As streaming services continue to boost their profitability with price hikes, more ads and cost-conscious programming budgets, Deloitte’s annual “Digital Media Trends” survey indicates a growing level of frustration with the offerings of streaming services and their cost.

This year’s survey finds that while spending on streaming services has remained flat year-over-year, 61% of respondents report they would cancel their favorite service if monthly prices increased by $5. The survey also reported that a very large majority (73%) are “frustrated” with price hikes and that the number of subscribers churning in and out of SVOD services in the last six months rose to 41% from 39% last year.

Increasingly cash strapped consumers are also controlling their spending on streaming services. The average subscribing household reports spending $69 per month on streaming video services (streaming services), consistent year-over-year.

Meanwhile, ad-supported streaming grows: Around two-thirds (68%) of streaming subscribers now pay for ad an increase of over 20 percentage points from 2024, reflecting rising price sensitivity and a growing willingness to trade ads for lower monthly subscription costs.

On the bright side, the researchers noted that fans are emerging as an important driver of growth: Most consumers (around 80%) identify as "fans" and spend $71 per month, or 27% more, on streaming services compared with $56 for non-fans, demonstrating the strategic importance of this group.

"Fandom doesn't end when a season does — it carries forward, fueled by the stories, teams, and creators fans love,” said Doug Van Dyke, vice chair and U.S. telecom, media and entertainment sector leader, Deloitte. “As some consumers plan to spend less on streaming services, passionate fans have the potential to become even more valuable, investing time, money and energy across platforms. AI can be harnessed to understand what fans care about, anticipate what they want next, and bring together content, community, and commerce in ways that feel personal. The providers that do this well may do more than just capture attention — they can earn loyalty that lasts."

The Deloitte researchers described the other key findings as follows:

• Streaming's next chapter: As subscription growth slows, ad-supported tiers take the lead. Ad-supported streaming has moved decisively into the mainstream. As costs have risen over time, ad-supported tiers have emerged not just as a budget alternative, but as a primary engine of subscriber growth and engagement, especially as many consumers grow more cautious about recurring expenses and frustrated with rising prices.
• The majority (68%) of SVOD subscribers now have at least one ad-supported tier — up from 46% in 2024 — with double-digit growth across every generation.
• While the broader streaming market remains steady, value for media and entertainment companies can be unlocked by further engaging fans. Deloitte found that around 80% of consumers identify as fans of at least one category — music, sports, TV shows and movies, video games, and more.
• Fans are a distinct and economically meaningful consumer segment. Compared with non-fans, they invest more time and money in entertainment and participate more broadly across streaming, gaming, and music platforms. Importantly, fandom is not fleeting or confined to younger audiences — for many, the time and money they devote to the team, artist, content, or creator they love remains consistent over time.
• Fans say they spend an average of $71 per month on streaming subscriptions, 27% more than non-fans, who report spending an average of $56 per month.
• Fans report spending almost an hour more (51 additional minutes, or 16% more time) per day on entertainment activities compared to non-fans.
• Almost half (49%) of fans report sustained engagement with their fandom (in terms of time and money spent) throughout their lives.
• More than half of fans (55%) say that being a fan leads them to engage across multiple platforms; this figure rises to roughly 70% among Gen Z and millennial fans.
• Streaming services need to differentiate themselves through personalization. Fans don't just watch — they stay invested. They're clear about what they want: streaming platforms that are easier to navigate, more connected, and more personalized. Increasingly, they're looking for experiences year-round that extend beyond a single moment, whether it's a premiere, a championship game, or a concert. When those moments pass, fans often turn to other spaces besides streaming platforms for deeper experiences and communities built around the shows, sports, bands, and creators they love. Platforms that nurture fandom on an ongoing basis can keep fans engaged longer, help them feel understood, and grow their audience over time.
• More than half of fans (52%) say social platforms are their primary way of discovering new content — rising to 73% among Gen Z fans — yet 44% say they typically discover content on social and then go elsewhere to watch, listen, or purchase the full version.
• Almost half (49%) of fans surveyed say ads would be more effective if tailored to their fandoms. Some fans are open to AI-generated advertisements, with around a third saying they "don't care" if ads are made by GenAI.
• 40% of fans (49% of Gen Z and millennial fans) wish they could aggregate all their favorite fan content into one place.
• AI can help enrich the fan experience: 27% of fans say they'd like personalized, AI-generated digests of streaming, social, podcast, and actor updates about their favorite shows and franchises. Around a quarter of fans (24%) say they would like the option to co-create content with GenAI, like developing alternative endings to shows or movies. A similar share also say they'd be willing to interact with virtual AI personalities if they were interesting or informative.

The 20th edition of Deloitte's "Digital Media Trends" report is based on a survey of 3,575 consumers, age 14 and older, fielded by an independent research firm in October and November 2025.

It is available here.

For additional details and data, visit Deloitte's Digital Media Monitor, which provides a longitudinal view of U.S. consumers' engagement and spending on media and entertainment products, services, and subscriptions.

The honeymoon between the streaming industry and consumers is definitely over, with a new consumer survey showing deep dissatisfaction. Nearly half (47%) of those surveyed by Deloitte said they pay too much for the streaming services they use, and 41% believe the content available on these services isn't worth the price (up 5 percentage points from 2024).

Deloitte’s latest “Digital Media Trends” report also found that consumers are near the breaking point when it comes to further price hikes. After several years of the major service regularly raising the prices much faster than inflation, the survey found that a price hike of $5 would be likely to make the majority (60%) of consumers cancel their favorite service, the researchers reported.

That means M&E companies are at a tipping point. They must innovate to deliver more value or risk losing the next generation of viewers, the report concluded.

The “Digital Media Trends” covers the digital media landscape, including insights into the amount of time spent on social media compared to streaming services, especially for younger generations.

Overall, the report indicates that M&E companies are facing a pivotal moment: Younger audiences are spending less time with traditional TV and streaming and more time on AI-driven, social-first platforms. The rise of free, ad-supported content and creator-driven entertainment is forcing companies to rethink what drives value and engagement.

One key finding is that subscription fatigue is real: Younger audiences are increasingly selective about paid streaming and are embracing alternatives like free ad-supported services and social platforms. In addition, AI-powered social platforms are becoming the go-to discovery engines for Gen Zs and millennials finding social content to be more relevant than TV shows and movies. And, the creator economy is having a growing impact, with influencers and digital creators are shaping viewing habits and audience loyalty in ways Hollywood can’t ignore, the researchers wrote.

"The data is clear: Entertainment providers should embrace innovation and agility to help them thrive," explained Doug Van Dyke, vice chair, Deloitte LLP and U.S. telecom, media and entertainment sector leader. "This means understanding the nuances of younger audiences, leveraging technology to personalize content and advertising, and exploring new avenues for distribution and monetization. The status quo is likely no longer an option."

Other key findings indicate that:

• Consumers are increasingly dissatisfied with the value of paid streaming services. Even though 53% of consumers surveyed say that streaming video on demand (SVOD) services are the paid media and entertainment services they use most frequently, almost half (47%) say they pay too much for the streaming services they use, and 41% believe the content available on these services isn't worth the price (up 5 percentage points from 2024). A price hike of $5 would be likely to make the majority (60%) of consumers cancel their favorite service.
• Value-driven entertainment is surging, especially with younger generations. More than two-thirds of Gen Zs and millennials now subscribe to free ad-supported TV (FAST) services. Meanwhile, more than half of SVOD subscribers (54%) say that at least one of the services they pay for is ad-supported, an increase of 8 percentage points since 2024.
• Content on social platforms holds greater relevance for Gen Zs and millennials. 56% of Gen Zs and 43% of millennials surveyed find social media content more relevant than traditional TV shows and movies, and roughly half feel a stronger personal connection to social media creators than to TV personalities or actors.
• Social platforms have the power to sway purchasing decisions. Gen Zs (63%) and millennials (49%) say ads or product reviews on social media are most influential to their purchasing decisions. This contrasts with the influence of streaming video ads, which influence only 28% of Gen Zs and 25% of millennials.

Deloitte's 19th annual "Digital Media Trends" report stresses that these and other survey results detailed in the study indicate that the industry is at a crossroads.

Gen Zs and millennials are increasingly turning to social platforms for entertainment, drawn by data-driven personalized recommendations and a myriad of free, ad-supported content. the data in the report shows.

Meanwhile, the percentage of paid TV (like cable or satellite) or live-streaming TV subscriptions in the home remains relatively flat. This shift presents a challenge to traditional studios and streaming services, asking them to rethink their strategies to deliver both compelling content and value in a rapidly evolving landscape, the researchers wrote.

One of the key challenges, the researchers argue, is pricing and the cost of services.

With subscription prices rising on average to $16 per month for ad-free SVOD services, consumers appear to be feeling a pinch, and younger generations surveyed are especially prone to canceling services or choosing less expensive, or even free, ad-supported alternatives. While streaming services initially disrupted the cable model, they are now facing similar pressures as prices climb and perceived value diminishes, particularly among younger viewers.

Cable or satellite TV subscribers surveyed report spending $125 per month on average for that service, while the average SVOD subscriber has four paid streaming services totaling $69 per month—a 13% year-over-year increase overall and a 20% increase among Gen Z and millennial consumers.

The report also indicated that premium streaming services are struggling to find an ideal price point with little flexibility to raise prices without further alienating customers. On average, consumers consider $14 per month to be "just the right price" for their favorite ad-free streaming services, while the current market average is $16. Prices above $25 per month are seen as too high. For a favorite ad-supported service, the ideal price for respondents is around $10, with $9 being the current market average, and anything above $19 is considered too expensive.

Faced with high and rapidly rising prices, churn also remains a major issue.

Despite streaming providers' efforts to minimize churn, 39% of consumers have canceled at least one paid SVOD service in the last six months, a rate that has remained relatively stable in recent years. This figure jumps to over 50% for Gen Zs and millennials surveyed. Additionally, the phenomenon of "churn and return"—where consumers cancel and then renew the same subscription within the last six months—also remains consistent, with 24% of all consumers doing so in the past six months. This number rises to 40% for Gen Z and 35% for millennial respondents.

Financial concerns may be playing a role as ad-supported tiers continue to gain traction. 54% of SVOD subscribers surveyed have at least one ad-supported tier of a paid service, up from 46% last year. This rises to 58% among both Gen Xs and Boomers.

More information and data can be found here.

Concern over the maturity of artificial intelligence coupled with copyright issues are among the hurdles facing the film and TV industry’s adoption of generative AI, but the potential cost savings associated with the technology are fueling studios’ interest in adopting it.

Those is among the findings in Deloitte’s Tech, Media & Telecom 2024 report issued this week, which focuses primarily on the impact of AI.

Despite such misgivings, the residual impacts of COVID-19, coupled with the pressure for media companies to see profits from their streaming businesses, are cited as the main reasons that studios are taking a serious look at gen AI, Deloitte said.

“Revenues are high, but operating expenses and the costs of production, marketing, and advertising have typically become higher,” the company said in its report. “This is often true for many studio streamers that are funding their streaming services without profit while losing revenues from declining cable TV subscriptions and advertising. Inflation, higher interest rates, and the impacts of the COVID-19 pandemic have further inflated costs, and studios now also compete with social media, user-generated content, and video games for consumer attention and revenues.”

Fewer than 3% of film and TV studios in the U.S. and the European Union will devote their production budgets to gen AI tools in 2025, Deloitte predicted, but 7% of operational budgets will be targeted for tools supporting functions like contract and talent management, permitting and planning, marketing and advertising, and localization and dubbing of content.

“This approach can help studios slow the potential disruptions that gen AI can pose to talent and content, while more quickly adopting gen AI tools that can help reduce costs and accelerate performance across their businesses,” Deloitte said.

However, the researcher noted that social-media brands—which often face less liability and fewer business issues than the big studios—are already staking their claim to Gen AI and this could further impact Hollywood’s bottom line.

“Independent content creators and social media platforms are moving quickly to adopt gen AI into their workflows and content, potentially enabling new forms of media to emerge that could further disadvantage traditional studios competing for scarce attention time,” Deloitte said in its report.

As for the quality of AI-generated content, Deloitte said the technology is advancing rapidly enough to allow Hollywood to dip its toes in. With AI advancing to a point where viewers will no longer be able to distinguish what is real from what is AI-generated, though, studios are also looking to protect themselves against legal action from individuals impacted by the use of AI to alter their likenesses.

“The availability of cheap, off-the-shelf large language models (LLMs) and diffusion models have helped enable studios to experiment with rapid prototyping of scripts, dialogue and story elements, and with early visualization and discovery of character and set design,” the report noted. “Some studios are using generative tools to de-age their celebrities or create digital twins that can be lent to commercials—or to postmortem productions. In such cases, studios can help control for potential liabilities by writing protections directly into the contracts with actors. The coming year will likely see more third-party production groups selling services and tools to studios offering such capabilities.”

Film and TV studios hold a valuable card in the media industry’s transition to AI, Deloitte added: the need for AI companies to have enough data to feed their modeling. The studios own a massive amount of data that could be highly valuable to these companies, the consultancy said.

“Hungry for more data to feed their training sets, leading gen AI providers have been courting studios and incentivizing them to license their content archives,” Deloitte said. “However, studios may resist this entirely since their IP is their livelihood, or they may charge onerously high rates to gen AI companies that may already be straining under their own operational costs. Studios could even see an advantage in collectively denying data to training sets in hopes that they might inhibit frontier models—the algorithms being encoded and trained to generate text, audio, image and video.”

In addition to opposition from Hollywood guilds about the threat of AI to the industry’s livelihood—a major sticking point in 2023’s actors and writers strikes—the costs of creating fully private models are prohibitively expensive, leading Deloitte to predict studios will have to team up with AI tech companies.

“To build more effective private models, studios and investors may have to think and act more like tech companies, building and maintaining ecosystem relationships with—and paying rents to—tech providers,” Deloitte said. “For these reasons, studios may be less likely to train their own models without considerable shifts in economics. However, the year ahead could see a flurry of partnerships between studios and providers that could share the cost burdens more equitably.”

 NEW YORK—Retailers and advertisers are in for some good news this week according to a new Deloitte survey showing that holiday spending during the Thanksgiving week is expected to reach new highs.

The Deloitte survey found that consumers plan to spend an average of $567 during the Black Friday-Cyber Monday (BFCM) shopping events (Thursday, Nov. 23 – Monday, Nov. 27), up 13% from last year.

Deloitte's "2023 Black Friday-Cyber Monday Survey" examines what retailers can expect from shoppers between Thanksgiving and Cyber Monday. It found that as consumers tackle their holiday gift lists, some shopping behaviors that accelerated through the pandemic are here to stay, while some new traditions also begin to emerge.

"Millennials have taken over as the largest share of Black Friday-Cyber Monday spending," explained Stephen Rogers, managing director, Deloitte Insights Consumer Industry Center, Deloitte Services. "This year, retailers have an opportunity to better connect with millennials, who grew up heading to midnight doorbuster deal events. Millennials are also more likely to self-gift, so retailers have any opportunity to entice these shoppers to throw a couple of extra gifts in their baskets."

As consumers ring in the height of the holiday shopping season, 84% are confident in their original budgets and plan to spend the same or more from what they initially projected in September. Much of that spending is planned to take place during the BFCM period, as shoppers leverage promotions to make the most of every festive dollar spent this season.

The survey also found that BFCM is back as a major event with participation on par with pre-pandemic levels. Eighty percent of consumers plan to shop during the Thanksgiving week, with an expected spend of $567, up 13% year-over-year.

Among those expecting to spend more, 51% of respondents say it's because they're buying more gifts, 44% are updating non-gift clothing, and 40% attribute it to higher prices.

Some consumers see the BFCM events as holiday traditions, and over half (57%) of shoppers plan to take advantage of as many deals as possible during this period. Four-in-10 plan to complete all their holiday shopping during the Black Friday-Cyber Monday timeframe.

Peak days will be Friday and Monday, with 65% and 58% of shoppers participating, respectively, the survey found. Nearly two-thirds (63%) of shoppers say they could be tempted to make a BFCM purchase while at work.

The study also found that digital preferences brought on by the pandemic are here to stay with 61% of the budget to be spent online, while 39% will still be in-store.

Despite consumers increasing their Black Friday spending online, younger shoppers are likely to line up for those doorbuster deals. This shift could offer an opportunity for brick-and-mortar retailers seeking an in with a new generation of consumers, the researchers said. 

Black Friday spending online continues to grow: Shoppers expect to spend $169 online this Black Friday versus $121 in 2019 (+9% CAGR).

While in-store shopping on Black Friday remains significant, planned spending is down slightly year-over-year ($138 in 2023 vs. $145 in 2022), but still above 2019 levels. The majority of consumers noted doorbusters are less appealing (58%) or are hoping to avoid crowds (55%).

Millennials will drive a significant share of spend during the BFCM period (43%), compared to Gen X (23%), Boomers (20%) and Gen Z (13%). They also are more likely to embrace the Black Friday doorbuster traditions — 50% surveyed are likely to go to stores between midnight and 7 a.m. (versus 31% of other shoppers).

Millennial shoppers intend to increase their average BFCM spending by 38% year-over-year and prioritize self-gifting: 68% plan to buy gifts for themselves during this period.

The survey also found that BFCM has competition as 4 in 10 respondents took advantage of October promotions, purchasing gifts (28%) as well as other items that had prices that were too good to pass up (29%).

Earlier promotional events are making an impact: 41% of respondents said they shopped for holiday gifts during October promotional events; those who did are likely to spend 25% less than others during BFCM.

While mass merchants continue to draw the most traffic during the Black Friday-Cyber Monday period (60%), online-only retailers are quickly closing the gap (57%, up from 54% last year).

During the holiday week, consumers surveyed plan to focus on categories where they expect the best deals, including clothing and accessories (70%), electronics and accessories (53%), and toys and hobbies (53%). Less-discounted categories like gift cards (29%) and food and beverage (27%) are expected to see less purchases during BFCM.

"As consumers tackle their gift lists, we see Black Friday-Cyber Monday as an omnichannel opportunity this year — to attract both consumers who have come to embrace online shopping for its convenience, as well as those who are excited to head to stores to capture the best deals without potential delivery fees," explained Brian McCarthy, principal, Deloitte Consulting LLP. "Retailers who understand shifting consumer preferences could reshape the way shoppers make the most of holiday deals."

The media and entertainment business is built on what it offers its viewers: programming, sports, news and other live events. While language purists may balk at the current use of the word “assets” instead of “programs,” it does convey the value of the material—both creative and commercial—shown on TV channels and streaming services. They are valuable commodities and have always needed to be protected. Unfortunately, the move to file-based production, with everything on computer servers and network or cloud access, has left assets—and their owners—extremely vulnerable.

This was starkly illustrated by the 2014 hack of files and data from Sony Pictures, which included staff details, emails, corporate information and copies of at-the-time unreleased films. Calls for heightened security in the aftermath of the breach ultimately led to the creation in 2018 of the Trusted Partner Network (TPN) by the Motion Picture Association (MPA) and the Content Delivery and Security Association (CDSA), with the MPA taking full control of TPN in 2021.

Early Moves
The MPA issued its first best practice guidelines for content security in 2009, in collaboration with member companies and consultancy Deloitte. Updates and revisions followed between 2011 and 2018, with authorship moving exclusively to the MPA and its membership.

Deloitte published its own report on the subject in 2018, highlighting the digital transformation of content in all its forms. Among its recommendations for securing material were digital fingerprinting, encryption, blockchain (a digital ledger for recording transactions and events), watermarking and plugging the “analog hole,” where programs are copied from legacy sources.

John Footen, managing director of Deloitte Consulting, acknowledges that the situation continues to evolve but says new technologies are now being used with established practices to further tighten security.

“Automation can reduce the effort to maintain a consistent security posture in large-scale systems and to recover after an attack,” he explains. “We’re also seeing greater integration of media technology with enterprise security systems. More products can work with single sign-on in zero-trust environments, for example. At Deloitte, we’re applying AI for cyber defense, not only for well-established uses such as detecting anomalous behavior and interdicting threats but also for assessment and visualization.”

The changing nature of the threat— hackers developing new viruses and ways of infiltrating systems—calls for content owners to be ever vigilant. This is reflected in the MPA/TPN Best Practice Guidelines, which have been updated on an annual basis (sometimes twice in a year) since 2018. The most recent revision appeared in August this year, with new guidance on working from home and remote access to data centers, plus minor updates to cloud specific controls.

The recommendations from Crystal Pham, vice president of operations and product management for TPN are fairly universal no matter the process: Ensuring that content owners and facilities have secure connections— including not logging into applications from unsecured networks; keeping applications updated and patched; using strong passwords and authentication mechanisms; not sharing accounts or credentials; always installing applications from trusted sources; and adhering to MPA Best Practices, as well as completing an annual TPN assessment.

Pham characterizes the security issue in M&E as “always evolving” and can be influenced by new technologies, the shortening of  release windows and emerging threats. 

“Change is a constant,” she says. “I do think there’s more awareness about security, with better understanding of the constant change and the need to get ahead of it when possible. I believe it’s becoming more embedded in the process of creating, distributing and consuming content. It’s also becoming more ingrained in our culture.”

New Methods Needed
The ever-shifting landscape is summed up by Asaf Ashkenazi, chief executive of Verimatrix, who observes that as technology advances, so do the techniques used by pirates to illegally obtain, distribute and monetize content.

“DRM and other traditional security methods are no longer as effective against today’s savvy hackers,” he says. “New real-time detection and prevention systems that are layered on traditional protection methods are needed to combat modern piracy efforts—especially those that leverage AI/ML and cloud infrastructure to exploit at scale.”

To counter such threats, Verimatrix has developed Streamkeeper, which combines multi-DRM, forensic watermarking and “Counterspy,” which Ashkenazi describes as a “motion sensor” or “alarm” that detects piracy as it happens. “The goal, however, should not be to completely eliminate piracy but to disrupt the pirates’ business models,” he comments. “By increasing costs beyond potential profits, the motivation for piracy diminishes. Real-time detection, prevention and rapid response are key.”

Among the ways of disrupting the activities of pirates is to track down purloined programming to the sites where it is being offered illegally and shut them down. Another company providing such monitoring enforcement services is Friend MTS, which does this using both fingerprinting and watermarking technologies. 

“A customer will give us a clean reference feed of their playout and we fingerprint that,” explains Nik Forman, vice president of marketing for the U.K.-based company. “This allows us to uniquely identify that clip of video. If the monitoring systems— which are all automated and crawling the web—then find a suspicious web site is playing that content, we fingerprint it so we can compare them. 

“If they match, we know it is an illicit player and the client can send an enforcement notice or a takedown order,” Forman continues. “If they also take our watermarking services, the content is marked invisibly and basically sits like a QR code in the actual video. When we find the illicit content and we identify it, we match it with a fingerprint and can then say it is one of our watermarks and we extract that payload of subscriber information.”

‘Never Trust, Always Verify’
While the Sony hack made the M&E sector painfully aware of its vulnerabilities, the threats have only increased since then due to otherwise innocent technological developments. The threat landscape has evolved with emergent technologies such as the Internet of Things, 5G connectivity and advanced generative AI capabilities, according to Eric Elbaz, principal strategic engagement manager at Akamai.

“We’ve also seen state-sponsored attacks become more brazen,” he said. “Nation-state actors are believed to be behind some of the most sophisticated and persistent threats seen to date.”

This was the suspicion surrounding the attack on the supply chain of software company SolarWinds in 2020, while, as Elbaz points out, ransomware attacks have increased “dramatically.”

A recent example of this is the breach of MGM Resorts’ systems in Las Vegas, which reportedly cost the company approximately $100 million. But Elbaz does see progress in dealing with the threats: “On the defensive side, we’ve seen major strides being made across threat intelligence, a paradigm shift from ‘trust but verify’ to ‘never trust always verify’ architectures, which is zero-trust security. Deeper public-private sector collaboration and information sharing, as well as a catch up in privacy laws, regulations, and standards are also helping.”

The threat shows no signs of going away and future attacks are likely to be even more cunning and sophisticated. According to “Variety,” in 2022, hacking of popular entertainment content rose 18% YOY compared with 2021, with the U.S. having the largest share of film and TV demand (i.e., illicit streams, downloads and the like), with more than 13.5 billion visits to piracy sites.

But the tools to combat it are there and, when it comes down to it, the greatest weapons are probably vigilance and common sense. 

The tech fatigue many consumers began feeling during the lock-downs of Covid-19 seem to have translated into a growing ambivalence towards technologies with U.S. consumers looking to both adopt new technologies and simplify how they interact with consumer technologies. 

According to a new survey from Deloitte, the average U.S. household has reduced the number of connected devices in their homes to 21 connected devices (down from 25 in 2021). One third (33%) of those surveyed reported that they can’t afford to buy tech devices (up from 25% in 2022). 

Yet, almost one in five (17%) have already used or experimented with generative AI, and 72% plan to keep using it. More than six in ten Gen Zs and more than half of Millennials are interested in learning by viewing or interacting with 3D objects or representations. 

Consumers also say they are looking for more innovation in 5G apps and services.

Overall, the fourth annual Deloitte “Connected Consumer” survey indicates that consumers want to balance digital and physical lives as they streamline devices, spend selectively on technology, demand innovation, safety and utility in a connected world, the researchers said. 

More specifically it found that nearly half of households (48%) bought at least one new connected device in 2023, with 16% adding three or more. But as households add new tech devices, they are trimming devices that no longer fit their needs. Households have an average of 21 connected devices in 2023, down 22 in 2022 and below a peak of 25 in 2021 when many loaded up on technology during the COVID-19 pandemic, the study found. 

Consumers also reported that they want to trim tech complexity: 41% dislike managing their devices, while 28% say managing tech devices and subscriptions is “overwhelming.”   

“Deloitte’s Connected Consumer survey paints a vivid picture of a society that is learning to use technology wisely. Consumers are no longer amassing devices; they're carefully selecting them with purpose to foster digital harmony,” explained Paul Silverglate, vice chair, Deloitte LLP and U.S. technology sector leader. “From embracing a more conscious approach to device consumption to adapting to the changing landscape of virtual health care and hybrid work, the findings underscore the ingenuity and resilience of the modern consumer. The journey ahead is filled with opportunities for companies to innovate and respond to these evolving needs.” 

While the average number of digital devices in the household dropped by four in the past two years, from 25 in 2021, to 21 in 2023, that doesn’t mean consumers have less interest in devices, the researchers argued. 

Instead, it indicates they are streamlining and getting rid of obsolete or less-useful devices while still purchasing new ones. There is an opportunity for tech companies to better support customers wanting to strike a balance that maximizes benefits and minimizes the drawbacks of living a connected life, Deloitte reported. 

The survey of 2,000 U.S. consumers also found that nearly half (48%) of surveyed consumers purchased new connected devices for their household in the past year. 

Among respondents, 63% expect their spending on acquiring devices to stay the same over the next 12 months, and only 7% expect to decrease spending. Nine percent (9%) plan to increase their spending. 

Forty-nine percent (49%) of consumers delayed device purchases during the past year due to economic conditions, while 33% feel they can't afford to buy the tech devices their household needs (up from 25% in 2022).  

Consumers continue to grapple with managing their digital lives: 41% dislike managing their devices, and 28% feel overwhelmed by the number of devices and subscriptions they need to manage (up from 24% in 2022). 

Another key finding was consumers' continued call for innovative apps and experiences that take full advantage of 5G technology capabilities. More than half of the respondents with 5G smartphones (53%) said they’re looking for these apps, and more than a quarter (26%) expressed disappointment in the lack of such innovative apps and services.  

Overall, 62% of consumers with smartphones say they have 5G, up from 50% in 2022, the study found.

5G smartphone users say they do more of some things, compared to before they had 5G, with one in five using their phone more to pay for items in a store and to act as a hotspot. Nearly one in four watch streaming videos more (four in ten Gen Zs do more of this than before they had 5G), and nearly one in five play more videogames (one in three Gen Zs do more of this than before they had 5G). 

5G fixed wireless is an emerging trend for home internet: 12% of home internet consumers say they have fixed wireless (compared to 8% in 2022), and a majority of them say it's 5G, the researchers said. 

The study also points to the promising growth of immersive 3D experiences and growing interest and awareness in generative AI among consumers, especially in the younger generations. 

More than six in ten Gen Zs and more than half of millennials are interested in learning by viewing or interacting with 3D objects or representations; traveling to places of interest virtually; meeting with friends and family in 3D spaces; attending 3D virtual entertainment events; and shopping in 3D stores.  

Almost one in five respondents surveyed (17%) said they have experimented with generative Al or used it for projects/tasks: Of these, 72% used it for personal purposes, 21% for school/education, and 20% for their job/professional purposes. Seventy-two percent plan to keep using it.  

Other key findings include: 

• Employee preference for hybrid work increased by 7 percentage points in 2023. The main benefits of hybrid work cited by respondents include better relationships with family and co-workers, and improved health and well-being.  
• Satisfaction with virtual health visits is growing. Most people who experienced a virtual health visit would prefer virtual or hybrid options in the future for psychological health and chronic conditions.   
• Parents see positives in connected devices for their children, reporting they enhance learning, enable new experiences, and keep kids organized — but they also worry about potential harms and set boundaries on their children’s digital behaviors.  
• Security concerns have grown: 58% of surveyed consumers worry their devices are vulnerable to security breaches (up from 50% in 2022), and 58% worry that organizations or people could track them through their devices (up from 41% in 2022).  

The full survey can be found here. 

While sports viewing continues to draw large audiences, a new Deloitte audience survey indicates that broadcasters and others offering sports programming are going to need to develop new, more immersive ways to approach their sports production and programming.  

More specifically, Deloitte’s inaugural survey “2023 Sports fan insights: The beginning of the immersive sports era” found that the rise of streaming and game-changing generational shifts in viewing habits and tech usage among Gen Zs and millennials mark the beginning of what Deloitte is calling a new era of immersive sports. 

These shifts include data showing that younger viewers prefer the viewing experience on streaming; they are more likely to view games on mobile devices; the importance of social media for these viewers; and their willingness to integrate betting into their sports viewing experiences. 

Those trends confirm other recent research, including a recent Vizrt survey finding that younger viewers are more likely to view sports on mobile devices.

"As we navigate a rapidly evolving digital media landscape, Deloitte’s survey reveals key shifts in sports consumption," explained Jana Arbanas, vice chair, Deloitte LLP, and U.S. telecom, media and entertainment sector leader. "The rise of streaming services, coupled with changing generational behaviors, necessitates a change in how the industry views engagement. Gen Z, in particular, seeks immersive, social experiences both at home and at live events, with a noticeable trend towards multiple devices and platforms. Simultaneously, the integration of sports betting and digital assets like NFTs challenges us to redefine fan engagement. The future of sports will increasingly rely on weaving a seamless tapestry of live, digital, and interactive experiences that resonate across all generations." 

In terms of streaming, the survey found that streaming services have the potential to surpass the experience of watching sports on cable or broadcast TV, with 64% of Gen Z, 71% of millennial, and 52% of Gen X fans saying that they have a better viewing experience when watching a specific sporting event on a specific streaming provider than on cable or broadcast television.

But viewers also expressed frustrations with streaming sports and a desire for a less fragmented, simpler experience, with 70% of Gen Z and 80% of millennial fans saying they’d be willing to pay extra for a streaming service that had all the sports they want to watch in one place.

Other key takeaways of the Deloitte survey include:

• Younger fans are shifting what the ideal sports viewing experience at home means: While 71% of all fans say their favorite type of sports content to watch is live events, this number drops to 58% for Gen Zs and millennials.
• While watching sports at home, 77% of all fans say they have participated in at least one sports-related activity concurrently, whether looking up player statistics, using social media, playing fantasy sports, betting on the game, or watching other games on a separate device.
• More than 90% of Gen Z fans use social media to consume sports content, including game clips and highlights, live events, athlete interviews, and posts from athletes.
• Fans are increasingly integrating betting into their fan behaviors, with approximately 50% of Gen Z and millennials over the age of 21 desiring the option to bet on different aspects of the game in real-time on their mobile device while attending live sporting events.  
• Social interaction plays a crucial role in the sports experience for Gen Z fans. The survey shows that 61% of the time, Gen Z fans are watching live sporting events from home with others. Furthermore, 38% of Gen Z fans said having friends to watch sports with at home would make them more likely to do so. In terms of attending live events in person, 25% of Gen Z fans cited experiencing events with friends or family as the most enjoyable aspect, underscoring the significance of social connections both in-person and online.
• Over 90% of Gen Z sports fans use social media to consume sports content, with their favorite content being game clips and highlights, live events, behind-the-scenes interviews and videos, as well as athletes’ posts.
• When attending a live sporting event in person, 43% of Gen Z fans use their mobile device to post to social media during the game.
• A majority of Gen Z fans follow an athlete online, with 46% of Gen Z fans watching a live sporting event from home as a result of following that athlete online, and another 33% attending a live sporting event in person. 
• Streaming is becoming an increasingly popular way to consume live sports. While traditional channels such as broadcast, satellite and cable still dominate, streaming has emerged as a formidable force. The survey reveals that 30% of all fans (and 46% of millennial fans) have subscribed to subscription video on demand (SVOD) services specifically for watching sports in the past 12 months. When watching sports, fans say that 22% of the time they are watching on a streaming video service, compared to around 60% of the time when their sports viewing occurs on cable or broadcast television.
• Some fans want new features from their SVOD services, such as real-time statistics and analytics, different camera angles, or watching the game from an athlete’s POV.

“The sports industry is undergoing transformative changes and Deloitte’s first survey on this topic highlights the passion and resilience of sports fans of all ages," explained Kat Harwood, principal, Deloitte Consulting LLP, U.S. sports practice. "The concept of immersive sports showcases the personalized experiences available to fans and how they engage with their favorite teams. Deloitte looked at everything from social interaction during games and SVOD habits to sports betting and NFTs to find out what matters most to fans and how organizations can navigate this dynamic environment and create new opportunities for fan engagement.”

The researchers also reported that fans are redefining their sports consumption habits at home by assembling a mix of engagement channels with a noticeable shift among younger generations, the report noted. 

The survey explored fans’ favorite types of sports content and found that while 71% of fans overall preferred live sporting events, a smaller share (58%) of Gen Z and millennial fans shared the same preference. This indicates a wider range of sports content competing for the attention of these younger fans, such as social media videos.

While 74% of the time, fans who watch sporting events from home rely on TVs to watch sports at home, this share drops to around 60% for Gen Z and millennial fans, indicating that younger fans are watching on a range of devices, the report said. 

Many fans are multi-tasking while watching live sports at home, with 77% doing a sports-related activity such as looking up player or team stats, using social media, playing fantasy sports, betting on the game or watching other games on a separate device, the researchers reported. 

Immersive and social elements may appeal to some younger fans and drive more engagement. But the game comes first, with 46% of fans saying they’re more likely to watch a live sporting event from home if they’re a big fan of an athlete or the team participating, and 45% saying they’re more likely to watch from home if the event is important or meaningful, the researchers stressed. 

“Whether a fan is watching at home, in person, or on the go the actual sporting event is going to be mediated, personalized, and shared through a variety of digital channels for a customized experience that meets the needs of each individual fan," Pete Giorgio, principal, Deloitte Consulting LLP, global and U.S. sports practice leader. "That’s immersive sports. Two or three different fans could be watching the same sporting event, but they will have their own personalized sports reality. One might be more interested in stats and analytics. Another might prefer to bet on sports, so they can do it from their laptop or mobile device while they watch the game on another screen. A third person might be co-watching the game with friends from all over the world and playing a prediction game with them.”

NEW YORK—Deloitte and Sinclair Broadcast Group have announced that they plan to launch a new metaverse sports fan community experience that will leverage Epic Games' Unreal Engine to explore the future of gameplay and the fan experience through the metaverse.

The community will launch the week of March 6th.

The fandom community was built by Deloitte's Unlimited Reality practice, which brings together 3D computing, artificial intelligence, Web3.0, immersive experiences and advanced connectivity to help clients create business value. The community makes use of Epic's Unreal Engine — a powerful 3D creation tool that brings robust experiences to life in real time.

Sinclair is billing the partnership as an important next step in Sinclair's plans to deepen engagement with its viewing community, drive new revenue streams through experiential gaming and help redefine sports viewership and experiences through the metaverse. 

The community is designed to build on the new ways fans are consuming sports-related content, as well as the desire from fans for more immersive content and greater engagement with teams, Sinclair said.

It is also designed to engage fans beyond simply viewing of live games, providing a metaverse experience to engage fans during post-season, pre-game, post-game and eventually, during the game. 

"By bringing together Sinclair's vision of virtual metaverse engagement with Deloitte's deep client and sports industry knowledge, metaverse know-how and break-through solutions and ecosystem partnership, we plan to deliver an enhanced fan experience that caters to the unique communities we serve," said JR McCabe, chief business officer, Consumer Products, Sinclair Broadcast Group.

"In Deloitte's recently published '2023 Sports Industry Outlook', it is clear the blending of physical and virtual worlds is accelerating in the industry, providing fans with more ways to access and consume sports content than ever before," said Dan Helfrich, chair and chief executive officer of Deloitte Consulting LLP. "We are excited about the opportunity to team with Sinclair Broadcast Group to augment the viewing experience by harnessing the power of virtual worlds for broader community accessibility and deeper fan engagement."

Learn more about Sinclair's virtual community here.

NEW YORK—Nearly two years into the pandemic, a new survey from Deloitte shows that consumers are spending more time with in-home media and that media companies face some tough competition from interactive social media and gaming experiences that can provide consumers with the social connections they crave. 

"It's clear people still want to enjoy socializing with friends and family, even if that means the experience is online and the interaction is from within their homes,” explained Jana Arbanas, vice chairman, Deloitte LLP and U.S. telecom, media and entertainment sector leader. “Streaming video in its current form doesn't satisfy this social desire, so to meet this need, consumers are spending increasingly more time on other forms of online entertainment. Given this reality, streaming companies need to evolve their offerings into connected social experiences in order to keep subscribers interested and engaged, ultimately positioning their businesses for future growth amidst changing behaviors."

The “Deloitte Digital Media Trends Fall Pulse Survey” revealed that 84% of consumers are spending more time on online entertainment at home, compared with in-person entertainment outside the home and that a similar percentage (82%) say they are concerned about COVID-19 variants, and that's likely keeping people indoors and online.

While this has been good for media companies launching streaming services, the survey also found that consumers have a wide array of offerings competing for their attention and that churn remains a major problem. 

Boomers and Gen X still rank "watching TV shows or movies at home" as their favorite entertainment activity while Gen Z still rank "playing video games" as their preferred form of entertainment, the report found. 

About 65% of respondents are frequent gamers, playing at least once a week; on average, these frequent gamers play for around 12 hours a week.

Sixty-five percent (65%) of consumers are engaging with at least one social media service several times a day.

In this landscape, churn is a growing problem. Almost half of millennials (47%) and 34% of Gen Z cancelled and then resubscribed to the same streaming video service later that same year.

The top reason consumers cancelled a paid streaming video on demand (SVOD) service was due to high cost followed by the fact they finished the show they signed up to watch.

About 65% of consumers watch free ad-supported video services.

The report stressed that the survey data shows that the “old normal” patterns of consumer behavior were not returning and that streaming video providers were finding it harder than ever to keep subscribers as people — especially younger generations — are managing costs by adopting ad-supported options, looking for discounts and bundles, and moving on and off services to satisfy their content needs.

This, Deloitte noted, could be ushering in a permanent shift in entertainment, where it's not just about streaming, or the number of subscribers, but also about providing more social and interactive experiences to reduce churn.

"We're seeing an important shift in what consumers are paying attention to and how they are choosing to engage and be entertained,” said Kevin Westcott, vice chairman, Deloitte LLP and U.S. technology, media and telecom leader. “While streaming video will continue to gain momentum, especially with leading services now pursuing global markets, these companies will also need to address churn and retention among diverse segments in different markets, and shift from merely measuring subscribers to understanding how to unlock the lifetime value within their customer bases. It will serve them well in the future to develop growth strategies that include both social video and social gaming, whether through partnerships, acquisitions, or simply establishing a really effective social media department."

Other key day points included:

• About half of consumers (48%) say they spend more time on online entertainment versus six months ago.
• Boomers and Gen X still rank watching TV shows or movies at home as their favorite entertainment activity.
• Gen Z, meanwhile, still rank playing video games as their preferred form of entertainment.
• Everyone younger than Boomers, especially Gen Zs and millennials, have been listening to music more than they were six months ago.
• More premium and ad-supported services have launched, giving U.S. consumers additional options for watching new original content, and accessing a broad content library. The survey revealed that consumers are getting better at developing strategies to access this content while keeping their costs low.
• Eighty-four percent (84%) of respondents now pay for a SVOD service; the average household has four subscriptions — largely unchanged during the past year.
• The churn rate — the number of people who have cancelled, or both added and cancelled, a paid SVOD service — has remained stable at about 38%, although it varies from service to service.
• The top reason consumers cancelled a paid SVOD service was due to high cost followed by the fact they finished the show they signed up to watch.
• Many streaming video subscribers say they actively manage costs in some way, either by looking for deals or promotions, bundles, using friends' or family members' accounts, and other strategies.
• Led by cost-sensitive and savvy millennials and Gen Zs, 65% of respondents reported using free ad-supported video services.
• About 90% of respondents cited using at least one social media service, and the average person uses five different services. This number increases to seven for Gen Zs and millennials, with about a quarter of each using 10 or more different services.
• Sixty-five percent (65%) of consumers are engaging with at least one of these services several times a day.
• The top reasons for using social media are staying connected to friends and family (51%) and staying up to date on news and current events (31%). Discovering new content also ranked highly: 21% use social media to discover new video content, and 16% use it to discover new music.
• While a third of respondents say they are watching more video on paid streaming video services than they were six months ago, nearly as many say they are watching more video on social media and live streaming services. 
• Forty-four percent (44%) of consumers follow an influencer on social media. Among consumers who follow an influencer, the top reason is liking the content they produce (53%). Other top reasons include relating to the influencer (35%), admiring them (29%) and liking the products they promote (29%). 
• Roughly 4 in 10 U.S. respondents say that they have seen a product on social media and gone to the retailer's website to buy it or clicked on an advertisement that led to a purchase.
• Thirty-one percent (31%) of respondents have made a purchase directly on a social media service. Younger consumers are more likely to find recommendations from influencers important to their purchasing decisions.

For additional details on the findings or to listen to an audio file, visit here. 

LONDON—More than one million 8K TV units are expected to be sold globally in 2021, passing that benchmark for the first time according to estimates from Deloitte. Even with surges in 8K TV sales, Deloitte still estimates that they will make up less than 1% of the 200 million-plus sets sold annually.

Even though 8K TVs will make up a small percentage of the total number of new TV units sold, 8K TVs are projected to garner more than $3.3 billion in global revenue, per Deloitte. That is because currently the average selling price for an 8K TV is more than $3,000.

Like 4K and HD TVs before it, Deloitte predicts that as prices for 8K TVs come down, their sales will go up. In 2017, the average sale price for an 8K TV was about $8,000, which then dropped to about $5,500 in 2018. By the end of 2021, Deloitte estimates that 8K TV prices will drop to about $1,300, helping to spur sales.

This surge in 8K TV sets will occur even as less than 0.1% of video content created in 2021 will be in native 8K, Deloitte says. This fits a trend, as Deloitte cites that more than half of TV sets sold in 2021 are projected to be 4K TVs, though less than 5% of content on SVOD and less than 1% of broadcast program hours will be 4K.

PLUS: TVs Likely to Lead 8K Content Push

There are ways for viewers to watch 8K content on their 8K TVs, though. Deloitte points to 8K TV sets ability to upscale 4K content; remastered 70mm movies are equivalent to 8K; and some content has been shot in native 8K but was released 4K. The 2021 Olympics are also expected to capture some events in 8K.

Deloitte also highlights that 8K TVs can host applications beyond entertainment, including remote working capabilities, online exercise classes and digital wallpaper.

More information on Deloitte’s 2021 8K predictions are available on its website. 

NEW YORK—There are a multitude of elements that will contribute to the overall TV industry landscape in 2020, but in a recent study Deloitte took a close examination of three in specific: antennas, content delivery networks and ad-supported video services (AVODs).

Deloitte’s full report, “Technology, Media and Telecommunications Predictions 2020,” covers a range of technology topics, but the sections on antennas, CDNs and AVODs delve into the economic impact of these technologies across the globe.

In its in-depth look at antennas, Deloitte examines how the death of antenna services have been greatly exaggerated. Across the world, Deloitte forecasts that 1.6 billion people, representing 450 million households, worldwide will watch some of their TV from an antenna in 2020—and it calls that the low estimate. Deloitte acknowledges that data on antenna use is incomplete, with some countries not providing information, but even so, the number of people watching TV through an antenna around the world will be 50% more than those watching TV over cable, IPTV and direct broadcast satellite combined in 2020, per Deloitte.

“Antenna TV is helping the global TV industry keep on growing even in the face of falling TV viewing minutes and, in some markets, increasing numbers of consumers cutting the pay-TV cord,” the report reads. For example, Deloitte predicts that U.S. pay-TV subscribers will decline by 5 million in 2020, in part mitigated because of the 2020 Summer Olympics and U.S. presidential election.

While other countries are seeing similar results, global TV viewership growth is expected to continue to grow in the next few years. Overall, TV subscriptions are projected to grow 8% between 2018 and 2024, while two-thirds of global pay-TV operators are expected to increase over the same period. Specifically regarding ad revenue in 2020, Deloitte estimates that it will grow by $4 billion, boosted in parts by the use of antennas as well as things like targeted ads.

Antennas are impacting another area of the industry. As the issue of spectrum and the desire to develop 5G and other wireless services continues, the industry must be aware that the spectrum used by antenna is not as available as may have been previously thought.

Content Delivery Networks are another element that is expected to significantly impact the bottom line of the TV industry in 2020. With the popularity of streaming video over the internet, CDNs’ global market is projected to reach $14 billion in 2020, a 25% increase than the estimated $11 billion in 2019. By 2025 that number is expected to more than double to $30 billion.

With the demand for CDNs to ensure high-quality delivery of content, media and telecom companies are developing their own CDNs to have greater control over their content and revenue. Despite this, Deloitte says that CDNs and OTT kicking pay-TV to the curb anytime soon.

“Most media companies will likely run their OTT efforts in parallel with their broadcast and pay-TV services, allowing the market to determine which will draw the most subscribers,” Deloitte wrote.

Another area poised to have a noticeable impact in 2020 and moving forward, according to Deloitte, is ad-supported video platforms, or AVODs. These types of services are currently most popular in Asia, with the region estimated to contribute $15.5 billion of a total $32 billion in revenue across the globe.

Something that may boost that in other regions around the world is the overall rise in streaming services available to consumers, says Deloitte. While new ones continue to launch, consumers are expected to limit the number they subscribe to, with some projections putting the cap at three subscription services. In this case, Deloitte believes that streaming platforms that do not make the cut may develop AVODs so as to generate revenue from their services.

Find out more by reading the full “Technology, Media and Telecommunications Predictions 2020” report.

NEW YORK—Ten years ago, few might have been able to predict the dominance of Netflix and other streaming services, not to mention that networks and studios would launch their own platforms where they would exclusively show original programming, but here we are. Now, industry forecasters wonder just how far people’s preference for these types of services and other non-traditional offerings will go.

Deloitte recognizes that in this rapidly changing world, trying to make an accurate prediction is difficult. So instead, in a new study, Deloitte lays out four possible scenarios of what the TV and video industry could look like in 2030.

The first scenario is what Deloitte calls “Universal Supermarkets.” This would see a few global digital platform companies assuming the lead roles in aggregation and distribution from national broadcasters. Similar to large supermarkets, digital platform companies would offer global and national content, with differentions coming from exclusive productions and sports rights.

In this scenario, broadcasters would still have a place in the industry as providers of localized content, including news. Other details involved with this scenario include the further development of AI to help with user-specific content selection and digital platforms use direct models of ad trading, which cut off broadcasters from revenue shares.

“Content Endgame” is another scenario that would have content owners emerge as the leaders, withdrawing and withholding content from digital platform companies to distribute on their own channels, establishing direct consumer relationships.

Deloitte describes this scenario as one where “variety of content has decreased, but the quality of global productions has reached new dimensions.” Broadcasters remain as they have shifted their focus entirely to the creation of strong local formats, supplying their productions to the big content owners. Digital platform companies, however, have been pigeonholed as strictly distribution channels focused on technical delivery. In this situation, consumers are paying for their preferred content, not a specific platform.

Then there is “Revenge of the Broadcasters.” Here, national broadcasters have successfully made their digital transformation to secure their place in the TV and video ecosystem, creating digital platforms that support direct customer relationships and deliver on-demand content. Broadcasters would employ new services like targeted advertising and recommendation functions, as well.

Digital platform companies would still exist in this scenario, with national broadcasters focusing on local quality content and digital platforms taking care of global productions and blockbusters. This would still allow for viewers to choose between linear and non-linear content from global or national sources.

The final scenario is called “Lost in Diversity,” where a diverse ecosystem has developed with no dominant method. This would feature a variety of distribution platforms with steady turnover of who is impacting the market and a richness of content. There would be partnerships between global and local players, while also having a distinction between content production and distribution.

“Everyone does everything in this scenario,” Deloitte wrote, with consumers only being loyal to content, not any specific platform. This allows broadcasters to generate revenue in a number of different ways, keeping them largely independent.

Overall, Deloitte’s scenarios paint a picture of digital platform companies being the major disruptors in the industry, while broadcasters and content producers face the most potential change. They argue that broadcasters and content producers can’t rely on their current market positions. Instead, they need to be open in creating alliances, even with direct competitors. Investment in technological skills will also be critical.

The full Deloitte study is available here.

HOLLYWOOD--The 2018 SMPTE conference opened on Monday with a overview of the opportunities M&E companies will one day pursue as private transportation transitions from cars driven by individuals to a future where self-driving vehicles turn drivers into passengers looking to be entertained.

Richard Merchant, Managing Director in Monitor Deloitte’s Strategy practice, and leader of Deloitte’s Media & Entertainment efforts on the Future of Mobility, painted a picture of where this transportation transformation that the M&E industry cannot ignore.

TV Technology Contributing Editor Phil Kurz sat down with Merchant after his address to discuss these opportunities in depth.

TV Technology:You seem very bullish on the future of autonomous vehicles. What gives you that confidence?

Greg Merchant: Deloitte has been doing a great deal of research studying the future of mobility and really delving deep into each of the industries it’s going to impact.

So even if you are wrong on the timing, it’s hard to argue against many of these impacts coming into society.

When you really look at the likelihood of everything transforming and the accelerating delivery of technologies that are making all of this possible, it’s hard to argue that it’s not going to change the way transportation works and the way mobility works sooner and permanently.

TVT:Earlier today in his keynote, Doug Davis of Intel quoted a Strategy Analytics study the company commissioned. It valued the autonomous vehicle market at $7 trillion by 2050. What do your figures show? And what slice of that will be related to media?

GM: The estimate we’ve done predicts about $2 trillion of economic activity every year. By 2030, the ecosystem should actually be humming along. In that, media specifically was pegged at $16 billion of economic impact every year.

But as I said in today’s speech, I would consider that more of a floor than a ceiling because there are more than just consumption opportunities we are talking about with the in-transit experience.

There are also going to be entirely new forms of experiences that are going to be developed across video, social, music, advertising, live entertainment, education and productivity. So, when you think about how all of those are going to be constructed both technically and experientially in the car, $16 billion will be on the low end.

TVT:Many of the speakers here at SMPTE today have made the point that the younger generation is receptive to ride sharing –a sign that Americans’ love affair with their cars may be coming to an end. But that generation was growing up in a time when the economy was flat. Given today’s strong economy, improvements in their financial means and growing ability to own their own cars, do you think their willingness to ride share will wane?

GM: I think we may see slight wavers, but I think the trend is headed in a direction where it’s not going to reverse. Put it this way, do you take more Ubers now than you did two years ago?

Ride sharing is actually expanding into different groups more than it is contracting. The conversation you have more often than not with leading and trailing millennials is about the reasons why they should ever buy a car.

Perhaps as they move out to the distant suburbs they may find an incentive to buy their own cars. But as long as they live around urban centers, ride sharing is only going to continue to grow.

TVT:Tell me more about the revenue possibilities this change in mobility will create for M&E.

GM: I think advertising is going to be revolutionized. You’ll be able to see different kinds of campaigns structured and targeted and sustained over the course of your daily commute, or even over the course of weeks.

You are going to be able to use location-based technologies to make them increasingly sophisticated and effective.

Ad insertion technologies for the inside of an automobile that are AR-enabled will absolutely change the way you interact with and view the world around you.

TVT:You mentioned in your presentation that billboards might evolve dramatically.

GM: Right now, the top of the line is a billboard that switches. It may, at most, have 30 different advertisements on it.

In the future, you could simply have a blank billboard that projects a customized ad for every single person that drives past it because it will know you are coming, and it will be able to do that seamlessly through an AR environment through your windshield.

TVT:Why would you even need that if you have all of the displays in your autonomous car?

GM: That’s part of the discussion. Do you still want to keep billboards in some way, shape or form? Remember, people still walk, they’ll see it outside the car.

But some billboards next to a high-volume highway, you probably don’t even need. If you can project an ad onto the billboard, you can most likely project a billboard.

That’s one area. The other that gets opened up, particularly with 5G, is that you are going to start to see ad-supported transportation –so the route you take home may change if someone pays a little extra to run you past their grocery store.

The cost of your ride will be determined by how much advertising you are willing to absorb on the trip.

I think you will actually see Uber partner with someone else to manage the cost of the ride.

TVT:What are some of your thoughts about how TV broadcasters and others might capitalize on this through their production businesses?

GM: Because of the development phase of the technology, most of what we are going to be limited by is our imagination.

Said another way, not everything is where it is going to be, but there is such a tailwind behind this technology that it will get there.

When you think about the different form factors you can put into a car –with ATSC 3.0 for instance—you’ll be able to have this integrated advertising. You’ll be able to have interactive like you’ve never dreamed of.

You’ll be able to play a game with an acquaintance halfway around the world while you are coming home from work and they are going to work.

You’ll be able to serve so much data into these delivery platforms at any one time.

TVT:What about the demand for production stemming from this anticipated mobility play?

GM: I think that is going to be a huge challenge. There is all of this technology on one side. On the other is the need to tell creative stories. There’s a need to tell a compelling version of what happened with completely engaging content.

I think there will be growing pains. It probably won’t be the most elegant experience as we get started.

But there is going to be an evolution as there has been with pretty much every media we come out with as people learn how to communicate through that particular medium.

You know, we are talking about something that could be an immersive 360-degree environment. So, to tell a story in that while you’re moving is going to be a little more complicated than just a two-dimensional story being told through your mobile phone.

I think it makes sense to start working on that now, particularly the technology and how to structure stories that get told in those environments as you go from your kitchen to the car, to the train, to a city bike –the ability to keep a story going and tell it across all those different media is going to be important. And there is a big production component to that.

But the real reason I think it makes a lot of sense is historically you’ve tried to simulate entertainment experiences and bring them into the car as best we can. Now we are talking about something where you have a contained environment where you could develop something that is the new standard of what people are going to want in their very own living room.

This isn’t something where the destination is only going to be the car. The destination could be the living room, but we are starting in the car.

The 2018 SMPTE conference continues through Thursday, Oct. 25. For more information, visit www.smpte2018.org

NEW YORK—If you recently powered through the recent season of Netflix’s “House of Cards” you can count yourself among the popular majority of Americans who have taken up binge watching. According to Deloitte Consulting’s “Digital Democracy Survey,” 70 percent of U.S. consumers watch an average of five episodes at a time of television; a reported 31 percent binge on a weekly basis. As a result, Deloitte says America has become a “marathon nation.”

The survey indicates that 46 percent of Americans now subscribe to video streaming services, and more than half of all consumers watch movies and TV shows through streaming at least once a month; three-quarters of Millennials reportedly do so. Additionally, Millennials aged 26-32 with streaming services have on average three subscriptions, while those 14-25 put more value and time into their streaming video subscriptions than live, pay-TV.

It’s not just the Millennials, however, that are binging shows on Netflix, Hulu, or the like. Baby boomers (50-68) also binge, with 35 percent doing so once a week at an average of four episodes per sitting, according to Deloitte. Regardless of age, 61 percent of streaming subscribers ranked their streaming service in their top three of most valued subscriptions; that is triple of what it was in 2012 (17 percent).

As far as what people are binging, given the choice between TV drama, TV comedy, reality series or DIY programs, 53 percent of respondents saying they binge TV dramas.

“The proliferation of online content shows no signs of slowing down and the consumer appetite to consume content is equally voracious,” said Gerald Belson, vice chairman and U.S. media and entertainment sector leader for Deloitte. “The survey data indicates that consumers are more willing than ever to invest in services to watch whenever, wherever and on whatever device they choose.”

Additional findings in the survey include that more purchasing decisions are being influence by non-traditional advertising sources; social media sites surpassing TV as Millennials go to news source; and the fact that 90 percent of consumers are multitasking while watching TV.

This is the 10th year that Deloitte has conducted the “Digital Democracy Survey.” The survey polled 2,205 U.S. consumers. To see the full results, click here.