ReportNewzoo
A New Era of Engagement in Media & Entertainment
1 Jan 202336 pages~29 min full read
Gen Z now spends an average of 12.2 hours per week on video games and virtual worlds, surpassing the time they dedicate to traditional broadcast or subscription television.
See it on page 11Video games command a 72% active participation rate among US consumers, narrowing the volume gap with traditional media, which currently averages 17 hours of weekly consumption.
See it on page 1768% of Gen Z identify as digital creators, spending three times more hours on user-generated content than Gen X.
See it on page 29Gaming platforms like Fortnite and Roblox are evolving into holistic entertainment hubs that facilitate socializing, live concerts, and digital commerce.
See it on page 13Industry growth is increasingly driven by transmedia strategies and the integration of brands into virtual ecosystems through digital collectibles and in-game partnerships.
See it on page 23The media landscape is shifting from passive viewership toward persistent, interoperable 3D spaces that unify physical and digital identities.
See it on page 36The media and entertainment landscape is undergoing a fundamental generational shift toward active engagement, characterized by a seamless blend of physical and digital activities. Younger audiences, particularly Gen Z, are leading this transition by prioritizing interactive experiences over passive consumption. For the first time, Gen Z spends more time on video games and virtual worlds, averaging 12.2 hours per week, than on traditional broadcast or subscription television. This demographic also demonstrates a high level of creative participation, with 68% identifying as digital creators and spending three times more hours on user-generated content than Gen X.
Video games have emerged as the primary driver of this engagement, commanding a 72% active participation rate among US consumers. While movies and series still lead in total weekly volume at 17 hours, the gap is narrowing as gaming platforms like Fortnite and Roblox evolve into holistic entertainment hubs. These virtual spaces now serve as venues for socializing, attending concerts, and digital commerce, effectively functioning as early iterations of a persistent metaverse. This shift is further evidenced by the success of transmedia franchises and cross-media intellectual property strategies that bridge the gap between gaming, film, and music.
The future of the industry lies in the convergence of physical and digital worlds through interoperable 3D spaces that foster deeper fandom. Brands are increasingly integrating into these ecosystems through digital collectibles and in-game partnerships to capture the attention of younger consumers. High-profile investments in virtual fashion and NFTs underscore the growing economic value of digital assets within these environments. Ultimately, the industry is moving away from a model of passive viewership toward one defined by persistent, interactive, and creator-driven experiences that unify physical and virtual identities.
