Despite the rise of premium subscription video and audio services, ad-supported content still accounts for nearly 60% of the total time U.S. viewers spend in entertainment, according to a new study.
In fact, offering an ad-free experience isn’t the primary driver for premium subscriptions, according to the latest quarterly Entertainment 365 survey by research firm Luminate. The factor is getting value for money and having a variety of content. The survey also found that nearly one-third of Americans said they had “disconnected”, meaning they had canceled cable or satellite TV.
According to Luminate research, when looking at total entertainment time, US consumers spend 74% on visual entertainment (movies, TV shows, video games) and 26% on audio options. The American spends 88% of his entertainment spending on visual content, compared to 12% on audio.
Luminate, formerly known as P-MRC Data, is owned by Penske Media Corp. ( variety) and Eldridge. Luminate powers Billboard’s music charts and operates a database of information for the television and film industry.
Luminate’s Entertainment 365 report examines how different US audience groups engage and prioritize different types of entertainment across TV, music, movies, games and social media. A new report provides specific insights on underrepresented populations in the United States, including Black, Hispanic, Asian and Asian American, Native American, and LGBTQ+ audiences. It also looks at Gen Z consumer preferences, as well as consumer entertainment habits that identify women.
Other key findings from the report:
- Black/African American viewers are picking their entertainment choices, choosing streaming content that connects to their culture, identity and values. They are almost 10% more likely to livestream a podcast or talk show, and almost 20% more likely than the general population to livestream a music event.
- Native American consumers are 25% more likely to go to the movies, 40% more likely to play sports, and 32% more likely to attend a live music event than the US population as a whole.
- Hispanic viewers enjoy spending their leisure time with others and are particularly drawn to visual forms of entertainment, such as watching movies and TV series at home and going to the theater. Hispanic moviegoers spend 31% more money on movie experiences than the general US population.
- Generation Z is the only generation that spends the largest percentage of entertainment spending (18%) on games. Overall, they spend 11% more on entertainment than the average American. Additionally, Gen Z consumers are approximately 50% more likely to live stream music events. 33% more likely to attend a live, in-person music event. They are also 20% more likely to watch movies than the general US population.
Data for Luminate’s new Entertainment 365 report, “Spotlight on Underrepresented Audiences,” was collected between March 16 and April 11, 2022, based on online interviews with 4,004 U.S. residents aged 13 and over. Based on The data represents the general population according to U.S. Census data, which includes age, gender, ethnicity and region, the researchers said. A copy of the report can be downloaded from this link.