Deloitte’s Technology, Media and Telecommunications division published its 13th-annual Digital Media Trends survey, focused on identifying changes in the ways US consumers engage with various types of media.
Led by an independent research firm, the survey had roughly 2,000 consumer respondents across demographics – with the report categorizing respondents based on age (Gen-Z: ages 14-21, Millenials: 22-35, Gen-X: 36-52, Boomers: 53-71, and Matures: 72+).
While already accompanied by a succinct 13-page executive summary, the report can largely be summarized in just a couple of sentences: more people are using streaming or alternative media services than ever before, largely due to more user freedom and customization, though the growing quantity and fragmentation of platforms are becoming more frustrating for users to manage.
The survey results directionally echo already well-discussed dynamics, which we’ve previously dug into such as here, here and here. Instead, the most poignant aspects of the report were not the answers or conclusions themselves, but the immense level of support many of them received.
Somewhat interesting:
Consistent with previous reports seen in the back-half of last year, streaming platform usage surpassed pay-TV usage for the first time in the survey’s 13-year history, with 69% of respondents noting they had at least one streaming video subscription, while just 65% had a pay-TV subscription. Interestingly, usage was widespread across demographics and fairly age-agnostic, with 88%, 80%, and 77% of Millenial, Gen-Z and Gen-X respondents subscribing to video streaming platforms, respectively.
Interestingly, the survey found that the primary reason most users – especially millennials (over 70%) – opt for paid streaming platforms is to get access to original content, providing further context to the billions being spent by streaming and OTT platforms like Netflix on developing their own proprietary content. Furthermore, original content is not only stickier with users, but also easier and cheaper to host across geographies. Platforms face no licensing fees for their own content, can unlock additional revenue streams from licensing their content out, and don’t have to deal with regional exclusives or otherwise. Based on the report’s findings and the strategic advantages of original content, the spending spree from video platforms shows no signs of slowing down.
Unfortunately, the widespread development of original content has created more shows, exclusively spread across more platforms, much to the chagrin of the same viewers with an affinity for unique content. According to the report, plus-or-minus 50% of consumers are growing increasingly frustrated with having to juggle multiple subscriptions, having to search across platforms to find specific shows, and having their favorite shows disappear from popular platforms as owners launch their own OTT services.
Yet the frustration from continued platform unbundling doesn’t appear to be making a dent or cannibalizing platform usage, with the vast majority of respondents still appearing willing to pay for streamed content, enhanced viewing freedom versus traditional pay-TV, or ad-free viewing.
The unnecessary, uninteresting, or uninspiring:
Outside of video streaming, the results seem overwhelmingly positive and almost uninspiringly well-telegraphed. Music streaming across demographics increased at a greater than 50% clip year-over-year, with roughly 60% of Gen-Z and millennial users now subscribing to music-streaming services.
On the back of the ongoing Game Developers Conference in San Francisco this week, nearly half the respondents — and over 50% of millennials and Gen-Z participants — stated that they play video games on a daily or weekly basis, while one-third of respondents watch live gaming or eSports on a weekly basis. Elsewhere, while just 18% of respondents said they engage with voice-enabled virtual assistants like Amazon Alexa, Siri or Google Assistant on a daily basis, overall ownership of digital assistants spiked 140% in just one year to 36%.
For the most part, the Deloitte Digital Media Trends report isn’t revealing anything new about the future direction of media and readers need not read more than the first few sentences of the conclusion. The story remains largely the same and the reports best use seems to be providing data points to back it up. The industry is trending toward more fragmentation, but target demos for new media platforms are growing and users are still willing to pay for added flexibility in spite of the responsibility of juggling various options.
Overall media seems to be headed in the direction most expect it to. However, the survey’s significant level of responses in favor of newer media technologies may suggest that media is transforming at a greater clip than most even anticipated.