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AI isn’t just changing entertainment — it’s redefining it. Social media platforms have leveraged AI to create hyper-personalized, endlessly engaging experiences designed to keep users and advertisers coming back. Traditional media and streaming services may struggle to keep pace.
The question isn’t whether AI is taking over. It already has. The question now is, how can media and entertainment companies evolve to keep up?
Social Media’s Grip on Entertainment
Social media platforms have improved audience engagement by leveraging AI-driven algorithms that curate content in real-time based on individual preferences.
Social channels don’t just recommend content — they predict what users will enjoy, contributing to experiences that feel effortless. This level of personalization keeps younger audiences engaged: Gen Zs surveyed in Deloitte’s 2025 Digital Media Trends report spend 54% more time, or about 50 minutes more per day, on social platforms and watching user-generated content than the average consumer while spending 26% less time, or about 44 minutes less per day, watching traditional TV. Advertisers have followed them: The majority of advertising now goes to social platforms and hyperscale competitors.
Beyond recommendations, social media thrives on interactivity. Viewers don’t just passively consume content; they comment, share, react and participate in real-time discussions. This fosters a sense of connection that traditional media may struggle to replicate.
The rise of influencers and digital creators has also shifted audience loyalty. Half of Gen Zs and millennials said they feel a stronger personal connection to social media creators than to traditional actors, according to Deloitte‘s latest report. This familiarity directly impacts viewing habits: 49% of Gen Zs and 40% of millennials surveyed would be more likely to watch a show or movie if it featured their favorite online creator, compared to 29% of all consumers.
Streaming’s Struggle: Stuck Between Rising Costs and a Perceived Decline in Value
Younger generations appear to still value the TV and movie experience, but they may not put up with rising subscription prices — especially when they have endless free content available on social media.
Streaming was supposed to be an affordable alternative to cable, but with the average monthly streaming bill for those surveyed now at $69 (creeping towards the $125 cable or satellite TV monthly bill, which many respondents continue to ditch), that promise may be fading. Nearly half of subscribers feel they’re overpaying, and Deloitte’s Digital Media Trends survey shows a $5 increase could push 60% to cancel their favorite service. As costs rise and restrictions tighten, streaming can feel less flexible—while social platforms continue to pull in viewers with endless, low-cost entertainment.
But cost isn’t the only problem. Value perception is declining. Social media platforms — where friends, influencers, and algorithms constantly surface new content — have become more effective at helping people discover what to watch next. Meanwhile, despite their vast catalogs, it can be difficult to find something to watch on some streaming services. Recommendation algorithms often fall short, offering generic trending lists instead of content tailored to individual tastes. As a result, users may end up scrolling aimlessly, frustrated by the paradox of choice.
Adding to this frustration can be a lack of interactivity. Younger audiences are often used to real-time engagement and social integration, but streaming remains largely passive. Without an easy way to react, share, or discuss content within the platform, streaming services could risk feeling outdated in an era where engagement drives viewership and virality.
How Can Streaming Compete Before It’s Too Late?
If streaming services and traditional media want to compete, they need to evolve — and fast. Here are some considerations:
Rethink pricing models: With subscription fatigue on the rise, streaming services could offer more flexible, affordable options. The days of forcing consumers into bloated bundles appear to be over. Ad-supported tiers are gaining traction, and platforms could consider modular pricing that can allow users to subscribe to only the content they actually want.
Fix content discovery with AI: Some streaming platforms may need smarter, AI-driven recommendations similar to the intuitive, personalized experience of social media. Algorithms learn from user preferences, viewing habits, and engagement patterns to surface content that resonates and can help reduce friction in users’ content discovery. For social platforms, these algorithms can do double duty, powering their advertising capabilities.
Embrace interactivity: Giving audiences a way to engage in real-time can make content feel more dynamic and community-driven. Integrating live chats, polls, watch parties, and social sharing tools directly into services can help create more interactive experiences. This can also yield more nuances about your audiences and the fans among them.
Make influencers and online creators stars: Younger audiences surveyed trust and feel connected to creators. Streaming services can collaborate with online creators to help promote content, star in original productions, and help bridge the gap between passive viewing and active engagement. However, effective partnerships are not just marketing gimmicks—they feel authentic.
Integrate social elements: Social media thrives on discoverability and shareability. Streaming services should make it easier to clip and share content, integrate social feeds, and create viral moments that drive organic promotion. The more seamless the connection between streaming and social, the more engaged audiences will likely be.
The future of entertainment isn’t waiting. The question is: Who’s ready to keep up?
The entertainment industry is at a turning point. The platforms that evolve — by rethinking their pricing strategies, embracing AI, and integrating interactivity — could be better positioned for success. Those that don’t could risk becoming relics of a bygone era. The future of entertainment isn’t something to prepare for — it’s already here.
China Widener is a vice chair at Deloitte and U.S. technology, media and telecom leader at the company. With over 25 years of experience, she has advocated for the need for trustworthy AI. She has led clients through technology-enabled business transformations and operating model optimizations.
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