Audiences are becoming increasingly diverse, and they expect content that reflects the world around them

Diverse communities base media spend largely on the inclusivity of content, and the United States is only getting more diverse.

Kevin Westcott

United States

Jana Arbanas

United States

Wenny Katzenstein

United States

Dennis Ortiz

United States

Brooke Auxier

United States

Younger generations get a lot of attention in the media and entertainment industry, often because they’re early adopters of innovations like social media, video games, and streaming video. But beyond their tech-savviness, these generations are also inherently different demographically from preceding generations, and as such, they’re shifting the definition of the average American consumer. Media and entertainment (M&E) companies should consider investing in meeting the expectations of an increasingly diverse population to help win market share and keep consumers engaged.

Gen Zs (those born between 1997 and 2009) and millennials (those born between 1983 and 1996), who collectively make up a significant share of the US population, are more diverse than those in older generations, a trend that will only continue with Gen Alphas (those born between roughly 2010 and 2024) and the cohorts that follow.1 Not only are younger generations more likely to be racially and ethnically diverse, but they’re also more likely to identify as members of the LGBTQIA+ community or be neurodiverse (meaning they see the world around them in a different way, and may have a diagnosis like autism spectrum disorder, ADHD or a learning disability).2

The profile of the average American audience is changing, and so too are consumer expectations for M&E content more broadly, including TV shows, movies, and social media videos. Data from our 2024 Digital Media Trends study suggests that consumers from diverse groups value inclusive representation in entertainment content, expect it, and actively seek it out. Given that younger generations are more diverse, it’s reasonable to assume that such expectations will only increase in audiences over time.

Among those surveyed, more than half of Black consumers prefer to watch TV shows and movies that feature people who look like them. Around half of Black and multiracial people actively seek out TV shows and movies that tell stories about underrepresented groups. But the team behind the scenes matters, too: Nearly 70% of Black consumers (and more than half of Asian, multiracial, and Hispanic and Latinx consumers) say it’s important to them that TV shows and movies are written and produced by diverse creative teams. LGBTQIA+ respondents are also more likely than other consumers to expect the diversity of the real world to show up on screen (62% compared with 45%), to seek out shows and movies that tell stories about underrepresented groups (53% compared with 32%) and say it’s important that TV shows and movies have diverse creative teams behind them (66% compared with 45%).

Appealing to the full diversity of consumers is important to business success—and currently less than a third of consumers surveyed believe the M&E industry is inclusive.3 Deloitte research found that Black, Hispanic and Latinx consumers, and LGBTQIA+ audiences, drive more than a third of the US M&E market, and 71% of entertainment spend among these groups is driven by feelings of inclusivity.4 Investing in inclusivity could have real business implications for production companies and streaming video-on-demand (SVOD) providers. But it’s not just viewers from diverse audiences who want to see, and find value in, inclusivity and representation in their media and entertainment content, it’s also consumers overall–across race, ethnicity, gender identity, age, sexual orientation, and abilities. Our 2024 Digital Media Trends data suggests that nearly 70% of all consumers surveyed say that they enjoy watching TV shows or movies that help them learn about cultures different from their own, and nearly half of all respondents say they expect TV shows and movies to show the same racial and physical diversity they see in the real world. Investing in inclusion could pay off for brands: Research has shown that across all groups, consumers will spend more money on media and entertainment if they feel more included.5

But we know that shows and movies sometimes miss the mark in terms of inclusivity and representation,6 and access to inclusive content may be limited. 75% of consumers surveyed say they don’t currently feel represented in media and entertainment.7 This may be where the broad and diverse set of creators who generate social media videos hold a competitive advantage. More than 40% of consumers surveyed find videos on social media to be much more diverse than TV shows and movies—a figure that increases to 60% among Gen Zs, and to over 50% for Black, multiracial, Hispanic and Latinx, and LGBTQIA+ consumers. It may be noteworthy then that consumer churn on SVOD—or the percentage of consumers who have canceled at least one paid SVOD service in a six-month period—is highest among these same groups, according to our data.

The perceived diversity of social media videos may be due to the algorithms that power these platforms, and their ability to connect content with specific audiences that, in turn, could help to build a sense of community and belonging. If consumers engage with and follow diverse content and follow diverse creators, the platforms will likely continue to serve that up in the feed. And our data shows that following creators from similar backgrounds, and those who share their values, is important to people. For example, 46% of Black consumers surveyed say they are more likely to follow creators who look like them when compared with 24% of consumers overall. Similarly, approximately 60% of Black, multiracial, Hispanic and Latinx, and LGBTQIA+ people say they tend to follow creators who share their values (compared with 47% of consumers overall). However, social media videos and content creators—like movies and TV shows—also allow people to discover new things and learn about different communities. Nearly 40% of those surveyed say they follow content creators to learn about cultures different from their own. This figure increases to about 50% or more for Black, multiracial, Hispanic and Latinx, and LGBTQIA+ people.

In today’s media ecosystem, consumers have myriad options competing for their time, attention, and money. For M&E companies to remain successful, they should work to understand and meet the expectations of young, and increasingly diverse, audiences.

Key takeaways:

  • Consumers across communities expect to see inclusivity in media and entertainment content; and production studios, streaming services, and other entertainment providers should be mindful of the stories they tell, the talent they hire, and the behind-the-scenes professionals they recruit. These expectations will likely only grow stronger as generations continue to be more diverse.
  • The very makeup of the U.S. population is shifting and evolving. Entertainment companies should have all people in mind throughout the value chain and content development life cycle.

Methodology

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 (1997-2009), 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.

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By

Kevin Westcott

United States

Jana Arbanas

United States

Wenny Katzenstein

United States

Dennis Ortiz

United States

Brooke Auxier

United States

Endnotes

  1. William H. Frey, “Now, more than half of Americans are millennials or younger,” The Brookings Institute, July 30, 2020; Sara Lebow, “Gen Z will account for 1 in 5 people in the US. What does that mean for marketers?,” Insider Intelligence, January 24, 2023; Sara Lebow, “Gen Alpha will be more diverse than the rest of the US population,” Insider Intelligence, February 7, 2023.

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  2. Jeffrey M. Jones, “LGBTQ Identification in U.S. Ticks Up to 7.1%, Gallup, February 17, 2022; Centers for Disease Control and Prevention, “Data & statistics on autism spectrum disorder,” April 4, 2023; Nicole Baumer and Julia Frueh, “What is neurodiversity?,” Harvard Health Publishing, November 23, 2021.

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  3. Susan Goldsmith, Wenny Katzenstein, Jasmin Jacks, and Brandon Parrott-Sheffer, Media reimagined: How making progress on equity could help establish tomorrow’s leaders, Deloitte Digital, March 2023. 

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  4. Deloitte Digital, “Media reimagined: Investing in inclusive representation is the right thing to do on every level,” May 23, 2023.

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  5. Ibid.

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  6. Josh Wilson, “How is Hollywood’s Performance In Diversity and Inclusion in 2022,” Forbes, April 22, 2022.

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  7. Goldsmith, Katzenstein, Jacks, and Parrott-Sheffer, Media reimagined.

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Acknowledgments

The authors would like to thank Akash Rawat for his work in analyzing survey data and highlighting insights, as well as his contributions to shaping the direction of the overall study. They would also like to thank Sathiya S. and Ankit Dhameja for their contributions to survey development and secondary research support and Gautham Dutt for his design and visualization support. 

The authors would like to recognize Andy Bayiates and Molly Piersol for their partnership, and their editorial and design contributions. They also want to sincerely thank Kevin Downs and Amy Booth for their support and guidance throughout the process.

Data science and survey advisory by: David Levin

Cover image by: Manya Kuzemchenko