Streaming Wars: Why Gen Z Embraces Ad-Supported Tiers

Ah, the streaming saga continues, but hold onto your popcorn—it’s taking a twist! According to Deloitte’s latest Digital Media Trends report, a staggering 54% of SVOD (Subscription Video on Demand) subscribers are now cozying up to ad-supported tiers, a jump from 46% last year. Why the sudden affection for ads, you ask? Well, as costs spiral higher than a Kardashian’s stilettos, it seems viewers are embracing a “just give me the content” mentality, even if it comes with a sprinkle of commercials. In a survey of 3,595 U.S. consumers, conducted in October 2024, the findings reveal that big players like Amazon Prime Video and Netflix are hopping on the ad train, steering consumers toward budget-friendly options. Traditional media companies are also getting in on the action, pushing ad-supported tiers not just as a fallback, but as a lucrative alternative.

But that’s not all, darling! The report also highlights that our beloved Gen Z spends an astounding 54% more time on social media compared to the average viewer. They’re tuning into user-generated content and skipping out on traditional TV and movies—spending 44 minutes less daily on the latter. It’s a “social media is my jam” world, and 56% of Gen Z and 43% of millennials find social media content more relevant than the scripted fare that’s been served up for decades.

As Doug Van Dyke of Deloitte puts it, “Entertainment providers should embrace innovation and agility to help them thrive.” If only the industry could take a hint from history and pivot before it’s too late! So, as we navigate this brave new world of ad-supported streaming, let’s remember that the status quo is so last season. Class dismissed, but don’t forget to take notes on how to stay relevant!

Sources: Celebrity Storm

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