Deloitte has released the results of its 15th annual Digital Media Trends Survey.
It reveals how COVID-19 and shifting generational preferences are reshaping the U.S. media and entertainment landscape. How this may impact the future growth of broadcast television and radio makes this essential reading for your organization.
“The next wave of market disruption may lie with Generation Z – who prefer to play video games, stream music and engage on social media, rather than just watch TV or movies,” Deloitte points out.
The report is chock full of key takeaways.
That said, how younger consumers spend their free time engaged in entertainment activities will impact the future of legacy media. But, to what extent?
- For Generation Z, playing video games is their No. 1 favorite entertainment activity (26%), followed by listening to music (14%), browsing the internet (12%), and engaging on social platforms (11%). Only 10% of Generation Z say that watching TV or movies at home is their favorite form of entertainment (which is No. 1 for all other generations).
The key word here is “favorite.” Just because watching TV may not rank No. 1 doesn’t mean Gen Z has diminished or eliminated it. Like Radio, shared time is now a reality for television broadcasters.
The Deloitte report also offers new details on the ceaseless growth in the OTT arena.
- Eighty-two percent of U.S. consumers subscribe to at least one paid streaming video service; the average subscriber has four paid video streaming services.
- Fifty-five percent of respondents now watch a free ad-supported video service.
While this could suggest less time spent with broadcast or cable TV, it could very well be additive, too.
“U.S. consumers have access to multiple free and paid entertainment options that are all competing for their attention and loyalty,” Deloitte notes. “However, all these different options are dividing and fragmenting the market and challenging providers to understand the nuances among segments, generations, and differing kinds of media.”
And, while Gen Z is a hot demographic, think of who has the most disposable income to spend. It’s most likely their grandparents.
“Watching TV and movies at home continues to be the overall favorite entertainment option, with 57% ranking it in their top three (out of 16 entertainment activities),” Deloitte notes, pointing to the continued power of Gen X and Baby Boomer consumers. “However, only 10% of Generation Z say that watching TV or movies at home is their No. 1 favorite form of entertainment.”
To view the entire report, please click here to download a copy in PDF format.