What they're getting at is that people aren't able to sit down and digest a moderately challenging book. This is due to attention span, the habit of 'scrolling' vs turning a page, etc... Those people can still 'read' and are literate in a sense.

I would say most of us have this situation already but it's much worse when you look more broadly around. People without an interest in books used to read tabloids which for all their faults were still more edifying then what the TikTok or YouTube shorts algorithms are presenting.