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Articles by: "Rande Price, Research VP – DCN"

Industry-Research | Video

Video streaming landscape matures through nuanced growth

Video streaming services (SVODs) are entering a new phase of maturity, characterized by moderate growth in an increasingly crowded market. SVODs are shifting their focus from subscriber acquisition to implementing strategies to achieve profitable growth. Marketplace trends show that advertising and bundling services are integral to the next stage in the SVOD landscape.

According to Antenna’s new State of Subscription report, most new SVOD subscribers selected ad-supported tiers in Q4 2023 and Q1 2024. This practice will likely continue, as ad-supported subscriptions account for over half of the gross additions during this period. Notably, 61% of SVOD consumers opted for the ad-supported service, indicating a significant shift toward ad acceptance.
Antenna identifies subscribers in four distinct choice groups:

  1. Ad Takers – Always opt for ads.
  2. Ad Avoiders – Never choose ads.
  3. Ad Managers – Mix and match ad-supported and ad-free plans.
  4. Ad Oblivious – Have not encountered an ad choice.

With 38% of subscriptions now ad-supported, reflecting a 7-point increase from 2023, consumers are increasingly open to ad-supported options. This trend is further apparent by the growing segment of Ad Takers, which has increased by 11.2 million since Q1 2022.

Benefits of bundling

Bundling SVOD services proves to be an effective strategy for reducing churn. Disney and Apple observed a 2 to 6-point improvement in churn rates for their bundled services compared to standalone offerings. Bundling Disney+, Hulu, and ESPN+ helps retain more subscribers than offering each service separately.

Antenna’s Bundle Benefit Ratio (BBR) measures the potential upside of bundling. It suggests that most premium SVODs have more curious customers than committed ones. This indicates the potential for bundled offerings to convert these curious customers into loyal subscribers.

  • Curious Customers: Users who have either canceled a service or are currently subscribed to a service for 6 months or less.
  • Committed Customers: Users who have subscribed to a service for over 6 months and have not canceled it before.

All Premium SVODs, except Netflix, have a higher number of Curious Customers compared to Committed Customers. Netflix’s exceptionally low Bundle Benefit Ratio indicates a higher risk of cannibalization from bundled offerings than other services. Notably, Netflix’s bundling strategies have mainly targeted its Ad-Supported tier. Conversely, Starz and Max have the highest ratios of Curious to Committed customers, indicating substantial potential gains from bundling strategies.

Effective acquisition strategies

The method of subscriber acquisition significantly impacts customer lifetime value (CLTV). Users acquired at full price can have CLTVs that are 52% higher than those acquired via free trials. Full-price subscribers tend to have higher retention rates and greater long-term value. In 2022, 65% of SVOD sign-ups came at full price from day one, continuing into 2023 and Q1 2024.

Promotions also play a critical role in driving annual plan uptake. For instance, when discounted in late 2022, the uptake of Max’s (formerly HBO Max) annual plans increased more than fivefold. This demonstrates that well-timed promotions can significantly boost long-term subscriber commitments.

Growth and churn dynamics

The overall growth of SVOD subscriptions has slowed to a more moderate pace, with a 10.2% year-over-year increase compared to 18.8% in 2023. However, specialty SVOD services have outpaced premium ones, growing at 15.8% YoY versus 9.4%. This growth is driven by niche content that appeals to specific audiences, highlighting the importance of content differentiation in the competitive SVOD market.

SVOD services must optimize pricing and packaging strategies to drive healthy performance. Ad-supported tiers will continue to play a crucial role, with increasing consumer acceptance and the potential for significant revenue from advertisements. Bundling and effective acquisition strategies will also be vital in maintaining and growing subscriber bases. The video streaming industry is evolving towards sustainable and profitable growth. As SVOD services navigate the landscape, they must balance subscriber acquisition with retention strategies, leveraging ads, bundles, and pricing tactics to achieve long-term success.

Industry-Research | Innovation

Want to build your audience? Consider the fediverse

The fediverse buzz continues to grow, with articles highlighting the potential to revolutionize the digital landscape. Proponents say it’s similar to the Internet’s early days, before Big Tech platforms built their algorithmic fiefdoms. Instead, the fediverse is about interoperability and flexibility.

Media companies are always on the lookout for ways to attract new audiences and engage more meaningfully with their readers. And – given Google’s experimentation with AI answers and social sites “distancing themselves from news” – finding new routes to audience development has become an increasing imperative.  

The decentralized nature of the fediverse offers a compelling alternative to traditional search and social. Importantly, this approach allows media companies to retain their direct relationship with audiences, which removes the dependency on social and big-tech platforms for reaching new people.

Unlike traditional social media platforms that operate within closed ecosystems, fediverse represents a decentralized network of interconnected servers and platforms. It comprises a federation of independent servers, each hosting its social media platform.

These platforms, which range from microblogging to image sharing to video hosting, communicate using standard protocols. Their interoperability allows people on different servers to interact seamlessly. The fediverse decentralizes media companies by enabling them to distribute their content across interconnected servers and platforms rather than relying on a single, centralized platform.

Emphasis on choice and control

Unlike centralized platforms, where a single server owned by the platform provider stores user data and content, fediverse lets people choose their server. This server is selected based on individual preferences regarding privacy, content moderation, and community guidelines. This decentralized approach empowers audiences by putting them in charge of their online experience. It also mitigates concerns about data ownership and platform censorship. For media companies, this translates into an environment where people are more likely to engage with content they trust and have control over.

Encouraging diversity and inclusivity

The fediverse enables people to connect across different platforms and communities within the federation. For example, a user on a microblogging platform can follow and interact with users on a video hosting platform. This functionality breaks down the barriers that typically separate content and conversations on traditional social media platforms. This cross-platform interaction fosters a rich tapestry of ideas, perspectives, and content, creating a more vibrant and dynamic online ecosystem. Media companies can leverage this aspect of fediverse to reach diverse audiences actively seeking varied content.

Organic and community-driven engagement

In contrast to the centralized model, where platform algorithms often dictate content visibility and user interactions, fediverse promotes a more organic and community-driven approach. Users have greater control over their timelines and content visibility, allowing for a more personalized and authentic online experience.

This user-centric design aligns with evolving expectations of digital privacy and autonomy, resonating with individuals seeking alternatives to mainstream social media platforms. Media companies can benefit from this by creating content that naturally finds its way to interested audiences without algorithmic interference.

Media companies test the fediverse

At least two digital media companies are exploring the fediverse to gain more control over their referral traffic and onsite audience engagement. The Verge and 404 Media are building new functions that allow them to simultaneously distribute posts on their sites and federated platforms like Threads, Mastodon, and Bluesky. Replies to those posts on those platforms become comments on their sites.

This functionality means people from different platforms can interact with the content without creating individual accounts for each platform. For media companies, this interoperability can significantly enhance audience reach and engagement.

Advantages for media companies using the fediverse

Usability and interoperability are ideal for enhancing user experience. This approach enables seamless communication between platforms, ensuring autonomy, and providing robust content control.

  • Interoperability ensures that different platforms can communicate using common protocols like ActivityPub. This allows people to interact with content across various platforms seamlessly, thus creating a unified and interconnected ecosystem.
  • User autonomy empowers people to select their servers (instances) based on their preferences for privacy, moderation, and community guidelines, offering greater freedom and reducing the dominance of any single platform.
  • Content control enables media companies to host their servers or collaborate with trusted ones, giving them direct control over content distribution and audience engagement. Therefore, it mitigates risks associated with algorithm changes or policy shifts on major social media platforms.
  • Cross-platform interaction allows content like a media company’s article shared on one platform to receive comments, likes, and shares from users on other platforms, broadening reach and engagement without being confined to a single platform.
  • Community-driven moderation decentralizes content moderation, allowing it to occur at the community or server level. Media companies can set moderation policies to ensure their content meets their standards and audience expectations.
  • Enhanced privacy through decentralization gives media companies more control over their data and privacy settings, protecting user data from being exploited by large platforms.

Although federated platforms have smaller user bases than the larger walled gardens like Facebook and X, they offer significant audiences for media companies. Federating sites allow media companies to tap into the growing demand for decentralized, user-centric platforms, attracting new audiences and fostering a more loyal and engaged user base.

Federated platforms offers the potential for a fundamental shift in how media companies interact with their audiences. Media companies that experiment with the fediverse can initiate engagement and have an opportunity to build stronger, more direct connections with their audiences.

Industry-Research

Consumers value local news, though they fail to support it

Consumers value local news media, with a large majority saying that local news outlets are at least somewhat important to the well-being of their local community according to new research from Pew. Most people also say local journalists are in touch with their communities and that their local news media perform well at several aspects of their jobs, such as reporting the news accurately.

Interestingly, Republicans and Democrats both display significant confidence in local reporting, with 66% and 78%, respectively, which showcases bipartisan support. This widespread trust highlights the local media’s role in ensuring accountability and integrity in governance.

Nevertheless, the landscape continues to shift as more consumers engage with local news through online forums and social media groups. Unfortunately, these days intermediaries have moved to the forefront and diminished the direct influence – and perceived value – of news publishers. In fact, a mere 15% of Americans say they have paid or given money to any local news source in the past year – a number that has not changed much since 2018. Oddly, this coincides with the finding that a majority of Americans (63%) say they think their local news outlets are doing very or somewhat well.

Consequently, local news outlets are re-evaluating their strategies to engage audiences effectively. Addressing how local news businesses can adapt, serve their communities, reignite an interest in, and support for, news media to flourish in the current media environment remains a critical challenge for the industry.

Local news is appealing, but to smaller audiences

Around 85% of those surveyed indicate that local news outlets are at least “somewhat important” to the well-being of their local community. Similarly, a majority believe that local journalists are in touch with their communities and perform well in various aspects of their jobs, such as accurately reporting the news.

However, despite reporting significant value and trust, Pew’s trending data shows that the share of U.S. consumers who actively follow local news very closely dropped from 37% to 22% in the last eight years. Additionally, many consumers are unaware of local news’s significant financial challenges. Of these, 63% (slightly fewer than in 2018) believe their local news outlets are doing very well.

Demographics impact the perception of local news

If attention correlates to valuing local news, the industry needs to pay attention to audience behavior. A decline in attention to local news has occurred across demographic groups, though there are significant differences by age. Young adults are much less likely than their older adults to say they follow local news: In 2024, only 9% of U.S. consumers 18 -29 say they follow local news very closely, compared with 35% of those 65 and older. 

Americans with higher levels of formal education are less likely than those with a high school diploma or less education to follow local news very closely. While 17% of college graduates follow local news very closely, 28% of those with a high school education or less say the same.

Among U.S. adults ages 30 and older who have not paid for local news in the past year, the most common reason they cite is that they can find plenty of free local news. This is likely influenced by the sharing of local news – or at least information about things happening locally – via social platforms. However, as platforms “distance themselves” from the news, the likelihood of people encountering news from a publisher are increasingly diminished.

While 37% cite the availability of free alternatives, the most common reason given by Americans ages 18 to 29 is a lack of interest: 46% in this group say the main reason they don’t pay for local news is that they are not interested enough in it.

Local news consumption shifts to streaming

Streaming offers a viable outlet for local news. With nearly 40% of U.S. households reachable only through streaming TV, local news can deliver a converged linear and streaming advertising strategy to access the total TV audience in a local market. This shift to streaming enables personalization in local news content while catering to individual viewer preferences. It also allows local broadcasters to monetize local inventory across a broader spectrum of premium publishers, reinventing the advertising paradigm.

The evolving landscape of local news presents challenges and opportunities for the future of journalism. While digitization transforms how news is accessed and consumed, local news’ fundamental role in informing communities remains unchanged. Local news outlets can find new and direct paths to the consumer by adapting to changing consumer preferences and embracing digital innovation. By leveraging technology and engaging more interactively with their audiences, these outlets can enhance their relevance and sustain their crucial societal role.

Industry-Research | Video

What Twitch can teach the media about audience engagement

Twitch – the go-to platform for gamers and live streamers – may have something to teach the media about as a news production and engagement. New research shows a generational shift in live news production, emphasizing community-driven storytelling and interactivity and real-time engagement. Amazon-owned Twitch’s popularity among young audiences challenges traditional journalism to confront the realities of how news consumption is changing.

In their paper, Recasting Twitch: Livestreaming, Platforms, and New Frontiers in Digital Journalism, researchers Maxwell Foxman, Brandon Harris, and William Clyde Partin explore Twitch as a new platform for journalists and examine how the platform influences journalistic practices. They analyze three popular Twitch channels: The Washington Post (WaPo), Hasan Piker, and Patriots’ Soapbox (PSB). The authors chose to focus on these three channels due to their popularity and distinct modes of news production thereby offering a comprehensive view of the platform’s impact on journalism.

The research highlights several themes regarding news production on Twitch: the concept of liveness, various styles and formats used, engagement with the audience, professional identity and boundaries, and the platform’s relationship with digital intermediaries.

A Twitch approach to live news and entertainment

Central to Twitch’s influence on journalism is its unique approach to “liveness.” Liveness refers to audiences routinely tuning in and interacting with creators. The platform encourages viewers to actively contribute during streams through Chat, which also becomes content that hosts react to aloud. The real-time back-and-forth entertains users.

While WaPo relied on exclusive coverage and traditional broadcast formats, Piker and PSB (which appear to no longer be on Twitch at all) integrate pre-existing content and engage directly with their audiences, fostering a sense of community and immediacy. This dynamic interaction blurs the lines between creators and consumers, redefining the traditional roles of journalists and audiences.

Media style and format

Each channel exhibits its style and format, reflecting the diversity of content on Twitch. The Washington Post’s channel (which hasn’t broadcast since May 6, 2024) took an approach that resembles traditional broadcast journalism. Piker’s is a social media-inspired mix of news and entertainment. PSB offers hyper-partisan commentary. Twitch provides a wide range of approaches to news production, which allows news brands to cater to diverse audience preferences.

Professional identity and boundaries

Each channel navigates journalistic boundaries differently. WaPo adheres closely to traditional journalism practices. However, Piker and PSB embrace their roles as ideological commentators, blurring the lines between journalism, entertainment, and political activism. This fluidity in professional identity can challenge traditional journalistic integrity and objectivity norms.

Audience engagement lessons for media

Audience interaction is central to all channels, with each streamer fostering a collaborative relationship with their viewers. Piker and PSB rely on audience contributions for content and validation, while WaPo maintains a more traditional broadcast format with limited on-air engagement. This direct interaction enhances viewer engagement and fosters a sense of community, continuing to blur the distinction between creators and consumers.

Twitch and media audience engagement

This study recognizes Twitch as a way to offer new and innovative forms of journalism that challenge traditional norms and practices. Its unique approach to “liveness,” diverse styles and formats, and dynamic interaction with audiences could impact how journalists produce news as it reflects how audiences engage with information they enjoy.

ESPN’s Esports channel (active almost daily as of May 2024) has 88.8k followers
https://www.twitch.tv/espnesports

However, while Twitch has lessons to teach legacy news organizations, it seems few have found a sustainable model on the platform. In addition to the sites included in the research, it appears that channels for Wired, Complex, Rolling Stone, and Vice have all gone dormant. In any case, this research highlights the evolving relationship between live streaming, entertainment, and news.

The popularity of Twitch (as well as other social platforms) among young audiences needs to offer more than competition for media brands. It is important that we experiment by going where the audiences are. However, it is also important that we begin to understand the reasons audiences gravitate towards these platforms to find ways to better attract and engage them.

Industry-Research | Video

Most people opt for free, ad-supported streaming

The ubiquity of streaming services is evident in their widespread adoption across various models, including subscription-based and ad-supported platforms. In fact, nearly every U.S. household (99%) subscribes to one or more streaming services. Of those, the majority (58%) are willing to endure occasional interruptions in exchange for cost savings.

This sentiment underscores a growing trend toward prioritizing affordability without sacrificing the viewing experience. In addition, 62% prefer free, ad-supported streaming over paid subscriptions. New research, The Stream 2024, sponsored by Tubi, examines the streaming surge and reflects a fundamental shift in how people consume content. These days, convenience and flexibility take precedence over traditional television viewing.

Further, on-demand streaming services are the new norm in entertainment consumption. As households cut the cord to traditional cable subscriptions, streaming services are now integral to daily life for millions. From disrupting the sports-streaming landscape to championing representation and diversity in content, millennials and Gen Z are at the forefront of this cultural shift. However, as these demographics grapple with financial constraints, they are increasingly reevaluating their relationship with streaming services.

Viewers’ advertising preferences

Consumers viewing ad-supported streaming services ad preference:

  • Like those on TV, standard ad breaks are strategically inserted at convenient plot point breaks within an episode or film (35%). They provide a fitting pause that harmonizes with the content’s flow. 
  • Personalized ads that align with consumer interests and viewing journeys offer an enhanced experience. Most viewers (67%) prefer ads relevant to their streaming content, while 29% appreciate targeted ads tailored to their preferences.
  • A notable 35% of audiences embrace quirky or unconventional ads for an added dose of enjoyment: Surprise and delight viewers with the unexpected.

Budget constraints and content preferences

While the attraction of streaming is undeniable, viewers are increasingly mindful of their spending habits. With subscription costs rivaling traditional pay TV services, price sensitivity is rising, particularly among younger audiences. Consequently, many are reassessing their streaming habits, with 27% admitting to using more services than they plan to in the future.

Moreover, viewers crave variety and fresh content. Their preferences lean towards a vast selection of shows and movies (69%) and new or original content (61%). As such, there is a growing demand for tailored content experiences that cater to diverse tastes and preferences.

This report suggests that ad-supported freemium models are poised to play a pivotal role in shaping the future of content consumption. By offering a blend of quality content and reasonable spending options, platforms can cater to consumers’ evolving needs while presenting compelling opportunities for marketers. Notably, the future of ad-supported services relies on a holistic viewer journey where ads amp up rather than interrupt the narrative.

Tubi’s research also suggests that integrating artificial intelligence (AI) holds immense promise in enhancing content discovery and personalization, addressing viewers’ dissatisfaction with current recommendation algorithms. As technology, tastes, and behaviors evolve, the onus is on streaming platforms to anticipate and adapt to shifting trends, delivering engaging narratives and seamless viewing experiences.

Streaming quality time and self-care

Streaming has taken on a role beyond entertainment, fostering a role in human connection and personal empowerment. For many, streaming represents an opportunity to bond with loved ones, with 71% of viewers citing it as a form of quality time spent with family or friends. Moreover, many view streaming is a form of self-care, with 68% of individuals leveraging it to carve out precious alone time in their hectic schedules.

The rise of on-demand streaming represents a paradigm shift in how audiences consume and engage with content. As streaming services continue to develop, understanding and adapting to evolving viewer preferences and market dynamics is essential for both platforms and marketers. Streaming platforms can shape meaningful connections with audiences by embracing innovation, diversity, and affordability.

Diversity, Equity & Inclusion | Industry-Research

Women just might achieve editorial leadership equity – in 50 years

Top editorial positions within news organizations are crucial in informing and shaping public discourse and understanding. The composition of these positions influences the narratives presented to the public and reflects the industry’s commitment to diversity, equity, and inclusion—and to representing the diverse audience the news media serves.

That said, editorial roles are still largely filled by men. According to Reuters Institute’s Women and Leadership in the News Media 2024, only 24% of the 174 top editors across the 240 brands covered in the report are women, despite the fact that, on average, 40% of journalists in the 12 markets are women.

In its fifth annual report, Reuters Institute for the Study of Journalism’s Women and Leadership in the News Media 2024 highlights the representation of women in leadership roles within the journalism industry and offers insights into the ongoing disparities that persist. The research finds that, though there has been improvement, it is taking place at a glacial pace.

Under-representation of female editors

Reuters delves into the nuanced dynamics among 240 major online and offline news outlets in 12 diverse markets. The 12 markets include Kenya and South Africa; Hong Kong, Japan, and South Korea in Asia; Finland, Germany, Spain, and the UK in Europe; Mexico and the US in North America; and Brazil in South America. The research examines cultural norms, institutional practices, and societal attitudes toward gender roles in each market.

This year’s study shows that although women constitute a significant proportion of journalists in many markets, their representation in top editorial positions remains disproportionately low. The subtle relationship between the percentage of female journalists and their representation in top editorial roles is evident. The research highlights the complex factors influencing career advancement in journalism and the broader news media landscape. Further, it indicates that external societal factors are not the primary impetus for this phenomenon. Rather, they are intrinsic to the profession and industry.

The report’s authors note the periodic industry focus on diversity and gender equity in the news media. Certainly, this is important as it drives change. However, they caution that the current interest in addressing the lack of diversity may be ebbing away.

These observations underscore the complex interplay of factors shaping the composition of top editorial roles. They suggest that addressing the issue requires a multifaceted approach that includes internal practices and industry culture. This recognition is crucial for fostering a more inclusive and representative media landscape that resonates with diverse audiences and rebuilds trust in journalistic institutions.

News media forecast for gender equity

This report emphasizes that while there’s been some progress over the years, the pace of change is very slow. For instance, Reuter’s analysis covering five years from 2020 to 2024 shows a marginal increase from 23% to 25% in the proportion of women among top editors. However, projections cautiously suggest that achieving gender parity in these positions could be an achievable, if a distant, goal. A linear projection based on the observed two-percentage-point change over four years indicates potential gender parity by 2074. Alternatively, conducting an average analysis across five years and 10 markets suggests that achieving gender parity among top editors may never occur at the current rate of change.

Further, the change varies within our sample. In six countries, the percentage of women in top editorial positions increased compared to 2020. Conversely, Mexico (6%) and Japan (0%) remained unchanged, while Germany (from 27% to 25%) and South Africa (from 47% to 29%) decreased.

As the research continues to track developments in gender diversity among top editors globally, it underscores the need for proactive measures to address systemic inequalities. The journalism industry must strive toward a more representative and responsive media landscape by prioritizing a culture of empowerment and support for women in leadership.

Diversity, Equity & Inclusion | Industry-Research | Video

Hollywood’s diversity-driven returns don’t align with investments

In Hollywood, where creativity meets commerce, diversity is a central theme, not just on the screen but also behind the scenes. Box-office numbers demonstrate the power and profits wielded by audiences of color and women: People of color dominated opening weekend sales for 14 of the top 20 films in 2023, while while female moviegoers dominated sales for three films in the top 10, according to the latest Hollywood Diversity Report.

UCLA’s annual Hollywood Diversity Report, now in its eleventh edition, offers insight and guidance for the industry in representation, inclusion, and profitability. This report examines diversity within Hollywood’s top films and TV shows, showcasing the realities between demographics and the bottom line. It delves into dimensions such as race, ethnicity, gender, age, sexual orientation, religion, and disability status. The study offers a better understanding of Hollywood’s diverse landscape using data from sources like The Studio System, Variety Insight, IMDb, comScore, and Box Office Mojo. The report provides valuable insights into the industry’s efforts to reflect society’s diversity by tracking data and their correlation with audience preferences.

Cast diversity

Despite the demonstrated success of diverse casts, the report highlights disparities in gender representation. Despite significant gains, women’s share of top theatrical film leads declined to 32.1% in 2023 from 38.6% in 2022. This decline underscores women’s ongoing challenges in securing prominent roles within the industry.

Moreover, the report delves into the representation of individuals with disabilities, an area that has historically received less attention. While the report shows some progress, adults with disabilities remain underrepresented as theatrical film leads in 2023. Only 7.1% of all top theatrical film roles include actors with a known disability.

Further, the report uncovers disparities within racial and ethnic groups and gender identities. While certain groups, such as Asian and MENA (Middle East and North Africa) individuals, approach proportionate representation, others, including Black, Latinx, and multiracial individuals, continue to face significant underrepresentation.

Budget allocation and financial performance

Budget allocation also emerges as a factor affecting diversity within the industry. The report underscores the correlation between diversity and box office success, revealing that films with casts featuring 31 to 40% BIPOC (Black, Indigenous, and People of Color) enjoy the highest median global box office receipts. Notable titles include Barbie, The Hunger Games: The Ballad of Songbirds & Snakes, and Shazam!

However, films with BIPOC leads are also likelier to have the smallest and largest budgets, highlighting the uneven distribution of resources and opportunities for diverse talent.

In addition, BIPOC audiences emerge as a critical demographic for the industry, with most opening weekend domestic ticket purchases by BIPOC moviegoers for seven of the top 10 and 14 of the top 20 films in 2023. Additionally, films featuring casts where more than 30% of the actors are BIPOC account for nine of the top 10 and 15 of the top 20 films at the global box office.

Global distribution and the importance of intersectionality

The report also sheds light on disparities in global distribution and representation, revealing that top theatrical films with Black and Asian leads are less likely to have distribution in China compared to other racial and ethnic leads. However, films featuring Latinx and multiracial leads are more likely to have distribution in China.

Moreover, the report highlights the importance of intersectionality. Films featuring casts from 41% to 50% BIPOC post the highest median domestic box office, and those with casts from 31% to 40% BIPOC dominate the international markets. These findings challenge the notion that “diversity does not travel,” emphasizing the global appeal of diverse storytelling. As the industry continues to navigate the dynamics of diversity and representation, this report serves as a vital resource for understanding Hollywood’s evolving landscape. Overall, the report offers insights into the state of diversity in Hollywood and the challenges in achieving true representation. Looking closely at this data shows that having various types of people in movies and TV contributes to their popularity, and profitability.

Industry-Research

Media companies can learn about growing audiences from creators

Social platforms and creator-generated content are undeniably popular among audiences. In particular, digital-native platforms and individual creators resonate strongly with younger demographics, who increasingly consume content on mobile devices. A newly released study, 50 Richest Content Creators, highlights this dynamic and the rise of digital content creation. The report examines the earnings, follower count, efficiency, and platform preferences of the top 50 creators, offering a comprehensive view of the growing creator economy.

From June 2022 to June 2023, the top 50 social media content creators collectively earned $700 million. With a combined follower count reaching 2.92 billion, these creators average an impressive $239.68 per 1000 followers. Digital media companies must examine creator-generated content and identify what appeals to their target demographics. Understanding this appeal and relevance is crucial for media businesses to capitalize on new content opportunities.

Top performers and platforms

The study highlights TikTok, YouTube, and Instagram as these influential creators’ primary platforms. TikTok emerges as the frontrunner, commanding 40% of the total followers (1.2 billion), followed by YouTube at 24.8% (724.8 million) and Instagram at 22% (642.2 million). Interestingly, most creators are millennials (56%), followed by Gen Z (40%) and Gen X (just 4%).

Jimmy Donaldson, also known as MrBeast, is the highest-earning creator, earning $82.3 million and having 377 million followers. Others like Rhett & Link, Preston Arsement, and Ryan Kaji follow closely, each earning $35 million and having follower counts of 51 million, 39 million, and 36 million, respectively.

Elliot Tebele, the founder of FJerry LLC and a prominent figure in meme culture, expands beyond content into business ventures ‒ board games and Jaja tequila. He has a total of 25.6 million followers across platforms and earns $1,172.20 per 1,000 followers, amounting to $30 million in earnings in 2023. Tebele’ brand extension and business ventures showcase cross-over opportunities in other business verticals.

Diving into the creator economy

The report highlights key areas for media companies to explore when navigating the creator content ecosystem. Examining each area will help formulate a media brand’s creator content strategy to best align with evolving consumer behaviors and preferences.

  1. Platform preference: Understanding why top content creators favor certain platforms shows the shifting dynamics of social media. User trends, engagement, and content consumption highlight the potential for audience reach and monetization.
  2. Generational trends: Identifying the breakdown of top creators by generation sheds light on the demographics of content creators and their audience. Marketers can use these profiles to target their products and services to specific demographics.
  3. Economic impact: Analyzing content categories will help identify broad and niche categories and new opportunities. This will also provide earnings by top content creators.
  4. Monetization metrics: Analyzing “Earnings per 1K Followers” to provide information on how effectively creators monetize their content and audience. This metric is a clear and powerful sign of a creator’s talent in turning their audience into valuable financial returns because getting the most value from followers is crucial.
  5. Global perspective: While the data predominantly focuses on creators from the U.S. (representing 80% of the top 50 creators), understanding these trends can be crucial for international expansion.

Embracing and leveraging creator content enables media companies to enhance their competitiveness within the digital landscape. Careful analysis, identification, and alignment of appealing creator content can deepen audience engagement and loyalty. Furthermore, creator content presents opportunities for revenue generation through partnerships and sponsorships, providing avenues for diversifying revenue streams.

Industry-Research

Not disclosing AI-generated content negatively impacts trust


Artificial intelligence (AI) is generating a new era of content creation. However, with this innovation comes the challenge of distinguishing AI-generated content from human-made material. This creates another issue media companies must grapple with to build and maintain audience trust.

Mozilla’s latest report, In Transparency We Trust?, delves into the transformative impact of AI-generated content and its challenges. Ramak Molavi Vasse’I and Gabriel Udoh co-authored this research, exploring disclosure approaches in practice across many platforms and services. The report also raises concerns about AI-generated content and social media’s powerful reach ― intensifying the spread of algorithmic preferences and emotionally charged material.

Where generative AI falls on the synthetic content spectrum

AI-generated content is a subset of synthetic content. It includes images, videos, sounds, or any other form generated, edited, or enabled by artificial intelligence. Synthetic content exists on a spectrum with varying degrees of artificiality. One end of the spectrum features raw content, comprising hand-drawn illustrations, unaltered photographs, and human-written texts. These elements are untouched, representing the most natural form of creative expression. Moving along the spectrum is minimally edited content. Subtle refinements characterize this stage, like using Grammarly for text refinement or adjusting image contrast with photo editing apps. These adjustments enhance the quality and clarity of the content while maintaining its original essence.

Stepping up from minimally processed content is ultra-processed, where automated methods and software play a more significant role in altering or enhancing human-generated material. Applications like Adobe Photoshop can easily enable intricate image manipulations, such as replacing one person’s face with another’s. This level of processing represents a deeper form of content alteration facilitated by advanced technology.The spectrum of synthetic content presents authenticity challenges, and the credibility of digital content comes into question.

AI-generated content can potentially negatively impact society, from spreading misinformation to eroding public trust in digital platforms. This includes concerns like identity theft, security problems, privacy breaches, and the risk of cheating and fraud. The growing use of AI-generated content mandates the the need for rules to limit its harm.

Regulatory mechanisms

Mozilla’s report notes that regulatory requirements across the globe mandate clearly identifying and labeling AI-generated content. Current approaches include visible labels and audible warnings to address the challenges of undisclosed synthetic content effectively. However, human-facing disclosure methods are only partially effective due to their vulnerability to manipulation and the potential to increase public mistrust.

Machine-readable methods, such as invisible watermarking, offer relative security. However, they require robust detection mechanisms to be truly effective. Machine-readable methods show promise but require standardized, robust watermarking techniques and unbiased detection systems.

The authors advocate for a holistic approach to governance that combines technological, regulatory, and educational measures. This includes prioritizing machine-readable methods, investing in “slow AI” solutions that embed corporate social responsibility, and balancing transparency with privacy concerns. Furthermore, they propose reimagining regulatory sandboxes as spaces for testing and refining AI governance strategies in collaboration with citizens and communities.

Ensuring the authenticity and safety of digital content in the age of AI demands innovation in governance strategies is a complex challenge. As the report points out, navigating the AI content challenge requires supporting a trustworthy digital ecosystem by leveraging machine-readable methods, fostering stakeholder collaboration and user education.

Transparent governance is essential to combat the risks associated with AI-generated content and uphold the integrity of digital platforms. Regulatory frameworks and technological solutions must adapt to safeguard against misinformation in order to promote trust in digital media content.

Industry-Research | Policy

Unchecked AI threatens democracy

Artificial intelligence (AI) is rapidly integrating into news and content, prompting a necessary reflection on its implications for democratic societies, which rely on trustworthy and diverse media sources. A new report, Artificial intelligence and media policy: Plurality from the meat grinder, from Professor Dr. Rupprecht Podszun, Heinrich Heine University, and Ruth Meyer, Director of the Saarland State Media Authority (LMS), delves into the potential risks AI poses as it is applied in the media industry as well as the need for regulation to govern its usage.

Guardrails for AI

Podszun and Meyer identify three areas needing guidelines and policies to uphold democracies:

  1. Trust in information is about ensuring that the information people receive is accurate and reliable, whether it’s news or other content. Laws like the Saarland Media Act stress the importance of journalists being careful and accurate when reporting. However, when artificial intelligence involves creating content, it can be hard to know if the information is trustworthy because the processes behind AI are often hidden. This lack of transparency can make people doubt the reliability of AI-generated content.
  2. Public discourse refers to the conversations and discussions in society, especially around important issues. With the rise of AI-powered recommendation systems, people often get information that aligns with their beliefs and interests. This can create “bubbles” where people only hear opinions like their own, leading to societal divisions. The idea of the public sphere, where people from different backgrounds come together to discuss and solve problems, is important for democracy. However, social media platforms, which play a big role in public discourse today, can make it harder for diverse opinions to be heard.
  3. Plurality is under pressure despite the many different media sources available today. The reality is that companies like Alphabet (Google’s parent company) and Meta (formerly Facebook) have too much control over the information people see. This concentration of power can limit the variety of perspectives and ideas people are exposed to, especially when AI algorithms are used to personalize content delivery.

A regulatory approach for AI

Regulation will be needed to address concerns and provide guidance for the most constructive development of the AI industry and its applications. This could include laws to prevent monopolistic companies from having too much control over information. Further, there is a need for transparency about how AI is used in creating content. It’s also important to ensure that the data used to train AI systems is diverse and representative of different viewpoints.

The authors provide recommendations for regulatory approaches to ensure diverse and trustworthy access to information. They suggest that:

  • Preventing monopolistic concentration is crucial, given the dominance of big tech companies in both data-driven business models and AI control. Media concentration laws should counteract this trend, promoting diverse data pools and open technology. 
  • Ensuring transparency and responsibility are fundamental. Trust in AI-driven media necessitates transparency regarding its usage, training data, and information sources. 
  • Identifying prohibitions is necessary to enforce accountability. If AI crosses ethical boundaries, explicit bans with sanctions are imperative. 
  • Addressing the training data problem is vital. Guaranteeing open and diverse data selection mitigates distortions in AI-generated content. Embracing adaptable AIs capable of correcting errors ensures ongoing development and integrity.

While AI offers unprecedented opportunities for media innovation, its unchecked proliferation poses significant risks to democratic principles. Effective regulation is imperative to harness the potential of AI in media while safeguarding pluralism, transparency, and trust in information dissemination. Only through collaborative efforts between policymakers, media stakeholders, and technologists can the transformative potential of AI be harnessed responsibly in the service of democratic societies.

Industry-Research | Video

YouTube dominates social platform usage

Public platforms, including social media, offer a forum for open for communication, citizen journalism, and audience engagement. However, these platforms also pose many challenges including misinformation, privacy concerns, and algorithmic biases. For better or worse, the largely ungoverned content available shapes public discourse and impacts societal perceptions. These days, the field of social media platforms continues to expand with TikTok experiencing a high level of growth. However, stalwarts YouTube and Facebook lead the pack in overall usage.

Pew Institute’s new research, Americans’ Social Media Use, delves into U.S. adults’ social media usage patterns, offering insight into how individuals engage with various social media platforms. With a robust sample size of 5,733 respondents, this study shows that social media continues to play a central role in shaping communication dynamics and societal interactions.

Ranking social media platforms

Among all of the social platforms today, YouTube emerges as the undisputed leader, with an overwhelming 83% of U.S. adults saying that they use the platform. Following closely behind is Facebook, 68% of adult usage, and Instagram, 47% of adult usage.

While YouTube and Facebook maintain their dominance, other platforms command significant user bases. Approximately 27% to 35% of U.S. adults use platforms like Pinterest, TikTok, LinkedIn, WhatsApp, and Snapchat. X (formerly known as Twitter) and Reddit attract approximately one-fifth of American adults.

A notable finding from the survey is TikTok’s growth, which saw a surge in its user base. Currently, one-third (33%) of U.S. adults use this video-based platform, a significant increase from 21% in 2021. In contrast, other platforms experienced more modest or stagnant growth over the same period.

Demographic differences among social platforms

Age demographics play a crucial role in shaping social media usage patterns. Adults under 30 exhibit higher usage rates across Instagram, Snapchat, and TikTok. However, YouTube and Facebook remain ubiquitous across all age groups, with most adults using these platforms. While there’s a substantial age gap in YouTube usage, interestingly, Facebook’s usage is more evenly distributed across age cohorts.

Pew’s analysis shows demographic differences in platform usage. For instance, Instagram attracts higher usage rates among Hispanic and Asian adults than Black and white adults. Similarly, TikTok usage is particularly prevalent among Hispanic adults and women. Similarly, race and ethnicity play a role in WhatsApp usage, with Hispanic and Asian adults more likely to use the platform compared to their Black and white counterparts.

Educational attainment also influences platform usage, with individuals with higher levels of education more likely to use platforms like LinkedIn. Meanwhile, household income is a significant factor for platforms like X, formerly known as Twitter, where higher-income users exhibit greater engagement.

Gender disparities are evident in platforms like Pinterest, where women constitute a significantly larger proportion of users than men,

It’s important to note that the Pew Research Center transitioned from collecting responses via telephone to web and mail surveys. This shift can impact study outcomes, so monitoring these trends moving forward is important.

Social media rules

Overall, the Pew Institute’s research underscores the undeniable influence of social media in shaping modern communication and societal interactions in the United States. Despite ongoing controversies and concerns, social media platforms play a central role in shaping communication, connectivity, and societal dynamics.

Importantly, demographic differences further highlight the nuanced social media usage patterns, with age, race, ethnicity, education, income, and gender playing significant roles in platform preferences. These insights provide a deeper understanding of how individuals from diverse backgrounds engage with various social media platforms.

While acknowledging the ongoing challenges such as misinformation, privacy concerns, and algorithmic biases, it’s clear that social media platforms continue to serve as vital conduits for communication, connectivity, and community engagement. The transition in survey methodology underscores the importance of continually monitoring and adapting to evolving trends in social media usage.

Industry-Research | Video

What audiences of all ages like about “non-premium” video

Viewership habits are changing in the video entertainment and news landscape, presenting challenges and opportunities for today’s media content companies. Hub Entertainment’s annual Video Redefined study delves into this growing alternative video content consumption ecosystem. The research explores the rise of YouTube influencers, TikTok, podcasts, and the impact of gaming on the streaming video industry. Hub’s study finds a significant change in consumer preference towards “non-premium” online content sources like YouTube and TikTok. Hub attributes this shift to increased smartphone usage and expanding content on these social platforms.

Aware of these shifts, some media companies, like Paramount, Disney, Max, and others, are experimenting with releasing exclusive content on social platforms. Paramount released Mean Girls on TikTok in 23 parts, and Disney created a content hub dedicated to their company’s 100th anniversary.

Broader appeal of non-premium content

TikTok emerges as a significant player in short, quick, and trend-centric content, appealing to all age groups and excelling in providing vast amounts of video content. The study reveals that while TikTok is now on par with Instagram in popularity among young viewers, YouTube remains the unrivaled leader.

Gen Z’s affinity for non-premium videos, such as short-form, user-generated, and influencer content, is evident, with nearly two hours daily of consumption. The study highlights a surprising increase in non-premium video consumption among older viewers (35+), with a two-hour-per-week rise compared to the previous year. Hub Entertainment notes that their interest in staying updated on news and current events is primarily attributed to the surge.

Smartphone video viewing

While social media is popular across all ages, viewership is not uniform. Over 80% of all viewers use YouTube weekly. However, Gen Z stands out for its higher usage of Instagram, TikTok, and Snapchat. The study emphasizes the importance of recognizing the unique benefits offered by each platform. TikTok, for instance, excels in delivering short, trendy videos, while YouTube’s extensive library remains the go-to source for informative content.

As noted earlier, the study underscores the dominance of smartphones as a viewing source, particularly among younger audiences (13-24). Younger viewers spend half as much time on traditional TV as their older counterparts. Their smartphones are the go-to platform for gaming, social media, and non-premium video content. Companies like Netflix are aligning their strategies with this trend, developing games based on popular shows like Squid Game and Wednesday, further blurring the lines between traditional TV and gaming. Gaming IP, too, is gaining traction, with promises of more TV show game adaptations like Fallout on Prime Video.

Media content companies face challenges as younger viewers move away from traditional television and cinema experiences. The dominance of smartphones, the rise of non-premium content, and the changing preferences of different age groups underscore the need for the industry to adapt and explore opportunities presented by these shifts. As media companies chart the future of the video ecosystem, they must embrace innovative strategies to stay relevant and engage with evolving audiences.

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