Tech, Media & Telecom

2025 Digital Media

Trends: Social
platforms are
becoming a
dominant force in
media and
entertainment
While studios and streaming providers are busy
competing with each other, tougher competition is
coming from social video platforms that are hyperscale
and hyper-capitalized
ARTICLE • 14- • 25 • Deloitte Center for
MIN MARCH Technology, Media &
READ 2025 Telecommunications
People still want the TV and movie experience offered by traditional studios, but
social platforms are becoming competitive for their entertainment time—and even
more competitive for the business models that studios have relied on. Social video
platforms offer a seemingly endless variety of free content, algorithmically
optimized for engagement and advertising. They wield advanced ad tech and AI to
match advertisers with global audiences, now drawing over half of US ad
 1
spending. As the largest among them move into the living room, will they be held
to higher standards of quality?

At the same time, the streaming on-demand video (SVOD) revolution has
fragmented pay TV audiences, imposed higher costs on studios now operating
direct-to-consumer services, and delivered thinner margins for their efforts. It can
be a tougher business, yet the premium video experience offered by streamers often
sets the bar for quality storytelling, acting, and world-building. How can studios
control costs, attract advertisers, and compete for attention? Are there stronger
points of collaboration that can benefit both streamers looking to reach global
audiences and social platforms that lack high-quality franchises?
This year’s Digital Media Trends lends data to the argument that video
entertainment has been disrupted by social platforms, creators, user-generated
content (UGC), and advanced modeling for content recommendations and
advertising. Such platforms may be establishing the new center of gravity for media
and entertainment, drawing more of the time people spend on entertainment and
the money that brands spend to reach them.

Our survey of US consumers reveals that media and entertainment companies—

including advertisers—are competing for an average of six hours of daily media
and entertainment time per person (figure 1). And this number doesn’t seem to be
2
growing. Not only is it unlikely that any one form of media will command all six
hours, but each user likely has a different mix of SVOD, UGC, social, gaming,
music, podcasts, and potentially other forms of digital media that make up these
entertainment hours.
Looking across generations, preferences among respondents appear to be shifting
away from pay TV and toward streaming video services, social video platforms,
and gaming. Although TV once dominated video entertainment time, we now see
US audiences—and especially younger generations—engaging more evenly with
SVOD companies, social platforms, gaming, and even audio entertainment like
music and podcasts. And they are using different devices to consume media (figure
2).
This can further fragment the landscape of entertainment and make it more
challenging for services and brands to reach audiences, and for providers to gather
more people onto their services. With growing production and marketing costs,
traditional studios and streamers are responding with more bundles and
aggregations seeking to bring together disparate audiences, offer them lower prices
3
for multiple services, and sell access to advertisers.

Media and entertainment companies may also be competing for a fixed amount of
entertainment spending. We do not see those surveyed spending more money on
subscriptions, and many report fatigue with having to manage multiple
subscriptions to get the content they want, and frustrations with rising subscription
prices. The median household annual income in the United States is about
US$80,000 and is only now rebounding from COVID-19 pandemic declines that
4 5
began in 2020. At the same time, consumer prices have climbed for most goods.
In Deloitte’s January 2025 ConsumerSignals survey, about half of US households
say they have no money left over at the end of the month after meeting their
6
expenses. This can shift the household calculus to prioritize spending on essentials
over discretionary entertainment. Twenty years ago, many households may have
considered pay TV an essential cost. Since then, the number of digital
entertainment options has grown significantly, but the amount of time and money
available for it have not. This has enabled greater consumer choice, more
competition, and more fragmentation.

Pay TV: Making money but losing audiences

7
Cable and satellite television remain significant players in media and
entertainment, though subscriptions continue to decline. We found that 49% of
consumers surveyed currently have a cable or satellite TV subscription, down from
8
63% three years ago. The primary reasons subscribers report paying for these
services are to watch live news (43%) and sports (41%). However, the market
continues to fall, likely because SVOD services now offer more live sports options,
and social media provides free sports clips and news recaps.

Older generations are more likely to maintain cable or satellite TV subscriptions,

but 23% of Generation Z and 18% of millennial cable subscribers intend to
terminate their subscriptions within the next 12 months, compared to only 8% of
boomers.

Cost is likely a factor for these younger subscribers looking to cancel: Subscribers
report spending an average of $125 per month on their cable or satellite TV
subscriptions, which is significantly higher than the $69 on average subscribers
report spending for four paid streaming services combined, according to our
Digital Media Trends data. Subscribers also feel frustration with the number, and
9
quality, of ads they’re required to watch at this higher price point.

Live-streaming TV services offer an alternative, are slightly more popular with

younger generations surveyed, and live-streaming TV subscribers in our survey
report spending 35% less monthly on average for these services than cable or
satellite subscriptions, but their growth has stagnated at around 40% of
10
households for the past two years. A likely challenge is that these services tend to
cost more than ad-free SVOD services, with pricing that seems to target existing
pay TV subscribers accustomed to such costs, rather than younger generations
11
gravitating to much cheaper— or free—media alternatives.
Although cable and satellite subscriptions are falling, and live-streaming TV
subscriptions appear stagnant, some in younger generations still show interest in
live programming: Forty-three percent of Gen Z and millennials surveyed indicate a
willingness to pay more for streaming video subscriptions that include access to live
sports, although their engagement with live content remains to be seen. When
asked about the types of content they spend the most time watching on SVOD,
27% of consumers said live sports, and just 8% said live events like music concerts.
This may be due to a lack of options for those categories on SVOD, along with the
ability to watch this content in other places: a third of Gen Z respondents say they
don’t subscribe to an SVOD service to watch sports because they watch the clips
and highlights on social media.

One challenge is that traditional studios still draw considerable revenues from their
12
pay TV businesses. As they bring advertising to their streaming services, they may
be hoping to migrate those pay TV ad revenues along with their audiences.
However, global ad revenues for TV, including streaming video, are expected to see
slow growth of around 2.4% in coming years, significantly less than overall
13
advertising.

Streaming video services: balancing value and

frustrations
A similar tension seems to exist with streaming video services, which have
subscription costs that may outweigh their perceived value. Fifty-three percent of
consumers surveyed say their SVOD subscriptions are the paid media and
entertainment services they use most frequently. However, 41% percent of
consumers overall say the content available on SVOD isn’t worth the price, up five
14
percentage points from our 2024 report. At the same time, roughly half (47%) of
consumers say they pay too much for the streaming services they use, suggesting
there is an imbalance between cost and perceived value. Indeed, while the average
number of paid SVOD services has remained the same, at four per subscribing
household, the overall cost subscribers surveyed say they pay has gone up 13% in
the past year, from an average of $61 per month to $69. Gen Z and millennials,
with an average of 5 paid SVOD services, have seen a 20% increase (figure 3).
Currently, the average price for a premium, ad-free SVOD service subscription is
15
around $16 per month, though the leading services can be significantly higher.
However, according to Digital Media Trends data, consumers surveyed say that
$14 is “just the right price” to pay for an ad-free subscription to their favorite
SVOD service, with $25 being deemed too expensive (figure 4).

Keeping in mind that not all SVOD services on the market have the same pricing
16
power, the current average SVOD price is inching toward a critical price
threshold, beyond which subscribers may be unwilling to pay. Respondents say
that a price hike of $5 would make the majority (60%) of them likely to cancel
their favorite SVOD service. Even their favorite services may be getting too
expensive for the value, though it seems that so far, a few leading services have
been able to raise prices significantly without losing subscribers. This can put more
pressure on smaller services with less pricing power.

These rising service costs and widespread price sensitivities may be contributing to
persistent—and high—SVOD churn rates among consumers. According to the
survey, 39% of consumers say they have cancelled at least one paid SVOD service
in the last six months (the measurement for churn)—a number that has remained
17
relatively stable for the past several years. However, these churn numbers jump to
above 50% for both Gen Zs and millennials who are also more likely to be strong
social media users and gamers. Churn and return—or the percentage of consumers
who have cancelled a service only to renew that same service in the past six months
—also remains stable at 24%.

Service cancellations are problematic for streaming video on-demand companies

that have been dependent on subscription revenues to support their costs, especially
given the costs of acquiring—and possibly re-acquiring—subscribers. Some are
bundling with other service providers to add value and lower subscriber costs,
including creative bundles that tie SVOD services to less discretionary household
18
spending. Many of the top streaming video providers are also launching ad-
supported subscriptions, shifting their businesses more towards advertisers looking
to reach large audiences. However, this may be leading them into more challenging
territory.

Can studios compete for ad dollars?

Studios are not only competing for attention time—those six hours per day—and
for subscription fees, but they’re also increasingly competing for advertising
dollars. To curb outright cancellations, cast a wider net of subscribers, and generate
revenues, some major SVOD services have introduced ad-supported tiers. These
tiers offer cheaper subscription prices, but in exchange, users must watch
advertisements. More than half of SVOD subscribers (54%) surveyed say that at
least one of the services they pay for is ad-supported, a number that’s increased by
19
eight percentage points since our 2024 report (figure 5). The average monthly
 20
cost for the ad-supported tiers currently on the market sits at around US$9,
which is on par with the price respondents say is just right to pay (US$10) in
exchange for watching eight minutes of ads per hour.

Additionally, we found that more than two-thirds of younger generations subscribe

to a free ad-supported TV service—streaming video services that are free to watch
and fully subsidized by advertising. We also found that most respondents believe
there is too much repetition of ads on streaming video services and cable.

Studios may hope they can migrate pay TV ad dollars to their streaming services,
and that cheaper ad-supported tiers will make it easier to acquire and retain
subscribers. However, the advertising landscape—and ad tech especially—is more
mature outside of pay TV, and most digital ad dollars are now going to social
21
platforms.

Once again, the technological advantage that social platforms have built becomes
apparent. Gen Zs (63%), followed by millennials (49%), are much more likely to
say that ads or product reviews on social media are most influential to their
purchasing decisions. Ads on streaming video services are a distant second (28%
and 25%, respectively) (figure 6). Additionally, 54% of these younger generations
surveyed say that social media ads are more relevant to them than those on
streaming video services or cable TV.

Leading social platforms are optimized for advertising, leveraging the same engines
they use to deliver more relevant content to users, buoyed by accelerating spending
on artificial intelligence. We found that a majority of Gen Zs and millennials
surveyed say they get better recommendations for TV shows and movies from
social media than from streaming video services. Social platforms can also make it
22
easy for advertisers to buy ads and target specific cohorts with clear results. While
traditional studios have spent heavily on streaming distribution and premium
content, social platforms have been investing in data-driven personalization for
23
both content creators and advertisers.
The changing faces of video entertainment
Given these trends, it may be unsurprising that 56% of Gen Zs and 43% of
millennials surveyed report that social media content is more relevant to them than
traditional content like TV shows and movies (figure 7). Gen Zs lead the trend:
These respondents spend 54% more time—or about 50 minutes more—than the
average consumer per day on social platforms and watching UGC; and 26% less
time—or about 44 minutes less per day—than the average person watching TV and
movies.

A draw toward social video platforms is the creators themselves. A majority of

those in the younger generations we surveyed say creators’ videos are their favorite
types of videos on social media. But perhaps more salient: Roughly 50% of Gen Zs
and millennials surveyed say they feel a stronger personal connection to social
media creators than they do with TV personalities or actors. Fans of creators often
form parasocial relationships, which ups their investment and keeps them
24
scrolling. For younger generations especially, trending social videos are often like
the new hit TV shows and creators are the new reality stars..
This highlights another competitive twist. Top studios are spending more than ever
25
to produce content for their services. Yet video content is increasingly being
produced by independent creators and consumed on social platforms. Creators
work for themselves, the platforms have options of how to incentivize them, and
audiences get the content for free from algorithms designed for attention and
engagement. Social platforms are extending generative AI tools to help creators run
their businesses, create content, target audiences and advertisers, and match with
26
brand sponsors. Creators offer more credibility and authenticity to brands and
advertisers who may be trying to reach the millions who follow an influencer or the
27
thousands who follow a trusted niche creator.

Despite (and sometimes because of) their success, some creators have made the leap
to network television or major streaming video platforms—where they can secure
lucrative and stable contracts, get more exposure, and grow their audiences. This
approach is met with mixed reviews: Some consumers surveyed say they’d be more
willing to watch TV shows or movies starring their favorite creators (29% of
consumers overall), while others say that creators lose the authenticity they had on
social media when they’re featured on TV shows (30% of consumers overall)
(figure 8).
It’s worth noting, too, that this cross-medium success can work in both directions.
That is, consumers surveyed say they often follow reality stars or athletes on social
media after seeing them on a reality show or playing in a game—a behavior that is
common for around 40% of both Gen Zs and millennials. In the same way that
creators are amplifying their fame in TV and movies, more traditional celebrities
are establishing themselves as brands, and amassing followings, on social media.

These last points suggest a deeper cultural shift: The definition and value of
“celebrity” seem to be changing. Younger generations are spending more time on
social platforms engaging with independent content creators who may seem more
familiar and authentic, and spending less time with traditional celebrities who may
seem distant, mainstream, and inauthentic.

Some studios may need to get bigger to

survive
The costs of producing and distributing TV and films continue to go up, while the
28
revenue they generate has gone down. The majority of advertising now goes to
social platforms and hyperscale competitors—a handful of global, trillion-dollar
companies with multiple lines of business and the most advanced AI capabilities
29
available. Meanwhile, more studios are separating their pay TV businesses for
potential divestiture, and focusing on their “core” business: intellectual property
30
(IP) and streaming. Yet, the content and ad engines on most streaming video
services are not yet mature, nor do they have the scale of data and expertise that
has been acquired by social platforms. Accordingly, more studios are now working
31
to advance their ad tech capabilities. And, some studios are beginning to
distribute their programming on top of social video platforms. This could benefit
32
both parties. Studios can learn from social platforms about content creativity and
advertising capabilities, while platforms can benefit from the premium storytelling
that is the strength of studios.

Yet, they’re all vying for a share of those six hours of daily entertainment time.
This sharpens the new competitive landscape: Traditional studios face new
competitors that are much larger than nearly all traditional TV and film studios
33
combined. Leading social video platforms measure their global audiences and the
 34
hours of video viewed each day in the billions. And they dominate global
35
advertising. If studios haven’t yet embraced this new reality, they face an
imperative to change: Engagement with these platforms is eroding time spent on
36
streaming TV and movies.

Some traditional studios have been squeezing everything they can from their pay
TV ad revenues, carefully migrating IP to their streaming services, spending on
content to compete with other studios, and trying to get audiences and advertisers
to make the journey with them. Bundles, especially with more essential and fixed
37
services, and reaggregation of audiences to sell to advertisers might help. Some
are building ad platforms that combine multiple streamers into one addressable ad
market, hoping to make it easier and more cost-effective for advertisers to reach
38
their audiences.

Good TV can be touching and engrossing. Good cinema can be deeply impactful
and moving. There is still value and demand for premium video content, but the
economics likely need to be reset. Production costs are high and production times
long. Fewer shows and films get produced and far fewer become big enough to
39
cover their costs. This can make creativity risky: The safety of known successes is
often preferred.

At the same time, many households are under financial pressure. Adding another
paid subscription is not trivial. It likely either needs to deliver real ongoing value to
justify the cost or the cost needs to come down. The former path requires more
spending on content, and the latter more spending on advertising solutions. At a
time when studios are looking to cut costs, facing the competition with social video
is likely going to require significantly more spending.

Studios should consider the following.

• Advertising technology and AI are moving to the center of content economics.

Studios should invest in ad tech to deliver more affordable and effective

impressions and conversions. Strategic partnerships may be better needed to
unlock these capabilities.
 • Studios should gather larger audiences, potentially through mergers and

acquisitions or clever aggregation, finding world-class ad tech partners to help

them compete in the new ad landscape.

• Adopt technology quickly. Look to virtual production and AI to enable

cheaper and faster production; generative AI for dubbing and translation to cross
language barriers; and software and AI capabilities that can automate more
operational functions, like contracts, script evaluation, and finding film locations.
Much of this may require modernizing operations and finance.

• Social platforms are the nexus of discovery, awareness, and hype for film and

TV: Fifty-six percent of younger generations surveyed watch TV shows or movies

on SVOD after hearing about them from creators online, and 53% say they get
better recommendations on what to watch from social media. Marketing efforts
should start and end on leading social platforms.

40
• The fear that short form doesn’t work for premium IP may be mislaid. Get
creative and publish to social platforms. Social video can help lift TV and
41
movies.

• Social content creators can be the strongest advocates—or opponents—of

studio creativity, talent, and storytelling. They can help you engage audiences
and communicate with them with greater authenticity. And they may be keys to
42
unlocking virality and shaping culture.

It may be that only hyperscale and diversified media companies can compete in the
new landscape. Strong studio streamers—only a handful—are global, data-
powered, and AI-enabled and may operate multiple other lines of profitable
businesses. Should smaller studios downsize and sell content to the winners?
Should they entice influencers and produce more content for social platforms? Or
come together to form more competitive and capitalized alliances? At the
minimum, studios will likely need to aggregate larger addressable audiences and
secure much better ad tech.

The deeper challenge may be about mindsets. Traditional studios and streamers still
seem organized around the same concepts and business models of TV and film that
shaped entertainment for many decades. But costs and risk have narrowed cinema
to very expensive and safe franchises, and if studios asked kids and teenagers what
they think about the future of TV, they might answer, “What’s TV?”

Methodology
These insights are based on an online survey of 3,595 US consumers that was conducted in
October 2024. Throughout this report, we reference generations. Our generational
definitions are as follows: Generation Z (1997-2010), millennial (1983–1996), Generation X
(1966–1982), boomers (1947-1965), and matures (1946 and prior). The survey was fielded by
an independent research firm, and all data is weighted back to the most recent Census to
give a representative view of US consumers.

BY China Widener Jana Arbanas

United States United States

Doug Van Dyke Chris Arkenberg

United States United States

Bree Matheson Brooke Auxier

United States United States
Endnotes

1. Yorman Wurmser, “Social media and streaming apps drive rapid growth in
video ads,” eMarketer, April 2, 2024.

View in Article

2. Deloitte’s analysis of Digital Media Trends data from 2024 to 2025.

View in Article

3. Paul Lee, Eliza Pearce, Rupert Darbyshire, and Kevin Westcott,

“Reevaluating direct-to-consumer: The shift towards video aggregators,”
Deloitte Insights, Nov. 19, 2024; Newscast Studio, “Super aggregation and
skinny bundles: Customer retention and acquisition in the age of cord
cutting,” press release, Sept. 9, 2024.

View in Article

4. Gloria Guzman and Melissa Kollar, “Income in the United States: 2023,”
United States Census Bureau, Sept. 10, 2024.

View in Article

5. US Bureau of Labor Statistics, “Consumer price index: 2024 in review,” Jan.

24, 2025.

View in Article

6. Financial well-being data from Deloitte Insights’ ConsumerSignals.

View in Article

7. Cable and satellite television services deliver programming through set-top

hardware vs. live streaming television services that deliver live programming
through an internet connection.

View in Article

8. Kevin Westcott, Jana Arbanas, Chris Arkenberg, Brooke Auxier, Jeff Loucks,
and Kevin Downs, “2022 Digital media trends, 16th edition: Toward the
metaverse,” Deloitte Insights, March 28, 2022.
 View in Article

9. Kevin Westcott, Jeff Loucks, Kevin Downs, and Jeanette Watson, “Digital
media trends, 13th edition: Piecing it together,” Deloitte Insights, March 19,
2019; Sayantani Mazumder, Hanish Patel, and Brooke Auxier, “Memorable
vs. annoying: How consumers experience ads on digital platforms,” Deloitte
Insights, Nov. 4, 2021.

View in Article

10. Deloitte Insights, “2024 Digital Media Trends,” March 20, 2024.

View in Article

11. Ed Bott, “Is your live TV streaming service still worth it? I review options for
every budget,” ZDNET, Feb. 28, 2025.

View in Article

12. Georg Szalai, “Streaming to overtake pay TV subscription revenue in the U.S.
this year,” The Hollywood Reporter, Feb. 26, 2024.

View in Article

13. Kate Scott-Dawkins and Nidhi Shah, 2024 global end-of-year forecast,
Groupm, accessed March 2025..

View in Article

14. Deloitte Insights, “2024 Digital Media Trends.”

View in Article

15. Based on Deloitte analysis of the top 12 SVOD services on the market. This
average includes only those services that currently (as of February 2025) offer
both an ad-free and ad-supported tier to consumers. If a service had multiple
ad-free or ad-supported tiers, the lowest priced option was used in the
calculation.

View in Article
16. In the fall of 2022, Deloitte surveyed 2,328 US consumers (ages 18 to 65)
who reported being the sole decision maker, or a strong influence in decision-
making, around the SVOD service subscriptions in their household.
Respondents were asked questions about the services they subscribe to and
their content preferences and participated in a survey method where they
selected their preferred streaming video service profiles, based on varying
attributes (a conjoint analysis).

View in Article

17. Churn figures for individual services are significantly lower than this
aggregate number, but Deloitte reports churn as the percentage of consumers
who have canceled any SVOD service in the last six-month period (rather
than an average across services).

View in Article

18. Bruce Gil, “Even a grocery store is offering free streaming perks now,”
Quartz, Oct. 8, 2024.

View in Article

19. Deloitte Insights, “2024 Digital Media Trends.”

View in Article

20. Based on Deloitte analysis of the top 12 SVOD services on the market. This
average includes only those services that currently (as of February 2025) offer
both an ad-free and ad-supported tier to consumers. If a service had multiple
ad-free or ad-supported tiers, the lowest-priced option was used in the
calculation.

View in Article

21. Scott-Dawkins and Shah, “2024 global end-of-year forecast.”

View in Article

22. Mazumder, Patel, and Auxier, “Memorable vs. annoying”; Spotify, “An
interview with Eric Seufert about the current state of digital advertising,”
podcast, Oct. 10, 2024.

View in Article
23. Based on recent earnings announcements from leading providers.

View in Article

24. Aubree Smith, “Influencer relationships (with consumers & brands) are
evolving—what does that mean for marketers?” Sprout Social, April 29,
2024; Anna Iovine, “What are parasocial relationships?” Mashable, May 16,
2024.

View in Article

25. Todd Spangler, “Six biggest companies to spend record $126 billion on
content in 2024, up 9% led by Disney,” Variety, Oct. 29, 2024.

View in Article

26. Andrew Hutchinson, “YouTube adds more AI assistance tools for creators,”
SocialMediaToday, June 4, 2024; Meta, “Meta’s AI products just got smarter
and more useful,” Sept. 25, 2024.

View in Article

27. Brooke Auxier and Dennis Ortiz, “The future of shoppable media can build
on the success of social shopping,” Deloitte Insights, Sept. 11, 2023.

View in Article

28. Lucas Shaw, “Film and TV profits have collapsed over the last decade,”
Bloomberg, June 26, 2023.

View in Article

29. Meaghan Yuen, “US marketers favor social media and TV for ad spend,”
eMarketer, July 26, 2023; What awaits advertisers in 2025: More inventory,
lower CPMs, eMarketer, Dec. 11, 2024.

View in Article

30. Benjamin Mullin and Lauren Hirsch, “Media moguls set the stage for deal
mania,” The New York Times, Dec. 13, 2024.

View in Article
31. Keith Valory, “The streaming struggle is real for all parties: Can Adtech save
TV?” Forbes, Oct. 16, 2024; Jennifer Maas, “AMC Networks launches
‘AMCN Outcomes’ to measure actions consumers take in response to ads,”
Variety, Feb. 4, 2025; Peter Adams, Netflix’s next phase of advertising
growth hinges on in-house ad tech, Marketing Dive, Jan. 22, 2025.

View in Article

32. Todd Spangler, “Warner Bros. releases 31 full-length movies on its YouTube
channels, streaming for free,” Variety, Feb. 6, 2025.

View in Article

33. Deloitte analysis of market caps for leading traditional studios, social
platforms, and hyperscale service providers that also compete in media.

View in Article

34. Nielsen, “TV viewing trends in the U.S.,” January 2025.

View in Article

35. Interactive Advertising Bureau, “Digital video ad spend growing nearly 80%
faster than media overall, according to IAB video ad spend and strategy
report,” press release, April 25, 2024.

View in Article

36. Andrew Wallenstein, “How short-form video can help, not hurt,
Hollywood,” Variety, Jan. 29, 2025; Kevin Westcott, Jana Arbanas, Jeff
Loucks, and Bree Matheson, “Social media and creators drive viewers to TV
shows movies, and games,” Deloitte Insights, March 20, 2024.

View in Article

37. Paul Lee, Eliza Pearce, Rupert Darbyshire, and Kevin Westcott,
“Reevaluating direct-to-consumer: The shift towards video aggregators,”
Deloitte Insights, Nov. 19, 2024.

View in Article

38. Lillian Rizzo, “Comcast to launch Universal Ads in bid to win smaller
advertisers over from tech,” CNBC, Jan. 6, 2025.
 View in Article

39. Winston Cho, “Why Los Angeles is becoming a production graveyard,” The
Hollywood Reporter, Oct. 23, 2024; Doug Shapiro, “Power laws in culture,”
Medium, March 16, 2023.

View in Article

40. Henry Chandonnet, “From Quibi’s ashes, new short-form streamers are
thriving,” Fast Company, Nov. 11, 2024.

View in Article

41. Wallenstein, “How short-form video can help, not hurt, Hollywood.”

View in Article

42. Westcott, Arbanas, Loucks, and Matheson, “Social media and creators drive
viewers to TV shows movies, and games”; Deloitte, “The creator economy in
3D,” accessed March 2025; LCH Global Ventures, “The cultural impact of
viral trends in entertainment,” blog, Nov. 28, 2024.

View in Article

Acknowledgments

The authors would like to thank Akash Rawat, for his significant contributions
to the data analysis, insights development, and writing for this report, along
with Gautham Dutt for his design and visualization support. Many thanks also
go to Andy Bayiates and Molly Piersol for their editorial and design
contributions. The authors also extend appreciation to Danny Ledger, JD
Tengberg, Stacy Hodgins, Leah Richardson, Chris Hirahatake, Noor Chawla, Rohith
Nandagiri, Wenny Katzenstein, and Marc Weiner for their contributions to the co-
creation and review of the questionnaire. Lastly, they would like to give sincere
thanks to Kevin Downs, Amy Booth, and Alison Zink for their support and
guidance throughout the process.

Cover image by: Alexis Werbeck

Continue the conversation
Jana Arbanas
Principal | Deloitte Risk & Financial Advisory

Doug Van Dyke

Vice Chair and US Telecom, Media & Entertainment Sector leader | Deloitte

China Widener
Vice Chair and US Technology, Media and Telecommunications Industry leader,
Deloitte

Kevin Westcott
Vice Chairman | US Tech, Media & Telecom leader

Jeff Loucks
Executive director, Deloitte’s Center for Technology, Media & Telecommunications |
Deloitte Services LP
An introduction to Deloitte’s
2024 Digital Media Trends
As streaming, social, and gaming converge,
companies should consider comprehensive
strategies to define media and entertainment's
future—or they could risk living in someone
else’s vision.

ARTICLE 7 MINUTE READ

This year’s Digital Media Trends report points to continued disruption for media and entertainment—not
just from streaming, social, and gaming, but also from the ways these media and their technologies are
weaving together and enabling new combinations. From so much change and disruption, however, the new
landscape is becoming clear—and it may demand that providers move beyond their core businesses. To
drive discovery, engagement, and monetization of their intellectual property and services, media, and
entertainment (M&E) companies may need holistic strategies that operate across TV and film, social media
and user-generated content, and interactive and immersive gaming.

In 2024, our study shows that the map of M&E appears exponentially larger than it did just a decade ago,
and the lands are no longer divided by clear borders. Consumer expectations of media and entertainment
may now be shaped more by social media, content creators, and video games than by TV and films. How
people weigh the value of entertainment options appears to be changing shape as well.

Our survey data shows that US consumers are questioning the value of streaming media while also
declaring their unwillingness to ever pay for social media. Just as streaming video providers are rebuilding
the ad models that buoyed pay TV, fewer people surveyed are moved by commercial advertising and,
instead, seek recommendations from trusted creators and influencers to help them navigate and find value.
More are turning to online multiplayer video games for virtual friendship, content discovery, and brand and
franchise interactions.

Although technology has enabled much of the change we see, it’s the needs, behaviors, and expectations of
younger generations that are demanding the change. Millennials and Gen Zs (and the Alphas that follow
them) show both how diverse America has become, and how people increasingly live and socialize beyond
physical geography, tugging at an early metaverse. Together, those Americans 41 years and younger
represent more than half the population of the United States.1 They’re the collective faces of a growing
diversity in ethnicity, race, gender identity, sexual orientation, and neurodiversity. Our study shows how
people expect media and entertainment to reflect this reality, and how some key demographics—like
women gamers—remain underserved and underutilized by providers.

1
Despite so much change and disruption, M&E companies can leverage tools and talent to their advantage.
Social media creators and influencers can be tour guides and tastemakers, facilitating discovery, hype, and
trust. Fans and fan communities can offer stalwart companionship to artists, personalities, stories, and
franchises, helping to make it easier for studios and providers to expand their intellectual property and
cross into new media. Many people spend idle time in a handful of social media services that have
aggregated billions of users. On social media, people discover new and old content, gather
recommendations for what to watch and listen to and buy, and get caught in the updrafts of hype and
virality. For all M&E providers, social media should be a primary destination to reach and engage
audiences. It should be considered instrumental to customer acquisition and retention.

Technologies are there to help, ready to do more heavy lifting than ever. Data, algorithms, and artificial
intelligence can help enable providers and creators to develop more compelling content and experiences and
match them to the best audiences, fans, and tastemakers. Our study shows that US consumers want the
kinds of personalization and customization of content experiences that they have come to expect from
social media services. When they discover content and products, whether on streaming, social, or games,
they want to be able to easily and immediately make purchases and add to libraries. And more want to
follow their favorite stories across TV shows, movies, and video games.

Generative AI could drive additional change on all these fronts, while potentially unlocking entirely new
tools and experiences. It’s already empowering content creators and disrupting industry
standards.2 Although 70% of our respondents say they would rather watch a TV show or movie written by
a human than one written by generative AI, 42% feel that generative AI and humans can each deliver
entertaining content. And 22% feel that generative AI could even write TV shows and movies that are more
interesting than humans. Gen Zs and millennials are leading the way in experimenting with these tools:
Eighteen percent of these generations have used generative AI to create images, and 25% surveyed have
used it to create text. Older generations are further behind on these counts.

2
Although the size of the metaverse is difficult to realize and the technology of blockchain has been difficult
to scale, generative AI appears to be expanding quickly. Savvy creators and studios should consider
experimenting with how these tools can augment human creativity and enable teams to be more productive.
Generative AI could make it easier for companies and creators to improve the quality of content creation
but it could also lead to a flood of cheap and novel content that further dissolves the boundaries between
“real” and synthetic, commodity and premium. Empowered by generative AI, media and entertainment
companies—and society at large—may be about to confront a much larger volume of novelty, content, and
creative output.

Amid the disruption that has characterized the first quarter of the 21st century, there appears to be growing
demand from audiences, subscribers, and gamers for more focused and intentional change to older business
models. It’s unclear if investors agree with catching up or would rather continue “squeezing the lemon” for
the last drops of revenue from 20th century business models. Nevertheless, the assumptions and strategic
bets based on an evolution of earlier business models are running into the reality of a much broader and
deeper revolution in digital media. Companies leveraging traditional business models within their own
historic definitions may face insurmountable challenges in the new environment of connected and
interdependent digital media. They should be thinking more about the world ahead than the one they’re
being forced to leave behind.

In this year’s Digital Media Trends, we dig deeper into the details of how people use and value digital
media, offering M&E companies more data and insights to gain a deeper understanding of consumers and
how their interests, attitudes, and identities have changed. With this understanding, media and
entertainment companies will likely be better positioned to build profitable businesses and operate with
confidence in a landscape that keeps shifting.

Study highlights:
Streaming video services still suffer from high costs, high churn, and competition from many quarters.
Streaming providers are now rebuilding the business models that buoyed pay TV: advertising, bundles,
and contracts. But can these models work well enough in the modern media landscape that seems to give
less attention to advertising and more to creators, influencers, and communities?

Learn more

In the United States, around 60% of our respondents identify as gamers, almost equally between men
and women. Yet, women gamers continue to face challenges with harassment, bullying, and stereotypes
in games and game communities. At a time when more live service games and multiplayer experiences
are driving investments (and costs), many women prefer solo mobile games and story-driven adventures.
For gaming to continue growing, the gaming industry should consider ways to serve women gamers
better.

Learn more

Online creators and influencers are media stars, tastemakers, and tour guides, directing their fans to
products, brands, experiences, and media content. Traditional media companies may need to develop
symbiosis with creators and platforms, while acknowledging the tension inherent in competition for
viewers and ad dollars.

Learn more

For many people, being a fan is core to their identity. Whether it’s video games, TV and movie
franchises, musical acts, or sports teams, fans are willing to spend and follow their favorites across
entertainment platforms. Identifying fan-worthy franchises early on, fostering fandom, and providing
more ways for customers to engage (and spend) could be essential for M&E companies looking for more
revenue and loyalty.

Learn more

Generation Z and millennials (and Generation Alpha that follow them) are the most diverse generations
in American history—in terms of ethnicity, race, gender identity, sexual orientation, and neurodiversity.
3
 They want media and entertainment that reflects the world they see, and the lives they live.

Learn more

Methodology
These insights are based on an online survey of 3,517 US consumers that was conducted in October 2023. Throughout this
report, we reference generations. Our generational definitions are as follows: Generation Z (1997-2009), millennial (1983-1996),
Generation X (1966-1982), boomers (1947-1965), and matures (1946 and prior). The survey was fielded by an independent
research firm and all data is weighted back to the most recent Census to give a representative view of US consumers.

Continue the conversation

Meet the industry leader

Kevin Westcott Jana Arbanas

Vice chairperson | Deloitte US Deloitte US Telecommunications, Media
Technology, Media & & Entertainment sector leader | Deloitte
Telecommunications leader | Deloitte & Touche LLP
LLP

Jeff Loucks
Executive director | Deloitte Center for
Technology, Media &
Telecommunications | Deloitte Services
LP

By Jana Arbanas Kevin Westcott

United States United States

Jeff Loucks Chris Arkenberg

United States United States

Brooke Auxier Bree Matheson

United States United States

Endnotes

1. William H. Frey, “Now, more than half of Americans are millennials or younger,” The Brookings
Institution, July 30, 2020.

2. Chris Arkenberg, “Generative AI is already disrupting media and entertainment,” Deloitte Insights, June
29, 2023; Chris Arkenberg, “Will generative AI challenge authenticity in social media?,” Deloitte Center
for Technology, Media and Telecommunications, accessed February 2024.

4
Acknowledgements
The authors would like to thank Akash Rawat for his work in analyzing survey data and highlighting insights, as well as his
contributions to shaping the direction of the overall study. They would also like to thank Sathiya S. and Ankit Dhameja for
their contributions to survey development and secondary research support, and Gautham Dutt for his design and
visualization support. The authors would like to recognize Andy Bayiates and Molly Piersol for their partnership, along
with their editorial and design contributions. The authors also want to sincerely thank Kevin Downs and Amy Booth for
their support and guidance throughout the process.

Data science and survey advisory by: David Levin

Cover art by: Manya Kuzemchenko

5
Streaming video at a crossroads:
Redesign yesterday’s models or
reinvent for tomorrow?
With 36% of Americans surveyed believing
content on SVOD isn’t worth the money,
providers shouldn’t assume that advertising,
bundles, and contracts are enough to help their
business.

ARTICLE 7 MINUTE READ

In the past few years, leading TV and movie companies have responded to the disruption of streaming video
by launching their own streaming services. To attract subscribers, they invested more in content for their
services—and sold it to subscribers for less than what they charged consumers for pay TV and theatrical
releases.1 This strategy, combined with minimal friction for consumers to cancel streaming subscriptions,
has led to underperforming services.2 Now, in hopes of making their streaming video on demand (SVOD)
services profitable, they’re trying to rebuild pay TV business models like advertising, contracts, and
bundling. But is this path enough to meet the larger changes in media and entertainment that have toppled
the dominance of TV and movies?

For SVOD providers, acquiring customers, reducing SVOD churn, and deepening retention on their services
are still some of the most important challenges. Costs of acquiring subscribers are high, and the costs of
reacquiring subscribers that have already churned can be even higher.3 In the competitive and fragmented
environment of modern media, delivering engaging TV and films may not be enough to meet these
challenges.

This year’s Digital Media Trends study further underlines how the once-distinct categories of media and
entertainment continue to converge and interconnect, while audiences are becoming more fragmented and
specialized. The value that consumers expect from digital media and entertainment is being increasingly
shaped by their experiences with social media and gaming. This is a generational shift, as shown by our
study. However, given that the eldest millennials are headed into their forties in 2024, it’s no longer merely
“younger generations” who are giving their time equally to TV and movies, social media and user-generated
content, and immersive and social gaming.

It’s in this broader environment that SVOD providers should consider competing for attention and
engagement—and working hard to better monetize their intellectual property. How should their services
evolve to reinforce content discovery and unlock monetization opportunities? How should SVOD providers
use social media, gaming, and fandoms to help drive acquisition and retention for their services? If they
focus too much on rebuilding the past of pay TV, SVOD providers may miss out on the opportunity to
reimagine the streaming video experience and define a more compelling and enduring tomorrow.

6
US consumers may be reaching their limits on SVOD price
hikes
This year’s Digital Media Trends shows that US households are spending more on streaming video
subscriptions, but they may be reaching their limits. On average, US subscribing households spend US$61
per month on four SVOD services. Additionally, 68% of consumers surveyed pay for either a TV
subscription or live streaming TV to not only access content not available on streaming video, but also
streamline billing for both broadband and TV and access SVOD through their pay TV service. For many US
households, it may be getting more expensive to watch TV and films at home.

Cheaper, ad-supported tiers may offer some relief for SVOD subscribers: Around 46% of households
subscribe to at least one ad-supported tier of a paid service as part of their lineup, and 57% use a free, ad-
supported service. The overall percentage of respondents who have cancelled any paid SVOD service in the
past six months has softened a bit, to 40% from 44% last year. This suggests that tiering and even bundling
may be helping with retention, though churn remains considerably higher for younger generations—around
53% for Gen Zs and millennials surveyed, who also subscribe to and pay for more services. Over half of US
consumers say they would agree to a year-long SVOD subscription if it offered a discounted rate.

However, SVOD providers may still need to work hard to show their value: Thirty-six percent of consumers
across generations surveyed say that the content available on streaming video services isn’t worth the price.
This suggests that subscription price hikes may be approaching their peak: Forty-eight percent say they
would cancel their favorite paid SVOD service if monthly prices went up by US$5. For US consumers
surveyed, price is still the dominant factor in how they value a paid SVOD subscription.

7
Is commercial advertising the right bet for SVOD
providers?
To help enable more affordable subscription tiers, SVOD providers are working to unlock advertising
revenues. There’s a bit of a gambit here: Cheaper, ad-supported tiers can lower subscription revenues while
putting more weight on ad revenues, which, in turn, requires streamers to show more value to advertisers.
This may put them in competition for ad budgets that advertisers increasingly spend on more targeted
social media campaigns.4 Providers may hope that migrating audiences from pay TV onto ad-supported
streaming services could rebuild the historic profitability of pay TV. This hope, however, may be based more
on past successes than on modern media and entertainment behaviors.

People aren’t being moved by the kinds of commercial advertising typical to TV and streaming video,
especially younger generations: Eighteen percent of those surveyed under 41 years old say ads on SVOD
services influence their purchasing decisions, compared to 54% who say ads on social media influence their
purchasing decision the most. Part of this is that ads on streaming services tend to be repetitive and not
relevant to specific viewers.5 Younger generations are also savvier to persuasion and are more inclined to
trust creators and influencers on social media than brand advertisements. Based on how they allocate their
ad dollars, advertisers and agencies seem to understand this reality—but do SVOD providers?

In their hopes to retain subscribers with lower prices, SVOD providers are taking on a new kind of
customer: advertisers. Will SVOD providers be able to show enough value to advertisers? Maybe. But they
may need to build stronger relationships with agencies and better ways to measure impressions and
conversions. They will likely have to invest more in modeling and matching algorithms. Still, many SVOD
providers don’t have the audience size to drive the same economics for advertisers that pay TV has.6

People expect customization and personalization

SVOD providers may want to rebuild pay TV, but do consumers? US consumers may be willing to endure
more ads and be corralled into bundles, but they may not be willing to give up the degree of customization
they gained from unbundling pay TV, or the personalization they enjoy from social media.7

8
This highlights the competitive challenges that streamers face from social video services whose very DNA is
data-driven and algorithmic. Social media users—billions of us, it should be noted—can select the accounts
they follow à la carte, and these selections inform the algorithms that recommend related accounts and
content. SVOD providers have been challenged to show similar capabilities. Deloitte’s study found that a
full 60% of Gen Zs surveyed prefer watching user-generated content videos because they don’t have to
spend time searching for what to watch, and 54% of Gen Zs and millennials believe they get better
recommendations for TV shows and movies to watch from social media than from streaming video services.

It’s a reminder that those surveyed under 41 years old prefer social media videos to any other form of video
content, and why so many ad dollars flow to social media. With the arrival of generative AI content
creation tools in social media services, the volume of competitive content—and its quality—could rise
dramatically.8 It should also be a reminder to SVOD providers and TV and film studios that engineering
discovery and buzz for their offerings requires more than just targeted recommendations on their services.
To reach the masses, many of whom may spend more of their entertainment time on social media services,
SVOD providers should also have a strong social media strategy. This may be critical to customer
acquisition and retention of existing subscribers.

Disruption of media and entertainment is the new normal

This data may be sobering to SVOD providers, but it can offer a path forward, albeit a costly one. People
want more choice over what they see, better content recommendations from services, and innovations in
advertising. Almost 50% of respondents say they would spend more time on streaming video services if it
was easier to find content, and around 75% of Gen Zs and millennials would like a bundle that lets them
search for content across all their streaming video services. Forty-two percent of consumers surveyed would
be willing to watch ads on SVOD if they were more personalized to their interests. Nearly 40% of those
surveyed under 41 years old would like the ability to click on the advertisements they watch on SVOD to
get more info about a product and have the option to purchase it directly.9 Recent advances in generative
AI for visual recognition could make it easier for audiences to quickly identify goods on the screen, but so
far, this opportunity is being captured by mobile devices, not SVOD providers.10

This points to yet another likely revolution ahead for digital and streaming TV: getting the right content
and products in front of the right eyes, with an interface that makes it simple to quickly identify and
purchase embedded content and products. Streaming providers—and all media and entertainment
companies—could learn from social media and content creators.

9
The biggest challenge for SVOD providers and studios may be philosophical: They no longer address a
mass culture, but rather a fragmented landscape of competing digital entertainment options. Trying to
rebuild pay TV business models around streaming services could help reduce SVOD churn and slow
attrition in the near term, but the long game for success will likely involve reinventing the medium to be
more personalized, more shoppable, and more social. Providers will also likely need to widen their scope
beyond TV and films to reach modern audiences and make their intellectual property work across social
and video games. The industry has had 20 years to understand the size and shape of the streaming
disruption. Now they should come together to work to build something truly contemporary.

Key takeaways
People will likely balance costs and content with ad-supported tiers, contracts, and more bundles, but
these may be short-term solutions to preserving profitability. Social media and unbundling pay TV have
trained consumers to expect more customized and personalized content and advertising. These are levers
to build greater consumer engagement and value. For example, around half of consumers surveyed
would spend more time on SVOD services if content discovery was easier.

SVOD providers should see social media as a model for delivering engaging content to users and
enduring value to advertisers. SVOD providers should also see social media as the nexus of discovery
and buzz to drive support for their own content offerings.

The TV and film industry should consider that going direct-to-consumer with SVOD services demands
more than just repackaging the pay TV experience. SVOD providers now operate in a very different
world, and how consumers value media and entertainment has evolved.

Methodology
These insights are based on an online survey of 3,517 US consumers that was conducted in October 2023. Throughout this
report, we reference generations. Our generational definitions are as follows: Generation Z (1997-2009), millennial (1983-1996),
Generation X (1966-1982), boomers (1947-1965), and matures (1946 and prior). The survey was fielded by an independent
research firm and all data is weighted back to the most recent Census to give a representative view of US consumers.

By Kevin Westcott Jana Arbanas

United States United States

Chris Arkenberg Jeff Loucks

United States United States

10
 Endnotes

1. Jana Arbanas, Jeff Loucks, and Chris Arkenberg, Can SVOD survive the future of media?, Deloitte,
2023.

2. Doug Shapiro, “One clear casualty of the streaming wars: Profit,” Medium, October 28, 2020.

3. Chris Arkenberg, Paul Lee, et al, “As the world churns: The streaming wars go global,” Deloitte,
December 1, 2021.

4. Beth Kindig, “Ad spending growth to accelerate in 2024,” Forbes, December 27, 2023.

5. Kevin Westcott, Jana Arbanas, Chris Arkenberg, Brooke Auxier, Jeff Loucks, and Kevin Downs, “2023
Digital media trends: Immersed and connected,” Deloitte Insights, April 14, 2023.

6. Parker Herren, “Why advertisers aren’t moving to streaming TV as quickly as viewers,” Ad Age, August
31, 2023.

7. Arbanas, Loucks, and Arkenberg, Can SVOD survive the future of media?.

8. Chris Arkenberg, “Will generative AI challenge authenticity in social media?,” Deloitte Insights,
October, 2023.

9. Brooke Auxier and Dennis Ortiz, “The future of shoppable media can build on the success of social
shopping,” Deloitte Insights, September 2023.

10. Jared Newman, “Google has some new AI search tricks,” Fast Company, January 17, 2024.

Acknowledgements
The authors would like to thank Akash Rawat for his work in analyzing survey data and highlighting insights, as well as his
contributions to shaping the direction of the overall study. They would also like to thank Sathiya S. and Ankit Dhameja for
their contributions to survey development and secondary research support, and Gautham Dutt for his design and
visualization support. The authors would like to recognize Andy Bayiates and Molly Piersol for their partnership, along
with their editorial and design contributions. The authors also want to sincerely thank Kevin Downs and Amy Booth for
their support and guidance throughout the process.

Data science and survey advisory by: David Levin

Cover image by: Manya Kuzemchenko

11
For women playing video games,
it’s (still) a man’s world
Is the video game industry leaving half the
population underserved?

ARTICLE 8 MINUTE READ

There are just as many women playing video games as men and boys. In this year’s Digital Media Trends
study, approximately 60% of Americans surveyed, across genders, spend an average of nine hours per week
playing video games. However, there are distinct gender differences that may be fragmenting gamers and
limiting growth of key segments, like live service games (online multiplayer games).1

Despite the popularity of gaming, women still seem to be looking for their place in the video game
community. Online games have been conducive to bullying and there is still a perception that game
experiences and imagery skew toward the interests of men.2 This appears to be impacting how and where
women spend their gaming time.

Our survey finds that while nearly half of gamers who are men say they spend most of their gaming time
playing one or two live service games, just 29% of women gamers do so.3 Indeed, half of women gamers
surveyed are not interested in multiplayer games, and 69% prefer simple mobile games. With so much
emphasis on brand and franchise opportunities in live service games, and so much money being spent to
develop game experiences, are providers leaving half the population out?4 We also see that 25% of surveyed
women gamers and 16% of men gamers (one in five U.S. gamers overall) started playing video games in the
past four years—after a supposed pandemic bump. How can game companies work to ensure these gamers
keep playing? For the more casual gamers (who our survey indicates are more likely to be women), how can
companies draw them to engage with big, story-driven games and live service games?

The video game industry has become very successful but is also under pressure to control the growing costs
of developing blockbuster titles and operating live service games.5 Cost cutting may help but game
companies also seek more players that are paying for games, digital goods, and game experiences.
Cultivating more women gamers may help but to do so, game companies should contemplate how they can
create an environment that attracts more women to boost engagement and revenues.6

12
Cultivating a more welcoming environment in live service
games
One way that could bring more women into live service games is by addressing issues of bullying and
harassment. Although almost half of both men and women gamers surveyed believe online multiplayer
games have too much bullying and harassment, they may be impacted by it differently. About 30% of
surveyed men who play games consider bullying to be part of the experience, but only 19% of women
gamers surveyed feel this way.

Game companies could help by driving stronger moderation of player chatter and better socialization of
norms. Among gamers surveyed, 57% of women and 53% of men agree that video game publishers should
do more to combat bullying and harassment in their games. Many live services have tools to monitor and
moderate text and audio chat, but the integration of generative artificial intelligence could make it more
powerful, adaptive, and nuanced. Early research suggests that large language models may be more capable
of identifying actor intentions, moderating toxic comments, and rewarding positive contributions.7 To be
clear, this isn’t about making games less competitive but, rather, helping to ensure more positive experiences
for more people.

13
Producing more non-gaming experiences held in live service games, like larger-than-life concerts and
promotional events, could be another way to attract more women into live service games. So far, women
gamers overall are not as engaged with these live, social, and non-gaming entertainment elements of
gaming: Among surveyed gamers, only 26% of women would like more non-gaming experiences inside of
their favorite online games, compared to 40% of men. This may not be surprising given that more women
surveyed prefer solo games over multiplayer. Is this a marketing challenge for live service games to attract
more women, or a broader challenge to the industry to reset the perception that gaming is an experience
oriented toward men?8

Game companies that are running live service games should also consider bringing in more brands and
franchises that lean toward women’s interests, and they should work to empower the women creating
online games-related content, like livestreams and videos. The growth of gaming over the past decade has
gone together with the rise of social live streaming services and streamers, but women creators are facing
challenges in growing their profiles.9 Game companies should work to not only promote women creators
and facilitate more brand partnerships with them, but to also support them against potential backlash. In
this way, game companies could leverage creators and brands to help further normalize women in gaming
and encourage game experiences to become as diverse as the generations that enjoy them. [Read article
Audiences are becoming increasingly diverse, and they expect content that reflects the world around them]

Solo, story-driven adventures have the broadest appeal

Another approach may be in reinforcing investment in the kinds of games that already have broader appeal.
About half of gamers surveyed, (both men and women,) prefer playing solo, story-driven games. Such
games are typically not solely based on combat and have increasingly featured strong women characters,
and development of some of the biggest recent titles have been led by women.10 There is still work to do. A
2023 analysis of 13,000 video game characters showed that these fictional men speak twice as much as the
fictional women.11

And yet, bringing more gender diversity into solo story-driven games may be helping: Among women who
started gaming in the past two years, 43% surveyed prefer solo adventures in rich story-driven games. Such
games could attract more women to gaming. Delivering these games to next generation mobile devices
could also help. While these games can be very expensive to develop and market (“AAA” titles can cost
over US$200 million12), they may be poised to reach larger audiences, including TV and film executives.13
14
Our data shows that gamers may be especially drawn to crossovers: Forty percent of gamers surveyed wish
more of their favorite movies/TV shows had video game experiences, 41% wish more of their favorite video
games had movie/TV show adaptations, and nearly half of Generation Z and millennial gamers want to see
more celebrity actors featured in video games. In 2023, the top-selling video game was a story-driven
adventure based on a popular film franchise.14 Crossovers can create more novel experiences for fans, bring
video fans into gaming and vice versa, and create more monetization opportunities by bringing gaming and
video companies closer together. However, our study shows that there is more interest in crossovers among
men, which could further indicate that this demographic is more engaged with gaming and game-related
content as part of the broader media landscape.

The largest game companies not only deliver experiences to massive global audiences, but they can also play
a role in shaping culture through the immersive stories and social experiences they deliver. More game
companies should consider playing a stronger role in supporting and empowering women: as gamers,
streamers, employees, and innovators. Gaming companies in general should also be working to reinforce
school programs that encourage more girls to pursue careers as game developers and producers, enabling
them to further diversify their workforce.15 Cultivating greater goodwill with women could go a long way
in engendering trust and creating a more welcoming environment within the industry.16

In 2024, gaming is big and there are just as many women playing video games as men, showing how much
progress there has been. But they still tend to occupy different worlds. At the same time, the costs of
developing and operating games are larger than ever.17 Engaging and supporting more women in gaming
could drive greater revenues and innovation across the industry.

Key takeaways:
In the United States, just as many women play video games as men, but they tend to play in different
gaming categories, fragmenting the opportunities for monetization and expansion. In general, men that
game are more engaged with, and better represented by, the games industry. This could be a missed
opportunity.

Live service games are dominated by men. How can services bring more women in? With better
moderation in live service social games, more representation of women from studios and brands, more
support for women game streamers, and more non-gaming live events that reach broader demographics.

To expand gaming audiences—and expand intellectual property—studios should also continue to deliver
rich, story-driven solo adventures that have more universal appeal. Unlike with mobile games and live
service games, women gamers are just as likely to engage with these games as male gamers. Although
these games can be very expensive to produce, developers and publishers may be able to recoup more
costs if more women are playing.

Methodology
These insights are based on an online survey of 3,517 US consumers that was conducted in October 2023. Throughout this
report, we reference generations. Our generational definitions are as follows: Generation Z (1997-2009), millennial (1983-1996),
Generation X (1966-1982), boomers (1947-1965), and matures (1946 and prior). The survey was fielded by an independent
research firm and all data is weighted back to the most recent Census to give a representative view of US consumers.

15
 Continue the conversation
Meet the industry leader

Kevin Westcott Jana Arbanas

Vice chairperson | Deloitte US Deloitte US Telecommunications, Media
Technology, Media & & Entertainment sector leader | Deloitte
Telecommunications leader | Deloitte & Touche LLP
LLP

Jeff Loucks
Executive director | Deloitte Center for
Technology, Media &
Telecommunications | Deloitte Services
LP

By Jana Arbanas Kevin Westcott

United States United States

Chris Arkenberg Jeff Loucks

United States United States

16
 Endnotes

1. Our survey asked respondents about the gender identity they most closely align with. Only respondents
who identify as “women” or “men” are analyzed in this chapter. Those who identified as nonbinary,
transgender, agender, or another gender category were not included in the analysis due to a low sample
size.

2. Andrew Fishman, “Women in gaming: A difficult intersection,” Psychology Today, January 8, 2022;
Daria J. Kuss, Anne Marie Kristensen, A. Jess Williams, and Olatz Lopez-Fernandez, “To be or not to be
a female gamer: A qualitative exploration of female gamer identity,” International Journal of
Environmental Research and Public Health 19, no. 3 (2022): p. 1169.

3. To determine the percentage of “gamers” we asked, “During a typical week, approximately how many
hours do you spend playing video games of any kind across all devices?” Anyone answering between “2
hours or less per week” and “more than 30 hours per week” versus “I don’t ever play video games,”
qualified as a “gamer.”

4. Jeffrey Rousseau, “95% of studios are working on or aim to release a live service game,”
GamesIndustry.biz, February 2, 2024.

5. Matthew Ball, “The tremendous yet troubled state of gaming in 2024,” MatthewBall.co, January 23,
2024.

6. Tomoko Yokoi, “Female gamers are on the rise: Can the gaming industry catch up?,” Forbes, March 4,
2021; Vickie Chen, “Leveling up the gaming gender gap,” Forbes, August 24, 2023.

7. Henrik Axelsen, Johannes Rude Jensen, Sebastian Axelsen, Valdemar Licht, and Omri Ross, Can AI
moderate online communities?, ArXiv.org, 2023.

8. Alyssa Mercante, “Dear video game industry, please name a woman,” Kotaku, November 14, 2023.

9. Katie Mather, “Pokimane speaks out about the double standards female streamers deal with,” In The
Know, June 27, 2023.

10. Alexandria Dale, “15 of the best video games made by women, for women,” Glamour, February 11,
2022.

11. University of Glasgow, “Largest study of video games reveals men say twice as much as women,” May
24, 2023.

12. Amelia Zollner, “Major publishers report AAA franchises can cost over a billion to make,” IGN, May 1,
2023.

13. Chris Arkenberg, Jeff Loucks, Kevin Westcott, and Hanish Patel, “Cinematic and interactive universes:
Games and studios come together to bring the biggest stories to life,” Deloitte Center for Technology,
Media & Communications, accessed February 2024.

17
14. Eddie Makuch, “The 20 best-selling games of 2023 in the US,” GameSpot, January 19, 2024.

15. Patricia Karounus, “5 women share how they made your favorite video games,” Refinery29, March 23,
2023.

16. Cristina Criddle, “How long before gaming sheds sexist attitudes?,” Financial Times, October 17, 2023.

17. MatthewBall.co, “The tremendous yet troubled state of gaming in 2024.”

Acknowledgements
The authors would like to thank Akash Rawat for his work in analyzing survey data and highlighting insights, as well as his
contributions to shaping the direction of the overall study. They would also like to thank Sathiya S. and Ankit Dhameja for
their contributions to survey development and secondary research support, and Gautham Dutt for his design and
visualization support. The authors would like to recognize Andy Bayiates and Molly Piersol for their partnership, along
with their editorial and design contributions. The authors also want to sincerely thank Kevin Downs and Amy Booth for
their support and guidance throughout the process.

Data science and survey advisory by: David Levin

Cover image by: Manya Kuzemchenko

18
Social media and creators drive
viewers to TV shows, movies,
and games
More people turn to social media to discover
what’s new and exciting. Media companies
should look to creators to help drive
engagement with their own offerings.

ARTICLE 6 MINUTE READ

Media providers and social media platforms cling to an uneasy alliance. With abundant digital
entertainment options, social platforms now directly compete for consumer attention, further straining this
relationship. Deloitte’s 2023 edition of Digital Media Trends showed that Generation Zs and millennials are
leaning into social, user-generated video content because it’s free and convenient and they can endlessly
scroll through new content that is algorithmically targeted to their interests.1 Social media lives in their
palms, filled with the buzzing of billions of global peers continuously riffing on popular culture. For
younger Americans, a handful of services have become the default destination for social video and
entertainment. It may not be surprising that Gen Zs and millennials have been cancelling streaming video
on demand (SVOD) subscriptions more than older consumers (figure 1).2

Our 2024 Digital Media Trends report finds an even stronger shift in young consumers’ video preferences.
Almost half (47%) of Gen Zs and a third of millennials surveyed say their favorite form of video content is
social media videos and live streams. This doesn’t mean that longer-form video entertainment is fading
away, but it does highlight the effectiveness of social media algorithms and the strength of content creators
and influencers. Media companies—and SVOD providers, in particular—could benefit from studying how
social media services drive engagement and retention.

19
One factor is finding content. Social media services help solve the problem of discovery that can cause
people to go elsewhere for entertainment. For example, 60% of Gen Zs prefer user-generated content
videos because they don’t have to spend time searching for what to watch.3 Social media services have
invested in reinforcing algorithms that match users with a seemingly endless stream of relevant and
personalized content, but this isn’t just another form of TV. Viewers can connect with communities of
likeminded users, gaining a sense of belonging alongside their entertainment.4

In contrast, many people report difficulties and frustrations with content discovery on SVOD services. And
it’s not for lack of trying: Nearly 50% of those surveyed say they spend too much time looking for
streaming content to watch. Subscriber retention is critical for SVOD providers, and they should work to
show their subscribers a reason to pay for the next month of service. Yet nearly half of respondents overall
report they often abandon an entertainment experience because they can’t find what they’re looking for. In
2024, the top six SVOD providers alone will likely spend more than US$100 billion on content.5 Viewers
can’t watch what they can’t find, so much of that investment may not be maximized.

SVOD providers, for their part, have been investing more in content recommendations systems,6 but they
should also consider the importance of leveraging social media for discovery and recommendations.
Creators of user-generated content often point viewers toward traditional media—as interested observers,
genuine fans, and paid ambassadors. More than half (54%) of Gen Zs and millennials believe they get
better recommendations for TV shows and movies from social media than from SVOD services. Around a
third of consumers—and 59% of Gen Zs—surveyed often watch TV shows or movies on SVOD services
after hearing about them from creators online. A similar share say they saw a movie in a theater because
they kept seeing conversations about it on social media.

This may be due in part to algorithmic targeting, but it’s also likely buoyed by the buzz and virality that can
sweep through social media communities. Engineering buzz is becoming more of a science, and savvy
brands are learning to program for hype.7

20
Social media platforms may be competing for time and attention, but they also offer media and
entertainment businesses valuable capabilities to promote their own offerings and drive people back to their
services. Social platforms and content creators can be a critical marketing channel for streaming services
and other media providers: Creators often build viewership with their fans across multiple digital services.8
They can help brands and companies access larger and more specific audiences that aggregate around
creator channels, and some are even expanding into more traditional media. Some SVOD providers, for
example, are now hiring leading online creators as talent for television shows and movies.9 SVOD providers
aiming to attract and retain more younger subscribers should be thinking about the many ways they can
collaborate with popular creators.

Media and entertainment companies should pay attention to video games to understand and leverage social
media and creators. Gaming creators and the services they use can help to drive discovery and purchases.
Sixty-three percent of Gen Z gamers surveyed find out about new games from live-streamers and content
creators on social media, and 56% report they’re more likely to trust a video game publisher if their
favorite gaming content creator has promoted a game by that publisher (figure 2).

Gaming creators and live streamers can help brands and companies better understand gamer demographics
and the nuances of modern video games. Accessing and engaging these demographics may be different from
other media, but media and entertainment companies should not dismiss them: Fifty-seven percent of Gen
Z and millennial gamer respondents discover new music in video games; nearly half don’t mind seeing
branded content in live service games, and more than half wish more of their favorite games had movie and
TV show adaptations. Live streaming services, social video game services, and story-driven adventure games
can all be considered part of the broader social media landscape.

Social media has become a digital “connective tissue” between people, brands, and media. It supports
fandoms and communities of interest and can drive demand across other forms of media and entertainment.
Media and entertainment companies can embrace social media—especially the content creators that foster
discovery and trust—to help drive audiences to their own offerings. SVOD providers could evolve their
services to better enhance personalization, nurture collaborations with creators and social media platforms,
and prioritize compelling social video campaigns.
21
To better capitalize on creators’ ability to guide people toward other media experiences, media and
entertainment organizations can work to develop strong relationships with creators and their audiences.
Creators can help them nurture existing fan bases, build new ones, and direct fans to their shows, movies,
and games.

Key takeaways
Social platforms: Social platforms are growing competitors to TV and movies with creators working as
entertainment “talent.” Platforms should continue to build deep relationships with creators to help
retain their creators in the long term. Platforms can also look beyond competition to work with studios
to support the cross-promotion of content through creator collaborations and integrated ad campaigns.

Content creators: One way content creators can grow their businesses on social platforms is by
collaborating with media and entertainment companies. They can engage in partnerships for promoting
new content and may have increasingly more options to work as talent in traditional media.

Streaming services: Streaming services should look to the engagement models of social media services to
improve their own content delivery strategies, making a more concerted effort to leverage user data and
AI technologies to target content toward individual viewers. Such investments can be a direct line to
improve subscriber retention, for example. Streaming providers should also build relationships with
creators to generate buzz, build audiences, and potentially source talent. This might require a patient,
multiplatform strategy since profitable fandoms can be small. These efforts have the potential to pay off
with stronger audience engagement, improved content discovery, and more fans.

Gaming companies: Creators have long been a channel for promoting gaming titles and generating new
fans. Gaming companies are well-positioned to pioneer the way forward by working to understand the
nuances of video games and the creators that share and support gaming communities.

Methodology
These insights are based on an online survey of 3,517 US consumers that was conducted in October 2023. Throughout this
report, we reference generations. Our generational definitions are as follows: Generation Z (1997-2009), millennial (1983-1996),
Generation X (1966-1982), boomers (1947-1965), and matures (1946 and prior). The survey was fielded by an independent
research firm and all data is weighted back to the most recent Census to give a representative view of US consumers.

By Kevin Westcott Jana Arbanas

United States United States

Jeff Loucks Bree Matheson

United States United States

22
Endnotes

1. Kevin Westcott, Jeff Locuks, and Jana Arbanas, “2023 Digital media trends: Immersed and connected,”
Deloitte Insights, April 14,2023.

2. Ibid.

3. Ibid.

4. Monika Ilieva, “Building a community on social media,” Forbes, December 9, 2022.

5. Insider Intelligence, “Subscription video-on-demand (SVOD) content spending worldwide by company,

2020 & 2024,” figure, accessed February 2023.

6. Raviteja Dodda, “Driving growth for media streaming apps: Personalization is the way,” Forbes, April
20, 2022.

7. Ellie Calnan, “How social media influencers are transforming film marketing: “They reach audiences
that traditional publications just don’t”,” Screen Daily, November 2, 2023.

8. Bree Matheson and Connor Seidenschwarz, “Creator economy in 3D: The platform’s place in a shifting
media landscape,” Deloitte, accessed March 2024.

9. Cameron Frew, “MrBeast closing historic $100m deal for first streaming TV show,” Dexerto, January
22, 2024.

Acknowledgements
The authors would like to thank Akash Rawat for his work in analyzing survey data and highlighting insights, as well as his
contributions to shaping the direction of the overall study. They would also like to thank Sathiya S. and Ankit Dhameja for
their contributions to survey development and secondary research support, and Gautham Dutt for his design and
visualization support. The authors would like to recognize Andy Bayiates and Molly Piersol for their partnership, along
with their editorial and design contributions. The authors also want to sincerely thank Kevin Downs and Amy Booth for
their support and guidance throughout the process.

Data science and survey advisory by: David Levin

Cover image by: Manya Kuzemchenko

23
Beyond mass appeal: The
untapped potential of fandom
Fans of certain musicians, movies, video games,
TV shows, or sports teams–though segmented
audiences–drive substantial engagement and
present big opportunities for cross-platform
growth.

ARTICLE 8 MINUTE READ

Media and entertainment (M&E) companies largely focus on dominating market share and appealing to the
masses. But our data suggests that focusing on segmented, hyperengaged groups of fans could prove just as
valuable. Though different fan groups—music fans, movie fans, video game fans, TV show fans, sports
fans, and what we call “M&E super fans”—are segments of the broader population, these cohorts
evangelize their fandoms, are willing to follow them across platforms and ventures, and often drive outsized
engagement. Strategically pursuing these audiences may not always override the boon of mass appeal, but
M&E companies might consider how to best leverage their own fan communities and lean into their fervor.

Maybe unsurprisingly, analysis of our 2024 Digital Media Trends data suggests surveyed consumers who
consider themselves fans1 (of a music artist, movie franchise or series, TV show, video game, or sports team)
are more engaged with their preferred media format than more casual consumers. Simply put: The value of
these fans is high. Self-identified fans—who skew younger and are often more diverse than the average
consumer—are driving the success of media experiences both online and offline. Where movie theater and
live performance attendance, for example, have struggled to climb back from pandemic lows, these fan
communities may be the key to driving digital and in-person ancillary entertainment experiences.2 Think of
the millions of Taylor Swift fans who attended her concert in 2023, the K-pop fans booking international
trips to South Korea, and the Barbie fans who dressed in pink to watch the movie in theaters.3 For fans:
Build it and they will come. And then they‘ll tell their friends, too.4 M&E companies have an opportunity
to deepen their relationship with these value-rich fan groups, drive chatter and hype among them, and then
examine how they approach their monetization and intellectual property (IP) extension strategies. So, who
are M&E fans, and how do their behaviors differ from more casual consumers?

Music fandom is salient, with about 40% of consumers surveyed saying their fandom for their favorite
music artist is important to their identity (these are our “music fans”) (figure 1). Not only are these music
fans more likely to pay for a streaming music service and download music from their favorite artists, but
they are also more likely to follow their favorite musician in various endeavors, including following that
musician on social media, buying merchandise, and listening to their podcasts. A third of music fans have
taken their fandom offline, too, by attending a live music concert in the prior three months, compared with
a significantly smaller share of more casual listeners. Most music fans say they primarily go to live music
concerts for the experience, suggesting there’s an important social—and communal—aspect to attending
such events.
24
Movie fandoms are also diverse communities, and around a quarter of respondents overall say fandom for
their favorite movie franchise or series is important to their identity (these are our “movie fans”). These
fans are theatergoers: Six-in-ten movie fans have gone to the movie theater to watch a movie in the previous
three months, compared to around 40% of casual movie viewers. Beyond the theater, movie fans are more
interested in attending fan conventions, visiting film locations, buying merchandise, and attending a theme
park or a live, interactive experience than their more casual counterparts.

But these movie fans are interested in following their fandom in digital spaces, like video game worlds, too:
More than half of movie fans wish more of their favorite movies and TV shows had video game
experiences, and 60% of movie fans who are also gamers would like to see more celebrity actors featured in
video games. The franchise can be viewed as a model for this type of cross-platform expansion that serves
to engage fans both old and new—and proves the value of fandom for extending IP. Though the fictional
world originated in books, it gained substantial popularity after the release of the first movie in 2001, and
has since expanded to theme parks, merchandising, video games, spin-off movies, and even a Broadway
show. This model has been successful in bringing in new fans, while keeping long-time fans coming back for
more, decade after decade.5

Those surveyed who say their fandom for their favorite video game is important to their identity (these are
our “video game fans”) are diverse and are the youngest cohort of the three—with the average fan being 33
years old. Engagement with gaming is a given for this group: They’re more likely than casual gamers to
have a paid video game subscription and spend more hours playing video games per week. For these fans,
their gaming fandom also provides community, socialization, and a sense of belonging—which gives it
staying power beyond a passing fad: More than half say they mainly play online games to meet up with
friends, and 42% say they have more friends in game worlds than in real life.

25
Outside of video games, however, these fans want to follow their favorite worlds with adjacent media
offerings. Nearly 70% of video game fans surveyed wish their favorite video games had TV show or movie
adaptations. Some studios and game publishers are already embracing fandoms in this way, like HBO and
the series, The Last of Us (based off the video game of the same name) and Nintendo’s The Super Mario
Bros. Movie. And despite being young and tech savvy, this group is also willing to take their fandom into
the real world: Roughly one-in-five gaming fans would like to attend a fan convention, or a live, interactive
experience or theme park related to their favorite video game.

We also asked consumers about their sports team and TV series fandoms, and the trend follows: People
who consider these fandoms important to their identity are more likely than casual TV viewers and casual
sports consumers to engage with sports or TV content.

Then, there are those we might consider “M&E super fans”—or about one-in-ten consumers surveyed—
who say their fandom for their favorite music artist, sports team, TV series, movie franchise, and video
game are all important to their identities (figure 2). These M&E super fans are engaged across the digital
media ecosystem: They’re more likely to pay for subscription video on demand (SVOD), music, and gaming
services than the average consumer, and they use multiple social media platforms, too. This narrow cohort
is spending an outsized amount of their time and money with entertainment content and should be
considered a prized audience. Since their consumption patterns are widespread, this group can provide
insights into cross-platform engagement and content diversification. M&E companies might think about
leveraging their own versions of “super fans” in various ways, such as leaning on them to support IP
extensions or drive widespread buzz and hype on social media for new cross-platform content. But while
these fans may seem like the ideal customer, they have more SVOD services than the average consumer, and
thus, have a significantly higher churn rate for SVOD services than non-super fans. These respondents are
also twice as likely to say they have “too many” entertainment subscriptions in the household. Capturing
and retaining these valuable super fans means developing strategies to reduce churn, like offering “can’t
miss” cross-platform experiences and attractive bundles to cut down on cost and subscription overwhelm.
26
Maybe M&E brands, products, services, and content don’t have to appeal to everyone. They just may need
to appeal to the right groups of passionate fans. Fandom is often a lifelong journey rather than a weekend
getaway. Since fandom can be deeply tied to identity, fans are likely to stick around and invest in the
content and personalities they love. Brands should aim to be right there with them, nurturing the fandom,
for the long haul.

Key takeaways
M&E companies should not simply skim the surface of fan communities, but rather seek more profound
engagement and understanding. Consider going beyond generalized viewership statistics to delve into
forum discussions, messaging groups and other granular interactions among the most loyal followers.

Focusing on passionate groups of fans—and M&E super fans—may pay off for media and entertainment
companies who are looking to develop cross-media franchises. These committed fans are likely to have
an outsized impact in terms of spend and broader hype-building.

Developing sensing capabilities to discover burgeoning fandoms should be top-of-mind for M&E
companies. Once they spot these growing fan communities, M&E companies can use engagement
strategies to take advantage of these groups and learn from them as they evolve.

M&E companies should consider the intensity of their fan bases (not just the number of viewers) when
considering new investment and monetization strategies. A passionate fan base (regardless of size) might
be worth more than an audience of average, casual fans.

Methodology
These insights are based on an online survey of 3,517 US consumers that was conducted in October 2023. Throughout this
report, we reference generations. Our generational definitions are as follows: Generation Z (1997-2009), millennial (1983-1996),
Generation X (1966-1982), boomers (1947-1965), and matures (1946 and prior). The survey was fielded by an independent
research firm and all data is weighted back to the most recent Census to give a representative view of US consumers.

Continue the conversation

Meet the industry leader

Kevin Westcott Jana Arbanas

Vice chairperson | Deloitte US Deloitte US Telecommunications, Media
Technology, Media & & Entertainment sector leader | Deloitte
Telecommunications leader | Deloitte & Touche LLP
LLP

Jeff Loucks
Executive director | Deloitte Center for
Technology, Media &
Telecommunications | Deloitte Services
LP

By Kevin Westcott Jana Arbanas

United States United States

Brooke Auxier Jeff Loucks

United States United States

Wenny Katzenstein
United States

27
Endnotes

1. A “fan” is defined as any respondent in our survey who said their fandom for their favorite (1) music
artist; (2) movie franchise/series/sequel; (3)TV show; (4) video game; or (5) sports team, is somewhat or
extremely important to their identity.

2. Sarah Whitten, “More movies, more variety, more money: The box office is catching up to pre-Covid
levels,” CNBC, April 5, 2023; Michael Paulson and Javier C. Hernández, “Live performance is back.
But audiences have been slow to return,” The New York Times, August 21, 2022.

3. Suzanne Rowan Kelleher, “South Korea is launching a visa just for K-pop fans,” Forbes, January 2,
2024; Melissa Ruggieri, “It’s official: Taylor Swift’s Eras Tour makes history as first to earn $1 billion,”
USA Today, December 8, 2023; Mike Sullivan, “Fans flock to theaters to celebrate the premiere of
‘Barbie’,” CBS News, July 21, 2023.

4. Twitch, “Fandom enters the mainstream,” AdWeek, accessed February 2024.

5. Taylor Rains, “I've visited every official Harry Potter attraction in the world and saw how the franchise
ballooned into an empire raking in billions,” Business Insider India, December 18, 2021.

Acknowledgements
The authors would like to thank Akash Rawat for his work in analyzing survey data and highlighting insights, as well as his
contributions to shaping the direction of the overall study. They would also like to thank Sathiya S. and Ankit Dhameja for
their contributions to survey development and secondary research support, and Gautham Dutt for his design and
visualization support. The authors would like to recognize Andy Bayiates and Molly Piersol for their partnership, along
with their editorial and design contributions. The authors also want to sincerely thank Kevin Downs and Amy Booth for
their support and guidance throughout the process.

Data science and survey advisory by: David Levin

Cover image by: Manya Kuzemchenko

28
Audiences are becoming
increasingly diverse, and they
expect content that reflects the
world around them
Diverse communities base media spend largely
on the inclusivity of content, and the United
States is only getting more diverse.

ARTICLE 5 MINUTE READ

Younger generations get a lot of attention in the media and entertainment industry, often because they’re
early adopters of innovations like social media, video games, and streaming video. But beyond their tech-
savviness, these generations are also inherently different demographically from preceding generations, and
as such, they’re shifting the definition of the average American consumer. Media and entertainment (M&E)
companies should consider investing in meeting the expectations of an increasingly diverse population to
help win market share and keep consumers engaged.

Gen Zs (those born between 1997 and 2009) and millennials (those born between 1983 and 1996), who
collectively make up a significant share of the US population, are more diverse than those in older
generations, a trend that will only continue with Gen Alphas (those born between roughly 2010 and 2024)
and the cohorts that follow.1 Not only are younger generations more likely to be racially and ethnically
diverse, but they’re also more likely to identify as members of the LGBTQIA+ community or be
neurodiverse (meaning they see the world around them in a different way, and may have a diagnosis like
autism spectrum disorder, ADHD or a learning disability).2

The profile of the average American audience is changing, and so too are consumer expectations for M&E
content more broadly, including TV shows, movies, and social media videos. Data from our 2024 Digital
Media Trends study suggests that consumers from diverse groups value inclusive representation in
entertainment content, expect it, and actively seek it out. Given that younger generations are more diverse,
it’s reasonable to assume that such expectations will only increase in audiences over time.

29
Among those surveyed, more than half of Black consumers prefer to watch TV shows and movies that
feature people who look like them. Around half of Black and multiracial people actively seek out TV shows
and movies that tell stories about underrepresented groups. But the team behind the scenes matters, too:
Nearly 70% of Black consumers (and more than half of Asian, multiracial, and Hispanic and Latinx
consumers) say it’s important to them that TV shows and movies are written and produced by diverse
creative teams. LGBTQIA+ respondents are also more likely than other consumers to expect the diversity of
the real world to show up on screen (62% compared with 45%), to seek out shows and movies that tell
stories about underrepresented groups (53% compared with 32%) and say it’s important that TV shows
and movies have diverse creative teams behind them (66% compared with 45%).

Appealing to the full diversity of consumers is important to business success—and currently less than a
third of consumers surveyed believe the M&E industry is inclusive.3 Deloitte research found that Black,
Hispanic and Latinx consumers, and LGBTQIA+ audiences, drive more than a third of the US M&E
market, and 71% of entertainment spend among these groups is driven by feelings of inclusivity.4 Investing
in inclusivity could have real business implications for production companies and streaming video-on-
demand (SVOD) providers. But it’s not just viewers from diverse audiences who want to see, and find value
in, inclusivity and representation in their media and entertainment content, it’s also consumers overall–
across race, ethnicity, gender identity, age, sexual orientation, and abilities. Our 2024 Digital Media Trends
data suggests that nearly 70% of all consumers surveyed say that they enjoy watching TV shows or movies
that help them learn about cultures different from their own, and nearly half of all respondents say they
expect TV shows and movies to show the same racial and physical diversity they see in the real world.
Investing in inclusion could pay off for brands: Research has shown that across all groups, consumers will
spend more money on media and entertainment if they feel more included.5

30
But we know that shows and movies sometimes miss the mark in terms of inclusivity and representation,6
and access to inclusive content may be limited. 75% of consumers surveyed say they don’t currently feel
represented in media and entertainment.7 This may be where the broad and diverse set of creators who
generate social media videos hold a competitive advantage. More than 40% of consumers surveyed find
videos on social media to be much more diverse than TV shows and movies—a figure that increases to 60%
among Gen Zs, and to over 50% for Black, multiracial, Hispanic and Latinx, and LGBTQIA+ consumers.
It may be noteworthy then that consumer churn on SVOD—or the percentage of consumers who have
canceled at least one paid SVOD service in a six-month period—is highest among these same groups,
according to our data.

The perceived diversity of social media videos may be due to the algorithms that power these platforms,
and their ability to connect content with specific audiences that, in turn, could help to build a sense of
community and belonging. If consumers engage with and follow diverse content and follow diverse
creators, the platforms will likely continue to serve that up in the feed. And our data shows that following
creators from similar backgrounds, and those who share their values, is important to people. For example,
46% of Black consumers surveyed say they are more likely to follow creators who look like them when
compared with 24% of consumers overall. Similarly, approximately 60% of Black, multiracial, Hispanic
and Latinx, and LGBTQIA+ people say they tend to follow creators who share their values (compared with
47% of consumers overall). However, social media videos and content creators—like movies and TV shows
—also allow people to discover new things and learn about different communities. Nearly 40% of those
surveyed say they follow content creators to learn about cultures different from their own. This figure
increases to about 50% or more for Black, multiracial, Hispanic and Latinx, and LGBTQIA+ people.

In today’s media ecosystem, consumers have myriad options competing for their time, attention, and
money. For M&E companies to remain successful, they should work to understand and meet the
expectations of young, and increasingly diverse, audiences.

Key takeaways:
Consumers across communities expect to see inclusivity in media and entertainment content; and
production studios, streaming services, and other entertainment providers should be mindful of the
stories they tell, the talent they hire, and the behind-the-scenes professionals they recruit. These
expectations will likely only grow stronger as generations continue to be more diverse.

The very makeup of the U.S. population is shifting and evolving. Entertainment companies should have
all people in mind throughout the value chain and content development life cycle.

31
 Methodology
These insights are based on an online survey of 3,517 US consumers that was conducted in October 2023. Throughout this
report, we reference generations. Our generational definitions are as follows: Generation Z (1997-2009), millennial (1983-1996),
Generation X (1966-1982), boomers (1947-1965), and matures (1946 and prior). The survey was fielded by an independent
research firm and all data is weighted back to the most recent Census to give a representative view of US consumers.

Continue the conversation

Meet the industry leader

Kevin Westcott Jana Arbanas

Vice chairperson | Deloitte US Deloitte US Telecommunications, Media
Technology, Media & & Entertainment sector leader | Deloitte
Telecommunications leader | Deloitte & Touche LLP
LLP

Jeff Loucks
Executive director | Deloitte Center for
Technology, Media &
Telecommunications | Deloitte Services
LP

By Kevin Westcott Jana Arbanas

United States United States

Wenny Katzenstein Dennis Ortiz

United States United States

Brooke Auxier
United States

32
 Endnotes

1. William H. Frey, “Now, more than half of Americans are millennials or younger,” The Brookings
Institute, July 30, 2020; Sara Lebow, “Gen Z will account for 1 in 5 people in the US. What does that
mean for marketers?,” Insider Intelligence, January 24, 2023; Sara Lebow, “Gen Alpha will be more
diverse than the rest of the US population,” Insider Intelligence, February 7, 2023.

2. Jeffrey M. Jones, “LGBTQ Identification in U.S. Ticks Up to 7.1%, Gallup, February 17, 2022; Centers
for Disease Control and Prevention, “Data & statistics on autism spectrum disorder,” April 4, 2023;
Nicole Baumer and Julia Frueh, “What is neurodiversity?,” Harvard Health Publishing, November 23,
2021.

3. Susan Goldsmith, Wenny Katzenstein, Jasmin Jacks, and Brandon Parrott-Sheffer, Media reimagined:
How making progress on equity could help establish tomorrow’s leaders, Deloitte Digital, March 2023.

4. Deloitte Digital, “Media reimagined: Investing in inclusive representation is the right thing to do on
every level,” May 23, 2023.

5. Ibid.

6. Josh Wilson, “How is Hollywood’s Performance In Diversity and Inclusion in 2022,” Forbes, April 22,
2022.

7. Goldsmith, Katzenstein, Jacks, and Parrott-Sheffer, Media reimagined.

Acknowledgements

The authors would like to thank Akash Rawat for his work in analyzing survey data and highlighting insights, as well as his
contributions to shaping the direction of the overall study. They would also like to thank Sathiya S. and Ankit Dhameja for
their contributions to survey development and secondary research support and Gautham Dutt for his design and
visualization support.

The authors would like to recognize Andy Bayiates and Molly Piersol for their partnership, and their editorial and design
contributions. They also want to sincerely thank Kevin Downs and Amy Booth for their support and guidance throughout
the process.

Data science and survey advisory by: David Levin

Cover image by: Manya Kuzemchenko

About Deloitte

Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee (“DTTL”),
its network of member firms, and their related entities. DTTL and each of its member firms are legally separate and
independent entities. DTTL (also referred to as “Deloitte Global”) does not provide services to clients. In the United States,
Deloitte refers to one or more of the US member firms of DTTL, their related entities that operate using the “Deloitte” name
in the United States and their respective affiliates. Certain services may not be available to attest clients under the rules and
regulations of public accounting. Please see www.deloitte.com/about to learn more about our global network of member
firms..

33