New research finds Gen Z prefer social video over TV

Most of the cost associated with video content via YouTube, TikTok, and Twitch is passed on to the creator, rather than the platform itself. These influencers and creators then receive income through endorsements, sponsorships, and ad-revenue.

This model means that social video platforms have much lower production costs than, say, Netflix, who has poured considerable amounts of money into its high-budget shows like Stranger Things and The Crown. In order to see a return in investment, streaming companies have now begun rolling out optional in-app advertisements, bundle deals, and time-sensitive contracts.

Deloitte reckons this won’t be enough to give them the competitive edge over social video.

In fact, social media and creators are actually a key pull-in for streaming platforms. This year’s research found that people are now turning to influencers and social media to find what’s ‘new and exciting’ rather than traditional advertisements.

This could mean that massive marketing campaigns for TV shows may be less effective than creator-driven endorsements, especially as Gen Z begins to dominate the market.

Ultimately, social video has the competitive edge on younger generations of viewers.

It is algorithmic, designed to mirror our specific interests, and perhaps most importantly, is completely free. Users don’t need to search for what they want, and can jump in and out at a moment’s notice.

Traditional TV can seem laborious in comparison, especially when considering Gen Z is believed to have an attention span of eight seconds.

Netflix, Amazon, and the rest of the streaming platforms may need to rethink their strategies for younger consumers. With so many options, and each one costing roughly £10 – £15 a month in subscription costs, their appeal has faded over time compared to a decade ago.

They’ll need to adapt and embrace the creator-focused world we are blazing full steam ahead into.

You can read the full report here.