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How Gen Z’s Streaming Decisions Will Impact Entertainment Industry


Published: March 27, 2025

As streaming prices rise, many subscribers, particularly Gen Zers and millennials, choose ad-supported tiers to keep their costs down.

"With subscription prices rising on average to $16 per month for ad-free SVOD [Subscription Video On Demand] services, consumers appear to be feeling a pinch, and younger generations surveyed are especially prone to canceling services or choosing less expensive, or even free, ad-supported alternatives," Deloitte said in a statement.

The company's 19th annual "Digital Media Trends" survey found that Gen Zs and millennials increasingly turn to social media and ad-supported content for entertainment, while paid TV or live-streaming TV subscription percentages in their homes remain "relatively flat."

"While streaming services initially disrupted the cable model, they are now facing similar pressures as prices climb and perceived value diminishes, particularly among younger viewers," Deloitte commented.

The stats show increased interest in ad-supported tiers. Deadline said, "54% of SVOD subscribers have at least one ad-supported tier of a paid service, up from 46% last year."

"The data is clear: Entertainment providers should embrace innovation and agility to help them thrive," said Doug Van Dyke, Vice-chair, Deloitte LLP and U.S. telecom, media and entertainment sector leader. "This means understanding the nuances of younger audiences, leveraging technology to personalize content and advertising, and exploring new avenues for distribution and monetization. The status quo is likely no longer an option."

A report from Statista earlier this year revealed that Gen Z prefers "online video offers over traditional TV and use mobile as their go-to device instead of a television set."

Related: Another Streaming Service Hikes Prices

Deadline posits that Gen Z's affinity for social media has resulted in over two-thirds of them turning to free, ad-supported TV (FAST) channels. Moves from NBCUniversal, which recently signed a deal to launch 40 FAST channels on LG smart TVs, signal that FAST's future is bright.

Read Next: How FAST Channels Solved a Major Flaw with Streaming

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