Deloitte Digital Media Survey: Paid Streaming Service Churn Rate High, Especially Among Younger Generations

Paid streaming services are facing challenges. Churn is high, especially among younger people, and younger generations, especially Gen Z, actually prefer playing video games to watching video and spend a lot of time watching user-generated content rather than TV shows and movies.

That’s according to Deloitte’s 16th annual digital media trends survey. The U.S. survey was fielded by an independent research firm in December 2021 and employed an online methodology among 2,000 U.S. consumers. All data was weighted back to the most recent census data to give a representative view of consumer sentiment and behaviors. The survey was also fielded in the United Kingdom, Germany, Brazil and Japan in December 2021 and January 2022. All data from the global markets was weighted to be nationally representative.

The U.S. paid streaming service churn rate averaged 37%, with 33% of respondents both adding and canceling a service and 4% canceling a service in the past six months. The churn rate was even higher among Gen Z and Millennials, with more than half of those respondents either canceling or canceling and adding paid services in the past six months. The trend also held true globally, with average churn in the international territories surveyed at 30% and younger generations more likely to move in and out of services.

While access to original content (39%) and a broad range of content (38%) were the top two reasons U.S. consumers said they were subscribing to paid SVOD services, U.S. subscribers said they’re canceling paid SVOD services due to cost (41%), price increases (30%) and lack of new content (30%).

Subscribe HERE to the FREE Media Play News Daily Newsletter!

While older generations said they prefer watching TV and movies at home, Gen Z respondents preferred video games as their favorite form of digital entertainment. About four in 10 (41%) U.S. consumers said they spend more time watching user-generated video content than they do TV shows and movies on video streaming services — a sentiment that increased to around 60% for Gen Zs and Millennials.

In the United States, 81% of social media users said they use social media services at least daily and 59% said they use these services several times a day, with younger generations (including Gen Z, Millennial, and Gen X) leading the pack on social media usage.

In the United States, 80% of both men and women said they play video games, and half of smartphone owners said they play on a smartphone daily. Gen Z and Millennials said they play video games an average of 11 and 13 hours per week, respectively. Gen X gamers followed closely behind with around 10 hours of game play every week.

“While streaming video on-demand business models look much the same as they did when they were created 15 years ago, social media and gaming companies have quickly evolved their offerings, leveraging technology, and capitalizing on behaviors,” Jana Arbanas, vice chair, Deloitte LLP and U.S. telecom, media and entertainment sector leader, said in a statement. “Social media is free and available anywhere, anytime, offering both passive and interactive experiences with endless streams of personalized content, without the cost of a subscription. And more people are interacting and socializing in game worlds that host millions of users, brands and franchises, and major non-gaming events. SVOD companies aren’t just competing with each other for audiences, they are also competing with different, more social and immersive forms of entertainment.” 

Hub: Social Media, Gaming, Online Videos Downsize TV Viewing Time

Social media activities, including online video and separately, video games, continue to eat away at the time consumers spend watching television. New data from Hub Research found that TV and movies account for 48% of all the time consumers say they spend with screen-based entertainment. That’s down 5% from a year ago, and down 11% from 2019.

The stats come from a December 2021 survey of 2,179 U.S. consumers aged 13-74, who watch at least one hour of TV per week and have broadband service. 

Notably, the older the survey respondent, the more time s/he spends in front of the TV. At just 35 years old, Hub saw a significant shift toward the consumption of TV and movies as the primary source of entertainment time. Among respondents over the age of 35, about 60% of their time was spent watching TV and movies.

Subscribe HERE to the FREE Media Play News Daily Newsletter!

“When it comes to sources of screen-based entertainment, younger and older consumers could not be more different,” Peter Fondulas, Hub principal and co-author of the study, said in a statement.

The analyst wonders whether today’s young consumers will always prioritize non-traditional content — or whether they’ll start to resemble older consumers as they grow older.

“Our prediction is that their behaviors are so ingrained that non-traditional content will always be a significant part of their entertainment consumption,” Fondulas said.

Netflix Launches Social Media Channel Celebrating Pan-Asian Diaspora

Netflix has launched Golden, a new social media channel dedicated to celebrating the pan-Asian diaspora.

The new @NetflixGolden channels are on Instagram and Twitter and will celebrate Netflix’s pan-Asian talent both in front of and behind the camera.

The channels will also feature new episodes from the social series “Spill the Boba Tea,” a collaboration with Wong Fu Productions, where co-founder Philip Wang will chat with Netflix stars while crafting unique boba tea drinks based on the stars’ lives. The new episode featuring “Emily in Paris” star Ashley Park, debuts Jan. 27 on the @NetflixGolden Instagram channel.

Golden joins Netflix’s other audience-focused and genre channels including Strong Black Lead, Netflix Film, Con Todo, Geeked, Netflix Is a Joke and Most. The name Golden, was inspired by the phrase “Real gold will always shine” and that all Asian stories are golden, and if given the opportunity, they will shine, according to Lucie Zhang, manager of Netflix Golden.

Subscribe HERE to the FREE Media Play News Daily Newsletter!

“As a first-generation Chinese-American growing up in the Midwest, I rarely saw individuals who looked like me in American media, but also felt disconnected from the stars I saw in the Chinese soap dramas my mom binged,” Zhang said in a blog post. “For me, being a part of the diaspora means existing in between cultures — and often feeling like you don’t belong fully in either. With Golden, we want to give the Asian diaspora community a way to feel more connected to each other’s cultures and their own by celebrating Asian talent, storytelling and artistry on Netflix.”

 

Kylie Jenner Becomes First Woman to Reach 300 Million Instagram Followers

Reality TV star and cosmetics executive Kylie Jenner has become the first woman to reach 300 million followers on Instagram. The 24-year-old “Keeping Up With the Kardashians” alum reached the mark this week, to trail only Portuguese soccer star Cristiano Ronaldo with 388 million followers. Facebook-owned Instagram’s own account has the most followers with 460 million.

Follow us on Instagram!

Regardless, the “Queen of Instagram” long ago surpassed previous female social media polesitter Ariana Grande, who tracked more than 146 million followers in 2019.

Subscribe HERE to the FREE Media Play News Daily Newsletter!

Jenner achieved the milestone despite laying low on the social media platform in recent months following last November’s Astroworld rap music festival tragedy in Houston, where 10 concertgoers were crushed to death in a stampede trying to see her boyfriend, Travis Scott, perform.

Rotten Tomatoes Partners With TikTok for Movie/TV Show Marketing

Online movie/TV show recommendation service Rotten Tomatoes Dec. 14 announced it is teaming up with social video platform TikTok to help content creators market movies and TV shows.

The Rotten Tomatoes TikTok Jump will enable creators to link to movie and TV trailers, Tomatometer and Audience ratings, reviews, information on where to watch, clips, and cast and crew info for entertainment fans.

Film and TV clips and soundbites have been popular on TikTok, with users often requesting more information on the content. The companies are working together with studios for the new holiday releases, Spider-Man: No Way Home, West Side Story, Sing 2 and The Matrix Resurrections.

Subscribe HERE to the FREE Media Play News Daily Newsletter!

“Teaming up with TikTok is the next step in our journey and we’re thrilled to provide [their] community access to all that our site has to offer,” Sandro Corsaro, SVP and chief creative officer at Rotten Tomatoes, said in a statement.

Launched in 1998, Rotten Tomatoes has evolved over the years to harness social media and help moviegoers and consumers find movies, TV shows, and streaming content. Earlier this year, the brand launched its first-ever channel on Roku, Samsung TV Plus, Peacock and Xumo, featuring 24/7 linear programming with over a dozen originally produced shows and nearly 400 hours of premium long and short-form video content, in addition to its original video series “The Ketchup,” “Binge Battle,” and the “Rotten Tomatoes is Wrong” podcast.

“Through the new Rotten Tomatoes Jump feature, we’re excited to give our community access to a trusted source of entertainment reviews, recommendations, trailers and more,” said Harish Sarma, global head of content business development at TikTok.

Conviva: Social Media Presence Key to Streaming Growth

Streaming video and social media have long symbiotic relationship. How strong that partnership remains is spelled out in a new report from data measurement firm Conviva that suggests social media’s outsized influence on streaming video can’t be ignored.

Roughly 80% of social engagement for streaming platforms comes from Instagram, with TikTok close behind thanks to accounts such as Netflix growing by more than a million followers each month in 2021, according to Conviva, which examined social engagement for more than 87 global streaming platforms and 695 streaming TV shows from Jan. 1 to Oct. 21, 2021.

“A strong presence on social platforms like Facebook, Twitter and Instagram is critical for streaming publishers as it has been proven social is a key to content discovery,” Keith Zubchevich, CEO of Conviva, said in a statement. “And, it’s not just about posting volume. The publishers that creatively and regularly engage viewers in both their overall platform and individual show accounts on social will not only drive loyalty but also revenue.”

Subscribe HERE to the FREE Media Play News Daily Newsletter!

Eight top streaming services — Netflix, Amazon Prime Video, Disney+, Hulu, HBO Max, Paramount+, Peacock, and CW Seed — captured more than 227 million followers across Facebook, Instagram, TikTok, Twitter and YouTube in 2021. Netflix unsurprisingly led the pack as a social powerhouse, with its main account capturing more than 75% of all engagements and 70% of the audience among the top eight streaming platforms.

Conviva’s report also dove into the individual social platforms, revealing the strengths and weaknesses of each for social promotion of streaming. Findings included:

  • Facebook had the largest audience for streaming publisher accounts, holding 47% of all followers across the top streaming services. Yet, the platform saw only 8% of overall engagements. Announcements, teasers and trailers made up 73% of the streaming platform content on Facebook.
  • Instagram delivered 81% of social engagements for top streaming services, despite having only 17% of the audience. Top content on Instagram featured new shows, netting a 64% share with legacy shows and nostalgic content coming in at 22%.
  • TikTok ranked third in audience for top streaming services, with more followers per account than more established platforms YouTube and Twitter. Show clips with funny captions, cast videos and content tailor made for TikTok were among the top performing content.
  • On YouTube, 58% of the most viewed content for top streaming platforms were show trailers, with teasers coming in second at 13%. Commercials commanded the most engagement of any content on YouTube with 5.6 million views per video on average.
  • Twitter is unmatched in terms of content with streaming platforms averaging over 1,000 posts per month. Announcement posts made up the highest percentage of Twitter content at 17% with trailers coming in second at 16%.

Donald Trump Launching Social Media, SVOD Network

Former President Donald Trump is seeking to launch a social media platform and subscription VOD service following the merger of his Trump Media & Technology Group with Miami-based Digital World Acquisition.

The former president was banned from social media platforms Facebook, Twitter, Instagram, SnapChat and YouTube following the unrest from his supporters at the U.S. Capitol Jan. 6.

Subscribe HERE to the FREE Media Play News Daily Newsletter!

In a statement, Trump said TMTG’s “Truth Social”platform and TMTG+ SVOD service would create a rival to the “liberal media consortium” and fight back against the big tech companies with “non-woke” entertainment programming, news and podcasts.

The company has hired TV producer Scott St. John to run TMTG+ operations. St. John is the executive producer of “Deal or No Deal’ and “America’s Got Talent,” among others.

“We live in a world where the Taliban has a huge presence on Twitter, yet your favorite American President has been silenced,” Trump said. “This is unacceptable.”

Trump said his new platform can eventually compete with Amazon Web Services, Google Cloud, Netflix and Disney+. Truth Social is set to beta launch next month, with a full rollout set for the first quarter 2022.

In a consumer survey on the political website The Hill, 30% of respondents said they would frequent Trump’s online initiatives, while 54% said they would not, and 16% said they would consider it.

Amazon Reaches Settlement With Social Media Influencers

Amazon announced a settlement with Kelly Fitzpatrick and Sabrina Kelly-Krejci, who used TikTok, Instagram, and Facebook to promote and facilitate the sale of counterfeit luxury fashion goods on Amazon, as well as on other online marketplaces.

In the lawsuit, filed in November 2020 in the United States District Court for the Western District of Washington, Amazon showed that the individuals conspired to promote counterfeit luxury brand products on social media video sites and directed customers to product listings on Amazon that evaded counterfeit measures by appearing to be generic, non-infringing products, while the products actually shipped to customers would be the counterfeit items promoted on social media.

Subscribe HERE to the FREE Media Play News Daily Newsletter!

As part of the settlement, Fitzpatrick and Kelly-Krejci will make undisclosed settlement payments to Amazon, which will be donated to charities, including the International Trademark Association’s Unreal Campaign, a consumer awareness initiative to educate minor and young adults about the importance of intellectual property rights.

“We are pleased that this settlement has resulted in the individuals recognizing the harm they caused, assistance for our investigation moving forward, and that charities will benefit from the recovered funds,” Kebharu Smith, director of Amazon’s Counterfeit Crimes Unit, said in a statement. “This settlement sends a strong message to would-be bad actors that Amazon will find you and hold you fully accountable.”

In June 2020, Amazon launched its Counterfeit Crimes Unit, and has filed a series of lawsuits against counterfeiters, including joint lawsuits with GoPro, apparel manufacturer HanesBrands, and outdoor products manufacturer YETI.

E-commerce scams remain on the ride. In 2020, only 6% of attempted new seller account registrations passed Amazon’s verification processes and listed products for sale, according to the company. In addition, fewer than 0.01% of all products sold on Amazon received a counterfeit complaint from customers.

NFL, Twitter Expand Social Media Distribution

The National Football League (NFL) and Twitter have announced a multiyear partnership extension, which will include expanded engagement formats and a full-season commitment to produce exclusive content on Twitter Spaces, Twitter’s new live-audio feature. Twitter will also continue to be a home for the games’ biggest moments — all the touchdowns, leaping catches, incredible runs, and celebrations after they happen, from season Kickoff to Super Bowl.

Subscribe HERE to the FREE Media Play News Daily Newsletter!

The NFL is the first sports league to partner with Twitter to offer sponsored Twitter Spaces, giving both brands and fans new opportunities to connect and engage with live NFL audio. The NFL’s Twitter Spaces will be available throughout the season, as well as in conjunction with NFL tentpole events including Kickoff, Super Bowl, the NFL Draft and more. The Spaces will include participation from current NFL players and other NFL talent to discuss season matchups and insights.

The partnership will continue to engage fans each week of the season through:

  • New Highlight Offerings — Curated videos featuring recaps of the best touchdowns, highlights and Tweets each week of the season with first-of-its-kind opportunities for brands.
  • Expanded NFL Twitter Votes — Fans will be invited to vote each week on the hottest topics and takes burning through the NFL Twittersphere in an expanded set of Twitter Polls.
  • Providing Fans the Best Moments From Every Game — The NFL and its Clubs will bring the best moments from every game to the #NFLTwitter community through highlights, and on-field coverage and Twitter Moments.

 

“The commitment to Twitter Spaces represents another innovative step forward in the longstanding partnership between the NFL and Twitter,” Blake Stuchin, VP of digital media business development for the NFL, said in a statement.

Since announcing their first partnership agreement in 2013, the NFL has developed live programming and distributed on-demand content that takes advantage of Twitter’s unique features to appeal to its highly engaged audience.

TikTok Triples Video Streaming Length to 3 Minutes

Social video-sharing media behemoth TikTok is expanding the length it will allow users to post videos to three minutes from 60 seconds.

With 689 million monthly active users worldwide, the Chinese-owned app has a strong following in the U.S., which leads in the platform’s monthly revenue and users.

In a blog post, product manager Drew Kirchhoff said the move underscored the platform’s desire to afford users an “even richer storytelling and entertainment” experience.

“With all the ways our community has redefined expression in under 60 seconds, we’re excited to see how people continue to entertain and inspire with a few more seconds — and a world of creative possibilities,” Kirchhoff wrote.

The move underscores increasing competition within the social media video space with recent launches that include YouTube Shorts, Instagram’s Reels, Snapchat’s Spotlight and Triller, among others.

TikTok generated nearly $2.1 million in U.S. app revenue from Apple’s iOS platform in February, according to Statista. The U.S. accounted for 44% of TikTok’s revenue throughout the Apple App Store.