*Big budget entertainment is not on the watchlist of Gen Zers, according to a new Deloitte study.
The Hollywood Reporter cites the study in revealing findings from Deloitte’s 19th annual digital media trends survey. The study, which asks consumers about their media and entertainment preferences, reveals that 56 percent of Gen Zers and 43 percent of millennials surveyed find social media content “more relevant than traditional TV shows and movies.” As a result, roughly half of those surveyed feel a stronger personal connection to social media content creators than to TV personalities or actors.
Breaking it down further, China Widener, vice chair of Deloitte LLP and U.S. technology, media and telecom leader, highlighted the time factor when assessing the number of hours devoted to Gen Zers’ preferred outlet.
“Think about the war for people’s attention and time that exists today, between traditional media and social media,” Widener told the Reporter. “With Gen Z, they spend 54 percent more time — think of it as about 50 minutes a day, on average — more on their social platforms, and they spend about 43 minutes a day less in traditional TV and media. So when you just think about it in the context of where they’re spending their time, are they using both service types? Yes. But they are spending more time in the social media platforms than they are on the traditional platforms.”
As the survey shows, the struggle for the entertainment industry to gain consumer’s time and attention is real. The largest studios and streamers are not immune in what looks to be a losing battle against giant tech platforms with creators catering to every possible niche.
Scroll to continue reading
Further findings from the survey show a solid relationship and resulting trust younger consumers have more with creators they feel a more personal connection with, in addition to the impact of daily waves of content brought by creators onto social platforms
“It is the creator-driven engagement that is the draw, and ultimately, what we found and talk a bit about in the report, is this notion that they feel a stronger personal connection — 52 percent of Gen Z, 45 percent of millennials in the survey — said they just feel a stronger connection to social media creators,” Widener mentioned, acknowledging the closeness the young consumers have with creators. “What the younger audience is telling us, the Gen Z’s and the millennials are telling us is that the ads and product reviews they get on social media, they’re more influential on their purchasing decisions. They simply believe them more.”
“As AI becomes more and more prevalent in all our phases of work and play, the fact that social platforms are leveraging it in a way that allows them to personalize the experience differently, I think is actually important, and it’s going to be a challenge for traditional and streaming media to replicate that,” he added. “And I think that’s a nuance in this that is worth mentioning more broadly.”
As for value, the Deloitte survey found dissatisfaction across the board with increasingly dissatisfied consumers who have problems with value provided by paid streaming services. Almost half of those surveyed say that they pay too much for SVOD services they use, while 41 percent surveyed say that the content isn’t worth the price.
With frustration comes a need for value-driven change, with younger consumers contributing to the rise of free, ad-supported streaming services (FAST.
Widner acknowledges the “level of frustration felt with users who question value overall with rising prices and resorting to ad supported services,
“…if that frustration isn’t mitigated in some way relative to the increased costs, then the reality is, there’s going to continue to be this challenge, and it’s going to force a different business model conversation in the future, if ultimately, the services and the companies that own them can’t figure out how to thread this particular needle as it relates to these rising pricing pressures,” he explained.
MORE NEWS ON EURWEB: LeBron James Signs Content Creation Deal with Warner Bros
We Publish Breaking News 24/7. Don’t Miss Out! Sign up for our Free daily newsletter HERE.
