !ndings.

1. 1. Although average rates of millennials gambling at least once per year (this is pure gambling, and does

not include lottery play) were about 34%, there was a strong gender divide,a strong gender divide, with men much more likely

to gamble. On average across all Nordic countries, over half of young men gambled and onlyOn average across all Nordic countries, over half of young men gambled and only

about 10% of women gambled.about 10% of women gambled. See chart below.

2. 2. There were also country di#erences, with higher gambling rates for both men and women inhigher gambling rates for both men and women in

Norway and Finland:Norway and Finland: three out of four Finnish men in our study gambled. This !nding is supported by

other research which shows higher gambling rates (not just for millennials, but for the whole population)

for Finland, with 80% of those 15-75 gambling annually (this !gure does include lotteries)11.

3. 3. From the focus group discussions, the gambling breakdown for Nordic millennial men who gambled was

roughly as follows: about a quarter were annual gamblers, about a quarter were annual gamblers, perhaps playing in Vegas once a year or

equivalent. Another quarter bet once a month or so,Another quarter bet once a month or so, often games such as online poker or playing

cards with friends for real money.

4. 4. But half of them were betting on sports half of them were betting on sports (or 30% of all the males surveyed), and doing soand doing so

weekly,weekly, with about half of those betting daily (or 15% of the total), especially when the sport(s) they

preferred gambling on were being played. Sports mentioned focused on football/soccer (not a surprise), ice

hockey (not a surprise in the Nordics) and US football and basketball (which was a surprise).

5. Key Finding: 5. Key Finding: among those heavier gamblers on sports betting (roughly 15% of the Nordic millennial

men) almost all of them mentioned that they watched all or almost all the games they were almost all of them mentioned that they watched all or almost all the games they were

betting on l ive. betting on l ive. A few said they used online services to follow matches, but the vast majority watched

the games on traditional TV. This viewing could be at home alone, at home with friends, or out of home and

in public places like bars. They also added that they didn’t watch much traditional TV aside from sports.

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”Sports thatpeople bet on

seem muchbetter at

drawing 18-34year old

viewers thansports that

people don’tnormally place

bets on.

Putting it all together: TV, TV sports andPutting it all together: TV, TV sports andgambling.gambling.

Using the observations above, let’s take a look at Finland. If 20% of

millennial men (or 10% of the millennial population of both sexes)

watch seven live matches per week on TV that they have wagered

on, at 2.5 hours per match (high for football/soccer, but low for US

football, basketball or ice hockey) then that would be 17.5 hours per

week, 1050 minutes weekly, or 150 minutes per day. If no one else in

their age group watched any TV at all, the viewing of live sports by

these gambling young men would generate an average of 15

minutes per day for the total millennial population.

This isn’t much, one might argue. Except that the Finnish media

measurement data says that those aged 15-24 watched only 48

minutes of traditional TV daily in 2017 (which is down 54% from the

comparable number in 2006 of 105 minutes.)12 Therefore, if the kind

of back-of-the-napkin assumptions above were true, nearly a third

of all TV viewing by 15-24 year old Finns would be accounted for by

young millennial men who had bet on a game and watched it on TV

to see if they had won or lost!

This all sounds a little theoretical – is there any evidence suggesting

that gambling drives as much TV viewing as suggested above? We

don’t have data for Finland, but if we look at TV sports viewing data

by age and event in Sweden13, we see an interesting trend. Young

people (both genders, ages 18-34) under-indexed watching some TV

sports and were either less under-indexed or even over-indexed on

others. Events like the Olympics, IAAF Championships, tennis,

handball, and others are watched much less by 18-34 year olds than

by the population as a whole. On the other hand, matches like

soccer and NHL ice hockey show much narrower viewing gaps. Not

to put too !ne a point on it, but sports that people bet on seem

much better at drawing 18-34 year old viewers than sports that

people don’t normally place bets on.

GamblingNordics by country and gender

Men Women

All Nordics Denmark Sweden Norway Finland0

25

50

75

100

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”The US TVmarket is theworld’slargest, ataround $250billion peryear

Conclusions and CavConclusions and Caveeats.ats.

1.1. Deloitte will be writing more about this topic, as part of our TMT Predictions 2019 report, for

release on 11 December 2018. As part of that report, we will have more statistically robust

sampling, asking over 10,000 people in ten countries about their habits around gambling

on sports and TV viewing.

2.2. Pending that analysis, it seems likely that some part of traditional TV viewing is

being driven by millennials (mostly men) betting on sports and watching the matches they

have bet on.

3.3. It seems probable that this may make TV viewing more resilient than some critics

expect. Live TV sports viewing motivated by gambling may provide support for overall TV

viewing statistics for younger demographics, either slowing the decline somewhat, or perhaps even providing a "oor.

4.4. This e#ect may signi!cantly vary by country. Although we saw some variation in

gambling habits of millennials within the four Nordic countries, in our French survey we

observed that betting of any kind (let alone betting on sports) was extremely low in the millennial/Gen Y population14. In fact, no French millennial males in the survey said they gambled

weekly. If point three above is correct, we might expect to see millennial TV viewing be less

resilient in countries with less of a gambling culture.

5.5. Although all markets matter, the US TV market is the world’s largest, at around $250

billion per year (for TV broadcasters and distributors). TV sports are a big part of that

market, and although gambling is big in the US, it is largely illegal gambling at present. The

US Congress is currently reviewing the gambling laws15, and any measures that allow American

millennials to gamble more easily or more often could have an e#ect on TV viewing, and likely a

positive e#ect. x

Athletics - IAAF World Athletics Championship

Handball - European Handball Championship

Ice Hockey - NHL

Handball - IHF World Handball Championship

Soccer - La Liga

Winter Sports - FIS Skiing World Championships

Soccer - UEFA Europa League

Ice Hockey - Swedish Hockey League

Soccer - UEFA European Championship

Soccer - English Premier League

Soccer - FIFA Football World Cup

Soccer - UEFA Champions League

Olympics - Summer Olympic Games

Olympics - Winter Olympic Games

SwedenTV Sports Viewing by Age and Event

18-34 years-old

Average

Tennis - French Open

Tennis - US Open

Tennis - Wimbledon

Motor Racing - Formula 1

Soccer - FA Cup

Soccer - Serie A

Athletics - IAAF Diamond League

Athletics - IAAF World Athletics Championship

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6https://www.prnewswire.com/news-releases/sports-betting-market-to-rise-at-nearly-862-cagr-to-2022-669711413.html7https://www.theguardian.com/society/2017/aug/31/uk-gambling-industry-takes-14bn-year-punters

8Benchmarking Report by the Nordic Gambling Supervisory Authorities, 2016, page 12:https://www.arpajaishallinto.!/instancedata/prime_product_julkaisu/intermin/embeds/arpajaishallintowwwstructure/ 56775_Benchmarking_2016_report_Final.pdf?

0fe83d941e9dd4889https://www.forbes.com/sites/darrenheitner/2015/09/09/93-billion-will-be-illegally-wagered-on-n#-and-college-football/#64c511c37881

10https://www.sportsbusinessdaily.com/Journal/Issues/2017/03/06/Leagues-and-Governing-Bodies/NFL-revenue.aspx11Benchmarking Report by the Nordic Gambling Supervisory Authorities, 2016, page 8

12Daily TV Viewing Time by Age, 2005-2017 http://www.nordicom.gu.se/en/statistics-facts/media-statistics13Future of TV Advertising: State of the Union, Ampere Analysis, 2017. No link available.

14https://www2.deloitte.com/fr/fr/pages/technology-media-and-telecommunications/articles/gen-y-the-rise-of-the-individual.html 15http://www.espn.com/chalk/story/_/id/17848529/congressional-committee-reviews-federal-gambling-laws-plans-introduce-new-legislation

!SOURCES

Graph sources: "No Sports, Please" Source: Nielsen; "Gambling" Source: Deloitte study (to be published shortly); 1This article is a little dated, published in 2014. But more recent versions of this kind of analysis don't seem to exist. https://!vethirtyeight.com/features/dear-mona-

are-there-any-other-men-who-dont-watch-sports/ 2https://www.sportsbusinessdaily.com/Journal/Issues/2017/06/05/Research-and-Ratings/Viewership-trends.aspx

3https://www.mckinsey.com/industries/media-and-entertainment/our-insights/we-are-wrong-about-millennial-sports-fans#0 4Daily TV Viewing Time by Age, 2005-2017 http://www.nordicom.gu.se/en/statistics-facts/media-statistics

5https://www.forbes.com/sites/bradadgate/2018/04/25/the-2017-18-season-was-great-for-the-nba/#2b"52742ecb 6https://www.prnewswire.com/news-releases/sports-betting-market-to-rise-at-nearly-862-cagr-to-2022-669711413.html

Copyright RTL AdConnect and RTL Group, July 2018. All rights reserved. No part of this publication may be reproduced in any fashionwhatsoever without the publisher’s prior written permission. While every effort has been made to ensure accuracy of the information in this publication, neither RTL AdConnect nor RTL Group accept responsibility for errors or omissions.