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Insight of the Day: Streamers like Netflix and Disney+ have a Gen-Z problem

Entertainment companies are facing a significant challenge with Gen Z as they pivot towards streaming platforms. Here's a breakdown of the key issues outlined in the Deloitte research:

1. Preference for Social Video: Gen Z shows a strong preference for social video and livestreams over traditional TV shows and movies. This trend is even more pronounced than among millennials, indicating a shift in viewing habits.

2. Influence of Social Media: When Gen Z does engage with streaming services, they are more likely to do so based on recommendations from social media creators rather than the platform's algorithm. This suggests that traditional methods of content discovery may not resonate as strongly with this demographic.

3. Advertising Effectiveness: While streaming platforms are increasingly reliant on advertising to offset production costs, Gen Z is more influenced by ads on social media than those on streaming services. This poses a challenge for streamers looking to effectively reach this audience through advertising.

4. Challenges Beyond Gen Z: The survey also indicates broader challenges facing streaming platforms, including rising subscription prices and difficulties in content discovery. These issues are not limited to Gen Z and suggest a need for a more comprehensive strategy to retain and attract subscribers across all age groups.

In response to these challenges, streamers may need to rethink their approach, including developing stronger social media strategies and exploring more personalized or creator-focused advertising methods. Simply relying on the traditional TV model may not be sufficient to engage and retain the Gen Z audience.

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