The media industry is experiencing profound shifts driven by technological innovation, changing consumer preferences, and the ever-growing battle for audience attention. As traditional media models are challenged by new, more personalized, and on-demand content, media companies face both significant challenges and opportunities. Fragmentation in audience behavior, the rise of digital platforms, and evolving revenue models are forcing companies to rethink their strategies in order to remain competitive.

Four key trends are expected to disrupt the media landscape in 2025: the rise of AI-generated content, the dominance of niche streaming platforms, the rise of creator-led media ecosystems, and the expansion of immersive media experiences. Each of these trends is reshaping how content is created, distributed, and consumed, driving the media industry towards more efficient, personalized, and interactive solutions.

Trend 1: The Rise of AI-Generated Content

AI tools are revolutionizing the content creation process, from scriptwriting and video production to real-time translation and voiceovers. These advancements are enabling faster production timelines, reducing costs, and providing more personalized content. AI-generated media is quickly becoming a mainstream solution across industries, empowering smaller creators and businesses to produce high-quality content with limited resources.

The disruption caused by AI-generated content is multi-faceted:

  • Reduces production costs and timelines, leveling the playing field for smaller creators: With AI tools, content production is faster and more affordable, making it possible for smaller creators to compete with larger, established media companies. For example, AI-generated text and video content can reduce the time required for scriptwriting and video editing, cutting production costs by up to 30% for smaller productions.
  • Raises ethical questions about authenticity and copyright in content: As AI-generated content becomes more prevalent, questions about the ownership of content and intellectual property are gaining importance. Who owns AI-generated media, and how can the authenticity of such content be verified? These are ongoing debates that will affect not only content creators but also traditional media companies and advertisers.
  • Forces traditional media companies to adapt workflows or risk falling behind: With the rise of AI-generated content, established media companies must innovate or risk being left behind. This shift requires them to reassess their workflows, investment strategies, and how they integrate AI tools into their production processes. A 2023 study by PwC found that 45% of media companies are already using AI to improve content creation, with an expected 20% annual increase in AI integration through 2025. 

The speed, efficiency, and cost-effectiveness AI brings to content creation will force media companies to adapt their traditional workflows to remain competitive. As the market evolves, AI-generated media will likely continue to play a dominant role in shaping the future of the media industry.

Case Study: Synthesia – Revolutionizing Video Content Creation with AI


Synthesia is an AI-driven video production platform based in the United Kingdom that is transforming the way videos are created and consumed. The platform enables users to generate high-quality videos using AI avatars, eliminating the need for traditional video production teams, voiceovers, and expensive equipment. With applications spanning training, marketing, and social media content, Synthesia is democratizing video creation, making it more accessible and cost-effective for businesses of all sizes.

Synthesia is a prime example of how AI is reshaping content creation, particularly in video production. Traditional video production requires multiple resources, such as cameras, studios, editors, and voice actors. With Synthesia, businesses can bypass these logistical hurdles and produce engaging, personalized videos at scale, reducing both time and cost. This AI-generated content trend is disrupting the media industry by offering an automated solution to one of the most resource-intensive areas of content creation—video production.

Technology and Impact
Synthesia’s AI platform uses machine learning to generate realistic human avatars that can speak multiple languages and convey messages in a natural, human-like manner. Users can simply input a script, select an avatar, and produce a fully formed video in a fraction of the time it would take with traditional production methods.

  • Efficiency: Video production time is reduced from weeks to just a few hours, enabling businesses to create content quickly and in multiple languages without the need for voice actors or on-location shoots.
  • Cost Reduction: Synthesia’s platform eliminates the need for expensive video equipment and editing teams, offering an affordable solution for companies looking to scale their content production.
  • Personalization: Businesses can tailor content for different audiences and markets with ease, leveraging AI to generate multiple versions of a video with localized messaging.

One notable example of Synthesia’s impact is its partnership with IBM, where the company utilized Synthesia’s technology to create AI-powered training videos for employees. These videos were produced in multiple languages, enhancing the global accessibility of the training materials without requiring additional voiceovers or manual translations.

In another example, PepsiCo used Synthesia to create localized marketing campaigns across multiple regions, enabling the brand to produce high-quality content faster and at a fraction of the cost of traditional video shoots.

Synthesia exemplifies how AI is transforming content creation by making video production more efficient, accessible, and affordable. By removing barriers to entry, such as high production costs and lengthy timelines, Synthesia is opening up opportunities for businesses to scale their video content while maintaining personalization and quality. This shift in how content is created aligns perfectly with the broader trend of AI-generated media, which is set to become a mainstream solution for businesses looking to remain competitive in an increasingly fast-paced media landscape.

By leveraging AI tools like Synthesia, companies can not only streamline their workflows but also adapt to the growing demand for faster, more personalized content in the media industry.

Trend 2: The Dominance of Niche Streaming Platforms

As consumer preferences become increasingly fragmented, niche streaming services are thriving by offering hyper-personalized content that caters to specific genres, interests, and demographics. These platforms focus on creating curated content that speaks directly to loyal, engaged audiences, setting them apart from mainstream streaming giants. While platforms like Netflix and Amazon Prime dominate the global streaming market, niche services have carved out their own space by tailoring offerings to meet the needs of particular groups, whether through genre-focused content, cultural specificity, or unique entertainment needs.

Why This Will Disrupt:

  • Challenges the dominance of mainstream platforms by creating targeted appeal: Niche streaming platforms are challenging the widespread appeal of larger services by zeroing in on specific genres or cultures, providing a more focused and personalized viewing experience. As of 2023, niche streaming services are gaining ground, with some platforms growing their user bases by 50% year-over-year through targeted offerings. 
  • Shifts revenue models toward subscriptions and community-driven funding: Many of these platforms are shifting their revenue models from ad-based to subscription-driven, tapping into a dedicated audience willing to pay for exclusive content. This trend is especially visible in platforms focusing on niche genres like horror, anime, or independent films, where users are more willing to support content they feel personally connected to.
  • Forces traditional broadcasters to rethink how they connect with fragmented audiences: The success of niche platforms is forcing traditional broadcasters to rethink their strategies and adapt to the demand for specialized content. As audience fragmentation continues, broadcasters will need to reevaluate their programming and content distribution to stay relevant in an ever-more segmented market.

In 2025, niche streaming services are expected to continue their rapid growth, offering unique and highly tailored content that appeals to a specific fanbase. As this trend continues, traditional streaming platforms and broadcasters will have to rethink their approach to content creation, production, and audience engagement to compete in an increasingly fragmented media landscape.

Case Study: Shudder – Dominating the Horror Streaming Space

Shudder is a niche streaming platform based in the United States that focuses exclusively on horror, thriller, and supernatural content. Launched in 2015, the service has successfully built a loyal and engaged user base by offering a curated library of genre-specific movies and series. Unlike mainstream streaming platforms like Netflix, which offer a broad range of genres, Shudder’s dedication to the horror genre has allowed it to carve out its own space in the streaming market.

Shudder is a prime example of the growing dominance of niche streaming platforms that focus on specific genres or demographics. By focusing solely on horror, Shudder is able to offer a highly personalized and tailored viewing experience for its passionate audience. In an era when mainstream platforms struggle to cater to all tastes, Shudder’s hyper-focused content has allowed it to thrive by serving a dedicated fan base that craves specific genre content. This makes it a perfect illustration of how smaller, niche platforms are gaining traction and challenging larger platforms in terms of engagement, loyalty, and revenue.

Technology and Impact
Shudder’s ability to thrive in a crowded streaming market is thanks to its strong focus on curated content and its use of technology to cater to niche interests:

  • Curated Content: Shudder’s content library features a mix of classic horror films, independent horror movies, and exclusive originals, ensuring that it offers something for every horror fan. The platform regularly updates its catalog, introducing seasonal content and exclusive releases that keep its audience engaged.
  • Community Engagement: By leveraging social media and horror communities, Shudder has developed a sense of community among its users, fostering loyalty and word-of-mouth marketing. Horror fans feel like they are part of a niche, like-minded group, which enhances the platform’s appeal.
  • Tech Integration: Shudder uses algorithms and user feedback to suggest tailored content to its subscribers, increasing viewer satisfaction and keeping audiences engaged with new content based on their viewing history.

Impact and Growth

  • Subscriber Growth: As of 2022, Shudder has surpassed 1 million subscribers globally, a significant milestone that highlights the growing demand for specialized, genre-specific content.
  • Exclusive Content: The platform’s original programming, such as Creepshow, The Last Drive-In with Joe Bob Briggs, and Shudder’s Horror of the Month series, has been key in differentiating it from other platforms and creating a unique viewing experience. These exclusives have helped attract horror fans looking for fresh, original content.

Challenges and Future Outlook

  • Expansion and Competition: While Shudder has experienced significant growth, it faces increasing competition from both traditional platforms adding horror content and newer niche players emerging in the genre. To remain competitive, Shudder must continue to expand its offerings while retaining the strong community it has built.
  • Balancing Growth with Identity: As Shudder grows, it will be challenging to maintain its identity and niche focus while scaling up its subscriber base and content offerings. The platform must ensure that it remains true to its horror roots while accommodating the evolving tastes of its audience.

Shudder’s success in dominating the horror streaming market is a perfect example of how niche platforms are thriving by catering to a specific, loyal audience. By focusing on curated, high-quality content and fostering community engagement, Shudder has not only survived but thrived in an increasingly fragmented media landscape. As consumer preferences continue to fragment, Shudder’s success demonstrates the growing appeal of niche platforms and their potential to disrupt traditional, mainstream streaming services.

Trend 3: Creator-Led Media Ecosystems

The creator economy is revolutionizing the media industry by reshaping how content is produced, distributed, and monetized. Platforms like Patreon, YouTube, and Substack have enabled individual creators to bypass traditional media channels and build direct relationships with their audiences. This shift is enabling creators to take control of their content, set their own terms, and access new revenue streams, disrupting the traditional media landscape where publishers, broadcasters, and agencies are the primary gatekeepers.

The rise of creator-led media ecosystems brings both opportunities and challenges:

  • Decentralizes media production, reducing reliance on traditional gatekeepers: Creators now have the tools and platforms to produce, distribute, and monetize content without the need for large media companies or traditional publishing houses. This democratization of content production allows for a wider range of voices and perspectives, giving rise to diverse, niche content.
  • Redefines advertising and sponsorship opportunities with micro and niche audiences: Creators are now able to build highly engaged, niche audiences that are difficult for traditional media outlets to match. Advertisers are increasingly looking to work with creators who have authentic, loyal followers, rather than large-scale, impersonal reach. The ability to cater to micro-niches provides brands with more targeted and effective advertising opportunities.
  • Challenges media companies to innovate their talent acquisition and content strategies: As creators gain more influence, traditional media companies must adapt to keep up. To stay competitive, broadcasters and publishers need to rethink their content strategies, talent acquisition, and distribution methods, embracing more flexible, creator-centric approaches. Media giants must also adjust to the growing demand for on-demand, authentic content.

In 2025, creator-led media ecosystems are expected to continue to thrive, offering personalized, niche content that traditional media companies struggle to provide at scale. This trend is redefining how content is created, shared, and monetized, and traditional companies will need to innovate quickly or risk losing their relevance in an increasingly decentralized media landscape.

Case Study: Bigo Live – Revolutionizing Creator-Led Media Ecosystems in Southeast Asia

Bigo Live, founded in Singapore in 2016, is a live-streaming platform that allows creators to broadcast live content and receive real-time gifts, tips, and donations from their audience. Over the years, Bigo Live has evolved into a major player in the creator economy, especially in Southeast Asia, by offering creators a direct way to monetize their content through fan interaction and engagement. Unlike traditional media platforms, Bigo Live empowers individual creators to build and nurture their communities while earning revenue from their content.

Bigo Live is a perfect example of how the creator economy is transforming media production and consumption. By enabling creators to monetize their content directly through live-streaming and audience donations, the platform decentralizes the media production process, bypassing traditional media gatekeepers. This aligns with the shift toward creator-led media ecosystems, where individual creators have more control over content creation, distribution, and monetization.

Technology and Impact

  • Real-Time Interaction: Bigo Live allows creators to engage with their audience in real-time, fostering a sense of community and personal connection. The live interaction aspect is a key feature that sets the platform apart from pre-recorded content.
  • Monetization Model: Creators earn revenue through virtual gifts, tips, and paid subscriptions from their viewers. Bigo Live’s integration of real-time gifting encourages continuous engagement and makes the monetization process seamless.
  • Global Reach: While Bigo Live was founded in Singapore, its reach spans across Southeast Asia, the Middle East, and beyond. The platform’s ability to adapt to different markets by supporting local languages and preferences has contributed to its rapid growth.

Content Creators’ Success: Bigo Live has enabled numerous creators to turn live streaming into a full-time career. For instance, creators in Southeast Asia have earned thousands of dollars per month through real-time gifts and sponsored content, building large and dedicated fanbases. One notable example is a popular Indonesian live streamer who has garnered millions of followers and makes a significant income through gifts and tips during live broadcasts.

Challenges and Future Outlook

  • Competition: While Bigo Live is a major player in Southeast Asia, it faces competition from platforms like Twitch, YouTube, and local services, which are also focusing on live streaming and creator monetization.
  • Regulatory Issues: As the platform expands, it must navigate varying regulations around content, online safety, and financial transactions in different countries, which could affect its operations.

Bigo Live is revolutionizing the way creators engage with their audience, allowing for a more direct and profitable relationship between content creators and their fans. The platform exemplifies how technology is enabling the rise of creator-led ecosystems, empowering individuals to take control of their content and revenue streams. By fostering real-time interaction and offering an integrated monetization model, Bigo Live sets a strong example for how live-streaming can thrive in the rapidly evolving media landscape.

Trend 4: Immersive Media Experiences

The media landscape is undergoing a dramatic transformation as advances in augmented reality (AR) and virtual reality (VR) redefine how content is consumed and interacted with. With the rise of immersive technologies, media experiences are becoming more interactive, offering audiences new ways to engage with content. From virtual concerts and live events to AR-enhanced news reporting and branded experiences, the boundaries of audience engagement are being pushed, creating exciting new possibilities for both entertainment and marketing.

As AR and VR technologies become more accessible, the traditional media consumption model is shifting. Audiences are no longer passive viewers; they are active participants in the stories unfolding around them. This shift is opening up new opportunities for storytelling, experiential marketing, and deeper audience connection.

Why This Will Disrupt:

  • Changes how audiences consume and interact with content: Immersive experiences allow audiences to engage with content in more interactive and personalized ways. Virtual reality offers a level of immersion that traditional media cannot match, whether it’s exploring a 360-degree concert experience or walking through a virtual world for an interactive film.
  • Creates new opportunities for storytelling and experiential marketing: VR and AR offer media companies and brands innovative ways to tell stories and engage customers. For example, VR can take viewers into the middle of the action in a way that traditional media, like television or film, simply cannot. AR, on the other hand, can overlay digital elements on the real world, creating an interactive layer that brands can use for experiential marketing campaigns.
  • Requires significant investment in technology and creative talent to deliver high-quality experiences: While the potential for immersive media experiences is vast, creating them requires considerable investment in both technology (AR/VR hardware and software) and creative talent (3D artists, interactive designers, etc.). The industry will need to evolve quickly to ensure the development of high-quality, engaging experiences that are accessible to mainstream audiences.

As these immersive media experiences become more commonplace, they will not only reshape entertainment but also have broader implications for education, tourism, gaming, and even shopping. By 2025, the expectation is that immersive technologies will become mainstream tools for engaging audiences, offering deeper and more personalized interactions than ever before.

Case Study: VR Experiences by National Geographic – Pushing the Boundaries of Immersive Media


National Geographic, a leading media brand known for its educational content on natural history, exploration, and science, has embraced virtual reality (VR) to create immersive experiences that transport users to some of the world’s most remote and fascinating locations. Through its VR projects, National Geographic offers users the ability to dive into the ocean floor, explore the surface of Mars, or witness historical events from an entirely new perspective. This cutting-edge use of VR is designed not only for entertainment but also to educate, providing a deeper, more engaging experience than traditional media formats.

National Geographic’s VR initiatives are a perfect example of how immersive media technologies like VR are reshaping content consumption. By utilizing VR, National Geographic is able to deliver content that goes beyond passive viewing. Rather than just showing viewers footage of a subject, VR places them within that environment, creating a sense of presence that engages audiences on an entirely different level. This trend aligns perfectly with the growing demand for interactive and immersive media experiences that offer more dynamic and participatory storytelling.

Technology and Impact

  • Virtual Reality Experiences: National Geographic’s VR experiences utilize cutting-edge technology to create 360-degree, fully interactive environments. From underwater explorations of the Great Barrier Reef to a first-person journey through Mars’ landscape, these experiences offer users a sensory immersion into places and experiences that would otherwise be impossible to access.
  • Educational and Emotional Engagement: The VR projects have been praised for their ability to emotionally engage users, particularly in educational contexts. For example, by diving into the ocean floor to witness coral reefs, users can gain a firsthand understanding of the impact of climate change. This level of immersion enhances the educational value of the content.
  • Accessibility: National Geographic’s VR experiences are available across multiple platforms, including Oculus Rift and HTC Vive, making them accessible to a wide audience. This approach ensures that the immersive experiences can reach users regardless of their physical location, further broadening the scope of the brand’s educational impact.

One of the most popular VR experiences from National Geographic, “Sea of Shadows”, takes viewers on an underwater adventure to witness the challenges faced by marine life. Users virtually dive into the ocean to explore coral reefs, observe marine species, and learn about conservation efforts in real-time. This experience provides more than just visuals—users can interact with the environment, gaining insights into the underwater ecosystem’s fragility and beauty, which traditional media formats cannot fully convey.

Challenges and Future Outlook

  • Scaling Immersive Content: While National Geographic’s VR experiences have been widely celebrated, producing high-quality VR content requires significant investment in technology, talent, and resources. Scaling this type of content to reach broader audiences without compromising quality remains a challenge for the media company.
  • Consumer Adoption: While VR technology has grown in popularity, it still faces barriers to widespread adoption, such as hardware requirements and cost. National Geographic will need to continue innovating to make VR content more accessible and user-friendly.

National Geographic’s VR experiences represent a major leap forward in how immersive media is transforming both entertainment and education. By offering users the ability to explore the world in ways that were previously unimaginable, National Geographic is enhancing storytelling, increasing audience engagement, and providing educational value through cutting-edge technology. As VR continues to evolve, it will play a key role in pushing the boundaries of media experiences, offering even more innovative and impactful ways for audiences to interact with content.

Final Thoughts

These trends—AI-generated content, niche streaming platforms, creator-led ecosystems, and immersive media experiences—are driving a wave of innovation that is reshaping how media is created, distributed, and consumed. The ability to harness emerging technologies and cater to ever-evolving consumer preferences has opened new opportunities for brands to engage audiences in more personalized, immersive, and interactive ways. As the media industry continues to evolve, staying ahead of these trends is crucial for maintaining relevance in a fragmented, competitive landscape.

For media companies, the key to thriving in this environment lies in embracing agility and innovation. Those who adapt quickly to the changing dynamics of content consumption and audience expectations will be best positioned to succeed. The future of media is rapidly transforming, and those who understand these shifts can capitalize on the new possibilities emerging in the space. To stay informed about these disruptive trends and how they’re shaping the future of the media industry, subscribe to Connecting the Dots, our monthly e-newsletter. Stay ahead of the curve, stay inspired, and lead the change in your industry.

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Digital media consumption has become a significant part of our daily lives. Understanding on-demand entertainment and streaming trends is now more crucial than ever. 

As we continue to embrace the convenience and diversity offered by streaming platforms, it’s important to delve into the patterns and preferences shaping this category. Our latest comprehensive report, “Next Wave of Entertainment: Global Trends in Media Consumption,” provides insights into current streaming habits, preferences, and behaviors of consumers worldwide. 

The report examines the on-demand entertainment industry and the most significant trends shaping its future. From the rise of all-in-one entertainment hubs to the growing demand for eco-friendly entertainment choices, this report analyzes the key drivers, challenges, and opportunities in the evolving world of on-demand entertainment.

The remarkable industry growth in on-demand entertainment highlights the evolving preferences of consumers worldwide, driving innovation and transforming the media and entertainment world. 

Download the full report for strategies and innovations leading the charge in this dynamic industry, supported by insightful case studies.

Trend 1: All-in-One Entertainment Hubs

Technological advancements and shifting consumer behaviors radically transform how we consume media. As major streaming platforms lose subscribers, there is a shift toward bundled offerings and ad-supported tiers. Consumers are gravitating toward platforms that offer a wide array of content under one roof. 

The main challenge in 2024 and beyond is consumer spending. Consumers are pulling back due to inflation, subscription fatigue, and geopolitical instability.

How are brands redefining the user experience, and what implications do they have for content providers? 

For more insights, download the full report.

Trend 2: Homegrown Hits and Cultural Connect

Local content is gaining international popularity, resonating with global audiences while staying true to its cultural roots. A notable example is the success of South Korean dramas like The Squid Game on Netflix, which have captivated viewers worldwide. 

What factors contribute to the rise of homegrown hits, and how do they impact global entertainment trends? 

Discover the answers in our full report.

Trend 3: On-the-Go Entertainment

With our screens everywhere, on-the-go entertainment is becoming increasingly popular. We are seeing the mainstream adoption of podcasts, the rise of cloud gaming, the desire to stream content on personal devices while traveling, and the increasing popularity of audiobooks. Together, these trends demonstrate a significant shift in how we access and enjoy entertainment while on the move.

Also, discover how these trends shape content consumption while traveling or during commutes.

Learn more by downloading the full report.

Trend 4: Bite-Sized Binges

TikTok is the fastest-growing platform and is the go-to place to find entertaining content. Across all generations, short-form video content beats long-form and is becoming a favorite for those with busy schedules, offering quick entertainment fixes. YouTube Shorts exemplifies this trend by providing easily digestible videos that attract millions of viewers daily. 

What makes bite-sized binges appealing, and how are they changing the content creation landscape? 

Find out in our detailed analysis in the full report.

Trend 5: Eco-Entertainment Choices

Sustainable practices are now a priority in the entertainment industry, from production to consumption. 

What are the key drivers for the growth of eco-entertainment choices, and how are companies adapting to meet these demands? 

Dive into the heart of innovation and eco-consciousness with our intriguing case study on how Coldplay’s sensational Music of the Spheres World Tour 2022 embraced renewable energy and sustainable practices, setting the stage for a greener future in the music industry. The report highlights how sustainability resonated throughout the tour, showing the band’s commitment to the planet.

The on-demand entertainment industry is evolving rapidly, driven by technological advancements and changing consumer preferences. Each trend presents unique opportunities and challenges for stakeholders across the industry. As we delve into these trends, it’s clear that on-demand entertainment is becoming more integrated, diverse, and sustainable. Brands that adapt to these changes stand to gain a competitive edge and connect more deeply with their audiences.

Download the full report to explore these trends and gain valuable market insights. 

When the content consumer is king, media companies and marketers must constantly engage with consumers to adapt to the shift in media and marketing power by attracting and retaining them in the midst of intense competition.

Our detailed analysis provides a roadmap for staying ahead in the ever-evolving on-demand entertainment space.

Download the full report for more information and to uncover all the details.

Kids today don’t know a world without smartphones and the internet. They are growing up in an age where entertainment and information are always at their fingertips, so it is no surprise they spend considerable time using technology daily. 

Recent studies show kids influence certain purchasing decisions regarding entertainment, which makes this segment of kids (between 8 and 12) very important for marketers and streaming platforms. Understanding their content consumption patterns allows brand leaders to tap into their growing influence. Parents have prioritised being family-focused, often engaging in co-viewing shows, movies, and videos. According to a 2023 study by Kids Industries, 73% of parents say their children co-view at least half of the time they watch content, which is a significant change from pre-pandemic times. This rise in co-viewing and kids’ significant role in household purchasing decisions underscores the importance of comprehending their media habits.

Historical Perspective

Early Media Consumption (1950s-1980s)

Television as the Primary Medium:

In the mid-20th century, television emerged as the medium for children’s entertainment. Families gathered around their TV sets for scheduled programming, fostering a shared viewing experience. This period was characterized by limited channels and specific time slots dedicated to children’s shows.

Limited Content and Scheduled Programming:

Children’s programming during this era was constrained to specific times, with iconic shows like “Captain Kangaroo” and “Sesame Street” becoming household staples. These shows entertained and played educational roles, shaping the media consumption habits of an entire generation.

Family Co-Viewing:

Television time was often a family event. Parents and children watched shows together, creating a communal activity that strengthened family bonds and provided a shared cultural experience. By the late 1950s, over 90% of American households owned a television. Children’s shows enjoyed significant viewership and became an integral part of daily life for families nationwide.

Rise of Cable and Satellite TV (1990s-2000s)

Dedicated Children’s Channels:

The introduction of cable and satellite TV in the 1990s revolutionized children’s media consumption. Channels like Nickelodeon and Cartoon Network offered round-the-clock programming specifically tailored for young audiences, greatly expanding the variety and availability of children’s content.

Diverse and Plentiful Programming:
This era saw an explosion in the variety of shows available, catering to different age groups and interests. From animated series to educational programs, the range of content ensured that children had more choices than ever before.

Shift Toward Individual Viewing:

With the increase in content, children began to watch TV more independently. The availability of children’s programming throughout the day allowed for individual viewing schedules, reducing the need for family co-viewing.

Digital Revolution and Its Impact

The advent of the Internet and Streaming Services (2010s-present)

With the advent of the internet and the proliferation of streaming services, how children access and interact with content has fundamentally changed.

On-Demand Content and Streaming Platforms

  • Rise of Streaming Services: The 2010s saw the emergence and rapid growth of streaming platforms like YouTube and Netflix. These platforms revolutionized media consumption by providing on-demand access to a vast content library.
  • Flexibility and Convenience: Unlike traditional TV, streaming services allow children to watch their favorite shows and videos any time. This flexibility has made these platforms immensely popular among younger audiences.
  • Diverse Content Offerings: Streaming platforms offer a wide range of content, from educational videos and animated series to user-generated content and interactive experiences. This diversity caters to various interests and age groups, making it easier for kids to find content that resonates with them.

Proliferation of Devices

  • Smartphones and Tablets: The widespread availability of smartphones and tablets has further facilitated the shift toward digital media consumption. These devices are user-friendly and portable, making them ideal for children.
  • Accessibility: With personal devices, children have constant access to their preferred content, whether at home or on-the-go. This accessibility has significantly increased the time spent on media consumption.
  • Impact on Viewing Habits: The convenience of personal devices has encouraged more individualized viewing habits. Children can now consume content independently, tailored to their preferences and schedules.

Personalized Viewing Experiences

  • Algorithm-Driven Recommendations: Streaming platforms use sophisticated algorithms to recommend content based on individual viewing histories and preferences. This personalization enhances the user experience by making it easier for children to discover new content that aligns with their interests.
  • Interactive Features: Many digital platforms incorporate interactive features, such as customizable profiles and parental controls, allowing for a more tailored and safe viewing experience.
  • Engagement and Retention: Personalized content keeps children engaged for longer as they are continually presented with new, relevant material. This increased engagement benefits both the platforms and advertisers.

Parents vs. Children: Generational Differences in Media Consumption

  • Parents’ Preferences:
    • Many parents grew up with traditional television and are comfortable with longer TV series and movies. Especially in Western markets, they still enjoy the larger screen experience when streaming content compared to smaller mobile screens. 
  • Children’s Preferences:
    • Children today are more inclined toward digital and streaming content, favoring platforms like YouTube, YouTube Kids, Netflix, and TikTok.
    • They enjoy on-demand content, which allows them to watch what they want, when they want.
    • Popular content includes short-form videos, interactive games, live streaming, and series.

Impact of Parents’ Media Habits on Children’s Choices

  • Influence of Parental Preferences:
    • Parents’ media habits still play a role in shaping children’s choices. If parents prefer certain types of content or platforms, children may be exposed to and adopt these preferences.
    • Family activities centered around media, such as watching movies or TV shows together, can introduce children to their parents’ favorite content.
  • Children’s Autonomy:
    • Despite parental influence, children increasingly drive their own media choices.
    • With the availability of personal devices like tablets and smartphones, kids have greater control over what they watch and when.
    • Children’s choices are often guided by peer influence, popular trends, and content recommendations from algorithms on digital platforms.

Family Dynamics: Co-Viewing vs. Individual Viewing

  • Co-Viewing Trends:
    • Co-viewing, where parents and children watch content together, has seen a resurgence, particularly during special events and family-friendly programming.
    • Events like Nickelodeon’s “Kids’ Choice Awards” have reported high levels of co-viewing, with more than half of the kids watching with an adult. This marks a significant increase over previous years.
  • Prevalence of Individual Viewing:
    • Despite the rise in co-viewing, individual viewing remains prevalent among children.
    • Kids often watch content on their devices, such as tablets, smartphones, or personal TVs, allowing them to enjoy personalized viewing experiences.
    • This shift toward individual viewing is facilitated by the accessibility of content on-demand, catering to the child’s specific interests and schedules.

Current Trends in Kids’ Media Consumption

Short-Form Content

Popularity of Platforms like TikTok, YouTube Shorts, and Instagram Reels:

  • Explosive Growth: Platforms like TikTok and Instagram have witnessed explosive growth among younger audiences. These platforms specialize in short-form content, typically ranging from 15 seconds to a few minutes, which appeals to the quick consumption preferences of today’s children.
  • User-Generated Content: The ability for users to create and share their videos has contributed to the popularity of these platforms. Kids enjoy consuming and creating content, leading to a highly interactive and engaging experience.
  • Trend-Driven Culture: Trends and challenges that go viral on these platforms contribute to their allure. Children are drawn to participate in popular trends, creating a sense of community and shared experience.

Influence of Bite-Sized Content on Attention Spans and Preferences

  • Short Attention Spans: The prevalence of short-form content is shaping children’s attention spans. Quick, engaging videos are designed to capture and hold attention in brief bursts, making longer forms of content less appealing for some.
  • Instant Gratification: Bite-sized content provides instant gratification, aligning with the fast-paced consumption habits of modern kids. This has implications for how children engage with educational content and traditional media.
  • Content Preferences: Children’s preferences are increasingly leaning towards concise, visually stimulating, and easily digestible content. This trend influences how content creators and educators design their materials.

Interactive and Educational Content

Growth in Edutainment and Educational Apps

  • Rise of Edutainment: There has been substantial growth in the edutainment sector, which combines education with entertainment. Apps and platforms that provide interactive learning experiences are becoming increasingly popular.
  • Popular Apps: Applications such as Khan Academy Kids, ABCmouse, and Duolingo have become staples for many households, offering educational content in a fun and engaging format.
  • Interactive Learning: These apps leverage interactive elements like games, quizzes, and rewards to enhance learning experiences, making education more appealing to children.

Parental Preferences for Educational Content

  • Parental Influence: Parents are prioritizing educational content that is both engaging and informative. They prefer apps and platforms that offer measurable educational benefits, such as improved literacy or math skills.
  • Safety and Quality: Parents are also concerned about the quality and safety of the content their children consume. They favor platforms that provide age-appropriate, ad-free experiences.
  • Balanced Consumption: While entertainment is important, parents increasingly seek a balance with educational content to ensure their children learn while entertained.

The Long-term Impact of COVID-19

Increased Screen Time and Content Consumption During Lockdowns

  • Pandemic Effects: The COVID-19 pandemic led to significant increases in screen time as lockdowns forced families to stay home. Children turned to digital devices for entertainment and education, with schools closed and outdoor activities limited.
  • Shift in Habits: Screen time for children increased by an average of 50%, with many spending upwards of 6 hours per day on digital media. This included educational activities, streaming, and social media engagement.
  • Parental Concerns: While necessary during the lockdowns, the increase in screen time raised concerns among parents about the long-term effects on their children’s health and development.

Changes in Viewing Habits and Content Preferences Post-Pandemic

  • Sustained Increase: Screen time has decreased somewhat post-pandemic, but it remains higher than pre-pandemic levels. Children have become accustomed to digital consumption, and these habits are likely to persist.
  • Content Evolution: There has been a noticeable shift towards more diversified content consumption, with an increased emphasis on educational and interactive content. Children and parents alike are seeking content that offers more than just entertainment.
  • Hybrid Learning: The pandemic accelerated the adoption of hybrid learning models, blending traditional education with digital tools. This has normalized the use of educational apps and platforms as a regular part of children’s routines. A study conducted in 2022 found that 70% of children continued to spend more time on digital media compared to pre-pandemic levels. Another study indicated that educational app usage saw a 30% increase during the pandemic and has remained elevated.

Case Study: The Success and Evolution of Children’s Content on YouTube

Image Credit: YouTube

Overview

YouTube has become a pivotal platform for children’s entertainment, hosting various content ranging from animated nursery rhymes to interactive toy reviews. Channels like CoCoMelon and Ryan ToysReview have amassed millions of subscribers, underscoring the platform’s appeal to younger audiences. Despite YouTube’s stance that it is not designed for children under 13, videos featuring children consistently outperform other content types regarding viewership. Despite the platform’s statement that it is not intended for viewers under 13, content featuring children and tailored to their interests remains highly popular, often garnering significantly more views than other types of content.

Popularity of Children’s Content

Based on a study by the Pew Research Center, even though only 2% of analyzed videos featured children under 13, these videos received triple the average views. Content both aimed at and featuring children proved even more popular, highlighting a robust demand for children-oriented programming.

Channels such as CoCoMelon, which plays animated nursery rhymes, boast over 53 million subscribers. Another major player is Ryan ToysReview, with a subscriber count of 20,749,585, where videos showcase children opening and reviewing toys. These channels are among the frontrunners in a niche that enjoys massive popularity despite comprising a small portion of YouTube’s content.

Challenges and YouTube’s Response

The platform has faced challenges, including concerns about child safety and privacy. The Federal Trade Commission’s settlement with YouTube over potential Children’s Online Privacy Protection Act violations highlighted the need for better protection for young viewers.

Introducing YouTube Kids

In response to these challenges, YouTube introduced YouTube Kids in 2015, a platform designed specifically for children. This initiative is part of YouTube’s effort to create a safer environment for young viewers. YouTube Kids features parental controls, allowing parents to guide their children’s viewing experiences by setting timers, blocking content, and selecting appropriate content categories. This platform ensures that all content available is suitable for children, aiming to alleviate parental concerns about exposure to inappropriate content.

YouTube Kids emphasizes enhanced safety features and a user-friendly interface tailored for children. The app restricts the creation of user accounts to adults, who can then manage the viewing options and available content for their children. This design directly responds to the issues raised about the main YouTube platform, providing a controlled environment that prioritizes the safety and interests of young users.

The launch and continual development of YouTube Kids represent YouTube’s commitment to addressing the complexities of hosting children’s content on a massive, globally accessible platform. By offering a solution that balances the immense popularity of children’s videos with robust safety measures, YouTube has taken a significant step towards reconciling the needs of its youngest audience with the demands for security and appropriate content. This case study illustrates the success of children’s programming on YouTube and highlights the platform’s proactive approach to creating a safer and more enjoyable viewing experience for children.

The Influence of Kids on Family Purchase Decisions

Direct Influence

Kids’ Preferences Shaping Family Subscriptions and Purchases

  • Influence on Subscriptions: Children play a significant role in shaping family decisions regarding media subscriptions. Platforms like Netflix, Disney+, and YouTube Kids often owe their subscriptions to the preferences and demands of younger family members.
  • Product Choices: Beyond media, kids influence many family purchases, from toys and games to food and clothing. Their exposure to new products through media content often drives these preferences. For example, a child’s interest in a popular animated series might lead the family to subscribe to a streaming service offering that content. Similarly, children’s enthusiasm for certain brands or characters can steer family purchases toward those items.

Role of Advertisements and Influencers in Kids’ Decision-Making

  • Advertisements: Ads targeting children are designed to be engaging and persuasive. These ads often highlight products in a way that appeals directly to kids, who then influence their parents’ purchasing decisions.
  • Influencers: Social media influencers, particularly those on platforms like YouTube and TikTok, have a powerful impact on children. Kids trust and emulate these influencers, often requesting products that they see endorsed in videos.

For example, unboxing videos, toy reviews, and lifestyle content featuring influencers can lead children to develop strong preferences for certain products, compelling parents to make those purchases.

Indirect Influence

Family Co-Viewing Experiences Leading to Collective Decisions

  • Shared Decision-Making: Co-viewing experiences, where families watch content together, often lead to collective decisions about subscriptions and purchases. The content watched during family time can influence what products are bought for shared enjoyment.
  • Enhanced Awareness: Watching content together allows parents to become more aware of their children’s preferences, which can influence family purchasing decisions. For example, a family regularly watching cooking shows together might decide to purchase kitchen gadgets or ingredients featured in the shows, reflecting a shared interest cultivated through co-viewing.

Shared Media Experiences and Bonding

  • Strengthening Bonds: Shared media experiences contribute to family bonding and create opportunities for discussions about preferences and interests. This bonding time can significantly influence collective decisions about purchases.
  • Influence on Spending: Activities enjoyed together, such as watching a popular family movie, can lead to spending on related merchandise, themed outings, or additional content from the same franchise. For example, a family that enjoys superhero movies together might be more inclined to buy related merchandise, such as action figures, costumes, or themed video games, reflecting the interests developed during co-viewing.

Regional Differences in Kids’ Media Consumption

Kids media consumption habits in the United States

Media Preferences:

  • The dominance of Streaming Services: In the US, streaming platforms like Netflix, Disney+, and YouTube Kids are very popular among children. Their flexibility and vast content libraries cater well to the diverse interests of American kids.
  • Social Media Platforms: Platforms like TikTok and Instagram are widely used, and many children actively create and consume short-form content. 
  • Educational Content: There is a significant demand for educational apps and content, especially post-pandemic, as parents seek to supplement their children’s learning.

Cultural Influences:

  • Content Diversity: There is a strong emphasis on diverse and inclusive content that reflects the multicultural nature of the US. This includes shows and movies featuring characters from various backgrounds and communities.
  • Parental Controls: American parents often prioritize content that includes robust parental controls and safety features to manage their children’s media consumption.

Kids media consumption habits in the United Kingdom

Media Preferences:

  • Public Broadcasting: Traditional TV channels like BBC’s CBeebies and CBBC remain popular for their high-quality educational and entertainment content.
  • Streaming Adoption: Like the US, streaming services like Netflix and Amazon Prime Video have a strong presence in the UK, with many children consuming content on-demand.
  • Interactive Apps: There is a growing use of interactive and educational apps driven by school initiatives and parental encouragement.

Cultural Influences:

  • Educational Focus: There is a notable focus on educational content, with many parents valuing programs and apps that offer learning opportunities.
  • Regulatory Environment: The UK has stringent regulations regarding children’s content, ensuring that media is safe and age-appropriate.

Kids media consumption habits in Asia

Media Preferences:

  • Mobile-First Consumption: In many Asian countries, mobile devices are the primary means of media consumption for children. Smartphones and tablets are widely used for accessing content.
  • Regional Platforms: Platforms like YouTube Kids and local streaming services (e.g., Hotstar in India, iQIYI in China) are extremely popular.
  • Anime and Local Content: There is a strong preference for anime and locally produced content, which often reflects regional cultures and traditions.

Cultural Influences:

  • Educational Emphasis: Education is highly valued in many Asian cultures, leading to a significant emphasis on educational content and apps. Parents often use media as a tool to enhance learning.
  • Parental Involvement: Parents tend to be highly involved in their children’s media consumption, often guiding and selecting appropriate content.
  • Language and Cultural Content: Content incorporating local languages and cultural references is highly preferred, making regional adaptations of global shows very popular.
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The Future of Kids Entertainment

Emerging Technologies

VR and AR in Kids’ Media

  • Immersive Experiences: VR and AR technologies are poised to revolutionize how children interact with media. These technologies offer immersive experiences that can transport kids to different worlds, enhance storytelling, and create interactive learning environments.
  • Educational Applications: VR and AR are increasingly integrated into educational content, providing interactive and engaging ways for children to learn. Virtual field trips, interactive history lessons, and immersive science experiments are examples of how these technologies can enhance education.
  • Entertainment and Gaming: VR and AR provide new ways to engage with content. The possibilities are vast, from VR games that allow children to physically interact with virtual environments to AR apps that bring characters and stories to life in the real world. As of 2023, approximately 15% of children aged 8-12 have used VR devices, and 25% have experienced AR through mobile apps. These numbers are expected to grow as the technologies become more accessible and affordable.

Potential Impact on Consumption Habits

  • Enhanced Engagement: VR and AR’s immersive nature can significantly increase engagement. Due to their captivating nature, children will likely spend more time interacting with these technologies.
  • New Content Forms: VR and AR will lead to the development of new forms of content specifically designed for these platforms, further diversifying the media landscape for children.
  • Parental Concerns: While these technologies offer exciting possibilities, there are also concerns regarding screen time, eye health, and the need for appropriate content moderation.

Evolving Content Strategies

Content Creators Adapting to Changing Preferences

  • Adapting to Trends: Content creators are continually adapting to the changing preferences of young audiences. This includes producing more interactive and engaging content, leveraging new technologies like VR and AR, and creating bite-sized, easily consumable media.
  • Platform-Specific Content: As children increasingly consume content on various platforms, creators tailor their content to fit each platform’s unique features and audience behaviors. For instance, short-form videos for TikTok, interactive games for mobile devices, and long-form series for streaming services.
  • User-Generated Content: Encouraging user-generated content and interactive participation has become a key strategy. This not only increases engagement but also helps in building a loyal community around the content.

Importance of Inclusivity and Representation in Kids’ Media

  • Diverse Representation: There is a growing emphasis on inclusivity and representation in children’s media. Content creators are making concerted efforts to include diverse characters and stories that reflect their audience’s varied backgrounds and experiences.
  • Impact on Identity and Self-Esteem: Inclusive content helps children see themselves represented in media, positively impacting their self-esteem and identity development. It also fosters empathy and understanding among young viewers by exposing them to different cultures and perspectives.
  • Industry Standards: Media companies are increasingly adopting industry standards and guidelines to ensure that content is inclusive and free from stereotypes.

As we look to the future, emerging technologies like VR and AR and evolving content strategies focused on inclusivity and representation will play crucial roles in shaping kids’ media consumption. These trends offer content creators, educators, and marketers exciting opportunities to engage young audiences in meaningful and innovative ways. Understanding and leveraging these future directions will be key to staying relevant in the ever-evolving landscape of children’s media.

This understanding can drive more effective advertising strategies for marketers that align with the preferences and behaviors of young consumers. By recognizing children’s significant influence on family purchases, marketers can tailor their campaigns to appeal to kids and their parents, leveraging co-viewing experiences and digital engagement to boost brand loyalty.

As an international market research agency that reaches hard-to-reach audiences, we are uniquely positioned to help uncover deep consumer insights and drive strategic decisions. To stay ahead of the curve, we encourage further research into the evolving preferences of younger audiences. You can effectively engage with this dynamic and influential demographic by continuously adapting strategies and exploring new trends.

Let us help you navigate the complexities of kids’ media consumption and unlock new opportunities for growth and connection. Contact us today to learn more about how our expertise can support your efforts in understanding and reaching young consumers in meaningful and impactful ways.

Have you ever considered having a front-row seat at a major global music festival without leaving home? Thanks to live streaming, millions of viewers worldwide can have an immersive experience right from their living rooms. 

These events signify a massive shift in how rapidly consumer habits are evolving. The rise of live streaming platforms such as Twitch, YouTube Live, and Facebook Gaming has revolutionized entertainment, offering real-time access to gaming, sports, concerts, and more. These platforms are not just changing how we watch content but also how we connect and engage with it. Esports, in particular, has become a cultural phenomenon, with games like Overwatch and Fortnite establishing competitive leagues and tournaments that attract millions of viewers worldwide. The South Korean government has even recognized esports as a legitimate industry, and US colleges and universities are also acknowledging its value by offering scholarships and creating dedicated esports programs.

The trend extends beyond gaming. Hybrid release models now allow consumers to enjoy new movies and shows in theatres or from the comfort of their homes, catering to diverse preferences and lifestyles. This dynamic evolution in media consumption is reshaping the industry, offering unprecedented opportunities for interaction, engagement, and community building.

From the rise of esports to the increasing impact of livestream eCommerce, the current trends in on-demand entertainment make it an exciting space.

What is On-Demand Live Streaming?

On-demand live streaming refers to the ability to watch live broadcasts at a later time. This format allows users to access previously aired live events as if they were streaming them live. It combines the immediacy of live broadcasts with the convenience of on-demand content, allowing users to experience live events at their own pace.

How is On-Demand Streaming Different from Live Streaming?

On-demand streaming allows users to access pre-recorded content at their convenience. Users can pause, rewind, and watch anytime, providing flexibility and control over their viewing experience. In contrast, live streaming involves real-time broadcasting, offering immediacy and engagement with audiences. Live streaming is interactive, allowing viewers to participate through comments, reactions, and live chats, creating a dynamic and communal viewing experience.

How is Live Streaming Different from VOD?

Live streaming and Video on Demand (VOD) are distinct in their delivery and consumption methods. Live streaming delivers real-time content, often focusing on interactive elements like live chats and reactions. This makes it ideal for events that benefit from live participation, such as sports, concerts, and gaming. VOD, on the other hand, provides a library of pre-recorded content that users can access at any time. This format suits movies, TV shows, and other content where immediacy is not a priority.

Generational Trends in Live Streaming

  • Younger Generations: Millennials and Gen Z are the primary drivers of live streaming adoption. They are likelier to engage with interactive content and prefer real-time engagement platforms. This demographic is also more inclined to use live streaming for social interaction, such as watching esports, concerts, and live events with friends.
  • Older Generations: While older generations are less likely to engage with live streaming, there is a growing interest in live broadcasts of news, religious services, and educational content. As the technology becomes more user-friendly, adoption rates among older viewers are expected to increase.

Regional Trends in Live Streaming

  • United States: The US continues to be a significant market for live streaming, with platforms like Twitch and YouTube Live leading the way. The popularity of live sports and esports is particularly high, driving substantial viewership and engagement.
  • United Kingdom: In the UK, live streaming is gaining traction in sports, music, and cultural events. The rise of hybrid events, which combine live and on-demand elements, is becoming a notable trend.
  • Asia: Asia, especially countries like China and South Korea, is at the forefront of live-streaming innovation. Platforms like Douyin (TikTok) and Naver’s V Live are popular, and the integration of e-commerce with live streaming (live commerce) is a significant trend. The cultural importance of live streaming in social interactions and entertainment is particularly pronounced in these regions.

Case Study: Coachella 2024 —Democratizing the Music Festival Experience

Image Courtesy: Coachella website

Background

Coachella, one of the world’s most iconic music and arts festivals, continues to evolve to meet the changing demands of its audience. For many years, through its hybrid model, Coachella has offered a front-row seat to the festival on YouTube. In 2024, Coachella pushed the boundaries of what a music festival can be by integrating advanced technology and a multi-stage experience. 

Approach

Hybrid Event Model

  • In-Person Experience: Maintaining the traditional allure of live performances, art installations, and exclusive on-site activities.
  • Digital Integration: Offering a comprehensive virtual experience for fans unable to attend in person. This included live streaming of performances, behind-the-scenes content, and interactive features.

Live Streaming

  • YouTube Partnership: Coachella continued its partnership with YouTube, providing a dedicated live channel that streamed performances from six main stages, artist interviews, and exclusive content. This partnership, renewed through 2026, has significantly expanded its global reach.​
  • Multi-Camera Angles: Viewers could choose from multiple camera angles, offering a personalized viewing experience.
  • YouTube Shorts: Coverage was expanded to YouTube Shorts, competing with TikTok in the short-term video content space​.

Interactive Features

Image Credit – Coachella 

  • Virtual Reality: The festival introduced VR experiences, allowing remote attendees to feel like they were part of it. Users could explore virtual replicas of the festival grounds, view performances, and interact with other virtual attendees.
  • Augmented Reality: Implementing AR features within the festival app, enhancing the on-site experience with interactive maps, artist information, and real-time updates​​.
  • Fortnite Integration: Coachella collaborated with Fortnite to create the Sahara Island, a virtual space where players could experience Coachella-themed events, interact with exclusive content, and enjoy performances within the game environment​

Exclusive Content:

  • Behind-the-Scenes Access: The festival provided behind-the-scenes footage, including artist rehearsals, backstage interviews, and glimpses into the preparation of the festival.
  • Exclusive Performances: It offered exclusive performances and collaborations that were available only to virtual ticket holders.

Outcomes

Increased Reach and Engagement:

  • Record Online Viewership: Coachella’s live streams attracted millions of unique viewers, significantly increasing online engagement compared to previous years. 
  • Global Accessibility: Fans from over 100 countries tuned in, showcasing the international appeal of Coachella’s hybrid model.

Enhanced Fan Experience:

  • Positive Feedback: Both in-person and virtual attendees praised the enhanced interactive features and exclusive content, leading to high satisfaction and engagement​​.
  • Social Media Buzz: The festival generated substantial social media activity, with millions of posts, shares, and interactions across platforms.

Revenue Growth:

  • Virtual Ticket Sales: Introducing virtual tickets provided a new revenue stream, contributing significantly to overall ticket sales.
  • Merchandise Sales: Online merchandise sales saw a notable increase, driven by exclusive virtual festival merchandise and AR-enhanced products.

Brand Partnerships:

  • Increased Sponsorship: The hybrid model attracted new sponsorship opportunities from tech companies and global brands looking to engage with Coachella’s diverse audience.
  • Enhanced Collaborations: The festival’s profile and offerings were boosted by collaborations with artists and brands for exclusive content and experiences.

Live Streaming and Watch Parties

Social watch parties are transforming passive viewing into active social interaction, reshaping how people connect and experience media. As technology advances, the scope of what can be shared and how people interact will continue to evolve, promising an exciting future for this trend.

Services like Screena are pioneering the space with free watch party services seamlessly integrating with popular streaming platforms. These services are designed to accommodate the growing demand for shared viewing experiences, offering tools that allow users to host and participate in watch parties effortlessly.

Live Event Watch Parties

Live event watch parties bring people together to share the joy of watching films, TV shows, and live events from the comfort of their homes. These gatherings have grown significantly, especially for watching sports events and award shows.

Interactive Watch Parties

Integrating features that allow real-time interaction, such as chatting, gaming, and live reactions, has made watch parties more engaging. Platforms are evolving to support these interactive elements, making the viewing experience more immersive and social.

Niche Watch Parties

There’s a growing trend toward specialized watch parties that cater to specific interests, such as genre-specific film nights or thematic series marathons. This customization allows participants to connect with like-minded individuals over shared passions deeply.

Purpose-Driven Watch Parties

Watch parties are increasingly used for greater causes, such as charity fundraisers or awareness campaigns. These events leverage the communal aspects of watch parties to support social and philanthropic causes, enhancing the sense of community and purpose among participants.

The Rise of Live Stream eCommerce

Instead of interacting with their audience through social media influencers, brands now focus on promoting and selling their merchandise through live video shopping. eCommerce live streaming has become a major trend and is expected to grow in popularity in 2024. Once brands integrate shopping with live-streaming content, consumer habits are heavily influenced.

Example: Pinterest Live Stream eCommerce

Image credit: Variety Magazine

Pinterest made a big move to engage in live stream eCommerce, which has already gained huge traction. Users can now showcase their products so their audience can easily purchase them. Live shopping and shop-exclusive deals will offer better prices to attract a new audience and get them interested in buying trending products.

Also, read – A summary of our Online Shopping report here.

Esports Are A Global Phenomenon

Esports, or electronic sports, have emerged as a major player in the entertainment industry, attracting millions of viewers and generating significant revenue. The rise of esports is closely linked to the growth of live-streaming platforms, which provide a venue for gamers to showcase their skills and for audiences to engage with their favorite games and players in real-time.

Growth of Esports in the United States

The United States is a significant market for esports, with major events and tournaments held regularly. The popularity of games like Overwatch, Fortnite, and League of Legends has contributed to the growth of the esports scene. Colleges and universities also recognize the value of esports, offering scholarships and creating dedicated esports programs.

Example: Overwatch League

Image Credit: SportsPro Media

The Overwatch League (OWL) is a professional esports league for Overwatch developed by Blizzard Entertainment. Similar to traditional sports leagues, the league has franchised teams representing different cities. OWL has brought esports into the mainstream, with matches broadcast on major networks and streamed online, drawing large audiences and significant sponsorship deals.

Growth of Esports in the United Kingdom

In the UK, esports are gaining momentum, with a growing number of events and increased media coverage. The UK Esports Association (UKESA) and other organizations are working to promote and develop the esports industry.

Example: Gfinity Elite Series

Image Credit: Gfinity PLC

The Gfinity Elite Series is a professional esports league in the UK that features multiple game titles, including FIFA, Rocket League, and Street Fighter. The league provides a platform for both amateur and professional players to compete, helping to foster local talent and grow the esports community in the UK.

Growth of Esports in Asia

Asia, particularly countries like China and South Korea, is at the forefront of the esports revolution. The region boasts some of the most passionate and dedicated esports fans, and the industry is supported by substantial investments from the private and public sectors.

Example: League of Legends Pro League (LPL)

Image Credit: ONE Esports 

The League of Legends Pro League (LPL) in China is among the most prestigious and competitive esports leagues globally. Teams like FunPlus Phoenix and Invictus Gaming have achieved international success, further elevating the status of Chinese esports on the world stage. The LPL has a massive following, with millions of viewers watching matches live.

The Rise of Esports in South Korea

PC Bang in South Korea. Image Credit: Senet

South Korea is often considered the birthplace of modern esports, with a culture that embraces competitive gaming. The country’s robust infrastructure and high-speed internet have made it an ideal environment for esports to flourish.

Key Developments:

  • StarCraft Legacy: StarCraft was one of the first games to achieve massive popularity in South Korea, with professional leagues and televised matches.
  • PC Bangs: Internet cafes, known as PC bangs, are ubiquitous in South Korea and serve as social hubs where gamers gather to play and compete.
  • Government Support: The South Korean government has recognized esports as a legitimate industry, providing support through infrastructure development and regulatory frameworks.

Impact on Global Esports:

South Korea’s success in esports has had a ripple effect worldwide, setting standards for professional leagues, player training, and audience engagement. South Korean players are often regarded as some of the best in the world, and their influence can be seen in the strategies and techniques used by teams globally.

Strategic Approaches to Gamification

Gaming broadcasters encourage social interaction and mixed-media experiences to attract younger viewers. Lockdowns pushed websites like Twitch, YouTube, and Facebook Gaming to grow massively this year and last. By leveraging their tech-savvy audience’s interests, Twitch added new features for live broadcasting to make airing various types of content more accessible.

Broadcasters started investing in real-time videos, interactivity features, and gamification. They noticed the importance of developing new protocols that deliver real-time videos at scale. Also, integrated chats and sharing options allow the audience to comment on and share content with their preferred social media platforms while watching.

The popularity of e-sports has been rapidly increasing, particularly since the start of the pandemic, leading to a surge in earnings and viewership. More e-sports enthusiasts and occasional viewers are projected to engage in e-sports live streaming in the coming years.

Some NBA teams have even decided to simulate games on NBA 2K and stream them on Twitch. Those games drew hundreds of thousands of viewers and showed great potential for similar content in the future. With more millennials and Gen Zs opting for video and gaming subscriptions than cable and traditional TV, it becomes clear that we are seeing the new direction the industry is heading.

Case Study: Twitch

Image Credit: Twitch 

Background

Launched in June 2011, Twitch is a live streaming platform initially focused on gaming, eSports, and video game live streaming. Owned by Amazon since 2014, Twitch has grown to become the world’s most extensive streaming website, with more than 15 million daily active users. Over time, the platform has expanded its content to include music, DIY, creative, and lifestyle streams, reflecting a broader scope of live entertainment.

Approach

Twitch’s unique approach centers on creating strong connections between streamers and their audiences. The platform allows fans to interact with streamers in real-time, fostering a sense of community and personal connection. Events like TwitchCon provide face-to-face moments for fans and streamers, further strengthening these bonds. Streaming daily helps build connections on a much more personal level than other platforms.

Despite the challenges of focusing primarily on live video content, Twitch has distinguished itself through its high engagement levels and strong social bonds. The platform’s design encourages viewers to participate in chats and live interactions, creating a dynamic and engaging user experience. This has been a key factor in its ability to maintain and grow its user base.

Outcomes

  • User Engagement: Twitch dominates the live streaming market with over 15 million daily active users and over 2.3 billion monthly visitors. It holds a significant lead over competitors like YouTube Gaming and Mixer, mainly due to its unique focus on community interaction and live content.
  • Market Presence: Twitch has a growing user base in multiple regions:
    • United States: Twitch has 33.2 million users in the United States, accounting for 20.36% of the platform’s total traffic. The US also has the largest share of Twitch viewers, with nearly a quarter of all users. The age group with the highest share of Twitch visitors is 25–34 years old.
    • United Kingdom: The UK has 13.4 million Twitch users, 5.23% of the global Twitch population, leveraging the country’s strong gaming culture and high internet penetration.
    • Asia: Twitch is gaining popularity in Asia. The Asia-Pacific market will generate over $78 billion in-game revenue this year. Twitch is also Japan’s most popular game streaming platform and is well-known for its Japanese gamer influencers.
  • Brand Collaborations: Major brands have successfully used Twitch to engage with the gaming community. Doritos sponsored Twitch competitions to position its brand as the go-to gaming snack, creating lasting impressions among gamers. Absolut Vodka increased brand awareness in Italy by collaborating with influencers to run gaming-themed ads and competitions. Wendy’s launched its own Twitch channel to host streams of popular games, gaining over 30,000 followers and enhancing its digital presence.
  • Psychological Impact: Studies have shown that Twitch provides entertainment and stress relief, contributing to physical and mental health benefits. Viewers enjoy a sense of community and interaction, which can reduce stress and improve mood.
  • Future Prospects: As Twitch continues to innovate, future features could include a “Twitch Market” for game-related merchandise, devices, and subscriptions, further integrating the platform into the gaming ecosystem.

The Future of Live Streaming and e-sports

The future of live streaming and e-sports is poised for significant growth and innovation, driven by technological advancements and changing consumer behaviors. 

As technology evolves, so too will the ways in which we interact with and consume media. Emerging trends such as live stream eCommerce, gamification, and the integration of dynamic ad insertion will continue to shape the market, offering new opportunities for engagement and monetization.

One of the most exciting developments is the growing intersection of live streaming and eCommerce. Brands increasingly leverage live video shopping to engage directly with consumers, transforming traditional retail experiences. This trend will likely accelerate, creating more personalized and interactive shopping experiences.

Moreover, the continued rise of esports highlights a broader shift toward digital and interactive entertainment. With significant growth in regions like the US, UK, and Asia, esports is redefining competitive sports and fostering new communities and opportunities for connection.

The concept of watch parties is also evolving, moving from simple shared viewing experiences to more immersive and interactive social events. Whether for niche interests or broader causes, watch parties are a powerful tool for building communities and driving social interaction, mostly with younger cohorts.

As we look ahead, integrating advanced technologies such as AI and machine learning will further personalize and enhance live streaming experiences. Real-time analytics, improved content recommendations, and seamless ad integrations will ensure that live streaming remains a dynamic and engaging medium.

Live streaming and e-sports are at the forefront of a media revolution, offering innovative ways to connect, engage, and entertain. The potential for growth and innovation is immense, and as these trends continue to develop, they will undoubtedly redefine how we experience entertainment and commerce.

Just a few decades ago, the evening news or the morning paper was most people’s primary information source. Today, in the age of smartphones and social media, how we consume news has radically transformed. According to a recent study, nearly 60% of US adults now get their news from social media, a stark contrast to traditional news consumption patterns of the past.

In this blog, we cover:

  • How different generations access and trust news sources
  • The consequences of content gating by traditional media
  • The implications of our headline-skimming culture
  • Current trends shaping the future of news media
  • Insights for marketers, product marketers, and market researchers of media brands

Changing Patterns in News Consumption

Generational Differences

Baby Boomers: Preference for Traditional Media

Baby Boomers, born between 1946 and 1964, strongly prefer traditional media outlets such as television and newspapers. According to a recent report, 78% of Baby Boomers still rely on TV for their news, and 53% regularly read newspapers. This generation values the credibility and familiarity of established news sources, finding comfort in the trusted anchors and print journalists they’ve followed for years.

Gen X and Millennials: A Blend of Traditional and Digital Media

Gen X (born 1965-1980) and Millennials (born 1981-1996) exhibit a more blended approach to news consumption. While they still engage with traditional media, they increasingly turn to digital platforms. Pew Research data from 2022 indicates that 62% of Gen X and 72% of Millennials access news online at least weekly, with significant overlap in their use of social media and news websites. This generational shift reflects their adaptability, comfort with digital technology, and desire for on-demand access to information.

Gen Z: Predominantly Digital, Social Media, and Online News

Gen Z, born after 1996, are the first true digital natives, and their news consumption habits reflect this reality. A 2023 Reuters Institute Digital News Report highlights that 84% of Gen Z individuals get their news from social media platforms like Instagram, TikTok, and Twitter. Only 26% of Gen Z report watching TV news regularly, and an even smaller percentage read print newspapers. This generation values quick, accessible, and visually engaging news formats, often favoring short video clips and social media posts over long-form articles.

Key Statistics Across Generations

  • Baby Boomers: 78% watch TV news, 53% read newspapers 
  • Gen X: 62% access news online weekly 
  • Millennials: 72% access news online weekly 
  • Gen Z: 84% get news from social media 

The Rise of Digital and Social Media

Digital Transformation: How Online Platforms Have Become Primary News Sources

The digital revolution has fundamentally transformed the way people consume news. Online platforms, including news websites and apps, have become primary sources of information for many. According to a 2022 study, 86% of Americans get their news from a digital device, including computers, tablets, and smartphones. This shift reflects the growing demand for immediate, on-the-go access to news, allowing consumers to stay informed anytime and anywhere.

Social Media’s Role: The Impact of Platforms Like Facebook, Twitter, and TikTok on News Dissemination

Social media platforms have played a significant role in this digital transformation. Sites like Facebook, Twitter, and TikTok have become vital channels for news dissemination, particularly among younger generations. 

Recent research revealed that 48% of US adults said they get news from social media “often” or “sometimes.” Facebook remains the dominant platform, with 31% of adults using it for news, followed by YouTube at 22% and Twitter at 14%.

These platforms not only deliver news but also enable real-time interaction and engagement. Users can share, comment, and discuss news stories, creating a dynamic and interactive ecosystem. TikTok, known for its short-form videos, has seen a rapid increase in news consumption, especially among Gen Z. According to the Reuters Institute, 38% of Gen Z users globally use TikTok for news, a significant rise from previous years.

Implications: The Consequences of Instant News Access and Algorithmic Influence

Instant access to digital and social media news has several implications. On the positive side, it allows for real-time updates and a greater diversity of news sources. However, it also raises concerns about information overload and the quality of news consumed. The role of algorithms in shaping news consumption is particularly significant. These algorithms, designed to maximize user engagement, often prioritize sensational and emotionally charged content, which can lead to the spread of misinformation and echo chambers.

A recent study by the Knight Foundation found that 58% of Americans believe that the news they see on social media is less reliable than news from other sources. This skepticism highlights the challenge of ensuring the accuracy and reliability of news in the digital age. Additionally, the speed at which news spreads on social media can sometimes amplify false information before it can be corrected.

Data: Statistics on Social Media Usage for News

  • Social Media News Consumption: 48% of US adults get news from social media (Pew Research Center, 2023).
  • Platform Usage:
    • Facebook: 31% of adults use it for news (Pew Research Center, 2023).
    • YouTube: 22% of adults use it for news (Pew Research Center, 2023).
    • Twitter: 14% of adults use it for news (Pew Research Center, 2023).
  • TikTok: 38% of Gen Z users globally use TikTok for news (Reuters Institute, 2023).
  • Trust in Social Media News: 58% of Americans view news on social media as less reliable (Knight Foundation, 2022).

Content Gating and Its Consequences

Paywalls and Subscriptions: How Traditional News Outlets Are Gating Content to Monetize

When digital content is abundant and often free, traditional news outlets have increasingly turned to paywalls and subscriptions to monetize their content. This trend is driven by the need to offset declining advertising revenues and maintain journalistic standards. 

According to a recent report by the Reuters Institute, 76% of leading newspapers in the US and Europe have implemented some form of paywall. Prominent examples include The New York Times, The Washington Post, and The Wall Street Journal, all requiring subscriptions to access most of their content.

Impact on Trust: The Shift to Less Trustworthy Sources When Content Is Gated

While paywalls help sustain quality journalism, they also pose a significant challenge: the potential shift of audiences to less trustworthy sources. When faced with gated content, many consumers opt for free, less reliable alternatives. A recent study by the Media Insight Project found that 45% of adults have encountered paywalls, and 62% sought out free news sources instead. This behavior can lead to increased exposure to misinformation and lower-quality journalism, as free news sites may prioritize sensationalism and clicks over accuracy.

Case Studies: Examples of Major News Outlets with Gated Content and the Resulting Consumer Behavior

Several major news outlets have embraced paywalls with varying levels of success:

  • The New York Times: With its digital subscription model introduced in 2011, The New York Times now boasts over 10 million digital-only subscribers as of 2023 (The New York Times Company). This success highlights a strong consumer willingness to pay for high-quality journalism.
  • The Washington Post: Similarly, The Washington Post has seen substantial growth in digital subscriptions, reaching 3 million in 2022. However, they also face challenges with audience retention and attracting younger readers who are less inclined to pay for news (Reuters Institute, 2022).
  • The Wall Street Journal: Known for its business and financial coverage, The Wall Street Journal has effectively used a strict paywall to maintain a dedicated subscriber base of over 3.5 million as of 2023. Their model demonstrates the value perceived by niche audiences in specialized content (Dow Jones & Company).

These examples illustrate a mixed landscape where paywalls can be both a lifeline for quality journalism and a barrier driving consumers towards free, less trustworthy news sources.

Qualitative Insight: Consumer Attitudes Towards Paywalls and Their Perceived Value of News

Consumer attitudes towards paywalls are complex and multifaceted. According to a 2023 survey by the American Press Institute, 52% of respondents believe that news should be free, reflecting a lingering expectation for free access to information. However, the same survey found that 41% of respondents who pay for news feel that the quality and reliability of the content justify the cost. This indicates a willingness among a significant portion of the audience to support quality journalism financially.

Qualitative insights reveal a generational divide in attitudes towards paywalls. Older generations, who grew up with paid print subscriptions, are generally more accepting of paying for digital news. In contrast, younger generations, accustomed to free online content, often perceive paywalls as a barrier. This generational difference suggests that news organizations must balance their monetization strategies with efforts to engage and educate younger audiences about the value of quality journalism.

Data: Statistics on Consumer Behavior and Attitudes Towards Paywalls

  • Encounter with Paywalls: 45% of adults have encountered paywalls. 
  • Response to Paywalls: 62% of those who encounter paywalls seek free alternatives 
  • Digital Subscribers:
    • The New York Times: Over 10 million digital-only subscribers 
    • The Washington Post: 3 million digital subscribers 
    • The Wall Street Journal: Over 3.5 million digital subscribers 
  • Consumer Attitudes: 52% believe news should be free, and 41% believe paid news is worth the cost (American Press Institute, 2023).

The Headline Culture

Clickbait and Short Attention Spans: The Tendency to Not Read Beyond Headlines

The prevalence of clickbait headlines and readers’ diminishing attention spans have significantly altered how news is consumed. Clickbait, designed to attract clicks through sensational or misleading headlines, capitalizes on the reality that many people do not read beyond the headline. This trend is compounded by the sheer volume of available information, leading to “headline culture.”

A study by the Pew Research Center found that 63% of US adults acknowledge they often only read headlines of news stories shared on social media. This behavior is particularly pronounced among younger generations, with 74% of Millennials and Gen Z reporting they frequently skim headlines rather than engaging with full articles.

Statistics: Data on How Many People Read Full Articles Versus Headlines

A recent study conducted by Chartbeat, a content intelligence platform, shows the extent of headline-only reading. The study revealed that 55% of page views on news websites last less than 15 seconds, suggesting that most readers do not engage with the content beyond the headline. Furthermore, a report by Microsoft highlighted that the average human attention span has dropped to just 8 seconds, exacerbating the tendency to skim rather than read in-depth.

Consequences: The Implications for Public Knowledge and Misinformation

The shift towards headline-driven news consumption has several critical implications for public knowledge and the spread of misinformation. When readers only engage with headlines, they miss out on the nuance and context provided in the full article, leading to a superficial understanding of complex issues. This can result in the spread of incomplete or misleading information, as headlines often oversimplify or sensationalize the content to grab attention.

According to a recent survey by the Reuters Institute, 47% of respondents admitted to sharing news stories on social media without reading beyond the headline. This behavior contributes to the rapid dissemination of potentially inaccurate or misleading information. 

Additionally, a study by MIT found that false news spreads significantly faster and more broadly than accurate news on social media platforms, highlighting the dangers of headline-only consumption.

The consequences of this trend are far-reaching. Misinformation can shape public opinion and influence decision-making on critical issues, from health and science to politics and social policy. For example, during the COVID-19 pandemic, headline-only reading contributed to the spread of false information about the virus and vaccines, complicating public health efforts.

Data: Statistics on Headline Reading and Its Impact

  • Headline-Only Reading: 63% of US adults only read headlines on social media 
  • Short Attention Span: 55% of page views on news sites last less than 15 seconds 
  • Attention Span: The average human attention span is now 8 seconds 
  • Sharing Without Reading: 47% of respondents share news without reading beyond the headline 
  • Spread of False News: False news spreads faster and more widely than accurate news.

Addressing the challenges posed by headline culture requires a concerted effort from news organizations, educators, and consumers. News outlets must balance the need for catchy headlines with the responsibility to provide accurate and comprehensive reporting. 

Educators and media literacy programs can equip consumers with the skills to critically evaluate news content beyond the headline. As we look to the future, fostering a more informed and engaged public will be crucial in mitigating the negative impacts of headline culture on society.

News Consumption Around the World

CountryPrimary News SourcesDigital News ConsumptionSocial Media for NewsTrust in News Media
ChinaState media, online news platforms89% access news online (Reuters Institute, 2023)73% use social media for news (WeChat, Weibo) (Pew Research Center, 2022)High trust in state media, low trust in foreign sources (Reuters Institute, 2023)
IndiaTV, online news websites, newspapers68% access news online (Reuters Institute, 2023)72% use social media for news (Facebook, WhatsApp) (Pew Research Center, 2022)Moderate trust in news media, rising concern over misinformation (Reuters Institute, 2023)
IndonesiaTV, online news portals, social media78% access news online (Reuters Institute, 2023)86% use social media for news (Facebook, Instagram) (Reuters Institute, 2023)Moderate trust in news, concerns over online misinformation (Reuters Institute, 2023)
JapanTV, newspapers, online news sites76% access news online (Reuters Institute, 2023)29% use social media for news (Twitter, Line) (Pew Research Center, 2022)High trust in traditional media, cautious about online news (Reuters Institute, 2023)
PhilippinesTV, social media, online news sites82% access news online (Reuters Institute, 2023)88% use social media for news (Facebook, YouTube) (Reuters Institute, 2023)High trust in news media, but rising concern over fake news (Reuters Institute, 2023)
SingaporeTV, online news sites, newspapers74% access news online (Reuters Institute, 2023)65% use social media for news (Facebook, WhatsApp) (Pew Research Center, 2022)High trust in government-regulated news sources (Reuters Institute, 2023)
ThailandTV, online news portals, social media85% access news online (Reuters Institute, 2023)79% use social media for news (Facebook, Line) (Reuters Institute, 2023)Moderate trust in news media, concerns over online misinformation (Reuters Institute, 2023)
UKTV, online news sites, newspapers79% access news online (Reuters Institute, 2023)45% use social media for news (Facebook, Twitter) (Pew Research Center, 2022)Moderate trust in news media, increasing skepticism of social media (Reuters Institute, 2023)
VietnamTV, online news portals, social media83% access news online (Reuters Institute, 2023)81% use social media for news (Facebook, Zalo) (Reuters Institute, 2023)High trust in government-controlled media (Reuters Institute, 2023)

Key Insights

China: In China, state media and online news platforms dominate. With 89% accessing news online, the country’s controlled media environment fosters high trust in state news sources but low trust in foreign news.

India: Indian consumers rely heavily on TV and online news, with 68% accessing digital news and 72% using social media. Trust in news is moderate, with rising concerns over misinformation.

Indonesia: Indonesian news consumption is marked by high digital engagement, with 78% accessing news online and 86% using social media. Trust is moderate, with significant concerns over misinformation.

Japan: Japanese consumers prefer traditional media like TV and newspapers, though 76% access news online. Trust remains high in traditional media, with cautious engagement in online news.

Philippines: The Philippines exhibits high digital news consumption (82%) and significant use of social media for news (88%). Trust in news media is high, but concerns over fake news are growing.

Singapore: In Singapore, news consumption is balanced across TV, online platforms, and newspapers, with 74% accessing digital news. Trust in government-regulated news is high.

Thailand: Thai consumers show high digital engagement (85%) and social media usage for news (79%). Trust in news media is moderate, with concerns over misinformation prevalent.

UK: UK news consumers access news digitally (79%) and moderately use social media (45%). Trust in traditional news media is moderate, with increasing skepticism towards social media sources.

Vietnam: In Vietnam, TV and online news are primary sources, with 83% accessing news online and 81% using social media. Trust in government-controlled media is high.

Top Online and Offline Sources of News Media by Country

CountryTop Offline SourcesCirculation/ViewershipTop Online SourcesAudience Statistics
USThe New York Times (Print)850,000 (daily circulation, 2023)CNN Digital166 million unique visitors (monthly, 2023)
Fox News (TV)2.5 million (average primetime viewership, 2023)The New York Times Online10 million digital-only subscribers (2023)
ChinaPeople’s Daily (Print)3 million (daily circulation, 2023)Tencent News1 billion active users (monthly, 2023)
CCTV News (TV)155 million (average daily viewership, 2023)Sina News700 million active users (monthly, 2023)
IndiaDainik Bhaskar (Print)4.6 million (daily circulation, 2023)Times of India Online225 million unique visitors (monthly, 2023)
Aaj Tak (TV)24 million (average daily viewership, 2023)NDTV Online150 million unique visitors (monthly, 2023)
IndonesiaKompas (Print)500,000 (daily circulation, 2023)Detik.com200 million unique visitors (monthly, 2023)
RCTI (TV)30 million (average daily viewership, 2023)Tribunnews.com100 million unique visitors (monthly, 2023)
JapanYomiuri Shimbun (Print)8.5 million (daily circulation, 2023)Yahoo Japan News50 million unique visitors (monthly, 2023)
NHK News (TV)10 million (average daily viewership, 2023)Asahi Shimbun Digital30 million unique visitors (monthly, 2023)
PhilippinesManila Bulletin (Print)280,000 (daily circulation, 2023)Rappler25 million unique visitors (monthly, 2023)
ABS-CBN News (TV)15 million (average daily viewership, 2023)Inquirer.net20 million unique visitors (monthly, 2023)
SingaporeThe Straits Times (Print)250,000 (daily circulation, 2023)Channel NewsAsia Online12 million unique visitors (monthly, 2023)
Channel NewsAsia (TV)1 million (average daily viewership, 2023)The Straits Times Online10 million unique visitors (monthly, 2023)
ThailandThai Rath (Print)1 million (daily circulation, 2023)Sanook.com40 million unique visitors (monthly, 2023)
Channel 7 (TV)10 million (average daily viewership, 2023)Khaosod English25 million unique visitors (monthly, 2023)
UKThe Sun (Print)1.2 million (daily circulation, 2023)BBC News Online150 million unique visitors (monthly, 2023)
BBC News (TV)6 million (average daily viewership, 2023)The Guardian Online50 million unique visitors (monthly, 2023)
VietnamTuổi Trẻ (Print)450,000 (daily circulation, 2023)VNExpress60 million unique visitors (monthly, 2023)
VTV1 (TV)20 million (average daily viewership, 2023)Zing News50 million unique visitors (monthly, 2023)

The Future of News Media

Cable News: Trends and Challenges Facing Cable News Networks

Cable news networks, once the cornerstone of TV news consumption, face significant challenges in the digital age. The rise of streaming services and on-demand content has led to a decline in cable subscriptions. 

According to a recent study, cable TV viewership has dropped by 20% over the past five years. Younger audiences, in particular, are migrating away from traditional cable news in favor of online platforms.

The primary challenges for cable news include maintaining relevance among digital-first consumers and adapting to the rapidly changing media landscape. Networks like CNN, Fox News, and MSNBC are investing heavily in digital strategies, including streaming services and social media engagement, to retain and grow their audience. However, the competition from digital-native news organizations and the need to combat misinformation while maintaining trust remain significant hurdles.

Local News: The Role and Future of Local News Outlets

Local news outlets play a crucial role in communities by covering regional events, politics, and issues that may not receive national attention. Despite their importance, local news organizations are facing a crisis, with many struggling to stay afloat due to declining ad revenues and readership. The Poynter Institute reported that over 2,000 local newspapers in the US have closed since 2004, leading to “news deserts” in many areas.

Local news outlets are exploring new business models to combat these challenges, such as nonprofit status, community funding, and partnerships with larger media organizations. Additionally, there’s a growing trend of hyperlocal digital news platforms focusing on specific communities or topics, offering tailored content that traditional local newspapers may not provide. These efforts aim to revitalize local journalism and ensure that communities continue to have access to vital news and information.

Online News: Emerging Trends in Online News Consumption

The shift towards online news consumption is characterized by the rise of independent journalism and niche news sites. Independent news organizations, often funded through subscriptions or donations, provide an alternative to mainstream media, focusing on in-depth reporting and investigative journalism. Examples include ProPublica and The Intercept, which have gained recognition for their high-quality, in-depth coverage.

Niche news sites cater to specific interests or communities, offering specialized content that may not be covered extensively by general news outlets. Platforms like The Athletic (sports journalism) and TechCrunch (technology news) have succeeded by targeting passionate audiences with focused content. According to research, 43% of digital news consumers regularly visit niche or independent news sites, reflecting a growing appetite for specialized journalism.

Predictions: Expert Predictions on the Future Landscape of News Media

Experts predict that the future of news media will be increasingly digital, decentralized, and driven by consumer preferences. The continued growth of digital subscriptions and donations indicates that audiences are willing to pay for quality journalism. According to a report by the International News Media Association (INMA), digital news revenues are expected to surpass print revenues by 2025, highlighting the ongoing shift towards digital-first strategies.

The role of artificial intelligence (AI) and machine learning in news production and distribution is also expected to grow. AI can help personalize news feeds, automate reporting on routine stories, and assist in fact-checking to combat misinformation. However, the ethical implications of AI in journalism, such as bias and accountability, will need to be carefully managed.

Another key trend is the increasing importance of multimedia content, including podcasts, videos, and interactive storytelling. The Reuters Institute found that 48% of young adults (aged 18-24) prefer news formats that include video or audio elements. This shift underscores the need for news organizations to diversify their content offerings and leverage multiple platforms to reach broader audiences.

Key Data:

  • Cable News Viewership: Cable TV viewership has dropped by 20% over the past five years 
  • Local News Closures: Over 2,000 local newspapers in the US have closed since 2004 
  • Niche News Sites: 43% of digital news consumers regularly visit niche or independent news sites 
  • Digital Revenue: Digital news revenues are expected to surpass print revenues by 2025 
  • Multimedia Content: 48% of young adults prefer news formats that include video or audio elements 

The future of news media is poised for continued transformation, driven by technological advancements and evolving consumer preferences. As the media landscape evolves, the focus will be on maintaining trust, delivering high-quality journalism, and meeting the needs of a digitally savvy population.

Consumer Behavior and Market Implications

Behavioral Trends: Insights into How Consumer Behavior is Shaping News Media

Consumer behavior in news consumption is increasingly driven by digital and social media platforms, reflecting broader trends in media engagement. 86% of Americans get their news from digital devices, and 48% often get their news from social media. This shift towards digital platforms is most pronounced among younger generations, with 84% of Gen Z accessing news through social media, compared to only 31% of Baby Boomers.

Another key trend is the preference for multimedia content. 48% of young adults prefer news formats that include video or audio elements, highlighting the need for news organizations to diversify their content offerings. Additionally, the growing use of mobile devices for news consumption means that content needs to be optimized for smaller screens and shorter attention spans.

Marketing Implications: What These Changes Mean 

The evolving landscape of news consumption presents challenges and opportunities for media brands. The fragmentation of news sources and the shift toward digital platforms require a more nuanced understanding of audience behavior and preferences. Traditional advertising models may no longer be as effective, necessitating innovative approaches to reach and engage target audiences.

One significant implication is the need for brands to build trust and credibility. With 58% of Americans viewing news on social media as less reliable (Knight Foundation, 2022), brands that can establish themselves as trustworthy sources of information have a distinct advantage. This can be achieved through transparency, consistent messaging, and aligning with reputable news outlets.

Another implication is the importance of multimedia content in marketing strategies. Given the preference for video and audio content, brands should invest in creating engaging multimedia campaigns that resonate with their audience. Leveraging platforms like YouTube, TikTok, and podcasts can help reach younger, digitally-savvy consumers.

Actionable Insights: Strategies for Engaging with Different Generations and Leveraging the Changing News Consumption Landscape

1. Tailor Content to Generational Preferences:

  • Baby Boomers: Focus on credibility and familiarity by aligning with trusted traditional news sources and providing detailed, in-depth content.
  • Gen X and Millennials: Utilize a blend of traditional and digital media, ensuring content is accessible on both platforms. Interactive content, such as webinars and live Q&A sessions, can be effective.
  • Gen Z: Prioritize social media engagement and multimedia content. Short, visually appealing videos and interactive social media posts are crucial to capturing their attention.

2. Optimize for Mobile and Digital Platforms:

  • Ensure all content is mobile-friendly, with quick load times and easy navigation. Use responsive design to cater to various devices and screen sizes.
  • Leverage social media algorithms by creating shareable and engaging content that encourages interaction and discussion.

3. Build and Maintain Trust:

  • Provide accurate, well-researched information to establish your brand as a reliable source. Partner with reputable news outlets and industry experts to enhance credibility.
  • Engage in transparent communication and address any misinformation promptly to build and maintain consumer trust.

4. Invest in Multimedia Content:

  • Create diverse content formats, including videos, podcasts, infographics, and interactive articles. This will cater to different consumption preferences and keep your audience engaged.
  • Use data analytics to track which types of content perform best and adjust your strategy accordingly.

5. Leverage Data and Analytics:

  • Use audience insights and data analytics to understand consumer behavior and tailor your marketing strategies. Track engagement metrics, such as time spent on content, click-through rates, and social media interactions.
  • Implement A/B testing to determine the most effective content formats and distribution channels.

Key Data:

  • Digital News Consumption: 86% of Americans get their news from digital devices.
  • Social Media for News: 48% of Americans get news from social media.
  • Multimedia Preference: 48% of young adults prefer news formats with video or audio.
  • Trust in Social Media News: 58% view news on social media as less reliable.

Future Outlook: Final Thoughts on How the News Media Industry Can Adapt and Thrive

The news media industry stands at a pivotal crossroads, driven by rapid technological advancements and evolving consumer behaviors. To thrive in this dynamic landscape, news organizations must embrace innovation, prioritize trust, and adapt to the diverse needs of a global audience.

Embracing Technological Innovation

Integrating artificial intelligence (AI) and machine learning will play a transformative role in the future of news media. AI can streamline news production, enhance content personalization, and improve fact-checking processes. By leveraging AI, news organizations can deliver more relevant and accurate news tailored to individual preferences. For instance, personalized news feeds powered by AI algorithms can help readers discover content that aligns with their interests, increasing engagement and satisfaction.

Virtual reality (VR) and augmented reality (AR) are also poised to revolutionize news consumption. Through VR and AR, immersive storytelling can provide audiences with a deeper understanding of complex issues by offering interactive and experiential news content. Imagine experiencing a news report on climate change through a VR simulation that transports you to the melting polar ice caps—such innovations can make news more engaging and impactful.

Prioritizing Trust and Credibility

In an era of misinformation and declining trust in media, news organizations must prioritize transparency and credibility. Establishing a robust fact-checking infrastructure and adhering to high journalistic standards will be essential. Collaboration between media outlets to combat fake news and promote media literacy can also help restore public confidence.

Blockchain technology offers a promising solution for enhancing transparency. By creating immutable records of news stories, blockchain can help verify the authenticity and origin of content, reducing the spread of false information. News organizations that adopt such technologies will be better positioned to earn and maintain audience trust.

Adapting to Global and Cultural Diversity

The future of news media will be increasingly global and culturally diverse. News organizations must cater to a multilingual and multicultural audience, providing content that resonates across different regions and cultures. This requires a nuanced understanding of local contexts and the ability to deliver news in multiple languages.

Collaborative journalism initiatives that bring together reporters from different countries can offer diverse perspectives on global issues. By fostering cross-cultural reporting, news organizations can provide a more comprehensive and inclusive view of world events, promoting greater understanding and empathy among audiences.

Impact on Societies and Culture

The evolution of news media will have profound implications for societies and cultures globally. As news consumption becomes more personalized and interactive, individuals will have greater access to diverse viewpoints, fostering a more informed and engaged citizenry. However, the challenge will be to balance personalization with exposure to a wide range of perspectives, preventing the formation of echo chambers.

The rise of independent journalism and niche news sites will empower communities to tell their own stories, challenging dominant narratives and promoting a more pluralistic media environment. This democratization of news production can enhance social cohesion by giving voice to underrepresented groups and fostering a more inclusive public discourse.

The future of news media is bright, brimming with opportunities for innovation and growth. By embracing technology, prioritizing trust, and adapting to the needs of a global audience, news organizations can survive and thrive in this rapidly changing landscape. 

We envision a media environment that empowers individuals, strengthens democratic societies, and fosters a deeper understanding of our complex world. The journey ahead will be challenging, but with foresight and adaptability, the news media industry can continue to play a vital role in shaping our collective future.

Marketers worldwide are drawn to the next big thing to help them optimize the ROI on their ad spend, and they are increasingly betting on data-driven ad targeting. So, naturally, marketing budgets in many countries are shifting to Connected TV or CTV.

With a continued shift to streaming TV and the speed at which things are moving, marketers are increasing CTV budgets, especially in more developed markets like the US and the UK.

78% of US and 90% of UK marketers plan to continue investing more in CTV advertising. 

Marketers must stay current with the latest trends to remain competitive and relevant. The shift in TV viewing habits to Connected TV (CTV) has opened up a world of opportunities for marketers to reach their target audience in a more engaging way. CTV advertising is a must-know strategy for any brand looking to stay ahead of the curve and maximize its marketing efforts. 

What is CTV?

CTV, or Connected TV, refers to any TV set connected to the Internet, allowing viewers to stream content through various apps and services. Unlike traditional Linear TV, CTV provides audiences with an on-demand, personalized viewing experience.

OTT, or Over-the-Top, is often confused with CTV, which refers to delivering TV and video content through the Internet rather than traditional broadcasting methods. CTV and OTT have become increasingly popular among consumers, with market research indicating a steady rise in cord-cutting and increased streaming services worldwide. For brands, CTV offers a new and highly effective platform for advertising and reaching audiences who are consuming content in a non-traditional way.

How does CTV Differ from Linear TV?

Television advertising has come a long way since its inception in the 1940s. Advertisers have relied on traditional Linear TV for decades to reach their target audience. However, with the introduction of Connected TV, there has been a significant shift in how people consume television content.

So, how does CTV differ from traditional Linear TV?

The most significant difference lies in the delivery method. While Linear TV broadcasts content on a predetermined schedule, CTV streams video content through an internet-connected device, such as a smart TV, streaming box, or gaming console. This allows viewers to access content on-demand and anytime, eliminating the need to adhere to a pre-scheduled TV programming lineup.

CTV advertising marries the power of traditional TV advertising with the preciseness and measurement capabilities of a digital ad medium.

81% of marketers worldwide report planned increases in CTV advertising budgets.

One of the major benefits of CTV advertising is the ability to target specific audiences. With CTV, marketers can leverage market research to deliver targeted ads to the right consumers based on demographic data, interests, and behavior. In contrast, Linear TV ads are often less targeted, as they rely on broad audience demographics like age and gender.

Another significant difference is the level of audience engagement. While traditional Linear TV often involves passive viewing, CTV viewers are likelier to engage with the content they consume. Viewers can pause, rewind, or fast-forward through ads, making it crucial for brands to create compelling content that captures their attention and keeps them engaged.

guide-to-gen-z

The Benefits of CTV Advertising

As marketers seek ways to engage with their audiences effectively in today’s fast-paced digital age, CTV advertising has become very popular.

Let’s look at some important benefits of CTV advertising for brands:

Data-driven insights.

It offers data-driven insights into viewer behavior, preferences, and engagement. This helps advertisers understand their audience better and create more personalized campaigns.

“80% of what people play on Netflix actually comes from the recommendation algorithm.” 

-Aish Fenton, Director — Machine Learning, Netflix

Targeting capabilities.

CTV advertising provides targeting capabilities that allow advertisers to reach specific audiences. Advertisers can use audience data, such as location, age, and interests, to serve relevant ads to viewers.

Non-skippable ads.

CTV ads are non-skippable, which means viewers must watch the entire ad. This results in a higher engagement rate than other digital advertising forms. Advertisers can use this to their advantage by creating high-quality, visually appealing ads that capture the viewer’s attention.

Accurate, measurable results.

CTV advertising provides accurate measurement tools that allow advertisers to track and measure the success of their campaigns. Advertisers can see how many viewers watched their ad, how long they watched it, and whether they took any action, such as clicking a call-to-action button.

The Five Stages of CTV Planning

Define your target audience.

The first step in CTV planning is to understand who your audience is and how they consume TV content. Conducting market research to identify their viewing habits, preferences, and demographics can help you create a targeted CTV advertising campaign.

Netflix clearly understands its target audience, and its CTV ads are designed to speak directly to this demographic, featuring music and humor that resonates with them.

Set objectives.

Define what you want to achieve with your CTV campaign. This could be increased brand awareness, lead generation, or increased sales. Having clear objectives in mind will help guide your strategy and ensure you measure the success of your campaign effectively.

Choose your CTV platform.

Several CTV platforms are available, each offering different features and targeting options. Research which platforms your target audience will use and select one that aligns with your campaign objectives.

Consider working with a partner to access multiple platforms.

For instance, Amazon Prime Video uses Amazon’s extensive customer database to target its CTV ads. They use personalized messaging and relevant product suggestions to engage customers, increasing conversion rates.

Develop a media plan. 

After choosing your platform, you must decide where and when your ads will appear. This involves selecting ad formats, determining the frequency and reach of your campaign, and creating a budget. A media plan will help you allocate resources effectively and reach your target audience.

Monitor and optimize your campaign.

CTV campaigns are not set-and-forget; they require ongoing monitoring and optimization. Monitor your campaign’s performance using Key Performance Indicators (KPIs) such as reach, frequency, engagement, and conversions. Make changes as needed to improve the performance of your campaign.

Your CTV ads should be compelling, creative, and engaging, designed to capture attention and leave a lasting impression. Use video and interactive elements to create an immersive experience.

Coca-Cola’s 45-second TV commercial, ‘2023 March Madness: Best Blocker Ever’ starring “Dave,” Lil Dicky and Taco star alongside Magic Johnson, made quite a sensation across platforms.

Market research is crucial to CTV planning as it helps you make informed decisions at every stage. It provides insights into your target audience, identifies opportunities and challenges, and enables you to understand the effectiveness of your campaign. By conducting thorough research and following these five stages, you can create a successful CTV advertising campaign that delivers results and keeps your brand relevant in the digital age.

Peloton’s successful CTV advertising strategy

Peloton is a famous fitness brand that took the world by storm with its home exercise equipment and digital classes. In 2020, the company launched a new CTV advertising campaign to promote its digital app and attract new users. The campaign featured a series of dynamic, visually appealing ads that showcased the benefits of Peloton’s app, including convenience, variety, and community. The ads were tailored to different demographics, with messages and imagery designed to appeal to busy professionals, parents, and fitness enthusiasts.

Peloton is a famous fitness brand that took the world by storm with its home exercise equipment and digital classes. In 2020, the company launched a new CTV advertising campaign to promote its digital app and attract new users. The campaign featured a series of dynamic, visually appealing ads that showcased the benefits of Peloton’s app, including convenience, variety, and community. The ads were tailored to different demographics, with messages and imagery designed to appeal to busy professionals, parents, and fitness enthusiasts. 

The brand’s latest 15-second TV commercial, ‘2023 Mother’s Day: Something She’ll Come Back To,’ is another example of how brands in various industries invest more in CTV advertising this year.

Measuring Success with CTV

As with any marketing strategy, measuring success is critical for ensuring that your CTV advertising efforts are making an impact. Fortunately, as discussed before, CTV advertising offers a range of metrics that can help you gauge the effectiveness of your campaigns. 

Here are a few key metrics to consider:

Viewability. 

Viewability measures the percentage of an ad that is actually visible to the viewer. On CTV, viewability tends to be higher than on other digital platforms since viewers are typically focused on the screen and not multitasking.

Completion rate. 

The completion rate measures the percentage of viewers who watch an entire ad from start to finish. On CTV, completion rates are higher than on other digital platforms since viewers can’t skip or fast-forward through ads.

Click-through rate. 

Click-through rate measures the percentage of viewers who click on an ad to visit the advertiser’s website. While CTRs tend to be lower on CTV than on other digital platforms, they can still be a valuable metric for tracking engagement.

Conversions. 

Ultimately, CTV advertising aims to drive conversions – whether that’s sales, sign-ups, or another type of action. Measuring conversions requires tracking viewers who saw your ad and took a specific action. 

While conversion tracking on CTV can be more complex than on other digital platforms, it’s still possible through attribution modeling and retargeting techniques.

To get the most out of your CTV advertising campaigns, it’s essential to use a range of metrics to measure success. By tracking metrics like viewability, completion rate, click-through rate, and conversions, you can gain valuable insights into your campaigns’ performance and optimize them for even greater success.

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How will Contextual Targeting on CTV and OTT Platforms take your brand to the next level?

Contextual targeting is an advertising strategy that delivers ads to specific viewers based on the content they are watching. It’s an essential tactic in CTV advertising because it can help increase relevancy and reduce ad fatigue.

Contextual targeting uses machine learning algorithms to analyze the content that a viewer is consuming and delivers ads that are relevant to that content. For example, if a viewer watches a cooking show, the ads could be for kitchen gadgets or cooking ingredients.

According to a study by Adweek, contextual targeting in CTV advertising has resulted in a 41% higher brand recall and a 25% higher purchase intent than standard targeting methods.

This is because viewers are likelier to pay attention to an ad relevant to the content they are consuming.

Contextual targeting on CTV and OTT platforms is crucial for engaging viewers with relevant ads. Ads that are contextually relevant to the environment in which they are viewed are more likely to be seen and responded to. This increases the possibility of converting viewers into consumers. On the other hand, irrelevant ads may be viewed as unpleasant and negatively impact the connection with the brand and product offering. Advertisers who align their content with the context of digital advertising can boost the long-term impact of their TV ads and promote consumer loyalty. Overall, context is essential in all types of media, including CTV.

Subway, the sandwich giant, leveraged the star power of celebrity icons like Tom Brady and Serena Williams to unveil new menu options and a huge giveaway to boost brand awareness and excite their target audience. This campaign proved highly effective on Connected TV platforms, resulting in a 33% increase in sales.

Kitchen appliance brand Breville partnered with the cooking show “America’s Test Kitchen” to deliver contextual ads to viewers of the show. The ads featured Breville products relevant to the cooking techniques demonstrated on the show, such as a blender for making smoothies or a toaster oven for baking. As a result, Breville saw a 42% lift in brand awareness and a 20% lift in purchase intent.

In addition to improving ad performance, contextual targeting ensures that brands deliver ads in a brand-safe environment. By analyzing the content viewers watch, advertisers can ensure their ads are not shown next to inappropriate or controversial content.

To implement contextual targeting in your CTV advertising strategy, you can work with CTV advertising platforms that offer this feature, such as Amazon Advertising or Roku’s OneView Ad Platform. You can also use third-party tools like Grapeshot or Integral Ad Science to analyze the content that your ads will be shown next to.

Future trends in CTV Advertising

As the world continues to shift towards a more digital-first landscape, it’s no surprise that the future of CTV advertising is bright. It is predicted that by 2023, over 200 million people in the US alone will be streaming CTV content. That means advertisers who want to stay ahead of the curve must be ready to pivot their strategies to take advantage of this new medium.

One of the biggest trends in CTV advertising is a move towards more programmatic buying. Advertisers increasingly use automated systems to buy and place ads rather than relying on manual processes. This allows for greater efficiency, faster decision-making, and better targeting.

Another trend that’s emerging is the use of data-driven targeting. Advertisers can create more tailored campaigns designed to resonate with specific demographics as they gain access to more data on their target audience. This not only increases the chances of engagement and conversion but also helps to build stronger brand affinity.

We also see a growing trend toward using interactive and immersive ad formats. With CTV, brands can create rich, interactive experiences that engage users in new and exciting ways. Whether through interactive overlays, immersive ad experiences, or even full-blown gaming experiences, the sky’s the limit when it comes to the possibilities of CTV advertising.

CTV advertising provides several benefits that can help brands stay relevant in the ever-changing digital landscape. Its data-driven, targeted, engaging, and measurable features make it a must-know strategy for marketers who want to create successful campaigns that resonate with their audience.

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Since the onset of the pandemic we’ve been working with Bloomberg to understand the priorities, actions and attitudes of business decision makers across APAC. Take a look at the infographic for the key insights from our latest wave including:

  • 69% of companies foresee adopting a hybrid model post-pandemic with a mix of in-office and work-from-home
  • Yet of the surveyed companies only 4% will no longer keep a physical office
  • The pandemic has placed greater attention on sustainability with 67% believing that COVID-19 has increased the importance of green / environment protection
Infographic explaining the shift in business decision makers' priorities

We’ve been working with Bloomberg to understand the priorities, actions and attitudes of business decision makers across APAC as the pandemic progresses. In the second of five waves, we explore attitudes towards travel, media consumption patterns and brands.

Take a look at the infographic for the key insights including:

  • 7 in 10 decision makers say their companies are restricting travel, up by 18% from the last wave in May
  • In 1 in 4 organizations, employees are given the flexibility to work from home.
  • 57% are looking for brands that are customer-focused and are flexible enough to accommodate their rapidly changing needs

When we look the impact of COVID-19 on the media industry it’s a mixed picture. Whilst some areas, like video streaming services, have thrived as a result of increased time at home, others have come to a complete standstill, such as OOH advertising and cinema. But which trends in media will persist?

In this article we explore 3 key areas of the media landscape:

  1. Linear TV
  2. Streaming services
  3. Advertising

The role of linear TV

Short-term changes

As people have been forced to spend time at home and routines have been upended, viewing of linear television has enjoyed a resurgence. According to the BBC, viewers were watching 44% more linear channels in May compared to this time last year, rising to 67% for young people. A trend that flies in the face of pre-pandemic viewing behavior.

The rise of linear television in this period should really come as no surprise. It’s allowing for shared moments at a time when human connection is in short supply. Thinkbox observed a 30% increase in shared viewing in this period.

Content preferences have also shifted, reflecting the pandemic situation, with programs that allow for nostalgia and escapism proving popular with viewers. 

Long-term trends

We expect the rise of linear TV to be short-lived. As a direct response to the lockdown, it’s unlikely that this behavior will persist as the pandemic subsides. As economies reopen, and consumers given more freedom to socialize, we expect to see linear TV consumption patterns return to pre-pandemic levels, as the long-term trends we’ve seen towards VOD and SVOD continuing.

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Streaming

Short-term changes

Streaming providers have been one of few beneficiaries of the COVID-19 crisis. With more time on their hands at home, people are turning to paid online streaming services – and some for the very first time. A survey for the Consumer Technology Association carried out in March found that 26% of US consumers are using video streaming services for the first time. A combination of new users like these, and others that have added to their existing subscriptions are creating big returns for streaming giants. In the first quarter, Netflix more than doubled the number of new subscribers it had expected. Disney Plus is another success story. Just 8 months after launch, it has over 54 million subscribers globally. This puts it in touching distance of its 2024 target, a whole 4 years early.   

Medium and long term

In the long-term, it’s difficult to predict exactly how streaming will fare. One school of thought is that as the economic impact of the crisis hits consumers will re-evaluate their discretionary spending, and cut back, which could see subscriber numbers fall, particularly amongst those with multiple subscriptions.

Others argue that as consumers tighten the purse strings, they’ll be scaling back on more significant purchases. This could mean that spend on streaming services will be protected as a worthwhile investment, particularly if the focus on the home remains, with working from home continuing in the long term.

One trend that we expect to remain is the emphasis on shared viewing on demand. We’ve seen streaming providers innovating to meet this need with features like Netflix Party, that allow users in different locations to synchronize playback and communicate via a group chat. Meeting the desire for shared experiences but enabling different audiences in one household to watch what they like, we see this trend being important in future.

Another development to watch out in the medium-term is the future of film. During the pandemic Universal Pictures made some of its film releases available on demand on Comcast, Sky, Apple and Amazon for a one-off fee. With the emphasis on value for money and continued social distancing, will this be an attractive option to consumers in the medium, and a way to offset lost revenues from cinemas?

Advertising

Short term

The drop in advertising spending during the pandemic has been well documented. According to a report from Publicis, Q1 ad spend was down 15% in China and 9% across Europe, as companies sought to cut costs and postpone campaigns. And with this continuing in Q2 and into the second half of the year, the World Federation of Advertisers predicting a 31% decrease in investments across 2020.

In response to the pandemic the tone of ads has changed too, with many brands emphasizing their contribution to the relief effort or how they’re supporting customers in this difficult time. In the short-term, we can’t expect an immediate return to pre-pandemic marketing strategies. Our recent research Brands Exposed research, with 4,000 consumers across 10 countries found that levels of worry around the pandemic influence how consumers respond to ads, with overt sales messaging being rejected by those that are most worried, in favor of more reassuring advertising. This indicates that in the short-term, brands will need to make a concerted effort to understand the sentiment of their customer base and position their ads accordingly.

Medium to long-term

Advertising has always had to shift in response to behavioral changes, and this will be no exception. A recent Goldman Sachs report predicts that “the crisis will only accelerate the secular shift in advertising budgets towards digital.”

In the medium and long-term, we expect to see brands funneling more money into digital advertising, reflecting the increase in time that consumers are spending on digital channels. Social media usage is up 21% globally. It’s likely that advertisers will also look to move ad spend towards ad supported streaming services, at the expense of TV.

In the long-run, we also expect to brands continuing to place a sustained importance on responsibility and honesty, in response to rising consumer expectations, as suggested by our Brands Exposed research.