In 2025, the digital media market is being forced to evolve as audience habits and expectations shift to accommodate more immersive and personalized preferences. Deloitte’s recent Digital Media Trends report highlights some key insights shaking up the streaming space, mainly principally by user demand. From social media dominance to AI enhancements, the way we consume content is swiftly changing. In this article, we explore three major trends redefining the digital media market, including the growing power of social media platforms, the integration of AI in content personalization and production, and the rise of new monetization models.

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Social media as dominant streaming platforms

As our digital habits become increasingly hand-held, the way we consume entertainment is also shifting, and social media is taking the lead. In 2025, nearly half of U.S. consumers (47%) now identify social media platforms as their preferred place to discover and watch entertainment, according to Deloitte’s latest Digital Media Trends report. This is a significant portion of viewers outpacing traditional streaming platforms, principally among Gen Z and Millennials. YouTube, TikTok, and Instagram are no longer platforms for images and short-form content. These are now some of the most popular platforms for media consumption.

Modalities such as livestreaming, influencer-hosted watch parties, and creator-led series are increasingly pulling audience attention (and advertising revenue) away from subscription-based services. It is Gen Z in particular driving this trend, as over 60% of consumers say they spend more time watching user-generated content on social media platforms than they do on TV shows or movies. It’s a stark wake up call, as legacy media giants are being forced to reassess distribution strategies. Some are starting to partner directly with content creators to stay relevant.  

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The integration of AI for content personalization and production

AI is a force that is impossible to ignore, for better or worse. In recent years, it has moved from behind-the-scenes algorithms to front-and-center roles that shape how content is created, curated and consumed. Streaming is no exception. AI is now deeply embedded in the architecture of our favorite streaming platforms and habits. According to Deloitte, 62% of U.S. consumers say they’re more likely to continue using a service that provides personalized recommendations, up from 52% just two years ago.

These recommendations are not simply based on the latest releases. AI can now analyze each individual user’s viewing behavior, mood, time of day and even social trends to curate micro-targeted experiences across multiple devices. Regarding production, generative AI is also being used to accelerate content development, create scripts, generate visual effects, and even localize content for different languages and cultures. Despite the argument that these advancements are enhancing human capabilities, not replacing them, they are not without controversy. Concerns around deepfakes, authenticity and intellectual property rights are also subjects of constant debate. 

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New monetization models: Ad-supported streaming and e-commerce integration

Another trend that looks sure to dominate developments in 2025 are different kinds of monetization models. The market is saturated with subscriptions, and therefore for streaming platforms to differentiate themselves, the key lies in flexibility. Consumers are increasingly opting for lower-cost, ad-supported plans, given the high cost of living outside the world of entertainment. According to Deloitte’s Digital Market Trends study, some 54% of U.S. consumers now subscribe to at least one ad-supported streaming service, up 8% from 2024. 

Higher subscription fees may be contributing to higher churn rates. The study also found that over 50% of both Gen Zs and millennials (those more likely to be strong social media users) have cancelled at least one paid streaming platform in the last six months. Platforms are listening. Netflix, Disney+, and Amazon Prime Video have all leaned into hybrid models, with ad tiers gaining traction especially among younger viewers and price-sensitive households. 

In order to support monetization, e-commerce integration is the next big trend. Livestream shopping, already a $500 billion industry in Asia, is gaining traction in Western markets. This integration involves embedding shopping features directly into live streams, allowing users to watch and shop in the same space. This blending of content and commerce has proven particularly successful with influencer-driven marketing. This means more profit for both brands and creators, who not only make money from the number of views, but also now from real-time sales. 

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