Is traditional Hollywood facing an existential crisis? Deloitte's 2025 Digital Media Trends report reveals a massive shift in how Gen Z and millennials consume content. Scott Hervey and Tara Sattler break down the data and explore what this means for studios, creators, and the future of storytelling on this episode of The Briefing.
Watch this episode on the Weintraub YouTube channel.
Show Notes:
Scott: Deloitte released its 2025 digital media Trends earlier in March. It is a comprehensive look at the seismic shift rocking the media and entertainment landscape. Are traditional studios facing an existential crisis against these hyper scale and hyper capitalized tech giants? And with Gen Z and millennials finding social media content more relevant than TV and movies, what does this mean for the future of storytelling and celebrity? I'm Scott Hervey, partner in the entertainment and media Department of Weintraub Tobin. And today, I'm joined by my partner, Tara Sattler. Stick with us as we analyze these trends and what they mean for both the traditional and new media players navigating this rapidly evolving digital world in today's installment of The Briefing. Tara, welcome back to The Briefing. It's good to have you back.
Tara: Thanks, Scott. Thanks for having me back. It's always great to be here.
Scott: Yeah. I thought this one was going to be particularly relevant for both you and I because Our practice area is we both straddle both traditional media representing studios and production companies. And also we have another foot really squarely set in the creator economy, digital media, YouTube space, podcast. I think you and I have the benefit of seeing both sides of this. That's why I thought you'd be the perfect co-host for this one.
Tara: We do, Scott. I think you're right. I've been looking through this report. It's really quite eye-opening. The shifts are significant, especially for the traditional media players who you and I both work with a lot.
Scott: Yeah, absolutely. This report makes one thing abundantly clear, and I think it's something both of us have been talking to our clients about for a while. Social video platforms are becoming a dominant force in media and entertainment, and they do present a challenge to the traditional Hollywood model. So today we're going to summarize the key findings and discuss what opportunities exist for both traditional Hollywood studios and content producers and the content creators on platforms like YouTube. So let's dive in. So the report itself, the headline here is that social platforms are becoming the new center of gravity for media and entertainment. According to Deloitte, these platforms are drawing more of consumers' time and more of advertisers' money away from traditional media.
Tara: Yeah, the report found that US consumers are spending about six hours daily on media and entertainment, and that number isn't growing. What's changing is how that time is distributed. Younger generations, especially Gen Z, are spending significantly less time watching traditional TV and movies and more time on social media platforms with user-generated content.
Scott: Right. And Those numbers are pretty striking. Gen Z respondents are spending about 54% more time, so that's about 50 minutes more per day on social media platforms and watching user-generated content than the average consumer. They're spending 26% less time, so that's about 44 minutes less per day, watching TV and movies than the average person.
Tara: It's not just about time spent. The report found that 56% of Gen Z and 43% of millennials say social media content is more relevant to them than traditional content like television shows and movies. Plus, about half of these generations feel a stronger personal connection to social media creators than they do to TV personalities or actors.
Scott: Let's now talk about the advertising piece of this because it really is quite huge.