Digital Media 2025: Social Video Is Winning Fast
Discover how social platforms crush streaming giants and steal ad dollars in 2025.
24 Dec 2025 - Written by Lorenzo Pellegrini
Lorenzo Pellegrini
24 Dec 2025
2025 Digital Media Trends: Social Platforms Reshape Entertainment
The digital media landscape in 2025 is undergoing a profound shift as social platforms, powered by AI and user-generated content, challenge traditional streaming services and studios for consumer attention and ad dollars. Deloitte's latest insights reveal how younger generations are flocking to free, personalized video on social media, forcing media companies to adapt or risk obsolescence.
Social Platforms Disrupt Traditional Video Entertainment
Social video platforms now dominate entertainment time and advertising spend, offering endless free content optimized by algorithms for maximum engagement. These platforms draw over half of US ad spending with advanced ad tech and AI that matches advertisers to global audiences precisely. Traditional studios and streaming services face fragmentation, higher costs, and thinner margins as audiences splinter across services.
Gen Z and millennials report better TV show and movie recommendations from social media than from streaming video services. A majority of these younger users prefer social platforms' data-driven personalization, which delivers highly relevant content and ads tailored to individual interests.
The Rise of Creators and User-Generated Content
Independent creators produce much of the video content consumed today, working directly with platforms that incentivize them through AI tools for business management, content creation, audience targeting, and brand sponsorships. Creators provide authenticity and credibility that brands value, especially niche influencers who connect deeply with followers.
- Social platforms extend generative AI to help creators thrive independently.
- Advertisers find creators more effective for reaching engaged communities than traditional channels.
- Younger audiences trust influencers as reliable sources of information and entertainment.
Shifting Consumer Habits Across Generations
Preferences are moving away from pay TV toward streaming, social video, gaming, and audio like podcasts and music. US audiences, particularly younger ones, split their six daily entertainment hours evenly across these formats using various devices. Paid TV subscriptions hold steady mainly for live news (43%) and sports (41%), but overall market decline persists.
Adoption of ad-based video on demand (AVOD) services rises, with 66% of streaming households now using at least one, up from 54% earlier in the year. Millennials show the highest churn rates for subscription video on demand (SVOD) services at 51%.
Social media ads feel more relevant to 54% of Gen Z and millennials compared to those on streaming or cable TV.
AI's Role in Personalization and Monetization
Leading social platforms leverage AI for content recommendations and advertising, accelerating investments in this technology. This personalization erodes time spent on traditional streaming TV and movies. Studios must harness AI to understand preferences deeply, deliver hyper-personalized experiences, and reimagine ad models to compete.
Brands report surging social media budgets by 9% on average from 2023 to 2024, prioritizing community, content, and conversion. Social-first brands focus on micro and mid-tier creators for higher ROI, outperforming those reliant on mega-influencers.
Challenges and Strategies for Studios and Streamers
Traditional studios confront competitors larger than most TV and film companies combined, with billions of global viewers and video hours daily. Strong streamers are global, data-powered, and AI-enabled, often with diversified businesses. Smaller studios may need to downsize, sell content to leaders, produce for social platforms, or form alliances.
- Embrace social platforms for global reach and advertiser collaboration.
- Leverage AI for cost control, personalization, and new distribution.
- Innovate to deliver value amid fragmented audiences and devices.
Conclusion: Adapting to the New Media Reality
The 2025 digital media trends signal a tipping point where social platforms establish the center of gravity for entertainment. Media companies must innovate with agility, prioritize younger audiences, and integrate AI to personalize content and advertising effectively.
Those who adapt by blending premium storytelling with social distribution and creator partnerships will thrive, while clinging to old models risks losing an entire generation of viewers.
