Consumers are merging their media into a tapestry of games, UGC, movies, TV, and social media, Deloitte says.
The way younger generations are consuming media is changing, as evidenced by the rise of user-generated content in games, watching shows on the run, and the popularity of video game adaptations into movies and film, according to Deloitte.
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Deloitte captured those trends in its 17th annual Digital Media Trends survey. It said young people look to user-generated content and games to find value, meaning and personal fulfillment. They use media via a personalized tapestry of immersive, social and vibrant experiences. By taking note of these trends, I think that the bigger companies can come up with their development and acquisition strategies.
The report said that watching TV shows and movies at home is no longer the dominant, “go-to” activity it once was — especially with younger generations that are more evenly dividing their entertainment time across TV shows and movies, user-generated content (UGC) on social media services, and video games. They seek entertainment, connection, immersion and utility. While I’m not in this demographic, I have been listening to audio books on the go and I binge-watch a lot of shows and play games on the treadmill at the gym.The personalized tapestry
I like this idea of a tapestry. Deloitte said that digital media are weaving together. More than half of consumers surveyed — and nearly three- quarters of Gen Zs and Millennials — often watch a TV show or movie on a streaming video service after hearing about it on social media. More than half of younger gamers decided to play a specific video game after watching a certain TV show or movie. About 45% of gamers said they want to play games based on their favorite movies and TV shows.
About 50% of consumers say UGC videos help them to discover new products or services to buy, and around 40% of consumers say they are more likely to purchase a product after they watch a creator they follow review it.
Competition, along with greater price sensitivity, is putting pressure on streaming video services. Overall subscriber churn for paid streaming video-on-demand (SVOD) services over a six-month period is around 40%, averaged across paid services. For Gen Z and millennial respondents, those numbers jump to 57% and 62%, respectively.
The report said that, depending on the size of a given company, the shape of their strategy, and where they play in the media ecosystem, content executives should consider how best— and at which scale—they should be participating across this tapestry. Regardless of where their content originates, how can they optimize and monetize it on all these channels? How can content, fandoms, and digital media come together to build stronger franchises? How can executives develop multi-channel strategies that deliver more social and emotional value that may better engage and retain?Why this matters
Deloitte’s Digital Media Trends, 17th edition, survey [link], revealed that in the U.S., the digital media landscape may no longer be led by the dominance of TV shows and movies, as more people find
additional value in social, interactive, and immersive entertainment.
Consumers are feeling streaming fatigue, juggling multiple subscriptions, and facing pressure to reduce their monthly costs. Rather than existing in silos, younger generations are weaving a more blended and inter-dependent tapestry of entertainment including streaming video, social media, music, and gaming to maximize their digital experiences.
How can media and entertainment (M&E) companies reach people across this inter-connected tapestry of digital media? M&E companies should be looking at how audiences engage with different digital media channels, how they move across them, and which kinds of value they seek in each.
