Americans spend 60% of entertainment time on ad-filled platforms, new study finds

Consumers in the US spend nearly 60% of their leisure time on platforms with advertisements, with 50% of Americans already satisfied with the amount of ads they are exposed to.

That’s according to a new study by US market monitor Luminate (formerly MRC Data / Nielsen Music) released Tuesday (August 16).

Luminate’s latest Entertainment 365 report found that having an ad-free experience is not the primary driver for premium subscriptions, but getting a good value for the price and enjoying a range of content to consume.

The survey gathered data from 4,004 individuals ages 13 and up in the US from March 16 to April 11.

It found that listening to music and watching television tied for 1st place for the entertainment activities with the most reach amongst the general population above 13 years old. Social media use (No.2) and watching movies (No.3) were the next most popular.



The survey also found that almost a third of American consumers intend to “cut the cord” from cable/satellite TV as streaming services like Netflix, Amazon Prime, Disney+, and HBO Max continue to gain ground.

About 83% of consumers surveyed by Luminate have at least one paid entertainment subscription and women are 14% more likely to pay for a subscription service as long as it meets the needs of different family members.

Women are also 9% more likely to pay for subscriptions when they have the ability to create multiple user profiles, but are 24% less likely to purchase a product from an ad, according to the report.

“Music holds a special place in people’s hearts — music captures the highest rate of ‘die-hard’ fans, especially among Gen Z with 80% of Gen Z music listeners expressing ‘die-hard’ fanship.”

Luminate

The report found that music and TV are the most consumed forms of entertainment in the US among the general population. Social media usage came in second, followed by movies.

“Music holds a special place in people’s hearts — music captures the highest rate of ‘die-hard’ fans, especially among Gen Z with 80% of Gen Z music listeners expressing ‘die-hard’ fanship,” Luminate said.

Looking at Gen Z’s music consumption, the survey found that this demographic are 50% more likely to live stream music events compared to the general population and are 33% more likely to go to live, in-person music events.

Artists like Travis Scott and Ariana Grande are using live-streamed gaming integrations to connect with Gen Z audiences, Luminate said.

The report highlighted the popularity of the use of specialized headphones and VR equipment among Gen Zs due to these devices’ compatibility for apps like Spotify, Netflix, and YouTube.

“They are the only generation to spend their greatest share of entertainment dollars on gaming expenses. Plus, Gen Z is 75% more likely than the average consumer to use game consoles for entertainment… Game consoles enable this generation to quickly access all of their entertainment favorites in one spot,” the report said.

Further, Luminate also found that Gen Zs are 34% more likely to be familiar with NFTs, cryptocurrency, and/or music royalties and 50% or more of Gen Zs and Millennials are planning to invest in them in the next three months.


In terms of content discovery, Gen Zs are 116% more likely to use Twitch and 56% more likely to use TikTok compared to the average social media user.

The probability of discovering new content through audio streaming services are also 53% greater among Gen Zs versus the average American.

Social media has also been widely used to live stream music artists and allow consumers to feel like they have a personal connection to celebrities, according to the report.

Compared to the average US consumer, music live streamers are 81% more likely to spend their money on this form of entertainment, while podcast live streamers are only 61% more likely to do so.

“It’s abundantly clear that Gen Z is on the cutting edge of technology and virtual environments in particular, a perk of being born into the digital age.”

Luminate

When it comes to the Metaverse — or the concept of a shared virtual space on the internet — Gen Zs are the most familiar with the concept, while they are tied with Millenials for the highest NFT awareness
rates.

“It’s abundantly clear that Gen Z is on the cutting edge of technology and virtual environments in particular, a perk of being born into the digital age,” Luminate said.

Luminate, a joint venture between Variety and Rolling Stone owner Penske Media and investment firm Eldridge, powers Billboard‘s music charts.


Last month, MBW’s analysis of Luminate’s midyear report found that ‘Current’ music in the US is getting less popular in terms of the volume of streams and sales it attracts as consumers are beginning to enjoy ‘old’ music as if it were ‘new’ music.

But despite the change in listeners’ preference, Luminate’s most recent report highlights the ubiquitous role of music as the most preferred choice of entertainment among consumers in the US.Music Business Worldwide

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