Futuresource Living with Digital Report: The evolution of content consumption from the cinema to the home

As the digital entertainment landscape continues to evolve, it is crucial for entertainment  service providers to understand the latest trends and consumer behaviours to maintain a competitive edge. The latest publication of the Living with Digital report from Futuresource Consulting provides valuable insights into digital content consumption, highlighting key areas that create opportunities for differentiation.  

“It is essential for studios, broadcasters and platforms to adapt and innovate to meet the changing demands of consumers,” commented James Duvall, Principal Analyst, Futuresource Consulting. “By focusing on content discoverability and diverse content offerings, businesses can effectively engage their audiences and drive growth in this competitive market." 

Cinema attendance and audience behaviour 

Despite the Hollywood writers and actors strikes, audiences are still flocking to the cinema. The report demonstrates that the share of frequent visitors has slightly risen compared to last year's survey, especially in the USA and UK. The younger audiences prefer to see the latest movies in the cinema over SVoD services. However, this younger segment are the most transient in other categories, frequently hopping between different subscription services. 

The role of marketing and subscriber behaviour 

According to the report, subscribers are content with the number of services they pay for, averaging 2.3 services, which remains static year-on-year. However, when it comes to the number they have access to, this averages across more than three services, indicating a lucrative growth opportunity for platforms. The wider availability of ad-tiers within leading global SVoD services is attracting new audiences, with up to 44% of ad-plan subscribers being new acquisitions. With service stacking remaining flat, this suggests that service-hopping is becoming more common as audiences seek a variety of content. 

Content discoverability: Strengths and barriers 

Content discoverability remains a critical factor in the digital entertainment landscape. Nearly half of these transactors bought or rented a movie based on a trailer or online advertising, highlighting the importance marketing plays in engaging audiences. While many consumers know exactly what they want to watch and where to find it, a significant portion still relies on browsing through digital retailers' most recent releases or price promotion lists. This indicates that while some platforms excel in making content easily discoverable, others face barriers such as poor understanding of release schedules and high saturation of SVoD services, which can prompt audiences to bypass digital releases altogether. 

Retaining consumer groups: Strategies for engagement 

To bring back lapsed or attract new consumers, platforms need to focus on an easy-to-use interface and maintaining a wide library of not just the latest new movies and TV shows, but also a deep catalogue of content. Regular transactors prefer retailers who provide a comprehensive list of latest releases and current trending popular titles, indicating the role that this content can play in supporting the decision-making process and re-engaging these groups. 

“Retaining young consumers requires a focus on content that resonates with their interests and viewing habits. Younger audiences are more likely to engage with content that is easily accessible and offers a variety of genres. Platforms that can provide a diverse range of content and cater to the preferences of this audience are more likely to retain their interest,” added Duvall. 

The influence of AVoD/FAST services 

Ad-supported video on demand (AVoD/FAST) is gaining traction. AVoD services like Tubi and Pluto TV have seen significant growth in monthly active users. These and other such services offer a wide range of genres, with action/adventure and comedy/sitcoms being the most watched. The increasing popularity of AVoD/FAST services highlights the viewer desire to have access to a wider pool of movie and TV content, which needs to be balanced vs. spend across other viewing options. 

Time spent across various content formats 

The report provides insights into how time is being spent across various content formats. SVoD services remain the favourite way to watch movies in most countries, with cinema being the top choice for younger audiences. Live TV continues to play a significant role, particularly in countries like France and Italy. Free streaming services are gaining popularity among younger viewers, indicating a shift towards more flexible and cost-effective viewing options. 

The report provides an extensive overview across ten countries: France, Germany, the UK, the USA, Canada, Italy, Spain, Sweden, Japan, and Australia. Conducted in August 2024, the survey covers online sample of 2,000 respondents from each country. 

For more information about the Living with Digital report, visit Futuresource Consulting or please contact:  

Sales Contact: Imad Sarwar, Senior Business Development Manager imad.sarwar@futuresource-hq.com  

Press Contact: Nicola Finn, Marketing Manager, Nicola.finn@futuresource-hq.com 

About the author

James Duvall

James Duvall joined Futuresource as the Principal Analyst for Entertainment in November 2022. He is responsible for the delivery of all consumer research and projects across Home Entertainment, covering over twenty regions for Futuresource’s Video Insight reports, the bi-annual Living with Digital survey, and the bi-annual Music Streaming report. Before Futuresource, James spent six years leading the insight and research programme at the British Association of Screen Entertainment and the Digital Entertainment Group International (DEGI), building upon his wealth of experience within insight teams for US Studios.