2024 Digital Media Trends introduction
Video games esports and virtual reality experiences have become mainstream forms of entertainment. GlobalWebIndex found that 71% of consumers are more likely to make a purchase based on social media referrals. This has led to the rise of niche genres and independent creators, as streaming platforms offer a wider variety of content than traditional media. The overall result is a more fragmented entertainment budget with spending spread across various digital platforms. Players are now accustomed to investing small sums regularly to enhance their gaming experience. This can range from subscriptions for movies and music to in-game purchases that enhance the experience.
This doesn’t mean that longer-form video entertainment is fading away, but it does highlight the effectiveness of social media algorithms and the strength of content creators and influencers. Our 2024 Digital Media Trends report finds an even stronger shift in young consumers’ video preferences. It may not be surprising that Gen Zs and millennials have been cancelling streaming video on demand (SVOD) subscriptions more than older consumers (figure 1).2 The integration of predictive analytics helps platforms provide more personalised responsible gaming tools and support.
As the market expands, businesses are focusing on innovation and delivering personalized content to cater to the evolving needs of consumers. Content providers are increasingly optimizing for this format, reshaping storytelling to fit audience habits. Next up, anyone will have the power to literally create worlds, thanks to the world models being developed by companies including Google and X-AI.
Teams proficient in VR and AR can create memorable experiences that captivate viewers, which is essential in standing out in a competitive market. These technologies enable new viewing formats, such as virtual concerts and AR-enhanced live sports, which deeply engage audiences. VR and AR provide immersive and interactive experiences, transforming traditional storytelling in M&E.
By analyzing consumer needs and preferences, businesses can tailor their offerings to meet demand, thereby increasing their chances of success. In Asia Pacific, rapid digitalization and the growing penetration of smartphones and internet connectivity are fueling market expansion. These devices all play a vital role in shaping the digital entertainment landscape, offering users diverse ways to access content. The increasing capabilities of smartphones ensure that they remain a dominant device in the market. With their portability and user-friendly interfaces, smartphones allow users to stream videos, listen to music, play games, and access social media, all on-the-go.
It supports fandoms and communities of interest and can drive demand across other forms of media and entertainment. Sixty-three percent of Gen Z gamers surveyed find out about new games from live-streamers and content creators on social media, and 56% report they’re more likely to trust a video game publisher if their favorite gaming content creator has promoted a game by that publisher (figure 2). This may be due in part to algorithmic targeting, but it’s also likely buoyed by the buzz and virality that can sweep through social media communities. A similar share say they saw a movie in a theater because they kept seeing conversations about it on social media. Around a third of consumers—and 59% of Gen Zs—surveyed often watch TV shows or movies on SVOD services after hearing about them from creators online.
One of the primary concerns surrounding cloud gaming is latency, the delay between input and action within a game. Exclusive performances behind cloud gaming lies in its ability to offload the heavy processing work to powerful remote servers. Instead, they can play high-end titles on any device that supports streaming, whether it’s a laptop, smartphone, or even a smart TV.
M&E companies are adopting immersive technologies such as VR, AR, and AI to enhance user experience and interactivity. Digital transformation has significantly impacted the news, media, and entertainment (M&E) sectors, transforming how content is created, distributed, and consumed. Reskilling also helps businesses remain competitive by fostering a culture of innovation and adaptability across teams in industries like film, television, and gaming.
Additionally, the integration of artificial intelligence (AI) promises to enhance customization and interactivity. The integration of social features allows viewers to share reactions, participate in watch parties, and engage with content creators directly. As these technologies evolve, media and entertainment companies that adopt robust, future-ready infrastructure will lead in an increasingly digital landscape, meeting modern audience demands while driving sustained growth.
M&E companies don’t need to be everywhere all at once, but they should think strategically about how to add value to audiences increasingly moving across these digital media. For example, more than half of all consumers—and nearly three quarters of Gen Zs and Millennials—often watch a TV show or movie on a streaming video service after hearing about it on social media (figure 9). Nearly half of consumers say that if an online creator they trust has reviewed a brand’s product, they are more likely to trust that brand.