How Digital Platforms Are Shaping Consumer Choices in the Entertainment Economy

In this era of digitalization, digital platforms have a significant impact on how people consume, discover, and value entertainment. From streaming services to social media, technology has blurred the lines between content and commerce. 

This changes how consumers engage with entertainment. Rather than being a passive audience, most consumers are now more active due to the influence of algorithms, peer reviews, and personalized recommendations. The shift created a new entertainment economy, where their personal taste merges with digital ecosystems. 

Brand Trust and Purchase Decisions

A study done by Simon Suwanzy Dzreke and Semefa Dzreke had also proven that consumers’ trust in brands is affected by their social media presence. Consumers will trust brands more when they have an active presence. This is because social media is now seen as a tool that can allow businesses to appear transparent. It gives consumers more credibility and will convince them to make purchases. 75% of respondents believe that social media is crucial in giving new products exposure and will influence their purchasing decisions. 

On the other hand, 68% expressed that they prioritized peer reviews and creator endorsement when deciding to buy a product. Comparison sites like Slotsoo highlight how digital platforms are giving consumers more transparency and control over their online experiences. 

The same study had also tracked how consumers behave over a year. Consumers who are actively engaging with brands with an active social media presence are 22% more likely to make repeat purchases. This has opened a way for businesses and creators to build a loyal following that can give them sustainable revenue growth.

Pay TV Losing Audiences

Despite the appearance of various digital platforms, cable and satellite television are still considered big players in media and entertainment. However, there’s a noticeable decline in subscriptions over time. A survey done on consumers stated that only 49% of the respondents are subscribed to cable or satellite TV. This is a huge downfall (by 63%) from three years ago. 

Most consumers who are still subscribed are mainly news watchers and sports fans. However, this number will continue to fall, considering SVOD (Streaming on-demand video) services offer more extensive live sports options. In addition, social media provides free news and sports clips. 

A big portion of consumers who are still subscribed to Pay TV are the older generations. Many Gen Zs and millennials have responded that they’re going to stop their subscription in a year. Meanwhile, only 8% of boomers are planning to do so. 

This shows how digital platforms affect how consumers think about entertainment costs. Digital streaming services still cost money, but they’re more affordable than cable or satellite TV, which demands an average of $125/month. With only around $69, consumers can subscribe to four different services. In addition, Pay TV still comes with ads and offers a more limited option of entertainment. 

Personalization Is Now a Priority

With AI implemented by various businesses and platforms, personalization has grown into something more powerful than before. Ads are now catered to each user’s preferences, and users can quickly get content recommendations that fit what they enjoy. 

This is an experience that traditional media struggle to replicate. To provide a better personalization, they must effectively handle data containing each consumer’s preferences to ensure their content is relevant. This is the driving factor behind the impact that digital platforms deliver. 

Based on a survey posted by Deloitte, Gen Zs spend over 50 minutes daily watching user-generated content. That’s a 54% higher consumption rate than the general consumers. Gen Zs also spend less time watching TV and movies (about 44 minutes less than the general respondents). 

Gen Zs and Millennials had also expressed that the reason they spend more time on digital platforms is content relevance. The content posted on digital platforms is much more relatable. This leads to the younger generations willing to spend more for digital platforms (such as streaming platforms) subscriptions. Meanwhile, they also seek other ways to enjoy the content that’s available for free. 

Creators Drive Engagement

Daniel Chrisman from Pixabay

Social media allows anyone to build their own engagement, which has birthed influencers with massive followings. Unlike traditional media, creators are fully in control of what they want to do, share, or make. They also have more freedom in how they engage and monetize their content. 

This way, younger generations who are active on social media feel a deeper connection to creators rather than to TV personalities. A small part of these younger respondents expressed that they’re more willing to watch shows (which aren’t their main entertainment media) if their favorite creators are participating in the show. On the other hand, the other side of the younger consumers believes that once their favorite creators appear on TV shows, these creators will lose their authenticity. 

Creators now have a big influence over consumers’ behavior. Even when these digital platform users are going back to traditional TV, they’re most likely watching due to a creator sponsoring or promoting the show. The rest of the respondents prefer to stay on digital platforms because they feel like they get better recommendations from social media.

(Disclaimer: Devdiscourse's journalists were not involved in the production of this article. The facts and opinions appearing in the article do not reflect the views of Devdiscourse and Devdiscourse does not claim any responsibility for the same.)