Industry Insider: The New Streaming World
Chef Andre Rush, David Iacono & Hailey Kilgore, and Jodie Campbell - Kitchen Commando/Cinnamon/Boarders
The Stream 2024: Streaming Insights for Marketers was conducted on behalf of Tubi by The Harris Poll, a market research and consulting firm. By sampling 2,503 adults aged eighteen and older who stream video at least one hour a week, Tubi was able to reveal, as the title suggests, the streaming insights of 2024. Additionally, the article delves into the various demographics, sentiments, and purposes that all prompt streaming to become the powerhouse of film and television distribution – with the added lens of how Millennials and Gen Z play a large role in this process. Moreover, A Hot Set will analyze the findings in this article and highlight the future of streaming and how marketers can benefit from these statistics.
First, it is important to note the current state of streaming and cable television. Cable cutting has been on the rise in recent years, and it's not stopping. Around 99% of U.S. households are subscribed to at least one streaming service; however, now, it's more likely two or more. For example, Tubi has 78 million monthly active subscribers, which reaches every one in four U.S. television households. And as many know, Tubi is a smaller platform compared to streaming giants like Netflix, Amazon Prime, and Max. As more and more continue to adhere to their favorite streaming platforms, there will be no use for cable television.
The streaming war is in full force, where platforms are at odds with one another, trying to retain loyal subscribers amidst the rising population of streaming. What distinguishes these platforms is content, user interface, and how the pay model works. Streaming services such as Netflix and Apple TV continue to operate on an ad-free experience while other services such as Tubi and Pluto TV operate on an ad-supported service. Which one is better?
According to the Harris Poll, “58% of Americans would rather watch ads while streaming and get an extra coffee every month than pay full for an ad-free service.” While it is certainly possible that more individuals are unwilling to pay for streaming services, it goes beyond the simple burden of paying a monthly subscription. Does the platform produce quality, likable content? Who is the target audience? It would be wise for marketers to focus on the holistic approach when deciding if a streaming service is in demand, which begs the question: Why are people streaming?
Streaming goes beyond statistics and user interface, many times it boils down to how streaming enriches lives and the individual user: “Over half (54%) of Gen Z communal watchers prefer to stream with people outside their homes. They opt for socialized viewing experiences, whether that’s watching while visiting friends (30%), texting loved ones while watching the same content… (21%), or chatting on social media as they stream (13%).” Streaming hasn’t annihilated the communal viewership of cable television that many believe. Shows like Max’s Euphoria and House of the Dragon draw viewers to their streaming platform every week, where many get together in person or online to discuss the new episode. Conversely, some individuals see it as “me time” and self-care: “68% view streaming TV or movies as an opportunity to carve out precious alone time… Popular motivations for late nighttime viewing (52%), packed schedules during the day (29%), and nighttime as the only time for leisure (27%).” Whether it's with others or alone, streaming has replaced cable television as the main method of watching content. This new streaming world is spearheaded by Gen Z and Millennials.
With the advent of social media, many Gen Z and Millennials feel the need to keep up with pop culture, which includes any new film and television hits, even if they wouldn't particularly choose it on their own. As Tubi coins it, “FOMOOTLT,” or the Fear Of Missing Out On The Latest Tea, is what keeps these generations on the screens. Digital media and the film and television industry will continue to be intertwined: 45% of Gen Z choose what they watch based on what they see on their social media accounts. Beyond new content, Gen Z and Millennials also have new eyes. Thus, older, nostalgic content will continue to be watched by a generation that has never seen it or remembers it fondly from their childhood – shows like Girlfriends, Moesha, The Game, The Parkers, and many more all give credence to this idea.
Finally, amongst these generations, there is a strong desire for an individual’s identity to be represented on screen. The article states, “About three-fourths (74%) seek streaming content showcasing different identities and backgrounds.” So as streaming continues to grow, the necessity for new content will always be present.
As cable television diminishes and streaming platforms thrive, driven by Millennials and Gen Z, markets will need to understand what pushes streaming past cable television. Streaming has become integral to modern entertainment, whether for communal viewing or personal escape. Content quality, social media influence, and diverse representation are pivotal to providing services that consumers will want.
