2023 Media Trends
The landscape of the media industry has seen shifts in content, platforms and structure.
With content spread across platforms, consumer wallets under pressure and premium subscription prices rising, consumers are opting for lower-priced Ad-supported Video on Demand streaming services.
Disney+, Netflix and Prime Video launched or announced plans to launch AVOD services this past year.
Content providers are blending media product offerings as a way to increase the ways that consumers are driven to a distribution platform.
Examples include concerts and movie screenings in video games (including Fortnite and Roblox) and branded content (including Walmart’s “RomCommerce” and Prime Video’s shoppable Black Friday football).
Many social media platforms are changing the nature of their feeds, with algorithms filtering content based on interests instead of a user’s followers.
Filtering content based on interests increases user engagement while shifting creators’ focus from volume of content to relevance of content.
With the social media landscape shifting, influencers and content creators are finding it more difficult to effectively monetize their following through social platforms directly.
Creators are increasingly partnering with brands and brands want to align themselves directly with creators. Some creators are directly monetizing their following via social media platforms, including Patreon, the platform that provides business tools for content creators to run a subscription service and sell digital products. Patreon helps creators and artists earn a recurring income by providing rewards and perks to its subscribers.
Traditional mediums such as television and print media continue to lose share to other channels as advertisers are shifting their spending habits.
Traditional and broadcast TV is losing spend to Connected TV, while advertisers are taking marketing budgets from print media and re-allocating ad spend to emerging channels such as digital out-of-home.
Projected 2024 Media Trends
2024 should see forward-looking trends, including increased use of generative AI and privacy-enhancing technology, as well as emphasis on product bundling and audience focus.
Traditional mediums such as television and print media continue to lose share to other channels as advertisers shift their spending habits.
Media companies are bundling streaming products to boost sign-ups, a pre-streaming practice.
Expect bundling to further increase in 2024, as companies move content/services under one roof.
Generative AI is being used to create personalized content and targeted ads, but in 2024 it will also be used to generate product images, create advertising copy and plan marketing campaigns.
IP issues will arise around who owns AI-generated outputs, with 63% of U.S. marketers fearing potential copyright issues with AI content.
As privacy regulations tighten and third-party cookie use is phased out across platforms, a greater emphasis is being placed on first-party data and Privacy Enhancing Technologies (“PETs”).
PETs will allow brands to utilize data to advertise effectively without intruding on user privacy rights.
Following the writers’ strike, there is a production gap stemming from the backlog of projects that were forced to halt or cancel production.
Platforms will look to fill the production gap by reimagining existing concepts, turning to non-U.S. content on global platforms and increasing the number of unscripted projects at the start of the year.
Gen Z consumers – the early adopters who interact with the newest trends in media consumption – actively make efforts to engage with brands and products that align with their social values.
As this generation gains purchasing power, companies will need to ensure that their message and content demonstrate a focus on social causes and advocacy.
2023 Sources: Adobe, Deloitte, EY, KPMG, PWC and Variety.
2024 Sources: Deloitte, Dentsu, EY and Kantar.