The Post-Peak Attention Economy What’s Next for Entertainment?

The 20,000 Foot View:  With only            hours in a day and an ever-growing number of entertainment services competing for consumer choice to spend them on, consumers have reached the limits of their available time – and therefore attention – to allocate to propositions across the digital market. As a result, businesses are being driven to vie for engagement, interest and spend which, if they do not win, can and will be allocated elsewhere. In a world where every spare moment has been opened to capitalisation by the advent and inundation of the mobile smartphone, there is no “free time” left for companies to cannibalise – only attention to be sought in the stead of a simultaneously-available other. As available attention grows ever smaller, it is crucial for businesses to consider a more holistic approach in understanding consumer behaviour across entertainment, instead of maintaining traditionally isolated views for music, video and games audiences. 

Key Findings

• Mass adoption            smartphones and the rise of            stores in the early 2000’s            an unprecedented rise in attention-seeking            (apps)
• The rise                       alongside music, video and (more            games streaming services has brought            to the limits of their            attention
• Companies used            compete for consumers’ available time.            no more time available, they            to unseat competitors to gain           
• In the            attention economy everyone competes against            another, instead of isolated competition            separate entertainment verticals 
• The total            of the audience that can            effectively targeted by conventional digital            is shrinking, in both size            value
• At            TV            streaming video viewing capture over            third of consumers’ digital entertainment           
• At            hours,            is the second most consumed            format in the attention economy
• Consumers who            more than            per month on            type of entertainment are also            likely to spend            on other            of entertainment compared to the            average
           of US consumers spend            or more on pay-TV every month, compared to            of high music and games spenders and            of high news spenders
• It is            to understand consumer behaviour across            to identify the right methods            types of paywalls they are            in order to reach them 

Companies and brands mentioned in this report: Amazon, Amazon Prime Video,  Apex Legends, Apple, AT&T, Fortnite, Google, Netflix, PUBG, Snapchat, Spotify, Stranger Things, The Economist, TikTok, Warner Media