The 2025 Entertainment Landscape: What’s Happening, How Consumers Are Reacting and How Brands Can Win

By Amy Castillo, VP, Strategy and Innovation at Material

Can you feel the shifts?

The global entertainment and media sector appears to be recession-proof as consumer demand for content and experiences grows — to the tune of four percent CAGR over the next five years. But this consistent growth is at odds with the seismic changes taking place beneath the entertainment landscape, from transformed distribution models to technological disruptions upending consumer expectations.

The time-honored scripts are being rewritten. We’re entering a “new frontier” — and entertainment brands can’t afford to fall behind if they want to retain their audiences and capture new ones.

The Key Trends Driving Entertainment’s New Frontier

To seize the opportunities of this moment, entertainment providers must understand what’s driving the shifts — and where they can play and win in the new landscape.

Here are three key trends that brand leaders need to know to navigate this fast-evolving territory.

How Consumer Behavior and Expectations are Responding

As a result of these seismic shifts, the way consumers engage with entertainment, from their habits and motivations to their emotions and identities, is rapidly evolving.

To win today, entertainment providers must delve deeper than the macrotrends to connect with the human factors influencing consumers’ choices.

Here are three key emerging consumer behaviors brand leaders need to know.

Reaction #1: They have decision fatigue and subscription fatigue.

Consumers are fatigued and frustrated with the vast sea of entertainment options. This paradox of choice is leading viewers to be overwhelmed and fall into “analysis paralysis.”

As a result, they are “leaning out”:

1. Letting algorithms choose for them

2. Micro-dosing entertainment, seeking dopamine hits with short-form content

3. Turning from paid streaming platforms to free ad-supported streaming television (FAST) channels like PlutoTV, Tubi and Freevee that resemble old-school TV

Reaction #2: They expect personalized entertainment — but crave social connection.

Personalization is the name of the game today — 82 percent of global consumers view personalized offers and services as essential. Winning brands excel at hyper-personalization, serving up entertainment that aligns with each person’s preferences and interests.

The result is that consumer engagement and retention are higher. But this hyper-personalization has also individualized everyone’s feeds to the point where few see the same recommendations, resulting in a sense of entertainment isolation.

But, in an era of loneliness and fragmentation where consumers are “leaning out,” we’re seeing a fascinating dichotomy where consumers are also simultaneously “leaning in” by seeking out social connections and shared experiences. Consumers want to share entertainment experiences — both together in real life, or through the recapping, rehashing and reviewing of experiences online.

Reaction #3: They are seeking familiar, nostalgic content.

Especially in times of economic and social change or uncertainty, consumers are drawn to familiar content and franchises that they know they will enjoy — whether for escapism, emotional comfort or familiarity.

In response, studios are mining their vaults for beloved IP that can break through the clutter and satisfy consumers’ appetite for familiar fare. And it’s working: So far this year, seven of the top ten films at the global box office have been legacy IP, and six of the top ten TV shows have been either sequels or existing IP.

In a Sea of Change, Opportunity Abounds to “Seize the Trends”

For entertainment brands, acting on these industry shifts and consumer reactions is key to unlocking opportunities and staying relevant in a new era of consumer expectations.

Consider three key ways to seize the trends.

1. Embrace opportunities to play across multiple lanes — gone are the days of operating in just one vertical.

2. Invite customers to engage, interact and even co-create. In an era of participatory entertainment, brands should leverage their IP to forge dynamic new connections.

3. Think globally. Technology has obliterated regional silos, and consumers crave expanded entertainment horizons.

Ultimately, brands must know their customers.

Every brand’s unique audiences, offerings and positioning inform how they should capitalize on these opportunities. Fueled by over 50 years of experience partnering with the world’s most recognized brands in entertainment, Material can help you determine the most strategic ways your brand can compete and win in this new frontier.

Start the conversation today to learn more about the other shifts impacting the entertainment industry — and how your brand can strengthen existing customer connections and forge new ones.