Smartphones and connected TVs have supplanted traditional television as primary mediums. Cost-sensitivity is the primary driver for churn in the streaming market.
Pay TV decline. Nearly 25% of consumers plan to cancel pay TV within the next year.
Page 13 of the reportThe streaming market remains highly competitive. Cost-sensitivity has emerged as the primary driver for churn.
This marks a 4% increase since 2024. Gaming has evolved into a central pillar of digital life.
This includes users over 55. Video-based gameplay content has replaced traditional advertising as the most effective discovery mechanism for younger demographics.
Interest in the Metaverse, VR, and AR is concentrated in the 18–34 age demographic. Adoption is tempered by broader consumer apprehension regarding data privacy and security.
A significant portion of gamers express a willingness to spend more if ownership and transferability of digital assets are secured. Cryptocurrency adoption remains limited.
Asset ownership. Gamers show a willingness to increase spending on virtual goods if ownership and transferability are secured.
The creator economy is expanding in terms of participation. Monetization remains a significant hurdle with many creators facing declining average earnings.
Earnings decline. Many participants experience declining average earnings despite the continued growth of user-generated content platforms.
The 2025 digital landscape is defined by a fundamental transition in entertainment consumption, as smartphones and connected TVs have officially supplanted traditional television as the primary mediums for American audiences. This shift is accompanied by a broader decline in legacy pay TV services, with nearly a quarter of consumers signaling an intent to cancel subscriptions within the next year. While the streaming market remains highly competitive, with the average consumer maintaining 3.5 paid subscriptions, cost-sensitivity has emerged as the primary driver for churn. Simultaneously, digital engagement is deepening across gaming and social platforms, with 80% of the population now participating in gaming activities, reflecting a 4% increase since 2024.
Gaming has evolved into a central pillar of digital life, characterized by rising in-game spending and a growing preference for mobile platforms across all age groups, including those over 55. Discovery mechanisms are also shifting, as traditional advertising loses efficacy in favor of video-based gameplay content, which has become a critical influence for younger demographics. While interest in emerging technologies like the Metaverse, virtual reality, and augmented reality remains concentrated among the 18–34 cohort, adoption is tempered by broader consumer apprehension regarding data privacy and security. Furthermore, while the creator economy is expanding in terms of participation, monetization remains a significant hurdle, with many creators facing declining average earnings despite the rise of user-generated content platforms.
The demographic profile of this digital ecosystem is largely composed of educated, established homeowners, though self-identification varies sharply by age. Younger users increasingly embrace niche digital identities, whereas older cohorts lean toward mainstream engagement. Looking ahead, the integration of virtual goods and blockchain-based tracking presents a potential avenue for increased revenue, as a significant portion of gamers express a willingness to spend more if ownership and transferability of digital assets are secured. Despite this, cryptocurrency adoption remains limited, suggesting that while consumers are increasingly comfortable with digital transactions, they remain cautious regarding speculative financial technologies.