Consumers have more options than ever when it comes to digital media entertainment, but what kind of content are they looking for, how are they finding it, and how are they interacting with it? Each year, Deloitte – a global professional services organization – surveys consumers to answer these questions.
In its latest report, titled “2022 Digital Media Trends, 16th edition: Toward the metaverse”, Deloitte surveyed consumers around the world and found that there is a growing preference for more personalized, interactive and social experiences, especially among the younger generations. Here are the results that highlight this trend.
Consumers are tired of chasing after content
Despite the sizable content budgets of video-on-demand (SVOD) streaming services, consumers are increasingly frustrated with SVOD content discovery and subscription fees. SVOD services often force consumers to juggle multiple subscriptions at increasing costs. But on social media platforms, content discovers the user, providing free passive and interactive experiences with near-endless streams of personalized content that are continually refined.
SVOD services struggle to attract and retain subscribers
SVOD providers face increased pressure to attract and retain subscribers who have become more savvy in finding content and managing their subscription costs. The average churn rate (the rate at which consumers have canceled, or both added and canceled, a service in the past six months) in the United States remains constant at 37% for all paid SVOD services.
In the UK, Germany, Brazil and Japan, the overall average churn rate is closer to 30%. In an effort to compete, consumers may find media companies diversifying their approach, offering ad-supported tiers and packages, or pairing premium content with more immersive experiences.
Growing popularity of user-generated content
Short, user-generated social video feeds are incredibly engaging. Nearly half (46%) of US consumers say they watch more user-generated content online than they did six months ago. Fifty percent (50%) also say they always end up spending more time watching user-generated content online than they originally intended. That figure jumps to 70% among the youngest generation, Gen Z. About four in 10 (41%) US consumers surveyed spend more time watching user-generated video content online than watching TV shows and movies on video streaming services, a sentiment that increases to around 60% among younger generations (Millennials and Gen Z).
Social media usage continues to grow from generation to generation
In the United States, 81% of social media users use social media services daily and 59% use these services several times a day. Across the five countries studied, Gen Z, Millennials and Gen Xers are consistently more likely to report using these services. Additionally, 70% of US respondents say they follow an influencer online, and more than half of US Gen Z and Millennials surveyed say online personalities influence their buying decisions.
Social media platforms also affect consumer consumption habits. Around 53% of respondents in the US and around 40% in the UK, Germany and Japan say they see ads on social media for the products or services they were looking for, a figure that jumps to 72% in Brazil .
Young consumers favor interactive experiences
Younger generations who have grown up with smartphones, social networks and video games prefer more social and interactive entertainment experiences. User-generated social media feeds and social video games may serve their needs better than streaming video.
According to the report, Gen Z respondents prefer playing video games as their favorite entertainment activity in all five countries. In the United States, Gen Z and Gen Y gamers play the most, logging an average of 11 and 13 hours per week, respectively.
To look forward
As streaming video audiences juggle more subscriptions and higher costs to seek entertainment, social media is free and available anywhere, anytime.
Deloitte’s report suggests that to prepare for the next generation of digital entertainment, video streaming companies should think about how people socialize around entertainment. Will younger generations and the generations after them reject entertainment that isn’t social or interactive in some way? Or will the passive and somewhat isolated experience of streaming video still provide a meaningful form of entertainment? Only time will tell.
To learn more about Digital Media Trends 2022, 16th Edition: Towards the Metaverse Survey, visit Digital Media Trends for the full report.
This article is provided by mark point. It is published here with permission.
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