ANALYST REPORT
The State of
Media & Entertainment
How media companies can find the next wave of growth in
2023 amid macroeconomic uncertainty
JANUARY 2023
(c) 2022 Morning Consult. All rights reserved.IN THIS REPORT
3 Executive Summary
4 Key Takeaways
5 Video Streaming
13 Social Media
19 Video Games, Esports and Metaverse
26 Digital Audio
32 About the Report & Methodology
2 Morning Consult’s semiannual State of Share of U.S. adults who said they often tried to save over
Executive Summary the past month in each category due to rising inflation:
Media & Entertainment report tracks the
most important media trends and distills
50% Groceries
With the economy nothow executives in the industry can
capitalize on them.
likely to improve much in 45%
Most consumers are now comfortable with
the near term, mediaoutdoor activities again, but rising interest Gas
rates and increased production costs in
40%
executives should brace 2022 contributed to a year where growth
fell short of expectations. The biggest
for some consumers to media companies lost over $500 billion in
35% Restaurants
be even choosier with market value last year, and as 2023
begins, executives need the latest insights
Entertainment
their entertainmenton how consumers are approaching media30% experiences
to ensure that this year won’t be a repeat
expenditures in 2023. of the previous one. Electronics
25% Subscription
Based on survey interviews with more thanservices
2,200 adults across the United States, this
report provides insight into the consumer 20%
trends that will shape the future of the Jul Aug SepOct Nov Dec
’22 ’22’22 ’22 ’22’22
media and entertainment sector.
Source: Morning Consult Research Intelligence
3Key Takeaways
1 2
Boom times for video streaming are over. Winning the short-form video race
remains paramount for social media players.
Lower-priced ad tiers will only help so much, making it imperative for
streamers to be able differentiate themselves through areas like live Startups like BeReal and Post News have gained popularity, but it’s
content and free ad-supported streaming TV options. unclear any new player will establish itself as a creator economy
READ MORE pillar like TikTok has. None of the TikTok copycat products have
managed to usurp Bytedance’s service in the minds of Gen Zers.
READ MORE
3 4
Video game IP needs more attention from Newer digital audio initiatives are far from
media companies. monetizing the average consumer.
The consumers who spend the most time gaming also tend to beWhile some consumers do regularly use social audio services like
much more interested in moviegoing and video streaming thanClubhouse and pay for podcast subscriptions, they’re the exception
the average adult, so more content geared toward gamers rather than the rule.
should be developed. READ MORE
READ MORE
4SECTION #1
Video Streaming
As domestic video streaming service growth slows,
a greater focus must be placed on the cost-
effective ways to diversify growth strategies
5