Ad platforms account for 60% of U.S. entertainment time: Luminate report

Even with the rise of paid subscription video and audio services, content with ads still accounts for nearly 60 percent of the total time U.S. viewers spend on entertainment, according to a new study.

In fact, according to the research firm’s latest quarterly Entertainment 365 study bright, having an ad-free experience isn’t the main driver of a premium subscription. According to Luminate’s research, the top two factors for paid subscriptions are value for money and content. The survey also found that almost one-third of Americans say they have “cut the cord” — that is, they have canceled cable or satellite TV.

According to Luminate’s research, U.S. consumers spend 74% on visual entertainment (i.e. movies, TV shows and video games) and 26% on audio options in terms of total entertainment time. Americans spend 88% of their entertainment spending on visual content and 12% on audio.

Formerly known as P-MRC dataLuminate is owned by a joint venture of Penske Media Corp. type) and Eldridge. Luminate powers Billboard’s music charts and operates an information database for the television and film industries.

Luminate’s Entertainment 365 report looks at how diverse U.S. audience segments engage and prioritize entertainment across TV, music, movies, gaming, and social media. The latest report specifically provides insights into underrepresented populations in the United States, including Black, Hispanic, Asian and Asian-American, Native American and LGBTQ+ audiences. In addition, it provides information on the entertainment habits of female identity consumers and the preferences of Gen Z consumers.

Some other key findings of the report:

• Black/African American viewers are selective in their entertainment choices, choosing streaming content that connects them to their culture, identity, and values. Compared to the general population, they are nearly 10% more likely to live stream podcasts/talk shows and nearly 20% more likely to live stream music events.
• Compared to the general U.S. population, Native American consumers are 25% more likely to go to a movie theater, 40% more likely to participate in sports, and 32% more likely to attend live music events.
• Hispanic audiences enjoy spending their free time with others, and particularly enjoy forms of visual entertainment, including watching movies and TV shows at home and going to the theater. Compared to the U.S. general population, Hispanic moviegoers spend a 31 percent higher share of dollars on the movie experience.
• Gen Z is the only generation to spend the majority of entertainment revenue (18%) on gaming. Overall, they spend 11% more on entertainment than the average American. Additionally, Gen Z consumers are approximately 50% more likely to live stream music events; 33% more likely to attend live live music events; and 20% more likely to watch a movie than the general U.S. population.

Data for Luminate’s latest Entertainment 365 report, Spotlight on Vulnerables, was collected between March 16 and April 11, 2022, and is based on online interviews with 4,004 US residents age 13 and older. The data are representative of the general population, including age, gender, race and region, based on U.S. Census data, the researchers said.A copy of the report can be downloaded at this link.