As we navigate the swiftly changing currents of the media landscape, it’s clear that a revolution is underway, one led by a generation unencumbered by the traditional ties of television and radio. In the eye of this storm stands Gen Z, a demographic whose daily rituals are dominated by streaming video (46%) and music (43%), signaling a profound shift in entertainment consumption. This isn’t just a trend; it’s the dawn of a new era, as highlighted in a May 2023 Morning Consult survey.
But what fuels this seismic departure from the norm? The answer lies not just in what Gen Z is turning to, but also in what they are decidedly turning away from: linear TV and AM/FM radio, the once stalwarts of entertainment, now find themselves on the sidelines of Gen Z’s attention. Instead, platforms like YouTube have become the new coliseums of engagement, with an overwhelming 86.6% of US Gen Zers expected to engage with the platform this year. The landscape is evolving, and at the heart of this transformation is a quest for content that resonates on a personal and communal level.
Ariadna Jacob of Influences.com encapsulates this shift succinctly: “This generation craves interactive experiences that offer immediate rewards and a sense of community. Platforms like Netflix, despite their vast content libraries, lack the real-time interaction that social media provides, where viewers can engage directly with content creators through comments, tips, and gifts. This instant feedback loop not only enhances the viewing experience but also taps into the dopamine-driven reward systems in our brains, making social video and live streams far more appealing.” It’s this interactive nature that meets Gen Z’s desire for personalized, engaging content, marking a significant evolution in how entertainment is consumed.
The penchant for multiscreening, as nearly 9 in 10 US Gen Zers admit to consuming TV and internet content simultaneously, further exemplifies the desire for a more enriched, interactive entertainment experience. It’s a testament to the changing paradigms of engagement, where the passive viewing of yesteryears is replaced with a more active, participatory form of consumption.
Deloitte’s exploration into these shifting sands reveals that nearly half of Gen Z (47%) and a third of millennials now prefer watching social video and live streams over traditional TV shows and movies. The allure of these platforms isn’t just in the content itself but in the communal and interactive experiences they foster—qualities that are conspicuously absent in traditional media outlets.
Yet, the drift towards social media and streaming services isn’t solely a matter of preference. Economic considerations play a pivotal role, with 52% of Gen Z respondents and 54% of millennials having canceled a paid streaming service in the last six months, citing cost as a major factor. This financial pragmatism underscores a broader reassessment of value in the digital age, where the cost of content must be justified by its relevance and accessibility.
The challenges facing traditional SVOD (Subscription Video On Demand) providers are manifold. As Deloitte’s analysts suggest, the future success of these platforms may hinge on their ability to adapt to a fragmented landscape of digital entertainment options, where personalization, social integration, and community-building are not just features but necessities.
In this context, the potential for bundling and advertising emerges as viable pathways to reengage audiences. With 67% of respondents expressing interest in a bundle that consolidates their SVOD services, and a significant portion of Gen Z and millennials influenced by social media ads, the message is clear: The future of entertainment will be built on flexibility, interactivity, and direct engagement.
Moreover, the demand for content that reflects the diverse realities of its audience has never been higher. About 66% of consumers, including a majority of Gen Z, millennial, Gen X, and Boomer respondents, express a preference for TV shows and movies that offer insights into cultures different from their own. This craving for diversity extends to social video, perceived by many as offering a broader spectrum of perspectives than traditional media.
As we stand on the brink of this new digital dawn, the implications for content creators and distributors are profound. The ascendancy of platforms that offer real-time interaction, community, and personalization speaks to a fundamental reimagining of what entertainment can and should be. For traditional media, the choice is stark: evolve or risk obsolescence.
In essence, the future of entertainment is being written in the comments sections of social media, in the chat rooms of live streams, and in the ever-expanding universe of digital content. It’s a future that demands not just our attention, but our active participation. For Gen Z, the revolution is already here, and it’s streaming live.
