A 2024 Digital Media Trends study by Deloitte says media and entertainment companies “should be thinking more about the world ahead than the one they’re being forced to leave behind,” a suggestion underscored by the fact that 60 percent of Gen Zs surveyed prefer watching user-generated content on social platforms to programming offered by streaming services “because they don’t have to spend time searching for what to watch.” Both Gen Zs and Millennials also believe they get better recommendations from social media than the commercial platforms (54 percent).

“It’s a reminder that those surveyed under 41 years old prefer social media videos to any other form of video content, and why so many ad dollars flow to social media,” the Deloitte study notes, pointing out that “with the arrival of generative AI content creation tools in social media services, the volume of competitive content — and its quality — could rise dramatically.”

“The study, which was conducted in October, found that nearly half of Gen Z respondents (47 percent) and a third of Millennials surveyed said they prefer to watch social video and live streams, compared to 24 percent and 27 percent who prefer old and new TV shows and 11 percent and 18 percent who prefer old and new movies, respectively,” The Wrap explains.

Deloitte cautions “SVOD providers and TV and film studios that engineering discovery and buzz for their offerings requires more than just targeted recommendations on their services,” emphasizing “a strong social media strategy” as potentially critical for retention and new customer acquisition.

Pricing may be another reason for the shift. Roughly 52 percent of Gen Zs and 54 percent of Millennials “have canceled a paid streaming service in the last six months, compared to 43 percent of Boomers and Gen X,” notes The Wrap.

Variety writes that “on average, American households that subscribe to streaming video entertainment services said they spend $61 per month for four services, according to Deloitte’s 18th annual Digital Media Trends report,” which is a 27 increase from the $48 per month average spend of last year’s study.

MediaPost cuts to the point, citing a recent poll commissioned by Tubi that says “Americans spend an average of $119.76 monthly on streaming video services — more than the $112.11 they spend monthly on gas,” with 53 percent of Gen Z and Millennials believing they overspend on streaming. A whopping 71 percent “say they are canceling due to tiered memberships that force them to pay more to access certain content.”