The media landscape is fundamentally transformed by streaming and on-demand consumption.
How many of you remember when Netflix announced it would wind down the home video delivery program? People worldwide rebelled against this and let Netflix executives know how they felt about this move from the company they relied on for their semi-on-demand entertainment needs.
Thankfully, Netflix CEO Reed Hastings and his team did not change their minds on this change. They were confident in their vision for streaming these movies to their customers, making this content immediately available, and not waiting for the post office to deliver DVDs directly to their homes.
Now, streaming media is more significant than broadcast and cable media and will continue to grow.
In a revealing presentation at a recent Media Institute luncheon, David Kenny, executive chairman of Nielsen, painted a vivid picture of a media landscape fundamentally transformed by streaming and on-demand consumption. According to Mr. Kenny, for individuals under 35, streaming platforms now dominate, accounting for 65% of their media consumption time, with traditional broadcasting a mere 7%. This trend underscores a seismic shift not just in preferences but in the very structure of media consumption.
Nielsen’s broader metrics, outlined in its July 2024 The Gauge report, echo these findings. Streaming now commands over 40% of total viewership, with cable at 27% and broadcasting barely surpassing 20%. Kenny noted that this shift introduces complex decision-making challenges for content providers and carriers as the industry navigates new paradigms for audience engagement and monetization.
Kenny highlighted one of the most striking changes: the rise of “individual watching.” Thanks to smartphones, tablets, and other personal viewing devices, the era of families gathering around a single TV set has largely disappeared, save for exceptions like live sports. This behavioral transformation has prompted Nielsen to lean more heavily on Portable People Meters and explore emerging technologies like eye-tracking and recall tools.
AI and the Power of Data
Looking ahead, Kenny emphasized the pivotal role artificial intelligence will play in shaping the media ecosystem. “AI will move into every industry,” he predicted, describing data as the critical fuel for this transition. However, he quickly cautioned that today’s data environments often lack the refinement and consistency necessary to unlock AI’s potential fully. The integration of metadata, he suggested, will be key, enabling a more seamless application of insights across various segments of the media value chain.
The Next Frontier: Generation Alpha
Kenny also touched on a looming question: the habits of Generation Alpha, the cohort following Gen Z. These 10 to 14-year-olds are already growing up in a world dominated by streaming, yet their media behaviors remain challenging to track due to legal and social barriers. Kenny anticipates they will become even more immersed in streaming than their predecessors, further cementing the dominance of on-demand media.
As Kenny aptly summarized, the media industry is at a crossroads. Streaming is now the cornerstone of consumer habits, and the ability to adapt to this reality—through advanced data integration, AI, and new measurement technologies—will define the future of content delivery and audience engagement.
The message is clear for tech and media industry players: evolve or risk irrelevance in a world where streaming digital media content and data will be more central to our work, education and personal lives.
