1) Consumers struggle to find content in the newly fragmented media landscape.
The number of streaming platforms has passed 300 in the U.S., more than doubled since 2014. 78% of the U.S. population uses one or more of the top streaming services: Netflix, AmazonPrime, and Hulu (Statista, 2021). Consumers can feel overwhelmed by the proliferation of streaming platforms and entertainment options; there are 5,800 content titles on Netflix alone.
According to a 2021 study by Horowitz Research:
- 50% of TV content viewers think there are too many streaming services
- 49% believe that “it’s hard to know what shows are on which streaming services”
- 44 % say they “often have a hard time finding something to watch”
- 39% of people still “have a difficult time trying to decide what to watch next”
Consumers are desperately seeking guidance on where to find entertainment that they would enjoy: Google’s #1 search question for 2021 is “What to watch?”
2) Consumers want the power of AI, but not the manipulation.
Consumers can feel manipulated by AI and Influencers. They believe in the power of AI to AID in their decision-making but want AGENCY in the process.
They don’t trust algorithms to be in their best interest and want an alternative to “personalized” algorithms that keep them in isolated “bubbles of one.” There are also limits to trust in celebrity influencers as cultural tastemakers.
For entertainment, research shows that we trust the recommendations of our close friends and family more than those from algorithms or celebrity influencers.
3) Limitations of human memory and organization.
Every day, we ask our friends about new shows, movies, and podcasts that they loved and where to find them. Entertainment recommendations are the new social currency.
But when it comes time to watch a new show, we can’t remember the show our friends told us about or where we put that napkin in which we wrote it down.
4) Social media has a negative impact on individuals’ mental health and society.
Negative Impact on Mental Health
According to the American Psychiatric Association, more than one-third of American adults view social media as harmful to their mental health. Two-thirds of respondents believe that social media usage is related to social isolation and loneliness.
Research in sociology and psychology (and Maslow himself) suggests that social well-being drives psychological and emotional well-being. There is a strong body of research linking social media use with depression. Other studies have linked it to envy, lower self-esteem, and social anxiety.
THE MARKET OPPORTUNITY
- $192B social media market in 2019, expected to reach $939B by 2026 (source: Research and Markets, 2021).
- The global app market size is expected to reach $407B by 2026 (source: Allied Market Research, 2019).
- Video streaming market is expected to reach $1,690.35 billion by 2029 (source: Fortune Business Insights, 2021).