Hollywood must adapt to a landscape where customers are progressively opting to engage with creator-driven entertainment and social platforms over premium content.
This is a principal insight from Deloitte’s 19th annual digital media trends survey, which inquires about consumers’ media and entertainment preferences.
The survey reveals that 56 percent of Generation Z and 43 percent of millennials consider social media material “more relevant than traditional television shows and films,” with around half expressing a greater personal connection to social media creators than to television celebrities or performers.
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“Consider the competition for individuals’ attention and time that currently exists between traditional media and social media,” states China Widener, vice chair of Deloitte LLP and leader of U.S. technology, media, and telecom, in an interview with The Hollywood Reporter. Gen Z allocates, on average, 54 percent more time—approximately 50 minutes daily—to social media platforms, while reducing their engagement with traditional television and media by roughly 43 minutes each day. When considering their time allocation, are they utilizing both sorts of services? Affirmative. However, they are allocating more time to social media sites than to traditional platforms.
The entertainment sector is contending for consumer time and attention, compelling major studios and streaming services to compete with substantial tech platforms populated by producers addressing diverse niches.
The poll revealed that younger customers exhibit greater trust in producers and experience a more intimate connection with them, hence enhancing advertising engagement. Technology platforms equipped with AI recommendation systems are intensifying the consumption cycle, presenting an additional challenge that traditional entertainment enterprises may struggle to compete with.
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“The appeal lies in creator-driven engagement. Our report indicates that a significant portion of respondents, specifically 52 percent of Gen Z and 45 percent of millennials, express a heightened personal connection to social media creators,” Widener states, noting that these consumers identify more closely with creators. The younger demographic, specifically Gen Z and millennials, indicates that advertisements and product reviews seen on social media significantly influence their purchasing decisions. They hold greater belief in them.
Creators are inundating social networks with content daily, which utilize AI-driven algorithms to direct material to customers. Streaming services possess recommendation engines as well; yet, with a somewhat limited content selection, maintaining these users may prove to be challenging.
Widener states, “As AI increasingly permeates various aspects of work and leisure, the utilization of this technology by social platforms to uniquely personalize user experiences is significant, presenting a challenge for both traditional and streaming media to emulate.” “I believe this nuance merits broader acknowledgment.”
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The Deloitte survey investigated the issue of value and discovered that customers universally express growing dissatisfaction with the value offered by subscription streaming services. Nearly fifty percent assert that they overpay for the SVOD services they utilize, while forty-one percent contend that the material does not justify the cost.
Value-oriented alternatives, such as free, ad-supported streaming services (FAST), are gaining popularity, especially among younger demographics.
“There exists a degree of frustration,” states Widener. “As prices escalate, the scrutiny of value intensifies, prompting a shift towards free, ad-supported services. If this frustration is not alleviated in relation to the rising costs, the ongoing challenge will necessitate a reevaluation of business models in the future. Ultimately, if the services and their proprietors cannot navigate these pricing pressures effectively, they will face significant obstacles.”
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