Media providers and social media platforms cling to an uneasy alliance. With abundant digital entertainment options, social platforms now directly compete for consumer attention, further straining this relationship. Deloitte’s 2023 edition of Digital Media Trends showed that Generation Zs and millennials are leaning into social, user-generated video content because it’s free and convenient and they can endlessly scroll through new content that is algorithmically targeted to their interests.1 Social media lives in their palms, filled with the buzzing of billions of global peers continuously riffing on popular culture. For younger Americans, a handful of services have become the default destination for social video and entertainment. It may not be surprising that Gen Zs and millennials have been cancelling streaming video on demand (SVOD) subscriptions more than older consumers (figure 1).2
Our 2024 Digital Media Trends report finds an even stronger shift in young consumers’ video preferences. Almost half (47%) of Gen Zs and a third of millennials surveyed say their favorite form of video content is social media videos and live streams. This doesn’t mean that longer-form video entertainment is fading away, but it does highlight the effectiveness of social media algorithms and the strength of content creators and influencers. Media companies—and SVOD providers, in particular—could benefit from studying how social media services drive engagement and retention.
One factor is finding content. Social media services help solve the problem of discovery that can cause people to go elsewhere for entertainment. For example, 60% of Gen Zs prefer user-generated content videos because they don’t have to spend time searching for what to watch.3 Social media services have invested in reinforcing algorithms that match users with a seemingly endless stream of relevant and personalized content, but this isn’t just another form of TV. Viewers can connect with communities of likeminded users, gaining a sense of belonging alongside their entertainment.4
In contrast, many people report difficulties and frustrations with content discovery on SVOD services. And it’s not for lack of trying: Nearly 50% of those surveyed say they spend too much time looking for streaming content to watch. Subscriber retention is critical for SVOD providers, and they should work to show their subscribers a reason to pay for the next month of service. Yet nearly half of respondents overall report they often abandon an entertainment experience because they can’t find what they’re looking for. In 2024, the top six SVOD providers alone will likely spend more than US$100 billion on content.5 Viewers can’t watch what they can’t find, so much of that investment may not be maximized.
SVOD providers, for their part, have been investing more in content recommendations systems,6 but they should also consider the importance of leveraging social media for discovery and recommendations. Creators of user-generated content often point viewers toward traditional media—as interested observers, genuine fans, and paid ambassadors. More than half (54%) of Gen Zs and millennials believe they get better recommendations for TV shows and movies from social media than from SVOD services. Around a third of consumers—and 59% of Gen Zs—surveyed often watch TV shows or movies on SVOD services after hearing about them from creators online. A similar share say they saw a movie in a theater because they kept seeing conversations about it on social media.
This may be due in part to algorithmic targeting, but it’s also likely buoyed by the buzz and virality that can sweep through social media communities. Engineering buzz is becoming more of a science, and savvy brands are learning to program for hype.7
Social media platforms may be competing for time and attention, but they also offer media and entertainment businesses valuable capabilities to promote their own offerings and drive people back to their services. Social platforms and content creators can be a critical marketing channel for streaming services and other media providers: Creators often build viewership with their fans across multiple digital services.8 They can help brands and companies access larger and more specific audiences that aggregate around creator channels, and some are even expanding into more traditional media. Some SVOD providers, for example, are now hiring leading online creators as talent for television shows and movies.9 SVOD providers aiming to attract and retain more younger subscribers should be thinking about the many ways they can collaborate with popular creators.
Media and entertainment companies should pay attention to video games to understand and leverage social media and creators. Gaming creators and the services they use can help to drive discovery and purchases. Sixty-three percent of Gen Z gamers surveyed find out about new games from live-streamers and content creators on social media, and 56% report they’re more likely to trust a video game publisher if their favorite gaming content creator has promoted a game by that publisher (figure 2).
Gaming creators and live streamers can help brands and companies better understand gamer demographics and the nuances of modern video games. Accessing and engaging these demographics may be different from other media, but media and entertainment companies should not dismiss them: Fifty-seven percent of Gen Z and millennial gamer respondents discover new music in video games; nearly half don’t mind seeing branded content in live service games, and more than half wish more of their favorite games had movie and TV show adaptations. Live streaming services, social video game services, and story-driven adventure games can all be considered part of the broader social media landscape.
Social media has become a digital “connective tissue” between people, brands, and media. It supports fandoms and communities of interest and can drive demand across other forms of media and entertainment. Media and entertainment companies can embrace social media—especially the content creators that foster discovery and trust—to help drive audiences to their own offerings. SVOD providers could evolve their services to better enhance personalization, nurture collaborations with creators and social media platforms, and prioritize compelling social video campaigns.
To better capitalize on creators’ ability to guide people toward other media experiences, media and entertainment organizations can work to develop strong relationships with creators and their audiences. Creators can help them nurture existing fan bases, build new ones, and direct fans to their shows, movies, and games.
These insights are based on an online survey of 3,517 US consumers that was conducted in October 2023. Throughout this report, we reference generations. Our generational definitions are as follows: Generation Z (1997-2010), millennial (1983-1996), Generation X (1966-1982), boomers (1947-1965), and matures (1946 and prior). The survey was fielded by an independent research firm and all data is weighted back to the most recent Census to give a representative view of US consumers.