Digital Media Trends Survey Video Gaming Goes Mainstream
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FEATURE Digital media trends survey Video gaming goes mainstream FROM THE DELOITTE CENTER FOR TECHNOLOGY, MEDIA & TELECOMMUNICATIONS Digital media trends survey: Video gaming goes mainstream As content creators increasingly adopt direct-to-consumer models, video gam- ing has become a legitimate competitor to TV and movies. What are the impli- cations for strategic planning? Product and partnership development? S THE MEDIA and entertainment (M&E) less than two years,2 have become legitimate com- industry prepares for seismic shifts in petitors in vying for consumers’ free time. At the A video, new behavioral trends reveal that same time, the explosion in direct-to-consumer video gaming could provide more disruption in the (DTC) subscription services ahead of high-profile battle for consumers’ attention and should be fac- DTC launches from technology companies and tored into most M&E companies’ strategic Hollywood studios has resulted in many media planning. These shifts are increasing the legitimacy companies having to navigate a competitive envi- of gaming, which could also prompt video game ronment that is in flux. makers and publishers to develop direct-to- consumer offerings and foster deeper ties with media and entertainment companies. Key shifts in subscriptions economy A look at the changing nature As consumers increasingly curate their own enter- of media consumption tainment experiences, gaming is coming to the forefront. The compelling shifts among millennial Over the past few years, the growth in gaming consumers (which now includes people up to age across generations has been dramatic and swift. 35 years old) reached an inflection point, with Overall, 30 percent of US consumers pay for a video gaming subscriptions edging ahead of Pay TV gaming subscription service, and 41 percent play subscriptions—53 percent versus 51 percent video games at least weekly, according to Deloitte’s according to Deloitte’s Digital media trends survey, Digital media trends survey, 13th edition. Indeed, 13th edition. Just one year ago, video gaming sub- there are more millennials, now, who have a gam- scriptions among millennials were at 44 percent ing subscription than those with a traditional Pay and Pay TV subscriptions were 52 percent, indicat- ing a significant shift in momentum. As consumers increasingly curate Within gaming, other shifts are happen- their own entertainment experiences, ing, too. Consumers are moving away from traditional video gaming platforms, gaming is coming to the forefront. such as personal computers (PCs), to mobile and app-based gaming platforms. In 2015, 77 percent of gamers played on TV subscription—and close to one-half of millenni- PCs (laptop and desktop computers). That number als and Gen Z pay for both a gaming and video has now declined to 48 percent, while the propor- streaming service.1 Increasingly, gaming has tion of gamers who play on mobile devices become integral to how many consumers are piec- (smartphones and tablets) grew from 70 percent in ing together their own entertainment experience. 2015 to around 80 percent in 2018. In terms of share of total gaming time, PC gaming has dropped Recently, many entertainment executives also by almost one-half, from 39 percent in 2015 to acknowledged how video games, such as Fortnite, 22 percent in 2018, despite professional esports which alone has attracted 250 million players in having a strong PC footprint. In contrast, gaming 2 Digital media trends survey: Video gaming goes mainstream Increase in gaming time on mobile devices aming time y devie in erent o gaming time ters V et lato desto aming devie onsole andeld oile smartone talet 100 90 80 70 60 50 40 30 20 10 0 201 201 201 2018 oures: Deloitte Digital media trends survey eloitte nsights deloittecominsights time on mobile devices grew from 32 percent in We analyzed US video gamers based on game play 2015 to 47 percent in 2018.3 platform dominance (see figure 2), with a platform deemed dominant if it accounted for more than 50 percent of total gaming time (for example, PC Mobile versus console gamers gamers who use their computers for more than 50 percent of total gaming time).4 While the proportion of US consumers who play video games has remained steady at 70 percent in HOW PEOPLE GAME, BY PLATFORM recent years, the preferred platform has shifted. Traditionally, consumers have played on consoles • PC-dominant (15 percent of the gaming popu- or PCs, but now, the percentage of time spent gam- lation): Use laptops or desktops more than 50 ing on mobile devices has eclipsed these more percent of the time traditional gaming platforms according to our survey. • Mobile-dominant (39 percent of the gaming population): Use smartphones or tablets more Overall, the shifts in video gaming by platform than 50 percent of the time indicate that more time is being spent gaming. The shift to mobile as a video gaming platform hints at • Console-dominant (23 percent of the gaming increased usage by nontraditional gamers. And population): Use a console or handheld device although PC gaming has decreased by percentage more than 50 percent of the time of total gaming time, a large portion of professional and competitive sports gaming still happens • Multiplatform players (23 percent of the on PCs. gaming population): Toggle between platforms and use multiple devices, including VR headsets 3 Digital media trends survey: Video gaming goes mainstream The four types of gamers aming time y devie in erent o gaming time lato desto oile smartone talet aming devie onsole andeld ters V et Overall 22% 47% 27% 4% PCdominant 1% 91% 7% 1% Mobiledominant 3% 92% 4% 1% Consoledominant 4% 10% 85% 1% Multiplatform players 26% 33% 28% 13% oures: Deloitte Digital media trends survey eloitte nsights deloittecominsights We will focus on the two biggest video gaming plat- mobile-dominant gamers and traditional gamers. forms by proportion of overall video gaming time: Sixty-five percent of mobile-dominant players are mobile and console. female, compared to 35 percent of console- dominant and 44 percent of PC-dominant players. Mobile-dominant gamers. Hardcore gamers Further, 33 percent of mobile-dominant players can be dismissive of mobile gaming; they often are from Gen X and 29 percent are baby boomers, don’t regard it as “pure” gaming. But given that compared to 28 percent and 9 percent, respectively, mobile is the most popular gaming platform across among console-dominant gamers.7 all consumers, it cannot be ignored. Mobile plat- forms also attract a bigger, new gaming audience In terms of how these consumers interact with than other platforms. And mobile most seamlessly advertising, they may be most influenced by televi- integrates with social media, enabling new forms of sion commercials and product placement in TV interactive and social media gaming, such as chat shows. This makes sense considering that fiction.5 Further, mobile-dominant gamers exhibit 48 percent of mobile-dominant gamers watch more the second-highest gaming intensity (figure 3) with than five hours per week of TV shows, compared to 59 percent playing at least weekly—above the 42 percent for video game players overall.8 Mobile- 57 percent average across all gamers, but below the dominant game players watch 21 hours of live 61 percent of gamers who prefer consoles.6 broadcast TV per week, compared to 18 hours for all gamers, and 20 hours for all consumers.9 In Advertisers and brands may be interested to learn relation to other forms of media and entertainment, there are distinct differences between 54 percent of these gamers stream video at least 4 Digital media trends survey: Video gaming goes mainstream Gaming intensity vs. willingness to pay for the four types of gamers 80% 70% Consoledominant 60% Multiplatform players Willingness to pay for gaming 50% ( having a gaming subscription) 40% Overall average 30% Mobiledominant 20% PC gamers 10% Overall average 0% 49% 51% 53% 55% 57% 59% 61% 63% 65% Gaming intensity ( of respondents playing on a weekly basis) oures: Deloitte analysis and Deloitte Digital media trends survey t edition eloitte nsights deloittecominsights Preference for subscription- vs. ad-supported content 100% 95% 90% Multiplatform players 85% Paid video streaming Consoledominant subscription ( of consumers who 80% subscribe to a video 75% streaming service) Mobiledominant 70% 65% 60% 55% PC gamers 50% 45% 50% 55% 60% 65% 70% 75% Interest in adsupported streaming ( of respondents willing to use an adsupported service if it reduced the cost of subscription) oures: Deloitte analysis and Deloitte Digital media trends survey t edition eloitte nsights deloittecominsights 5 Digital media trends survey: Video gaming goes mainstream once a week, while more than one-half view live fatigue”) is higher than it is for console-dominant broadcast TV.10 gamers (see figure 5). As more media and entertainment services become To address these sources of friction, Pay TV opera- available through direct-to-consumer platforms tors could offer products that combine traditional that can be instantaneously activated or canceled, TV, video streaming, and gaming subscriptions. it will likely become increasingly important for The usage trends on mobile show that some tradi- companies to find ways to reduce the friction con- tional gaming publishers that expanded franchise sumers are feeling. Among mobile-dominant game titles into mobile have experienced success. In players, the ratio of consumers who say they are 2018, Epic Games launched Fortnite on mobile;