The latest edition of Deloitte’s Digital media trends diagnoses: consumer behavior is shifting, led by Gen Zs and Millennials. People are looking for more personalized, interactive, and immersive experiences. The study uncovered insights from the United States, Brazil, Germany, Japan, and the United Kingdom. And summed up the key trends:

TREND 1: Streaming video’s retention struggles continue

“Watching TV and movies at home remained the top entertainment choice among respondents overall, but many—especially younger generations—are getting frustrated with their streaming video on-demand (SVOD) services. Chasing content across many services and losing content when it leaves a service were top complaints. Gen Zs were most focused on reigning in costs and are among those most likely to churn: They either cancelled a subscription, or added and cancelled a subscription, over the past six months. Across the countries surveyed, younger consumers often cancel and then resubscribe to watch the latest content.”

TREND 2: Consumers want more SVOD content and pricing options

“SVOD providers could go down several paths to help reduce churn and overall frustration. US consumers are looking for flexibility in subscription plan pricing and newer content. More than half say they’d be willing to put up with some ads in exchange for cheaper, or free, subscriptions. Others are looking for a tiered approach to content access. And Gen Zs and Millennials like bundles: 51% would be convinced to keep a streaming video subscription if their service bundled a gaming or music service or another SVOD service.”

TREND 3: Consumers are eating up user-generated content (UGC)

“About 80% of US social media users are on these sites at least daily. Many are snacking on user-generated content (UGC)—free, bite-sized videos that are available anytime, anywhere. UGC has become a time-filler; many consumers find the stream of algorithm-fueled, personalized videos irresistible. And it’s competing for attention with other entertainment activities: In the US, roughly half say they watch more user-generated content than they did six months ago, and half always spend more time watching UGC than they had planned—while 70% of Gen Zs have trouble pulling themselves away.”

TREND 4: Influencers boost social commerce around the world

“Popular content creators can become influencers—users with large followings whose lifestyle and product recommendations can become powerful sales enablers. Partnering with the right influencers can help brands tap into desired communities and, increasingly, sell, sell, sell. Influencers have clout around the world: 88% of respondents in Brazil follow an influencer, as do 79% of respondents from Japan. In the US, one-third (and more than 50% of Gen Zs and Millennials) say they influence their buying decisions.”

TREND 5: The gaming frenzy is global, social, and unstoppable

“Gaming is entering a new phase of growth and popularity. About half of gamers in the US say gaming has taken time away from other entertainment activities: More than 80% say they play games frequently or occasionally and half of smartphone owners play on a smartphone daily. Gen Z and Millennial gamers play the most (averaging 11 hours and 13 hours a week, respectively), but Gen X is close behind, averaging 10 hours a week. Numbers were similar among other countries: Most respondents in the United Kingdom (75%), Germany (78%), Brazil (89%), and Japan (63%) play video games frequently or occasionally.”

TREND 6: Game experiences blur virtual and real worlds

“Video games are blazing a trail toward an even more personal, social, and sticky digital future, one in which digital and real life converge. About half of US gamers say playing games helped them stay connected to other people, while close to 60% say playing games helped them through a difficult time. And 61% say personalizing their game character or avatar helps them express themselves. As game experiences become increasingly sophisticated and multilayered, they are steadily blurring the lines between real and virtual worlds—moving us closer and closer to the promise of the metaverse.”

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Source: Deloitte Insights