Consumer data trends and attitudes that are changing media streaming services

Consumer trends are always evolving, especially as technology continues to change the way people operate and the way businesses interact with their target audiences. But there’s one area where the changes are quickly becoming more pronounced than ever. Media streaming services are leading the way when it comes to content consumption, and marketers should sit up and take notice of the trends.

Top 4 current digital media trends

Multiple components are impacting the future of streaming. From generational differences in consumption to increased competition amongst streaming services, here are just some of the most important media trends that deserve your attention.

1. Streaming platforms continue to increase in popularity

The shift away from traditional cable TV viewing was already underway pre-pandemic, but the trend was vastly accelerated during lockdowns and quarantines as a result of the COVID-19 pandemic throughout 2020.

According to Statista, global users of subscription video on demand (SVoD) streaming services (such as Netflix and Amazon Prime) increased from just over 799 million in 2019 to 962 million users in 2020. That number is expected to reach almost 1.1 billion users in 2021.

2. News consumption on social media

One of the most important trends for digital marketers and media companies to acknowledge is how differently consumers seek and access news in today’s digital era.

Pew Research Center conducted research toward the end of 2020 and found that well over 80% of Americans now turn to digital channels over print and radio to consume news media. Meanwhile, in Deloitte’s Digital Media Trends Report, one survey found that 50% of Gen Z and 41% of millennials source news directly from social media.

3. Multiple streaming subscriptions

While Netflix continues to dominate the video streaming market, it’s not the only player in the mix anymore. Digital media services are also expanding far beyond video. Social media, gaming, and music streaming are also competing for consumers’ attention.

Deloitte found that 82% of consumers overall are subscribed to a paid video streaming service and, on average, users are subscribed to four separate paid services. Not only that, but 60% have a paid subscription for music streaming and 45% subscribe to a paid gaming platform.

4. Consumer trust and the data economy

High-profile data leaks and legal investigations into the practices of social media giants when it comes to consumer data have heightened the level of suspicion digital media users have toward service providers.

Consumer trust in a service provider’s ability to protect their data and use it ethically is a source of great competitive advantage in today’s data economy. In fact, commitment to data protection is now one of the main drivers of brand loyalty.

How shifts in media consumption are impacting digital marketing

It’s clear that consumer attitudes toward streaming and digital content are shifting and reshaping the market. But how are these changes impacting digital media marketing trends?

Generational differences in media consumption

One of the main challenges digital marketers are facing is the fact that different generations of consumers are not adopting these trends equally. The main example of this is the type of media people are consuming and where they’re consuming it.

For example, Deloitte found that there’s a surprisingly vast difference between the way Gen Z and older generations consume digital media. Boomers, Generation X, and millennials all listed watching TV series and movies online as their favorite streaming activity, albeit to varying degrees. For Gen Z, however, the main activities they spend their time on are online gaming and music streaming. They’re also more likely to take part in multiple streaming activities at once.

Balancing demand generation with customer retention

Although one of the most prevalent trends included subscribing to multiple streaming services, it’s not a trend that consumers feel particularly positive about. One of the most common examples of this is the need to subscribe to multiple video streaming services to access your favorite TV shows and content, something that 66% of consumers find frustrating.

This frustration, coupled with increasing competition in the market, is resulting in higher customer churn rates for digital media providers. Churn rates rocketed by 85% throughout 2020, a figure that industry experts put down to users picking up and dropping subscription services to access specific TV shows and content before moving onto something else.

Subscription streaming services are now tasked with not only attracting new users to their platforms, but keeping the price point right and ensuring a seamless user experience to reduce high churn rates.

Personalizing the streaming experience for customers

Personalization is key to providing a positive advertising experience for digital media subscribers. In fact, 72% of millennials and 62% of Gen Z prefer to see ads that are personalized to their preferences and activity. With Lytics, you can eliminate data silos to create 360-degree profiles of your customers’ activity, behaviors, and preferences so you can serve the right ads at the right time. Try it free to see for yourself!