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Almost two years after the pandemic, most consumers still do not feel comfortable going out to have fun. And as a result, 84% are spending more time with online entertainment and many younger consumers are playing games.
Those are the findings of DeloitteThe 15th Annual “Trends in Digital Media” survey released today. Traditional media companies face stiff competition for consumer loyalty from more interactive social media and gaming companies.
The survey of 1,102 US consumers found that 82% say they are concerned about COVID-19 variants, and that is likely to keep people indoors and in line.
Boomers and Gen Xers still rank “watching TV shows or movies at home” as their favorite entertainment activity. But Gen Z consumers rank “playing video games” as their preferred form of entertainment. And 65% of those surveyed are frequent players, playing at least once a week; On average, these frequent players play around 12 hours a week.
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Additionally, 65% of consumers interact with at least one social media service multiple times a day.
Game winnings
Above: Gen Z prefers games to other types of entertainment.
Games and game-related content, such as live streaming and video, continue to pose a threat to video streaming companies for consumer entertainment time, Deloitte said. And, for many players, these activities have become much more social.
About 65% of those surveyed are frequent gamers, playing at least once a week on devices such as smartphones, consoles, tablets, handheld gaming devices, and computers. On average, frequent gamblers play around 12 hours a week. Gen Z and millennials play about 13-14 hours a week.
Connecting with others is an important part of the game. More than half of frequent or occasional gamers say that “having positive interactions with others” is very or somewhat important to their overall gaming experience. Among frequent gamblers, 45% are watching others broadcast their game; 38% are broadcasting their own game; and 49% watch videos on game tips, tricks, and tutorials on a monthly basis.
Among frequent gamers, about 40% of Gen Z and millennials play against other people online every day, and almost the same number of millennials (37%) meet online to play with their teammates on a daily basis. . Forty-three percent (43%) of frequent gamers purchase skins, such as virtual clothing, tattoos, and hairstyles to represent themselves to other players, as well as gestures and dance moves known as “emoticons,” to customize their characters from the game. I play monthly.
Rotation and return
Above: People are uncomfortable venturing out for fun.
Deloitte said “drop and return” behavior is more common among younger generations: Nearly half of millennials (47%) and 34% of Gen Z canceled and then re-subscribed to the same streaming service. of video that same year. The main reason consumers canceled a paid video-on-demand (SVOD) streaming service was due to high cost followed by the fact that they terminated the show they signed up to watch.
And 65% of consumers watch ad-supported free video services.
Why does this matter
Above: The entertainment competition is tough.
The continued uncertainty of the pandemic and the spread of the Delta variant during the summer months kept consumers close to their homes and connected to online experiences, Deloitte said.
In early 2021, Deloitte released its annual survey, which found that consumers had more time for home entertainment, while video streaming providers competed for subscribers against a myriad of entertainment options. In August 2021, Deloitte conducted another survey of US consumers, which revealed that the changes brought about by the pandemic have continued and it is becoming clear that a return to the “old normal” is not imminent.
For video streaming providers, keeping subscribers is harder than ever as people, especially younger generations, are managing costs by adopting ad-supported options, looking for discounts and bundles, and turning services on and off. to meet your content needs. But COVID-19 could be ushering in a permanent change in entertainment, where it’s not just about streaming or number of subscribers, but also how platform providers are responding to subscriber loss by delivering experiences. enhanced and the ability to connect with others. on their platforms.
“We are seeing a major shift in what consumers are paying for and how they choose to participate and be entertained,” Deloitte vice president Kevin Westcott said in a statement. “While video streaming will continue to gain momentum, especially with the leading services now chasing global markets, these companies will also need to address churn and retention across various segments in different markets, and move from simply measuring subscribers to understanding how. unlock lifetime value within your customer bases. It will serve them well in the future to develop growth strategies that include both social video and social games, whether through partnerships, acquisitions or simply by establishing a really effective social media department. “
Home entertainment continues to be preferred
Above: Games and music go hand in hand.
Deloitte found that, compared to six months ago, multi-generational consumers have actually spent more time watching television and surfing the Internet while seeking indoor entertainment options and avoiding experiences outside the home.
More than 80% of US respondents remain concerned about COVID-19 variants. When asked to describe their recent behavior, 84% of respondents said they spent more time on online entertainment activities and less on in-person entertainment outside the home.
About half of consumers (48%) say they spend more time online entertainment than they did six months ago. Boomers and Gen Xers still rank watching TV shows or movies at home as their favorite entertainment activity. Meanwhile, Gen Z continues to rank video games as their preferred form of entertainment.
Everyone younger than Boomers, especially Gen Z and millennials, have been listening to music longer than six months ago.
Video Streaming – Progressive Providers, Expert Subscribers
More premium and ad-supported services have been launched, giving US consumers additional options to view new original content and access a vast library of content. The survey revealed that consumers are getting better at developing strategies to access this content while keeping costs down.
Eighty-four percent of people now pay for an SVOD service; the average household has four subscriptions, largely unchanged over the past year. The churn rate, the number of people who have canceled, or added and canceled, a paid SVOD service, has held steady at around 38%, although it varies from service to service.
Many video streaming subscribers say they actively manage costs in some way, whether it’s looking for deals or promotions, packages, using friends or family accounts, and other strategies.
The rise of social media
Above: It is common to buy on social networks.
The use of social media and online services is widespread among American consumers and is a daily activity for many. Social applications are free and primarily mobile, reaching users wherever they are. People are watching videos on social media, especially short videos made by average users and influencers. And with many consumers using these services, media and entertainment options are migrating to them, and social commerce is booming.
About 90% of respondents cited using at least one social media service, and the average person uses five different services. This number increases to seven for Gen Z and millennials, with about a quarter of each using 10 or more different services. Sixty-five percent (65%) of consumers engage with at least one of these services multiple times a day.
The top reasons for using social media are to stay connected with friends and family (51%) and to stay up-to-date on current news and events (31%). Discover new content also scored highly: 21% use social media to discover new video content and 16% use it to discover new music.
While a third of those surveyed say they are watching more videos on paid video streaming services than they did six months ago, nearly as many say they are watching more videos on social media and live streaming services.
Forty-four percent (44%) of consumers follow an influencer on social media. Among consumers who follow an influencer, the main reason is that they like the content they produce (53%). Other top reasons include engaging with the influencer (35%), admiring them (29%), and liking the products they promote (29%).
About 4 in 10 US respondents say they have viewed a product on social media and visited the retailer’s website to purchase it or clicked on an ad that led to a purchase. And 31% of those surveyed have made a purchase directly from a social media service. Younger consumers are more likely to find recommendations from important influencers for their purchasing decisions.
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