prabhu
In 2025, the global media and entertainment industry is undergoing a significant transformation. Driven by rapid technological innovation and evolving consumer expectations, companies across the sector are rethinking traditional strategies. As audiences increasingly demand personalized, on-demand content, streaming services and studios face growing competition—not just from each other, but from powerful, capital-rich social video platforms. Operating primarily in the digital space, these platforms are reshaping where and how people engage with content. To stay relevant, industry leaders must continuously innovate to capture attention and foster loyalty in a landscape defined by shifting consumption habits and fierce digital competition.
The Digital Shift Accelerates
Digital media continues to command more consumer attention, with US adults projected to spend an average of 7 hours and 58 minutes daily on digital platforms in 2025, an increase from the previous year. This growth is largely driven by the rising dependence on streaming platforms, social media, and online video content.
Time spent watching digital video is expected to reach 4 hours per day in 2025, exceeding traditional TV consumption by over an hour. The shift highlights how streaming platforms, offering personalized content, are successfully capturing audiences who once primarily watched traditional television.
Cable and satellite television remain significant, but subscriptions are declining. In the US, 49% of consumers surveyed currently hold a subscription, down from 63% three years prior. While live news and sports are primary drivers for remaining subscribers, the market is falling, partly because SVOD services now offer live sports, and social media provides free clips and highlights. Younger generations, particularly Generation Z and millennials, are more likely to plan termination of these services within the next year compared to older demographics.
Social Platforms and Creators Gain Influence
Social video platforms are becoming a dominant force in media and entertainment, competing intensely for both entertainment time and the business models traditional studios rely on.
These platforms offer vast amounts of free content, optimized by algorithms for engagement and advertising. They wield advanced ad tech and AI to connect advertisers with global audiences. Surveys reveal that ads or product reviews on social media are most influential to the purchasing decisions of younger generations, with 63% of Gen Zs and 49% of millennials citing this influence.
A key draw for social video platforms is the content creators themselves. A majority of younger generations find creator videos are their favorite type on social media. Notably, roughly 50% of Gen Zs and millennials surveyed feel a stronger personal connection to social media creators than to traditional TV personalities or actors. This suggests a cultural shift where the definition of “celebrity” is changing, favoring independent creators who may seem more authentic over distant traditional figures.
Navigating Subscription Fatigue and Embracing Ad-Supported Models
Despite the popularity of streaming, a tension exists regarding value and cost. While 53% of surveyed consumers say SVOD is their most frequently used paid media service, 41% believe the content isn’t worth the price.
At the same time, roughly half (47%) feel they pay too much for streaming services, indicating an imbalance between cost and perceived value. The average cost for four paid streaming services has risen to around $69 per month.
As costs rise and fatigue sets in, ad-supported streaming models are gaining popularity. Over half of SVOD subscribers surveyed (54%) report having at least one ad-supported service, an increase from the previous year.
The average cost for these tiers is around $9 per month, which aligns with what respondents consider a fair price for watching ads. Platforms like Peacock and Hulu show high percentages of subscribers opting for these ad-supported plans (84% and 65%, respectively).
The Evolving Landscape of Content and Engagement
Audiences are increasingly demanding personalized and interactive experiences. AI plays a transformative role here, powering recommendation systems that analyze user data to suggest content, leading to increased engagement and retention.
Personalized interfaces, dynamic playlists, and mood-based curation enhance the user experience. Interactive content, such as quizzes, polls, and gamified videos, is also becoming essential, transforming passive viewers into active participants and providing valuable audience insights.
Gaming as a Mainstream Digital Entertainment Channel
The line between entertainment and gaming is blurring as interactive platforms continue to gain traction. Online gaming is no longer a niche pursuit but a mainstream pastime competing with TV, film, and social media for consumer attention.
Platforms offering immersive experiences — whether through multiplayer formats, live-streamed competitions, or real-money games — are reshaping user expectations.
Challenges and Strategies for Traditional Studios
Traditional studios face significant challenges, including high production costs and declining revenues as advertising shifts towards social platforms. Competing for attention and ad dollars requires new strategies.
Some are exploring bundles and aggregations to pool audiences and offer lower prices. Bringing advertising to streaming services is another approach, hoping to migrate pay TV ad revenues. However, competing with the advanced ad tech and scale of social platforms is difficult.
Adapting to the New Reality
The dominance of digital media, the influence of social platforms and creators, the rise of ad-supported models, and the demand for personalized and interactive content underscore a fundamental shift in consumer habits.
For companies navigating this landscape, embracing technologies like AI for personalization and efficiency is crucial. Strategic partnerships, audience aggregation, and leveraging the power of social platforms for discovery and marketing are also vital steps. The future requires innovation and adaptability to meet evolving consumer preferences and competitive pressures.
