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Robot head and AI doodles to suggest the use of AI in the media business
Featured Post | Industry-Research | Innovation

Four AI trends and why they matter to media businesses

It’s no surprise that investment in AI tools and platforms is a major priority for media companies. Recent research from the Reuters Institute found that investing in platforms such as OpenAI and Perplexity is the leading priority for industry leaders in the year ahead. Meanwhile, WAN-IFRA’s annual World Press Trends study highlighted this as an area of both improving relationships and continued investment. 

These moves are driven by a combination of factors such as fear of missing out and falling behind as Generative AI continues to evolve. Companies also want to have the ability to use these technologies for a range of benefits including efficiencies and the development of new products. 

The opening months of 2025 have witnessed the continued integration of AI into workflows and further developments that promise to yield a range of benefits for content creators. 

Here are four noteworthy AI trends and how media executives should be thinking about the emerging opportunities they present. 

1. Conversational AI enhances connections

Both audio and text-based conversational AI are gaining traction. According to the Reuters Institute, harnessing AI to turn text into audio is the top audience-facing AI application for media leaders in the year ahead. These moves are driven by “advances in voice technologies [that] have made it possible to transform text articles into audio (in multiple languages or tones).” 

Moreover, as noted by ElevenLabs, an AI Audio research and deployment company that works with publishers such as Time, “the shift to AI-driven audio isn’t just about convenience — it’s about survival in a landscape where audiences increasingly prefer to listen rather than read.” (NB: their italics.)  This trend is evidenced at outlets such as The Washington Post which saw daily audio listens double in the first six months of last year. 

And as these AI tools get cheaper, more accessible, and sound increasingly more human, AI-powered consumer experiences will become more mainstream across the media landscape. That includes local – as well as national and international – media outlets. 

Alongside these audio formats, AI-driven chatbots are also becoming more prominent. 

Although there are legitimate concerns about the accuracy of news summaries provided by these tools, the way in which they access content from sites that have blocked their crawlers, coupled with a frequent inability to cite sources or provide referral traffic, these products are becoming more prevalent. This week, for example, saw The Straits Times in Singapore launch a chatbot that answers questions from readers on career-related topics, drawing on an archive of 5,000 stories published on this topic since 2020. 

Sensing the opportunity, businesses like Tars offer a chatbot specifically designed for news organizations. Its functionality allows audiences to interact with news stories in a conversational format, ask follow-up questions, rate articles, and access related visual content.

Meanwhile, several major media providers have signed deals to provide content for AI chatbots owned by some of Silicon Valley’s biggest players. Late last year, Meta revealed it would use content from Reuters to answer user questions in its chatbot about the news and current events. More recently, AP inked a similar deal with Google, which will see news from the Associated Press featured in the tech company’s Gemini app. 

Takeaway

As user needs and preferences continue to evolve, media companies must respond accordingly. Delivery of content via voice and chatbots, may become more mainstream, given the growing demand for more informal and conversational interactions with content. Catering for these audiences will become further engrained in media distribution strategies.  

2. The return of content at scale

AI-assisted content creation is not a new phenomenon. However, it is creating an opportunity for some media outlets to turn back the clock to the era when scale was seen as king.

Patch, the local news provider that was acquired by AOL in 2009 (and offloaded in 2014) has used AI newsletters to expand Patch’s reach over the past few months from 1,100 U.S. communities to 30,000. As Axios explains, these newsletters feature five stories from Patch sites along with material aggregated from other online sources. 

Despite its use of AI to scale, Patch purportedly has 85 full time newsroom employees. However, Nieman Lab reported in January how a company producing AI-generated newsletters in 47 states and 355 towns and cities across the U.S. appeared to be operated by a single person. 

These examples demonstrate the ease with which AI can help curate content at scale. 

Although these efforts can curate content to consolidate coverage, they don’t deliver original journalism. Moreover, it can be difficult to check the veracity and accuracy of content produced at this volume. 

Questions around accuracy and the absence of fresh reporting were similarly leveled at the Italian conservative newspaper Il Foglio, which recently published a four-page edition produced entirely by AI. “The articles were structured, straightforward and clear, with no obvious grammatical errors,” the Guardian notes. “However, none of the articles published in the news pages directly quote any human beings.”

These examples may make some media leaders, and audiences, uncomfortable. Nevertheless, they can be viewed as an extension of some of the ways AI technologies are already being used. 

AP has been using AI to produce stories based on earning reports for over a decade, dramatically increasing the number of stories it produces in this arena as a result. At the same time, Gannett publications in the Boston area have begun harnessing a generative AI tool called Espresso to draft articles from community announcements and press releases. 

Similarly, Semafor has revealed how The New York Times is exploring using AI tools to assist with SEO, research, headline writing, content for social media and other purposes. This can speed up the production process, potentially creating time for employees to produce more in-depth and creative content, as well as increasing the volume of output. 

Takeaway

The use of AI to automate routine tasks has long been cited as a benefit of these tools. Advocates argue AI will enable staff to focus on original and deeper work. However, there is a risk that these technologies will have the opposite effect, encouraging creators to publish more content, much of it low quality “AI slop.” The need for originality and distinctiveness will be the differentiator for most players in an AI-driven world. While some providers can use AI to scale their output, doing so while maintaining quality, distinctiveness and value isn’t always easy or an approach that will work for everyone.  

3. Beyond efficiency: AI as a tool for accessibility

Discussions around AI often focus on efficiencies, the ability to streamline workflows, or harness these tools to create new products. This can certainly be true. Last month, political news outlet Politico launched their Policy Intelligence Assistant — a new AI-powered tool enabling Politico Pro subscribers to generate in-depth policy reports using the company’s proprietary reporting and analysis.

However, at the same time, AI can also be used to ensure that content is able to reach wider, more diverse, audiences. 

Publishers are already using AI to help with translation. But the benefits can go well beyond that. Speech-to-Text tools can generate captions for live broadcasts, webinars, and events, making the information more accessible. Similarly, these technologies – augmented by human input – can aid with audio description, the creation of ALT text, and personalization. This can represent a business opportunity that expands reach and potentially fosters greater audience loyalty.

In Austria, the APA (Austria Press Agency) is developing an AI tool to generate alternative text for infographics. The goal is to help visually impaired users better access data-driven journalism.

Chitranshu Tewari, the Director of Product and Revenue at Newslaundry in India, argues that “AI-driven accessibility isn’t only better product design but also good business.” Reflecting on their own experiences, he comments that  “our accessibility efforts didn’t just make our platform more inclusive — they also attracted new paying subscribers.”

Takeaway

AI can do more than help media companies tick compliance boxes. By making content more user-friendly there are opportunities to better serve all audiences, especially those that have historically been underserved or overlooked. AI can help to embed inclusive design principles, while at the same time making access to your products more equitable and valuable. 

4. Trust and transparency in media’s AI age

As AI becomes more deeply integrated into content production and consumption, media leaders must continue to understand – and address – attitudes towards these technologies among consumers. 

Research demonstrates that public sentiment towards AI in the production of content, such as journalism, varies widely. “On the whole, people are generally positive about journalists’ ability to use technology for professional purposes,” says the Center for News, Technology & Innovation. Nevertheless, attitudes are often shaped by users’ personal experiences and knowledge of these technologies.

This divergence in public opinion reaffirms the need for transparency about the usage of AI technologies. That can be particularly true in the creation of news content. 

Takeaway

In an age of low levels of trust in mainstream media, disclosure and the presence of clear – publicly available –  guidelines around how AI is being deployed, is important. Media companies should be upfront about when and how AI is involved in content creation, as well as the potential limitations inherent within these technologies. For example, do audiences understand how answers generated by your AI chatbot are produced? If they don’t, arguably they should.

Putting the AI pieces together 

AI is already a transformative force that is reshaping the media industry. It is redefining workflows, as well as how content is produced, distributed, and consumed. 

As we’ve seen, some of the trends in this space have only accelerated in the first part of 2025, although they are often underpinned by core principles which have always made good, strategic, sense. These changes touch on the core of what great content looks like: how those stories are made, where – and how – they are consumed, and what trust looks like in an increasingly AI-driven world.

Chief among these, media companies must continue to meet audiences where they are. In 2025, this is increasingly in conversational online environments. Whether it is via voice or chat, AI can be used to create experiences that feel more informal, responsive, and interactive. 

At the same time, even though AI enables publishers to automate routine tasks, freeing up some staff time in the process, outlets should avoid the temptation to flood platforms with more material. In an era of abundance, content isn’t a numbers game. Originality and distinctiveness will determine which providers survive and thrive. 

AI’s role in the origination of creative work also needs to be effectively communicated. Audiences want, and deserve, transparency, ethical clarity, and the knowledge that there is still human and editorial oversight of the content they consume.

And lastly, in doing all of this, it is incumbent on media players to integrate inclusive design into everything they do. This approach isn’t just important from an ethical or compliance standpoint, it can also be commercially beneficial, with AI potentially making this easier to do than ever before.

The strategic use of AI tools and technologies offers media companies considerable opportunities, but leaders also have to recognize that there are also inherent risks too. This includes resisting the urge to use AI simply to do more. Rather, the focus for folks in the C-Suite must be to do better: creating enhanced opportunities for engagement and doing so in a way that is transparent and where accuracy and quality remain paramount. 

The next chapter of AI in the media business is being written now. It’s up to all of us to ensure it’s one worth consuming.

Young Teens aged 11-13 engaging with digital devices to reflect young audiences and their activities
Industry-Research | Research

How being always-on impacts young audiences 

In today’s digital world, young audiences increasingly immerse themselves in screens, from smartphones to social media and video games. As technology becomes an integral part of the daily lives of young adolescents, it raises critical questions about its impact on their social interactions, mental health, and overall well-being. New University of South Florida research finds that young adolescents overwhelmingly possess smartphones and are using them for hours a day.  

While the Life in Media Survey does find negative correlations between certain online activities and their emotional health, it also makes some surprising discoveries. For example, contrary to the idea that smartphones lead to isolation, they find that smartphone owners tend to spend more time with friends in person than those without phones. However, for ethical media companies – who care about the audiences they serve – it is important to consider how best to optimize digital experiences to support young teens’ wellbeing.

The Life in Media Survey, a collaboration between the University of South Florida and The Harris Poll, explores digital media use and well-being among those aged 11-13. Although numerous researchers, educators, parents, and policymakers have advocated for reducing digital media usage among children, the USF study shows an increasing level of connectivity. A significant 78% of all participants possess their own smartphone, with 72% of 11-year-olds included in this group; additionally, 56% have their own tablet. 

Kids estimated that they spend an average of 4.4 hours on their smartphone and/or tablet on schooldays, 6.3 hours on non-schooldays. And for some of these kids, smartphones are disruptive given that 20% of kids reported that push notifications on their smartphones and other devices are always on. 

Social media, gaming and cyberbullying  

The study also shows that children who game daily or frequently use social media spend more time connecting online with friends. However, these connections can have negative effects. For example, cyberbullied kids spend more time online, potentially exposing them to harmful environments, which can exacerbate emotional distress. Balancing the benefits of technology with its risks remains a central challenge in shaping healthy digital environments for the next generation.  

The survey uncovers a link between cyberbullying and engagement with social media influencers. Cyberbullied kids are more likely to interact with influencers—whether by sending money, messaging them, or purchasing endorsed products. This interaction suggests that some bullied children may turn to influencers for emotional support or validation, using them as an escape from online bullying in other spaces. 

What kids think of technology’s impact 

While there are concerns about technology’s impact on children, many kids still express enjoyment in using digital devices, particularly social media. Around 74% of kids enjoy social media, whether they experience bullying online or not. However, the emotional impact of technology is more complicated. Cyberbullied kids are more likely to feel that technology interferes with their daily lives. This highlights the need for platforms to ensure a safer online environment for young audiences. 

One in three kids agreed with the statement “Social media causes more harm than good,” and about the same proportion disagreed with that statement (34% and 33%, respectively). Three in 10 kids (29%) say that they believe that A.I. causes more harm than good, and respondents were slightly more likely to agree with the statement if they’d previously used A.I. tools (32% vs. 28%). 

What young audiences are doing online

Streaming platforms are also a significant part of children’s media consumption. Three out of four children use Netflix and Disney+ (77% and 73%, respectively), while half or more use Amazon Prime Video, Hulu, and Spotify (68%, 56%, and 52%, respectively).  

When asked to list their most-used platform, more respondents selected YouTube than any other program, followed closely by TikTok (17% and 15%, respectively). Entertainment tops the favorite genres of online videos, with gaming listed by 35% of respondents, followed by music and comedy (29% and 23%, respectively, based on selecting up to two favorite genres). 

The research findings show that users spend almost four hours a day on their most-used app. Those who favor Netflix report using the app for an average of 4.0 hours a day, which is slightly higher than the average 3.6 hours reported by those who prefer YouTube, Roblox, and Instagram. The slight bump might be due to the longer-form content on Netflix. TikTok use averaged slightly lower, at 3.2 hours a day. 

The “more-and-more” phenomenon 

The data here points to a “more-and-more” trend, where kids who engage in one type of media activity, such as gaming or social media, are more likely to binge on another media activity. This phenomenon underscores the need to create content that spans multiple platforms. By doing so, they can capture and hold the attention of young audiences more effectively. 

The Life in Media Survey provides valuable insights into how digital media shapes young adolescents’ lives. While technology fosters connection and entertainment, it also brings risks related to cyberbullying, excessive screen time, and emotional well-being. For the media industry, this means developing content that engages young viewers and supports their mental health. By prioritizing positive and age-appropriate media experiences, the industry can help mitigate these risks while embracing digital media opportunities. 

Social and streaming are redefining the video entertainment and streaming market
Industry-Research | Research | Video

How social and streaming are redefining video entertainment

While we’ve seen shifts in consumer behavior over the past few years, they are now happening at an accelerated pace, which impacts those in the media and video entertainment sectors. Younger consumers, in particular, are moving away from traditional pay TV subscriptions in favor of streaming services, social platforms, and gaming. The rise of short-form, algorithm-driven videos offers an endless supply of free content that keeps users engaged for hours. These platforms excel in curating and promoting personalized experiences through AI and recommendation algorithms.

Thus, it won’t come as a big surprise that social platforms now account for more than half of U.S. ad spending, which positions them as major competitors to traditional media outlets. According to Deloitte’s Digital Media Trends 2025 Report, social platforms have become the new center of gravity in media, capturing both consumer attention and advertising dollars.

The report highlights that younger generations, especially Gen Z and millennials, are likely to cancel their cable subscriptions, citing high costs and frustration with the volume of ads. With cable bills averaging $125 per month, the appeal of traditional TV services is fading. For younger viewers, free content on social media and affordable, ad-supported streaming services provides a more cost-effective alternative to pricey cable packages.

As a result, pay TV subscriptions are declining steadily, dropping from 63% to 49% of U.S. households over the past three years. SVOD services now offer a wider range of options, including live sports, which once was a driving force for much of the pay TV market. Additionally, many users turn to social media for news and sports highlights, further eroding the traditional TV audience. consumer media habits include

Advertising landscape

With advanced ad tech and data analytics, social platforms dominate the global ad market. Deloitte’s research shows that ads on social media are more likely to influence Gen Z and millennials than ads on traditional TV or streaming services. The younger generations appreciate the relevancy and personalization of social media advertising. By comparison, ads on traditional media feel more intrusive and less targeted, which diminishes their effectiveness.

For traditional media companies, these trends present a significant challenge. Studios and streaming services increasingly turn to ad-supported subscription tiers to lower costs and attract a wider audience. However, these services still face an uphill battle in attracting advertisers away from the social platforms that dominate the digital ad space. The advertising capabilities of social platforms are advanced, as they leverage sophisticated algorithms and AI to target specific audience segments with highly relevant ads.

Streaming services

While streaming video services offer consumers a wealth of content, they have their own set of challenges. Rising subscription costs are creating dissatisfaction among users. The research shows that 41% of consumers feel that the content available on SVOD services is no longer worth their price. This is particularly evident as streaming costs rise—on average, SVOD subscribers pay $69 per month, a 13% increase from the previous year. Many consumers, especially Gen Z and millennials, cancel services and jump from one streaming provider to the next in search of better value.

Moreover, the advertising-supported tiers of SVOD services have become a crucial part of many companies’ strategies to lower subscription costs while generating revenue. However, this model comes with trade-offs. While 54% of SVOD users say they subscribe to at least one ad-supported service, many express frustrations with the volume of ads. To compete, media companies must find a price point that works for consumers while balancing the needs of advertisers and content creators.

Content creator connection

Content creators have become a central force in the media landscape. Social platforms offer a new generation of influencers whose content drives engagement and shapes consumer behavior. For younger generations, creators are now as influential as traditional TV stars and movie actors. In fact, many consumers report feeling a stronger personal connection to their favorite creators than to the personalities they see on traditional TV. This trend is fueling the growth of social media platforms as major entertainment hubs.

This shift represents an opportunity to tap into the growing creator economy. By leveraging social media, media brands can engage audiences in new ways and tap into the influence and authenticity that creators bring to the table.

As social platforms and content creators continue to dominate the entertainment landscape, traditional media companies must reevaluate their content strategies and business models. The merging of social platforms, creators, and on-demand services is reshaping the media’s core. Media companies will need to adapt to the changing demands of consumers, who now expect more from their entertainment experiences.

Gen Z audience engagement
Industry-Research | Video

Gen Z is creating new rules of engagement

Gen Z is rewriting the digital playbook, setting new standards for content discovery, engagement, and consumption. This generation is social-first, always on, and hyper-connected, and the details are outlined in Gen Z Culture Decoded, a new research report that I co-led with Mary Ann Halford of Halford Media Advisory. 

Our study revealed that 71% of Gen Z consumers turn to social platforms and YouTube as their primary discovery hubs. This deeply impacts their entertainment choices across TV shows, sports, podcasts, and more.

At a time when capturing attention and loyalty is more complex than ever, Mary Ann and I designed this study hoping to understand Gen Z better ourselves and to provide a roadmap for brands, creators, and advertisers looking to connect with this influential demographic. We surveyed 2,000 U.S.-based Gen Z respondents (ages 16-27) in a study conducted by Toluna in December 2024 and January 2025, with key input from QuickPlay and Swerve Sports executives.

Key takeaways from Gen Z Culture Decoded

  • Social media dominates: At least 74% of Gen Z consumers engage with social media at any time of day.
  • Hyper-connectivity defines behavior: On average, Gen Z participates in seven different digital activities daily, with the number rising to eight in the early evening.
  • Viewing habits shift throughout the day:
    • Video consumption increases steadily, peaking in the evening.
    • Sports and gaming peak in the evening.
    • Music, audiobooks, and podcasts see higher engagement in the afternoon and evening.
    • Radio and news updates are most popular in the morning.
  • Comedy is king: Across entertainment platforms, comedy emerges as the #1 genre, influencing both content creation and advertising.
  • Short-form and vertical video formats are ascendant: 
    • 81% of Gen Z video viewers said they watch videos in vertical format weekly.
    • 79% of Gen Z users indicated that a “shorts” feature would increase their engagement with a streaming service.

What this means for the future of digital engagement

We found that, for marketers, advertisers, and media strategists, winning Gen Z’s attention requires a multi-platform, video-driven, and socially integrated approach.

Our research points to opportunities for media companies to engage audiences on their own platforms with formats adapted from social platform norms, such as vertical video and short-form video with text on screen. The platforms of these media companies – from Hulu to Peacock to Netflix – currently primarily focus on long-form and horizontal video. 

Gen Z audiences would use streaming services more if they offered shorts

Our partners weigh in

Gen Z Culture Decoded aimed to provide a roadmap for connection and relevance. We and our research partners knew that Gen Z habits and preferences would differ from older generations. It is clear that breaking through to this savvy and surprising generation will require unprecedented levels of agility and investment in new skills and tools. 

Social platforms and YouTube are the starting point for Gen Z consumer discovery

Halford said the research shows a clear pathway for streamers to reclaim engagement lost to social platforms: “While social media and YouTube are the starting points for Gen Z content discovery, their consumption patterns are complex and sometimes surprising. The demand for integrated short-form content experiences is undeniable.”

Quickplay Co-Founder and CBO Paul Pastor said it confirmed what he has seen among the Gen Z demographic: “Gen Z demands short-form, engaging content across all platforms, and it’s where and how they discover new content. They are a hyper-connected generation that expects content to be readily available, personalized, and easily digestible.”

Understanding how Gen Z’s attitudes and behaviours differ from other generations is essential, said Jasen Holness, EVP Commercial Strategy, Toluna. “This research provides a practical blueprint.”

A deep dive into Gen Z’s digital universe

Gen Z Culture Decoded covered over 60 key questions, exploring topics such as: content discovery, YouTube consumption trends, news consumption, advertising preferences and more. We explored how Gen Z is reshaping media engagement and connection by examining cultural interests, habits, and preferences, looking for deeper understanding of what meaningful interactions look like. 

We all know that Gen Z has a digital first mindset. However, they consume content differently than other digital first audience groups, and it is critical to understand how these different consumption habits impact brand perception, trust and loyalty. With the insights from this study, we hope to enable media leaders, brands and advertisers to better find Gen Z and to satisfy their expectations now and as they grow into adulthood.

Levers controlling revenue from multiple sources to show the revenue streams for streaming and digital video
Industry-Research | Video

Streaming revenue sources are shifting 

The transition away from traditional pay-TV is accelerating. In fact, traditional TV no longer dominates the video subscription market. By 2028, traditional pay TV’s share of video subscription revenues will decrease to just one-third. Meanwhile, digital pay-TV services, also known as virtual multichannel video programming distributors (vMVPDs), will increase their share from 13.2% in 2025 to 15.4% by 2028. These services, including YouTube TV, Fubo, and Sling TV, deliver linear TV content over the Internet, making them appeal to consumers seeking flexibility and lower costs than traditional pay TV. 

Emarketer’s Digital Video and Trends report for Q1 2025 shows that streaming services are poised to achieve even greater growth, increasing their share of video subscription revenues by about eight percentage points by 2028. Notably, YouTube has become a significant player in the subscription business. While YouTube remains known for its free, ad-supported platform, its YouTube Premium and YouTube Music services collectively boast over 100 million subscribers. YouTube TV, which claimed 8 million U.S. subscribers in 2024, is also contributing significantly to the growth of digital pay TV. 

Rising costs and consumer behavior 

Although subscription revenues still dominate the streaming sector, rising prices are reshaping consumer behavior. In recent years, both traditional pay-TV and streaming services have raised prices, driven by inflation. However, streaming services have increased prices at a faster rate over the past two years, surpassing the cost growth of traditional pay TV. This price disparity has triggered consumer pushback, especially as streaming services introduce price hikes and clamp down on password sharing. 

the prices of streaming services outpace inflation which drives streaming revenue

Streaming giants like Netflix, Hulu, and Disney+ employ strategies to boost profitability, including raising subscription costs and limiting account sharing. These actions, along with content cuts, have led to some consumer dissatisfaction. Despite these challenges, streaming services remain profitable on paper. 

Among the streaming platforms, Hulu and Disney+ have made some of the largest price increases for their ad-free plans. While Apple TV+ stays relatively affordable, its library lags behind competitors. All the while, it has  doubled its subscription price since launch. 

Live sports drives subscription growth 

Streaming services are capitalizing on the growing demand for live sports, which increasingly draws subscribers away from traditional TV. Major streaming platforms, such as NBCUniversal’s Peacock and Amazon Prime Video, continue to invest heavily in sports rights. This is further shifting the sports broadcasting landscape from traditional TV to streaming platforms. By 2027, digital sports viewership will surpass traditional TV viewership by 52 million viewers, signaling the ongoing transition in how consumers watch live sports. 

YouTube TV’s growth and the digital pay-TV market 

YouTube TV is seeing significant success among the growing digital pay-TV services. As traditional pay-TV continues to shed subscribers, YouTube TV is adding them at a steady pace. By 2026, it will become the largest pay-TV operator in the United States. Although YouTube TV is not yet profitable, it is an important player in the broader digital pay-TV market, now accounting for about one-fifth of total pay-TV subscription revenues. 

The digital pay-TV market is also experiencing consolidation. In January 2025, Hulu + Live TV and Fubo TV announced a merger. Disney will hold a 70% stake in the new venture, with Fubo’s leadership overseeing operations. Although Hulu + Live TV and Fubo will remain separate offerings, this consolidation may lead to further streamlining of the digital pay-TV space. 

Shifting streaming revenue streams: subscription vs. advertising  

Streaming subscription revenue

While subscriptions still represent the majority of revenue for streaming services, advertising is growing in importance. From 2023 to 2027, advertising’s share of total streaming revenues will increase by nearly four percentage points. This rise in ad spending reflects the growing significance of connected TV (CTV) platforms, a critical avenue for advertisers looking to reach consumers on streaming services. 

In fact, CTV ad spending may exceed 15.8% year-over-year growth in 2025, outpacing the 10.6% growth forecast for U.S. streaming subscription revenues during the same period. However, both advertising and subscription revenues in traditional TV are in decline, though price increases for subscriptions help slow the rate of decline. 

While this Emarketer report focuses on the U.S. market, it’s important to note that streaming services are also seeing significant growth worldwide. As of Q2 2024, nearly 60% of Netflix’s revenues come from outside of North America. While prices are lower in regions like Asia and South America than North America and Europe, the global growth potential for streaming services remains immense. Countries across North America, South America, Europe, and Asia-Pacific are seeing high levels of subscription penetration, with streaming services continuing to expand their reach internationally. 

Digital Pay TV contributes to streaming revenue

The video subscription landscape is undergoing a dramatic transformation. Traditional TV’s dominance is slipping as streaming services and digital pay-TV providers continue to capture an increasing market share. For media executives, this shift presents both challenges and opportunities.  

Subscription revenue remains the primary source of growth for streaming services. Rising costs and consumer demand for more flexible, lower-cost options continue to shape the industry. At the same time, the increasing importance of advertising revenue, coupled with the global expansion of streaming platforms, offers new avenues for monetization. Staying ahead of these trends and adapting to the evolving market dynamics is key to maintaining a competitive edge in this rapidly changing ecosystem. 

human hands at a computer with lightening bolts to indicate Journalism and Journalists use of AI
Industry-Research | Innovation | Research

Journalists confront the reality of media use of AI

The rapid adoption of Generative AI (Gen AI) in newsrooms sparks important discussions among journalists and media professionals, especially about transparency and trust. Across the industry, publishers vary in how they communicate their AI strategies to their workforce. Reports suggest that some journalists seek more transparency around management’s AI implementation efforts and agreements with AI companies. This lack of clarity also applies to content, as some publishers explore AI-generated articles without consistently informing staff or readers.

A lack of transparency around AI fuels distrust

Mike Ananny and Jake Karr examine how news media unions are trying to manage and stabilize the use of Generative AI. Their analysis, How Media Unions Stabilize Technological Hype, draws from a review of industry reports, expert interviews, and case studies of newsrooms integrating generative AI. The methodology emphasizes qualitative insights to understand AI’s impact on editorial processes, ethics, and audience trust.

According to the authors’ analysis, many employees only learn about AI licensing deals through sudden announcements, often without prior consultation. Some must rely on external reporting to understand their company’s AI initiatives. Union representatives consistently face resistance when requesting information, reinforcing a broader mistrust of employer intentions.

However, solutions are emerging. Some unions are pushing for contractual guarantees to ensure greater transparency. The Associated Press and certain Gannett-owned publications propose contract language requiring 90 days’ notice before implementing new AI-related newsroom technology. Similarly, The Onion and Wirecutter unions successfully bargain for advance notice and transparency requirements regarding AI procurement. These efforts signal a path to restoring trust through openness and accountability.

Journalists defend creativity and quality

News professionals ensure accuracy, provide context, and uphold ethical standards that AI alone cannot fulfill. Ananny and Karr conclude that AI’s so-called “creativity” is a remix of existing human work, lacking the depth, insight, and contextual awareness that define quality journalism. No matter how advanced AI becomes, skilled journalists must verify facts, interpret events, and shape narratives with integrity.

Recognizing this, some media organizations are implementing safeguards. The Associated Press is committing to using Gen AI only with direct human oversight to maintain compliance with journalistic standards. Another example includes editorial employees reviewing AI content before publication at The Onion, The A.V. Club, Deadspin, and The Takeout. And the MinnPost treats AI-generated material as a source requiring human editing and fact-checking.

But beyond oversight, journalists are pushing for the right to decide whether or not to use AI. Many unions argue that workers, as experts in their field, should determine the appropriate role of AI in journalism. The CNET Media Workers Union demands the right to opt out of using AI if it fails to meet publishing standards. The Atlantic Union similarly insists that journalists may use AI within ethical guidelines, but no one should force them to do so.

These demands reflect a broader principle: journalism is, at its core, a human-driven endeavor. AI may assist but cannot replace the judgment, creativity, and accountability that define quality reporting. The analysis concludes that to integrate AI responsibly, newsrooms must prioritize transparency, trust, and human journalists’ role in safeguarding the profession’s integrity.

Beyond transparency and journalistic integrity, the rise of Gen AI raises significant ethical and legal questions. One of the most pressing concerns is intellectual property: Who owns the content produced by AI models trained on vast amounts of copyrighted material? Many publishers argue that AI-generated work lacks originality and merely regurgitates existing human-created content. This also raises potential plagiarism and copyright infringement issues. In response, some media companies are taking legal action.

Additionally, there is concern about AI’s ability to spread misinformation. Unlike human journalists, AI lacks the critical thinking skills to discern fact from fiction. Without rigorous oversight, AI-generated content can amplify biases, fabricate sources, and misinterpret data, posing a direct threat to public trust in news media.

Regulatory bodies are beginning to take notice. Governments worldwide are considering policies to ensure AI transparency and ethical implementation in journalism. For example, the European Union’s AI Act includes provisions requiring companies to disclose AI-generated content and implement safeguards against misinformation. The Federal Trade Commission warns companies against deceptive AI practices, signaling potential regulatory intervention in the media industry.

Balancing innovation and integrity for journalism and AI

Despite the challenges, AI’s presence in newsrooms is likely to grow. Some publishers are taking a proactive approach by developing AI policies that prioritize ethical considerations. Reuters, for example, offers internal guidelines to ensure journalists use AI tools responsibly and transparently. The BBC is similarly on board to maintain human oversight over AI-generated content and clearly labeling AI-assisted reporting.

Ultimately, the future of AI in journalism will depend on striking the right balance between technological innovation and journalistic integrity. The authors concur that if publishers prioritize transparency, enforce accountability, and uphold journalists’ fundamental role, AI can be a valuable tool rather than a disruptive force.

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News podcasts are wildly popular. But who’s listening?

Podcasts are transforming how Americans consume news, offering on-demand access to trusted voices and in-depth analysis. As traditional news formats evolve, podcasts have become a critical medium for audiences seeking timely, engaging, and diverse perspectives.

Second only to comedy, news podcasts are a dominant podcasting genre. A new report from Sounds Profitable, in partnership with Signal Hill Insights, finds that 31% of podcast listeners consumed news content in the past month. The findings underscore a significant shift in how Americans engage with news, moving away from traditional TV broadcasts and toward more personalized, on-demand listening experiences.

News podcast consumer demographics

The average age of a news podcast consumer is 47, closely mirroring the overall U.S. adult population. This starkly contrasts television news audiences, where the average age skews significantly older—70 for MSNBC, 69 for Fox News, and 67 for CNN. This demographic shift highlights how younger audiences gravitate toward podcasts as a preferred medium for staying informed. Balancing short-form daily news updates with longer-form analytical discussions allows podcast listeners to integrate news consumption seamlessly into their routines.

The social influence factor

One of the study’s more interesting findings is the role of social influence in driving news podcast discovery and engagement. News podcast listeners exhibit significantly higher levels of social sharing and recommendations compared to their non-news counterparts:

  • 73% receive podcast recommendations from friends and family, compared to 51% of non-news listeners.
  • 73% actively recommend podcasts to others, versus 49% of non-news listeners.
  • 83% say they are likely to listen to a podcast recommended by someone they know.

This word-of-mouth dynamic plays a crucial role in podcast adoption, highlighting the importance of personal connections in shaping media consumption habits. While platforms and algorithms contribute to discovery, personal recommendations remain the most powerful driver of engagement.

Additionally, news podcast listeners are more likely to consume content with others. Unlike other podcast genres that often cater to solo listening, news podcasts frequently become a shared experience. Group listening fosters discussions and deeper engagement with the content, whether in the car during a commute or as part of a morning routine. The study reveals that 88% of news podcast consumers who listen with others cite “listening while traveling” as a major benefit, compared to 66% of podcast listeners.

Advertising challenge and opportunity for news podcasts

Despite their high engagement levels, news podcast listeners are not immune to advertising fatigue. The study reveals that:

  • 21% have stopped listening to a podcast due to excessive ads.
  • 14% cite repetitive content as a reason for abandoning shows.

This finding challenges the assumption that strong host-listener relationships can completely counteract fatigue. Even among engaged audiences, there is a threshold for how much advertising they are willing to tolerate.

However, the research also uncovers a compelling opportunity for brands. News podcast listeners are more receptive to brand-sponsored content than the general podcast audience:

  • 61% say they are likely to listen to a brand-sponsored podcast.
  • 46% indicate that a company’s involvement makes them more likely to try a new podcast than 34% of non-news listeners.

Brands can forge meaningful connections with news podcast audiences by positioning themselves as content partners rather than just advertisers. By integrating seamlessly into the content, brands can enhance rather than disrupt the listener experience.

Podcasts and the future of news consumption

The traditional model of news consumption—gathering around the television at a fixed time—has largely faded. Instead, audiences curate their news experiences through digital and on-demand platforms. While social media and news websites play an important role in this transition, podcasts offer a unique advantage: deeper engagement and trust.

Unlike passive scrolling through headlines, listening to a news podcast requires intentional engagement. The hosts of these podcasts often become trusted voices, forming strong bonds with their audience. This level of trust is a significant draw, positioning news podcasts as a vital part of modern news consumption. However, the challenge lies in maintaining audience engagement without alienating listeners through excessive advertising.

The findings from this report offer a compelling look at the evolving media landscape. News podcasts attract a younger and more engaged audience and reshape how people discover, consume, and share news. The influence of social recommendations and the potential for shared listening experiences emphasize the unique role of news podcasts in today’s information ecosystem. Additionally, the nuanced relationship between advertising and engagement further solidifies their distinct position.

Journalism support organizations
Industry-Research | Research

It may be time to reform journalism support organizations

Journalism support organizations face scrutiny regarding efficiency, strategic direction, and overall impact. Critics argue that these organizations function as bureaucratic intermediaries, consuming philanthropic resources without adequately addressing the needs of local news outlets. At the same time, many journalists and news organizations find these support structures essential to their survival, particularly as they navigate an increasingly complex media landscape. This tension raises an important question: How can support organizations evolve to better serve the local news ecosystem?

A recent report, “The Critical Role Support Organizations Can Play in Maturing the Local News Field,” commissioned by the Democracy Fund explores this issue in depth. The report concludes that a broader “field-level agenda” is necessary to help define common goals, establish accountability metrics, and align efforts across the journalism ecosystem.

Field-level agenda for journalism support organizations

One of the report’s findings is the lack of a shared framework to measure success in the local news sector. Many support organizations operate with distinct, sometimes overlapping missions, making it difficult to assess their collective impact. The report proposes a “field-level agenda” as a solution—an overarching strategy that brings together diverse players to set priorities, establish success metrics, and enhance collaboration.

Support for this concept is widespread. Many industry leaders echoed the idea that a structured, collaborative framework is needed to ensure that support organizations advance the field. David Grant of Blue Engine Collaborative notes that the industry struggles to effectively define its audience and measure impact. Similarly, Mary Walter-Brown of News Revenue Hub emphasized that support organizations should be held accountable for how well they help news organizations grow.

Roles and responsibilities of the news support ecosystem

There is broad agreement on the need for better organization within the field. However, stakeholders are still grappling with who should lead this transformation. Many argue that philanthropic organizations should establish more explicit expectations for accountability and collaboration.

Damon Kiesow, Knight Chair in Journalism Innovation at the University of Missouri, suggests that funders could accelerate progress by requiring grantees to adhere to standardized impact metrics. Tristan Loper of the Lenfest Institute points to recent grantmaking initiatives emphasizing partnerships rather than competition as a potential model for fostering greater alignment within the sector.

Others question the long-term sustainability of specific support organizations. Instead, they propose that funders adopt a more strategic approach to determining which initiatives should last decades and which should be time-limited interventions. This perspective underscores the importance of developing a clear vision for the role of support organizations within the broader journalism landscape.

A collaborative approach to news media support

The report highlights that while no single experience defines all support organizations, there is a shared desire for greater collaboration. The report was given to participates for review and some leaders noted that the report’s initial tone seemed overly defensive. They felt it reinforced criticisms rather than highlighting these organizations’ indispensable work. However, this feedback reinforces the issue’s complexity. Support organizations must navigate a fine line between responding to critiques and advocating for their essential role in the ecosystem.

Stefanie Murray of the Center for Cooperative Media challenged the notion that support organizations lack accountability. She pointed out that many already adhere to rigorous funding requirements. This debate underscores the need for a nuanced discussion about defining and measuring success in ways that reflect the realities of different organizations.

Next steps for journalism support organizations

While this report provides valuable insights, it raises questions that merit further exploration. For instance, how can the support field evolve, and what lessons can we learn from other industries? What balance should exist between funding direct journalism (news organizations) and intermediary organizations providing infrastructure and support?

Several leaders who participated in the report have proposed expanding the taxonomy of support organizations to include groups that act as bridges between journalists and community organizations. Others call for a similar taxonomy for newsmakers and funders, which could help clarify how different entities fit within the broader ecosystem.

The challenges facing journalism support organizations are complex. However, the Democracy Fund’s research states the need for reform is clear. Establishing a field-level agenda could bring greater coherence, accountability, and impact to the sector. However, achieving this vision will require sustained collaboration among all stakeholders, support organizations, funders, and local news leaders.

As the industry evolves, support organizations must adapt to ensure they remain valuable partners to local newsrooms. By embracing a more strategic, data-driven approach to measuring success and fostering collaboration, the field can move toward a more sustainable and effective future for local journalism.

Industry-Research | Research

AI assistants error prone when it comes to news

Artificial intelligence is rapidly transforming the way people access and consume news. With AI assistants increasingly serving as intermediaries between audiences and trusted news sources, it is essential to understand how accurately and reliably they present information. Unfortunately, according to recent research from the BBC, AI does not accurately deliver news.

In new research, the BBC is evaluating how well leading AI assistants—ChatGPT, Microsoft’s Copilot, Google’s Gemini, and Perplexity—deliver news-related answers. By granting these AI models access to its website, the BBC sought to assess its ability to effectively reference and represent its journalism.

This study examined the quality of AI-generated responses using 100 news-related questions, with BBC journalists evaluating them based on seven key criteria, including accuracy, attribution, and impartiality. The reviewers then determined whether the responses contain minor, significant, or no issues across these areas.

Significant errors in AI news

The results show that over half (51%) of AI-generated responses contain significant issues, while 91% exhibited some inaccuracy, bias, or misrepresentation. Specific issues include factual errors, misattribution of sources, and missing or misleading context. When evaluating how these AI assistants represented BBC content, the study finds that Gemini (34%), Copilot (27%), Perplexity (17%), and ChatGPT (15%) produce responses with errors in their use of BBC sources.

Accuracy and misinformation

AI-generated responses frequently report factual inaccuracies, even when citing BBC sources:

  • Gemini incorrectly states that the NHS discourages vaping as a smoking cessation method, despite BBC coverage explicitly confirming that the NHS supports vaping for smokers that want to quit.
  • Copilot misrepresents the case of rape survivor Gisèle Pelicot, falsely claiming that blackouts and memory loss led her to uncover the crimes against her.
  • Multiple assistants incorrectly report figures, such as significantly underestimating the number of UK prisoners released and misattributing Chrome’s market share statistics.
  • ChatGPT erroneously reports that Ismail Haniyeh, assassinated in July, is still an active Hamas leader.

Attribution and sourcing errors

AI assistants frequently misattribute or incorrectly source information. Some rely on older articles, leading to misleading conclusions. In several instances, assistants claim to summarize BBC reporting but include details that did not exist in the BBC articles.

Impartiality and editorialization

In addition to prevalent factual errors, AI assistants struggle with maintaining any semblance of journalistic impartiality. The study flags multiple instances where opinions are presented as facts, sometimes falsely attributing to the BBC as the source. For example, Perplexity characterized Iran’s actions in the Middle East conflict as “restrained” and described Israel’s response as “aggressive,” despite no such characterization appearing in the BBC article.

AI errors in news is a risk to public trust

These findings highlight serious risks in AI-generated news summaries. Misinformation can erode public trust in news media, whether due to factual errors, misleading context, or editorialized conclusions. Distortion of BBC’s content can have significant consequences. If these risks continue, audiences may question the credibility of BBC’s reporting.

AI assistants are set to play an increasing role in how people access news and because they do not generate meaningful traffic to media websites, it appears that the majority of people using them are not exploring further to determine the accuracy of the purported news AI delivers. This, it is critical that AI agents or chatbots endeavor to uphold the information ecosystem’s rigorous and trusted editorial standards.

Ultimately, AI developers are responsible for ensuring their products align with fundamental journalistic principles, including accuracy, impartiality, and reliable sourcing. The BBC warns that if these challenges go unaddressed, AI risks undermining the news organizations it depends on for credible information. As AI continues to evolve, the BBC emphasizes the need for the media industry to champion responsible AI integration to safeguard audiences and preserve journalism’s integrity.

Industry-Research

Dealmaking in the tech, media and telecom sectors set to accelerate

Dealmakers in the Technology, Media, and Telecommunications sectors (TMT) are entering 2025 with renewed optimism. This sector’s pivotal role in the AI boom drives investment opportunities, according to recent PwC research. Easing macroeconomic and geopolitical challenges, particularly in the U.S., has also set the stage for a favorable mergers and acquisitions (M&A) environment.

Media M&A market dynamics

PwC’s Global M&A Industry Trends Report notes that the U.S. administration’s focus on deregulation is poised to support megadeals (transactions exceeding $5 billion) and boost executive confidence. Anticipated interest rate cuts by central banks should foster a more vibrant M&A landscape.

According to PwC’s 28th Annual Global CEO Survey, 76% of TMT executives who made acquisitions in the past three years plan to pursue further deals within the next three years. This signals a strong strategic focus on media M&A for growth and innovation.

The evolving TMT landscape presents significant implications and opportunities for the media sector. These include:

1. AI as a growth driver

AI investments transform media content production, distribution, and audience engagement strategies. Premium media companies must harness AI to streamline workflows, deliver personalized content, and improve advertising efficiency.

2. Surge in media M&A activity

Media companies will likely pursue strategic acquisitions with regulatory and economic conditions becoming more favorable. Smart partnerships or mergers with technology firms can enhance digital capabilities and foster AI-driven innovations.

3. Capital spending

Extending capital investment in energy and real estate opens new avenues for media companies. Given these market dynamics, collaboration involving data centers or energy-efficient content delivery networks could become significant.

A more relaxed regulatory environment may facilitate the way for innovative cross-platform deals and media-tech partnerships. For some, this will unlock new revenue streams.

5. Evolving content and platform strategies

The shift in media consumption—toward digital-first platforms, podcasts, and creator-generated content—requires media companies to reassess their content strategies. Multi-platform distribution and niche content offerings will be critical to staying competitive.

6. Investor confidence spurs media M&A

Reduced macroeconomic pressures and lower interest rates will likely attract private equity investments. This will fuel innovation and expansion for forward-thinking media companies.

AI: a catalyst for investment

AI remains a focal point for investment, particularly in the U.S. In January 2025, a landmark $500 billion joint venture between OpenAI, Oracle, and SoftBank to develop a network of AI data centers. This venture should reinforce the U.S.’s position as a global AI hub.

Companies channeling capital into high-growth areas such as data analytics, automation, and generative AI enhance products to drive future growth. Notable deals in 2024, including Cisco’s $28 billion acquisition of Splunk and HPE’s $14 billion acquisition of Juniper Networks, exemplify this trend.

Regulatory and geopolitical shifts

The new administration is undergoing significant changes in the U.S. regulatory landscape. Appointments to the Federal Communications Commission (FCC) and the Federal Trade Commission (FTC) should foster a more deregulated environment, easing barriers to media M&A. These changes may have global implications, influencing deal activity in other regions.

After a prolonged period of high interest rates, central banks expect to implement gradual rate cuts in 2025. Lower borrowing costs will likely invigorate financial sponsors, reversing the trend toward corporate-led deals and a resurgence in private equity investment.

Media industry evolution

As the media landscape transforms, digital-first platforms necessitate strategic portfolio assessments. As companies adapt, transformative M&A, including divestitures of non-core assets, is likely. Vivendi’s recent restructuring and Comcast’s strategic moves exemplify this trend.

The Technology, Media, and Telecommunications sectors (TMT)sector is ready for a resurgence in M&A activity in 2025. The convergence of AI-driven innovation, regulatory shifts, and capital market dynamics creates fertile ground for strategic acquisitions. Those media businesses that are agile and responsive will seize new opportunities and navigate well in this dynamic landscape.

DCN-Research | Research

DCN Digital Media Subscription Tracking Report: insights into a dynamic market

The subscription media landscape continues to evolve, reshaping how consumers engage with digital content and how businesses strategize to maintain their market share. As digital media matures and price sensitivity increases, the market has responded with innovative pricing models and premium offerings.

The DCN Digital Media Subscription Tracking Report provides insights into these changes, offering year-over-year trends and brand-specific data exclusive to DCN members. Here are key highlights from the latest report:

  • Subscriptions Decline, Spending Rises: While the average household subscription count fell by 4% in Q4 2024, annual spending on digital subscriptions grew 7%, indicating a shift toward prioritizing high-value services.
  • Bundling Gains Popularity: 59% of SVOD subscribers opted for bundles in Q4 2024, up from 52% earlier in the year, as consumers seek value-driven solutions.
  • Ad-Supported Tiers Surge: Consumers increasingly choose ad-supported streaming services to cut costs. SVOD with ads saw a 14% increase, while no-ad services declined by 12%.
  • Top Performers in SVOD: Amazon Prime Video with ads quickly ascended to the top spot among users. Hulu with ads rose to third, Peacock with ads rose to fourth, while Disney+ Premium with no ads dropped to fifth place.

As the media subscription landscape continues to evolve, innovation in bundling and tiered options remains crucial. These findings underscore the resilience of premium digital content and the importance of staying attuned to evolving consumer needs.

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How a TikTok ban could reshape ad spending

Social media and digital advertising dynamics are once again at a critical juncture. On January 19th, TikTok resumed service in the United States after a brief disruption, much to the relief of its 115 million U.S. users. President Donald Trump’s executive order to delay banning the app for 75 days allows TikTok to seek a U.S. partner to address security concerns. However, TikTok’s future uncertainty is shaking up the digital ecosystem as major platforms and advertisers prepare for potential disruptions.

Sensor Tower’s latest data paints a vivid picture of TikTok’s role in the U.S. media and advertising market. The platform drives 88 million daily hours of consumer engagement, generates approximately $2 billion in annual consumer spending, and commands an 8% share of the digital advertising market. Should TikTok face another ban, competitors like Meta and Alphabet, alternatives like Snapchat, and emerging platforms are all poised to capitalize.

Consumer engagement: the TikTok effect

TikTok’s popularity has reshaped how users consume short-form videos. However, its dominance in engagement reveals a troubling trend. Overall time spent on short-form video apps dropped by 4% year-over-year in 2024, with TikTok’s U.S. engagement declining by 12% in Q4.

Despite this decline, TikTok’s success has forced competitors to innovate aggressively. Platforms like Instagram, Facebook, and YouTube ramp up their short-form video offerings with features such as Reels and Shorts. In Q4 2024, users spent 54 million hours daily on YouTube Shorts, 28 million on Instagram Reels, and 26 million on Facebook Reels. Notably, Facebook Reels experienced the most robust growth, with engagement rising 87% year-over-year. Instagram (+18%) and YouTube (+7%) would follow.

Snapchat, too, is stepping up its game. The rollout of its “Simple Snapchat” interface aims to streamline access to Spotlight, its short-form video feature. This move positions the platform to attract a larger share of TikTok’s audience in the event of a ban.

Advertising dollars at stake

In 2024, Tiktok platform held an 8% share of U.S. digital ad spend, with Walmart, Google, and Amazon ranking among its top advertisers. If TikTok exits the U.S. market, Sensor Tower projects that platforms like Meta and YouTube will inherit significant portions of its ad revenue. Specifically, Meta is expected to gain four percentagepoints of TikTok’s ad spend share, split between Instagram (three percentage points) and Facebook (one percentagepoint). YouTube and Snapchat are likely to gain two percentage points.

This shift would reinforce Facebook’s position as the U.S. social media ad spend leader and enable it to command a 35% share by Q4 2025, followed by Instagram (30%) and YouTube (19%). Meanwhile, Snapchat’s share could rise to 6%, with smaller platforms like Pinterest and Reddit collectively accounting for less than 5%.

In-app purchases offer lucrative opportunities

TikTok’s innovative monetization strategies have set a high bar for competitors. Since its launch, U.S. users spend over $4 billion on TikTok Coins, an in-app currency for tipping creators and promoting videos. In 2024, TikTok’s $1.7 billion in U.S. in-app revenue outpaces Instagram, Facebook, YouTube, and Snapchat combined.

If TikTok exits the U.S. market, its competitors will inherit a significant portion of this revenue stream. Sensor Tower predicts that Instagram’s in-app revenue could surge by 790% year-over-year in Q4 2025, more than double the growth rate of its peers. YouTube, however, would maintain its leadership, with projected in-app revenue of $442 million in Q4 2025, roughly double that of Instagram and Facebook.

Lessons from India’s TikTok ban

India’s 2020 TikTok ban provides valuable insights into what might happen in the US. Before its ban, TikTok was India’s largest short-form video platform, boasting 169 million monthly active users and a significant share of app engagement. After the ban, platforms like Instagram and YouTube surged in downloads and engagement, while local players such as Moj and Josh quickly gained traction.

Sensor Tower estimates that Instagram and YouTube could see similar growth in the US, with their engagement hours rising by 40% and 12% year-over-year, respectively, in Q4 2025. Snapchat growth may lead the pack with an 89% increase in daily engagement hours, driven by its Spotlight feature and streamlined interface.

Challenges and opportunities

The media industry, particularly those in the social and short form video space, cannot ignore TikTok’s vast influence on consumer behavior, advertising, and monetization. Competitors are already responding by enhancing short-form video features and exploring new monetization strategies. Platforms that successfully replicate TikTok’s creator-driven ecosystem—complete with seamless in-app payment systems for tipping and promotions—will likely capture the lion’s share of user engagement and revenue.

With billions of dollars in ad spend and consumer engagement at stake, media companies and advertisers will closely monitor how this story unfolds. Whether TikTok stays in the U.S. market or not, its success—and potential absence—continues to shape the future of social media and digital advertising.

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