How streaming TV platforms can win back Gen Z and millennials

The streaming TV boom from the pandemic is showing signs of wearing off, especially among millennials, with a new survey from Deloitte finding that one-third of respondents intend to reduce their number of streaming subscriptions. 

To combat subscription cancelations, these platforms may want to focus even more of their marketing efforts on social media, which is where nearly three-quarters of Gen Z and millennials say they find recommendations for the TV shows or movies they watch on streaming services, according to Deloitte’s annual Digital Media Trends survey. Almost 50% of respondents of discovered new music while playing video games. 

Streamers should “be leveraging gaming and social media, especially considering the behaviors we are seeing in younger generations,” Kevin Westcott, vice chair, Deloitte LLP and U.S. technology, media and telecom leader, said in the report. “To stay competitive, SVOD providers should seriously consider how to engage broader audiences, play across diverse media properties that add value, and advance their ad platforms to better support advertisers.”

Once one of the drivers of the streaming craze, millennials are now responsible for an overall cool-off of subscription video on demand (SVOD), according to the survey. Many are experiencing subscription fatigue and cost sensitivity as economic pressures scramble priorities.

Millennials spend more than any other generation on paid streaming video services—an average of $54 per month compared to an overall average of $48 per month. About half of those surveyed said they “pay too much” for these services. 

Overall subscriber churn for paid SVOD services over a six-month period is 44%. For Gen Z and millennial consumers, those numbers jump to 57% and 62%, respectively. Around half of the consumers surveyed (47%) said they made at least one change to their entertainment subscriptions due to economic conditions, including canceling a service to save money, switching to a free ad-supported version of a service or bundling platforms. Millennials are the most likely to have made these changes due to economic pressures. 

When it comes to purchases, about half of the respondents said user-generated videos help them discover new products or services to buy, and around 40% said they are more likely to purchase a product after they watch a creator they follow review it. Nearly half of those surveyed (46%) said that if a creator they trust reviewed a brand’s product they are more likely to trust that brand. And nearly 40% said it’s hard to determine when user-generated videos are sponsored or contain an ad.