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To Stream or Not To Stream: How Gen Z’s Are Shaping the Future of Content

Bite-sized videos, influencer mania, UGC and raw footage… Get a front-row seat to Gen Z’s takeover of the streaming universe in action and let’s try to guess big studios’ next move.

Photo by Oscar Vargas / Unsplash

Young people these days don't watch TV. While their parents might still enjoy a quiet evening watching cable TV, Gen Z is probably watching that same show — plus scrolling through TikTok, messaging friends, and doing homework all at the same time.

And that's not an exaggeration. 83% of Gen Z students use multiple screens simultaneously, which makes you wonder if they actually pay attention to anything at all. But attention isn't really the point anymore — it's about being connected all the time.

"Gen Z's content habits are all about multitasking and flexibility," explains Harry Morton, founder of Lower Street, podcast production company. "Older generations might dedicate time to watching TV, but Gen Z often has multiple devices open—streaming a Netflix show while scrolling social media or chatting with friends. They want instant engagement, so if content feels slow, boring, or full of fluff, they'll switch to something else in a heartbeat."

Chad Gerber, founder of Meloscene, a platform for AR/VR artists’ collaboration, adds another layer: "Gen Z consumes media in fragmented, short-form formats. They engage with content regularly throughout the day, as opposed to other generations who tend to set aside dedicated time for media consumption, a lot of which is while in the restroom. The shift is a fundamental change in how humanity has consumed media up until now."

The numbers back this up. Nearly half of American teenagers say they are online "constantly", Gen Z spends about 6.6 hours daily consuming media. That's more than any other generation. And they're doing it across five different connected devices on average.

So where exactly are they spending all this time? Mark Beal, Assistant Professor at Rutgers University and author of DECODING GEN Z, points to what he calls the "big three": "Gen Z's 'big three' content platforms are TikTok, Instagram and YouTube as it relates to content consumption. They do not consume traditional media including network and cable television the way older generations do."

The numbers support his observation. 92% of U.S. Gen Z users access YouTube, making it their top platform. Instagram follows at 85%, and TikTok captures 78% of Gen Z users.

Traditional streaming services? Well, they're not completely out of the game, but they're definitely not winning it. While Gen Z uses about six different video streaming services to watch TV shows and movies, they make up just 18% of Netflix's user base. And even then, only 34% of them watch Netflix daily, compared to 41% of millennials.

Sarah T. Davies, director of media & communications at EARTHDAY.org, who spent 20+ years as a TV executive at Warner Discovery and BBC, doesn't sugarcoat the situation: "It is abundantly clear that the streamers are not doing a good job of capturing Gen Z and Gen Z are doing a very good job of finding the content they want on TikTok and YT, amongst others."

She points out it's not just about money. "It's not just about costs with this generation it is about credibility and acclimatization; they are used to short form content and how it is filmed/cut/sounds and that means the values we had as producers from mainstream media are not valued anymore, that is not a good or a bad thing it is just a reality."

So what does this mean for traditional streaming platforms? 96% of Gen Z internet users watch digital videos, and this number is expected to hit 97% by 2027. But if they're not watching these videos on traditional streaming platforms, someone's got a problem — and it's not Gen Z.

Content democracy: the UGC revolution

Big studios might want to look away from this one. 61% of Gen Z prefer user-generated content over any other format. TV comes in fourth place, right after gaming — pretty much a disaster for anyone investing millions in polished productions.

"They crave authenticity—raw, user-generated content feels real and relatable, far more than polished productions," says Lukas Kubiak, video game creator and Gaming Consultant at End of Sun. And he might be onto something there.

Harry Morton, founder of Lower Street, makes it even more clear: "Gen Z is drawn to user-generated and influencer-created content because it feels authentic and relatable—like it's coming from real people, not brands. They're sick of the overproduced, scripted feel of traditional productions and want content that mirrors their lives. It's about feeling human, being part of the conversation, and seeing content they can relate to. Whether it's someone sharing their daily struggles or celebrating wins, Gen Z values that raw, unfiltered vibe because it's real and aligns with their life."

Another thing. Gen Z doesn't just want to watch — they want to create. 57% of Gen Z'ers want to become influencers. With more than 200 million people already making money as creators, who can blame them?

While not everyone is doing well there are aspirations. For instance, YouTubers with a million subscribers make around $90,025 per year from AdSense alone. Twitch streamers? $542,208 with the same following. And these are just median numbers, so might as well being more if you pick your niche wisely.

"Gen Z is the first generation that grew up on user and influencer generated content first on YouTube and then Instagram and TikTok," explains Mark Beal, Assistant Professor at Rutgers University. "They are a generation of content creators who prefer consuming content produced and distributed by other creators."

The TV industry seems pretty lost in all this. Sarah T. Davies, a former TV exec at Warner Discovery and BBC, doesn't hold back: "The issue is that unscripted content/TV bosses make the mistake of thinking that if they can just find the right producers, who know the 'secret code' for making shows with Gen Z appeal, they will be fine. They are rightly obsessed with it because they know they have to hook that audience asap to survive. But their means of doing it are just so naive."

Remember Quibi, a short form content streaming plarform? Well, it died in about eight months after launch. Davies has thoughts on that too: "That idiotic idea and failure underscores the importance of meeting Gen Z where they already are. By the way I never met a fellow producer who thought Quibi would ultimately work. Not one."

Source: Wayback Machine

Some companies try to adapt. Netflix partnered with Twitch to co-stream "Arcane," hoping streamers would react to it live. They also made some choose-your-own-adventure shows. But according to Davies, "it's not a content issue as much as it's a platform issue. What the television industry cannot cope with is that the platform is king: young people are watching on TikTok and YouTube. If you want to capture that audience, they need to be doing deals with those platforms. Not inventing crap new ones like Quibi."

And so here we are — 90% of people aged 16-64 use social media apps, while entertainment apps only reach 70%. Traditional TV producers might want to start updating their resumes. Or better yet, start a YouTube channel.

Subscriptions, ad-supported models, and payments reality

60% of Gen Z canceled at least one streaming service in the past six months with price increase being the main reason for cancellations. 

"Gen Z typically views the internet as free, and anything they need to pay for absolutely needs to be worth it," explains Chad Gerber, founder of Meloscene. "The majority of Gen Z prefers free, ad-supported platforms where they can consume and share content quickly and easily."

And yet, somehow, 40% of Gen Z pays between $75-100 for digital subscriptions — more than any other generation. Seems pretty contradictory, right? Well, there's a catch.

"Streaming services are getting creative to win over Gen Z, especially regarding pricing," says Harry Morton, founder of Lower Street. "With concerns about rising subscription costs, many platforms are now offering flexible options like ad-supported tiers. These affordable plans let Gen Z access content while tolerating a few ads, balancing budget-friendly pricing and accessibility. It's a smart move that keeps streaming services competitive and in touch with a generation that will trade a little ad time for savings."

But ads and cheaper subscriptions might not be enough. 54% of millennials and Gen Z think they get better recommendations from social media than from streaming services. Pretty embarrassing for companies spending millions on recommendation algorithms.

So what's the solution? Mark Beal, Assistant Professor at Rutgers University, thinks personalization might save the day: "Gen Z prioritizes personalization and customization including as it relates to content. It is one of the reasons why Spotify is one of Gen Z's most loved brands. Streaming services will leverage technology that consistently recommends and delivers content that is specific to an individual's unique viewing and consumption habits. If a member of Gen Z feels like a streaming service understands and gets them as an individual consumer of content, they will be more likely to return to that streaming service regularly."

And he might be right. 49% of viewers want more personalized content, and 47% would watch more if finding shows was easier. Right now, 50% of Gen Z feels overwhelmed by streaming options and nearly 80% want a single portal for all their subscriptions.

Meanwhile, 47% of Gen Z prefer social video and live streams over TV shows. Only 24% would rather watch traditional TV shows. Even worse for streaming platforms — 15% of Gen Z just plays content in the background while doing other stuff. And why would you want to pay for background content at all?

So here's where streaming platforms stand: They need to be cheaper but better, more personal but less complicated, and maybe throw in some ads that people won't hate too much. And they better figure it out fast because Gen Z isn't known for their patience — or brand loyalty.

The future of streaming—shaping or breaking it?

Streaming platforms seem to be making a fair effort to win over Gen Z. 

Source: YouTube

"Take Netflix, for example," says Lukas Kubiak, gaming consultant at End of Sun. "Interactive features or bite-sized storytelling experiments reflect an effort to adapt to Gen Z's fast-paced, hyper-connected world. On the subscription front, younger audiences are discerning; they'll pay for services offering real value or exclusive perks, but they won't hesitate to cancel if the content doesn't keep up."

And some platforms seem to get it. "Netflix are being smart — they just poached the Sidemen," says Sarah T. Davies, former TV exec at Warner Discovery and BBC. "Hugely popular, different and loved by Gen Z. Increasingly Netflix is doing deals with the content makers on the biggest platform in the world for a reason, it's where Gen Z ALREADY goes to find 'content'. It's not just them — Amazon signed Mr.Beast for the same reason."

These deals might sound pretty sweet, but they come with a risk. "The streamers are gambling that Gen Z will follow their fave shows, proven hits, to their platform, eventually paying for subscriptions to see their newer content," Davies adds.

Chad Gerber, founder of Meloscene, thinks streaming platforms need to go even further: "Traditional streaming services will need to adopt elements of the short-form video ecosystem to remain competitive. They will most likely introduce creator portals that will have minimal gatekeeping, allowing individuals to upload content in a model similar to YouTube."

He sees a future where big platforms copy TikTok's playbook: "These platforms could feature short-form content sections with autoplay features that mimic the seamless, casual engagement found on social media. To attract creators from platforms like TikTok and YouTube, streaming services will need to offer compelling incentives for the creators, like monetization opportunities or unique creator tools. Most likely, they'll simply promise them 'lots of views,' which will be enough for most creators."

Source: Amazon

But Davies points out a bigger problem — the people running these platforms: "The streaming world in the U.S is dominated by lawyers in the top creative roles, with zero creative instincts (and I mean zero): creativity, show ideas, formats and talent — are not widgets."

She's pretty clear about what makes good TV: "Great creatives are just that — creative. They don't make 'content' they make 'shows'. I have got to stop saying content, I have been trained to do it too and it's awful!!! They do things that are different, not derivative. They have 'big' ideas that are sometimes super subtle but that is their genius. They take a chance on new onscreen talent. They make shows that look/feel/vibe differently. They understand this business is not about making shows by 'committee'. They take risks."

And she's seen firsthand how good ideas get ruined: "I have pitched ideas (to every channel) only to have the commissioner excited about this new approach is wonderful, only to have them then slowly reduce it back down into the same old content, already all over their channel or platform. I think that's because so many buyers are not great creatives but great employees (there is a difference)."

So what's next for streaming? Probably more TikTok-style features, more YouTuber deals, and more "interactive experiences" that nobody asked for. But maybe, just maybe, someone will remember what Davies said about making actual shows instead of churning out "content." Though with all those calculative lawyers in charge, I wouldn't bet on it.

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