A New Era of Engagement in Media & Entertainment
Download PDFMar, 2023 A New Era of Engagement
in Media & Entertainment
How varying generations engage
with the digital and physical world
Featuring insights into US consumers across generations
©2023 Newzoo
The future of media and entertainment
is not about a complete shift to digital.
There are many misconceptions about how diferent generations engage
with media and entertainment. Here are some of the ones we want to dispel.
Games are the mainreason why kids are
increasingly overweight!
Kids simply do not
play outside anymore. It’s a shame!
Kids used to be creative and
draw and paint. Now they just sit behind their screens.
They simply are more passive.
Millennials
have stopped watching TV!
©2023 Newzoo / Media & Entertainment Report 02 / 36
Younger Generations Play in Both
Physical and Digital Spaces
Popularity of playing sports and games (comparing physical and digital activities)
Share of generation that is active and share of generation that does both (%)
Sports
Gen Z
10-25 years old
Millennials
26-40 years old
Gen X
41-50 years old
More time spent gaming doesn’t mean that younger generations are more
averse to physical sports. In fact, almost 70% of Gen Z do both compared to
less than half of Gen X.
Much of this report centers around Gen Z in comparison to Millennials and
Gen X. Based on when we gathered the data, we define each generation as:
Gen X were born from 1965 to 1980, Millennials from 1981 to 1996, and Gen Z
from 1997 to 2012.
Examining behaviors and preferences across these generations, we can see
that younger people are spending more time blending digital and physical
activities and pursuing more active forms of engagement.
74 %
of Gen Z participatesin sports/fitness activities
48%does both
Games Sports GamesSports Games
Source: Newzoo Consumer Research | US Online Population 10-50 | June 2022
60%69%
55%does
both
79%
66%
67%does both
85%
74%
Defining physical and digital activities to examine
how diferent generations spend their time
Participating in sports or other physical/mental
exercises, including yoga, fitness, walking.
Playing video games, participating in online
betting or gambling, including online casinos.
Physical
Digital
©20
23 Newz oo / Media & Entertainment Report 0 3 / 36
The future of media and
entertainment is about…
MEDIA
ENTERTAINMENT
LEISURE TIME
An increasing convergence of activitiesin the digital and physical world.
Younger generations spend their time not just consuming content,
but creating it. 68% of Gen Z identify as digital creators, compared
to 46% of Gen X. This is an active process that unites digital and
physical engagement methods.
68 %A generational shift to more
active forms of engagement .
53 %
When it comes to games, younger consumers find new ways
to engage. Gen Z consumers spend more than half of their
time engaging with game IP in other ways than playing.
People engaging with all forms of
entertainment in a single environment.
Younger generations are turning more to game
platforms for media engagement. Gen Z spends
an average 12. 2 hours per week on games.
12. 2
hrs/week
©20 23 Newz oo / Media & Entertainment Report 04 / 36
Contents
About the data in this report
This report features high-level insights from a consumer research study that we conducted in the
US in June 2022. The scope of the study was the online population aged 10-50 and the sample is
representative of ~180M people.
When we refer to generations, we use the following definitions.
Gen Z: People aged 10-25 | Millennials: People aged 26-40 | Gen X: People aged 41-50
We understand that Gen X represents a wider age range, but for the purposes of this study, we
focused on a sample aged 10-50 and believe it’s representative.
Introduction
Media
Entertainment
Leisure Time
The Metaverse 6
7
15
25 32
©20 23 Newz oo / Media & Entertainment Report 05 / 36
How we choose to spend our time has changed a lot in the 15 years since
Newzoo was founded. New generations have fresh views and expectations
on how they spend and value their time. The physical and digital worlds
are blending, fueled by innovations in VR, blockchain, crypto, web3, and
NFTs. Consumer behavior is shifting, especially after the pandemic.
Researching, analyzing, and reporting on shifting consumer behavior and
its impact on business is what Newzoo does. Since day one, we have
focused on games as the most innovative form of entertainment and the
most challenging to track. Fifteen years on, the games business has grown
by $155 billion in consumer-generated revenues alone. The most important
metric that has grown even faster is time spent or engagement.
This is because games give people the power to choose. Gamers spend as much or as little time or
money as they wish and decide whether their experience is passive, active, or a mix of both. You
could consider this the foundation of “the metaverse” as games are now a destination for all types
of engagement including creating, socializing, viewing, and playing.
Games are now an entertainment form that can be enjoyed
across all media as well as a media platform that can host any
other form of entertainment.
This not only impacts game companies, that continue to expand their horizons to include other forms
of entertainment, but also consumer brands and the traditional media value chain that relies largely
on advertising. Younger generations now want to actively engage with content and IP through
creation, play, and simultaneous socializing. Fandom can no longer be built with passive experiences
alone.
That’s why we are releasing this report. Newzoo’s mission is to accelerate the future of gaming and
we believe that future is equal to the future of media and entertainment. We want to enable the
companies that are creating and shaping this future to thrive, with data and insights that are
future-proof and take engagement as the starting point.
Our eforts may not contain all the answers. But we are
confident that we can at least help the market to ask better
questions.
Michelle Rouhof
CEO
Newzoo
Introduction
©20 23 Newz oo / Media & Entertainment Report 06 / 36
Mobile Has Become the Dominant
Platform for Accessing Media and IP
Media Consumption by Screen
MEDIA
This section focuses on how every generation surveyed engages with diferent
types of media. We’ve split media content into five distinct platforms: Video Games and
Virtual Worlds
Social Media and
Video-Sharing Platforms
Radio, Podcasts, and
Music Apps
News Apps, Websites,
Blogs, and Magazines
Broadcast TV and
Subscription Services
Source: Newzoo Consumer Research | US Online Population Aged 10-50 | 2,699 respondents | June 2022
3hrs
per day per person
4.3hrs
per day per person
©2023 Newz oo / Media & Entertainment Report 07 / 36
If we break down how respondents interface with the five media catego-
ries, it becomes clear that social media and video-sharing platforms have
the highest levels of engagement. Broadcast TV and subscription services
slightly trail by 2%, though people tend to spend more time fixed to this
media type than the former.
While TV racks up more hours of passive viewership, social media and
video-sharing platforms don’t lag far behind. This suggests that more
passive engagement attracts more attention than active forms of media
like video games and other virtual experiences.
However, it’s important to note that people spend nearly 12 hours a week
on average on video games and virtual worlds, eclipsing audio and written
media.
Video games and virtual worlds Social media &
video-sharing platforms Broadcast TV &
subscription services Radio, podcasts,
and music apps News apps,
websites, blogs, and magazines
People Spend Nearly 12 Hours Per Week
On Video Games and Virtual Worlds
Engagement with Media Platforms
84%
11.80 96%
13.12 94%
13.92 87%
10.37 75%
6.56
Share of people who use this platform
Avg number of hours spent per week
Total hours
spent per week 0.9B
2.2B 2.3B 1.6B
1.8B
MEDIA
Source: Newzoo Consumer Research | US Online Population Aged 10-50 | 2,699 respondents | June 2022
60 %
of engagement on media
platforms happens on mobile devices
©20 23 Newz oo / Media & Entertainment Report 08 / 36
Video games and virtual worlds Social media &
video-sharing platforms Broadcast TV &
subscription services Radio, podcasts,
and music apps News apps,
websites, blogs, and magazines
55%
45%
73%
27%
46%
54%
68%
32%
60%
40%
Share of Engagement Time on Mobile Devices Compared to Other Technologies
Mobile (smartphone, smartwatch, tablet)
Non-mobile
People Prefer Mobile for Media
Engagement (Unless We’re Talking TV)
Source: Newzoo Consumer Research | US Online Population Aged 10-50 | 2,699 respondents* | June 2022
*Sample size varies by group
How much time do people spend engaging with media on their mobile
devices versus other technologies?
More people spend time engaging with media on their mobile devices
than they do via laptops and desktops. Nearly two thirds of time spent
on social media & video-sharing platforms goes to mobile, while audio
sits at 68%.
We see a more even split when it comes to video games and virtual
experiences, while TV is the only media platform where mobile doesn’t
dominate consumer time.
In the mobile-first era, IP holders will focus more on mobile-native
engagement. Brands will increasingly add vertical videos, ads, product
placements, and other elements to mobile games.
MEDIA
62 %
of time spent watching
TV via on demand services like Netflix, Amazon Prime, or HBO Max
©2023 Newz oo / Media & Entertainment Report 09 / 36
MEDIA
Game Content is Popular Across
Non-Gaming Media Platforms
Broadcast TV & Subscription Services
HBO: The Last of Us
HBO greenlit its first video game adaptation in
2020, a star-studded rendition of 2013’s The
Last of Us. The series debuts in January, 2023,
and the production team have hinted that the
show will consist of several seasons.
Netflix: Uncharted
Despite having mixed reception from critics,
Sony Pictures’ 2022 film adaptation of
Uncharted is the fifth highest grossing video
game flick as of early 2023. Uncharted may
become a new cinematic franchise for Sony,
depending on its performance.
News Apps, Websites, Blogs, and Magazines
Since Computer and Video Games ran its first
issue in 1981, gaming magazines have taken up
a lot of newsstand real estate.
Radio, Podcasts & Music Apps
There’s an abundance of games podcasts on
Spotify and other platforms.
VanossGaming has 26 million subscribers to his
game-themed channel on YouTube. Social Media & Video-Sharing Platforms
©2023 Newz oo / Media & Entertainment Report 10 / 36
Gen Z Engagement by Media Platform
Share of Gen Z consumers who use this platform
Avg number of hours they spend per week
Gen Z Spends More Time Engaging
with Games and Virtual Worlds than
Watching TV
Video games and virtual worlds Social media &
video-sharing platforms Broadcast TV &
subscription services Radio, podcasts,
and music apps News apps,
websites, blogs, and magazines
Delta vs.
Age 10 -50
A slightly higher share of Gen Z consumers engage with
social/video platforms than engage with TV: 96% vs. 95%.
Perhaps even more surprising is that they spend more time per
week within video games and virtual worlds than they do with
TV. This includes on-demand services like Netflix.
What’s less surprising is that Gen Z engages the least with writ –
ten media, including news apps, websites, blogs, and maga-
zines. This media type has the lowest reach and accounts for
the fewest hours spent on engagement.
Average hours spent on TV or
subscription services per week
Source:
Newzoo Consumer Research | US Online Population Aged 10-25 | 953 respondents | June 2022
+6%+3% +0%+6% +1% -1% -2%+6% +1%-15%
90%
12 .19 13.92
11.8588%
10.28 73%
6.97
96%
95%
Overall: 13.9
Gen Z: 11.9
Millennials: 14.7
Gen X: 16.1
MEDIA
©2023 Newz oo / Media & Entertainment Report 11 / 36
Games are a Platform for
Entertainment: Fortnite
Fortnite remains incredibly engaging for consumers and has grown into an entertainment hub where
people have unique, digital identities and share experiences far beyond cooperative play.
As of October 2022, nearly 200 million players played Fortnite on
console or PC*, with many millions more on mobile. Music artists, film
directors, and many other entertainers outside the games industry are
flocking to this massive audience and many have started to use Fortnite
as a platform to reach millions of consumers.
*Data source: Newzoo Expert
In 2021, Epic Games partnered with Ariana
Grande to create a live music event within the
Fortnite universe called the Rift Tour. The
concert, taking place over 3 days in August,
featured a virtual version of the singer/song-
writer and was part of a campaign to market
new skins, accessories, and in-game items.
(Live) Music concerts
While mainstream sports brands and networks
haven’t jumped on the Fortnite platform, ESPN
8 did air wild sports from The Ocho in 2020.
Pro sports content
Fortnite players got to watch an exclusive scene
from Star Wars: The Rise of Skywalker during
the Live at Risky Reels event in 2019. This scene,
featuring the return of a popular character in
the franchise, became canon. Movie viewings
monthly active users
Fashion
Fortnite has collaborated with major fashion
brands like Polo Ralph Lauren, Moncler, Gucci,
and Nike to release in-game skins and
co-branded clothing items.
20 0 M
MEDIA
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Games are a Platform for
Entertainment: Roblox
MEDIA
*Data source: Roblox Third Quarter 2022 Financial Results
Spotify Island on Roblox
Spotif y partnered with Roblox to create an
in-game spot for players to discover new music,
engage with artists, earn exclusive merchandise,
and even create their own music and beats.
Stranger Things: Starcourt Mall by Netflix
In 2021, Roblox players got the chance to
explore the Stranger Things universe, a popular
Netflix IP.
Samsung Superstar Galaxy on Roblox
Showcasing the market efcacy of live music in
the metaverse, this was a timed experience
from May to June 2022 that culminated in a
virtual performance by popstar Charli XCX.
average daily activeusers in Q3 2022
58.8 M
Roblox is more than just a game – it is a platform where people gather to share experiences with
others and create those experiences for others.
In the third quarter of 2022, nearly 59 million people played Roblox
across PC, console, and mobile*. This huge player base, coupled with
the game’s expansive population of younger users, has drawn the
attention of Samsung, Spotify, Netflix, and other media companies. The
entertainment world sees a lot of opportunities in the Roblox universe,
though with an air of caution, given the age of players.
©20 23 Newz oo / Media & Entertainment Report 13 / 36
In recent years, many game developers have added features to their environments that enable
people to watch others play. Enthusiasts used to rely on streaming platforms for this, but now
more games have viewing functionality built in. This unlocks engagement time and provides
exciting viewing experiences for non-players.
Games Attract Players and Audiences
Alike: Spectatorship as a Feature
Gamers are creative and find ways to use new functionalities to their benefit. With stream sniping,
players would enlist friends to watch ongoing matches and call out enemy locations, making it easy
for teams to essentially cheat. Even though games like Fortnite have removed spectating features,
it’s still possible to stream snipe opponents who are broadcasting their gameplay on streaming sites
like Twitch or YouTube. These options come with a considerable lag, so it’s much harder to stream
snipe and deprive opponents of fair play. Spectating in Fortnite
In season 2, Fortnite introduced a Watch Game
mode to all users. However, this feature led to
“stream sniping” and has since been removed.
Roblox Spectator Mode
Roblox ofers spectator mode as an option to
add to the worlds that players create. Free cam
allows you to watch yourself play from all angles.
Simultaneous Playing and Viewing
Fortnite Movie Nights are organized frequently.
Users can watch together or watch while
continuing to play, an example of simultaneous
engagement.
Watching YouTube while Creating
There are more ways that videos can be viewed
in Roblox. A popular use case is bringing
YouTube tutorials into the world you are building.
MEDIA
©2023 Newz oo / Media & Entertainment Report 14 / 36
Entertainment Engagement
Hours per day spent on active vs passive engagement
ENTERTAINMENT
Active Engagement Is Becoming More
Popular with Every New Generation
Video Games Sports & Fitness
Music Books & Comics
Movies & Series
4.5hrs
per day per person
4.3hrs
per day per person
AC TIVEPASSIVE
Source:
Newzoo Consumer Research | US Online Population Aged 10-50 | 1,363 respondents | June 2022
In this section, we split entertainment into five distinct categories to better understand user
preferences. We also segmented the ways in which people can engage with entertainment into five
active and passive activities.
5 forms of entertainment (IP) 5 ways of engaging
Reading,
Creating, Playing
Viewing,
Listening
Viewing
Listening
Reading
Creating
Playing
©2023 Newzoo / Media & Entertainment Report 15 / 36
Consumers Spend Nearly 15 Hours Per
Week Engaging with Games
Reach and Average Time Spent by Entertainment Type
Audience reachAverage time
1 7. 0 1 97%
97%
87%
15.35
14.46
Source: Newzoo Consumer Research | US Online Population Aged 10-50 | 1,363 respondents* | June 2022
*Sample size varies by group
Avg. time they spend per week (hrs)
Share of people who use this type of entertainment (%)
of the time spent on movies
and series is spent watching as opposed to more active forms of engagement.
When it comes to types of entertainment, movies and series as well
as music are both incredibly popular among consumers in the US.
Almost everyone engages with this content in some form or
another. Video game content is third with an 87% reach.
In terms of hours spent, movies and series have a clear lead. We
found that people spend over 17 hours per week either watching
content or engaging with big and small screens in other more active
ways. Movies & Series
GamesMusic
2
50%
100% 610 1418
81% 10.14
Books & Comics
74% 11.40
Sports & Fitness
60 %
isspent creating content about
movies and series, including blog posts and reviews.
11 %
ENTERTAINMENT
©2023 Newzoo / Media & Entertainment Report 16 / 36
Younger Consumers Spend More Time
on Games than Previous Generations
Gen Z Engagement by Type of Entertainment
Audience reachAverage time
14.46
98%
98%
93% 14.99
14.88
Source: Newzoo Consumer Research | \b US Online Population Aged 10-25 | 498 respondents* | June 2022
*Sample size varies by group
Avg. time they spend per week (hrs)
Share of people who use this type of entertainment (%)
For Gen Z consumers in the US, audio entertainment slightly
trumps game content in terms of weekly hours spent engaging.
However, in terms of the percentage of people who engage in each
entertainment type, regardless of hours spent, movies and music
stand out as the most popular.
If we compare the five entertainment types listed, it’s obvious that
music, movies, and games outshine other forms of IP and activities.
We can likely attribute this to how easy it is to access tunes, flicks,
and mobile games on smartphones, coupled with Gen Z being the
first digital native generation. What’s more, game platforms are
now filled with music and movie content, so the three entertain –
ment types enjoy a ready-made shared space when it comes to
snagging fans. Movies & Series
GamesMusic
3
50%
100% 6912 15
85% 10.79
Books & Comics
79% 12. 24
Sports & Fitness
Gen Z consumers in the US
spend nearly 15 hours per week engaging with game content.
14.9 hrs
ENTERTAINMENT
©2023 Newzoo / Media & Entertainment Report 17 / 36
Video Games Command the Most
Active Engagement Hours
Active Engagement by Entertainment Form
Share of time spent creating, playing, and reading this type of content
Source: Newzoo Consumer Research | US Online Population Aged 10-50 | 1,363 respondents* | June 2022
*Sample size varies by group
Out of the 5 types of media we defined, video games inspire the most
active engagement. Nearly three quarters of respondents said they
prefer playing, creating, and reading about video game content over
passive enjoyment.
This active engagement ofers brands a unique opportunity to have their
target audiences engage with their products and services in a more
hands-on way, which makes games unique compared to other types of
entertainment IP.
This data also suggests that gaming audiences prefer interactive and
native ways of brand engagement over traditional ads. To win the hearts
of gaming fans, brands will move toward IP crossovers, social media and
streamer partnerships, branded UGC, and inventive product placement.
Video Games Sports &
Fitness Movies &
Series Music
Books &
Comics
72%
60%
30% 33%
62%
Active
Engagement
Reading
Creating
Playing
of engagement withgames is active:
playing and reading
about games, or creating game-relatedcontent
72 %
ENTERTAINMENT
©2023 Newzoo / Media & Entertainment Report 18 / 36
People Consume Video Game
Content in Many Ways
The Ways People Engage With Game Content
Percentage of total time spent per activity
Source: Newzoo Consumer Research |
US Online Population Aged 10-50 | 1,176 respondents | June 2022
PlayingReading Creating Viewing Listening
47 %
12% 13%
16%
11%
Game enthusiasts in the US tend to spend just under half of their time
with games in the player seat. The majority share of time spent seems
to be going to reading, listening to, and watching content from the
gaming space, as well as creating games and game content.
This suggests that brands can leverage the various touchpoints not
only to build legitimacy around their presence in or around games,
but also to create diferent kinds of content that amplify their message
within the target group.
For instance, a car manufacturer might want to place its vehicles in a racing game, while ofering video and/or written racing advice to sim
racers and providing tools for creators to customize their favorite cars
from the brand to use in-game.
Passive Active
of time allocated to video games
is spent playing
47 %
Active
Playing video games (on a console,
PC , mobile, or VR device)
Reading news, blogs, websites, or
social media posts about gaming
Creating content about video games
(e.g. live streams, video content, fan
art, writing blogs, reviews)
Passive
Watching video game-related
content (e.g. live streams, let ’s plays,
pre-recorded content, reviews)
Listening to podcasts or radio shows
about video games
ENTERTAINMENT
©2023 Newzoo / Media & Entertainment Report 19 / 36
How Likely People Are to Engage in Types of Entertainment with Other People
Source: Newzoo Consumer Research | US Online Population Aged 10-50 | 1,363 respondents* | June 2022
*Sample size varies by group
Video Games Sports & Fitness Movies & Series MusicBooks & Comics
44%
56%
47 %
39%
Every form of entertainment attracts a diferent type of social setting.
Certain IPs are best enjoyed at home alone, while others require a
crowd.
Sports and fitness media stands out as the only form of entertainment
where over half of respondents would rather engage with it in the
company of others.
For many people, watching sports is a social event that involves
coming together as fans of the same franchise. Playing sports nearly
always requires other people, as opposed to video games where it’s
possible to play alone.
Sports & Fitness Represent the Most
Social Way to Engage with Media
35%
Gen Z are more likely to turn
sports media engagement into a group event:
58 %
ENTERTAINMENT
©2023 Newzoo / Media & Entertainment Report 20 / 36
Share of People Who Consider Themselves To Be A Fan of Each Entertainment Format
Video
Games
Sports & Fitness
Movies & Series
Music
Books & Comics 24%
26% 31% 37%
The share of movie fans increases with each generation
while the share of game fans decreases.
Music boasts the highest number of fans with 37% of
consumers self-identifying as a true music fan. This is
followed by movies and series with 31%. Sports has a slight
edge over games with just over a quarter of consumers
considering themselves as true fans of sports/fitness
compared to 24% for games.
Let’s put this more into context: IP holders are increasingly
eyeing cross-media strategies for launching their fran –
chises. Maximizing reach now means fueling fandom across
games, movies, TV, comics, and other media platforms.
Music Has the Highest Share
and Number of True Fans
22%
Source: Newzoo Consumer Research | US Online Population Aged 10-50 | 1,363 respondents* | June 2022
*Sample size varies by group
ENTERTAINMENT
©2023 Newzoo / Media & Entertainment Report 21 / 36
GAME IP
4/10
We asked respondents to identify their top 10 brands out of a randomized list of 27. These brands
included cinematic universes, video games series, sports franchises, media personalities, and more.
Here is each generation’s top 10 picks for entertainment IP: Gen Z (10-25 years)
Share that are a fan of:Apple
Marvel
Stranger Things
Grand Theft Auto
Call of Duty
Fortnite
Harry Potter
Candy Crush
Star Wars
Drake
1.
2.
3.
4
5.
6.
7.
8.
9.
10. 48%
40% 38%
38%
38%33%
28% 27%
26%
26%
Source: Newzoo Consumer Research |
US Online Population 10-50 | June 2022
Video Game IP Resonates across
Generations and Especially with Gen Z
Fan of none of 27 brands: 4%
GAME IP
3/10 Millennials (26-40 years)
Share that are a fan of:
Apple
Marvel
Harry Potter
Stranger Things
Call of Duty
Star Wars
Grand Theft Auto
Candy Crush
Lord of the Rings
Walking Dead 43%
40% 35%32% 31%
28% 27%
26%
26% 25%
1.
2.
3.
4
5.
6.
7.
8.
9.
10.
Fan of none of 27 brands: 5%
GAME IP
2/10 Gen X (41-50 years)
Share that are a fan of: Marvel
Star Wars
Apple
Stranger Things
Candy Crush
Harry Potter
Walking Dead
Lord of the Rings
Grand Theft Auto
Rolling Stones
1.
2.
3.
4
5.
6.
7.
8.
9.
10.
Fan of none of 27 brands: 9% 37%
32% 31%
29% 28%
26% 25%
23%
20%
20%
ENTERTAINMENT
©2023 Newzoo / Media & Entertainment Report 22 / 36
Integrating Entertainment IP
into Video Games
Game integration enables brands and IP to engage with the gaming community by providing a plat-
form for socialization and entertainment and infusing the IP in a manner and format that gamers
enjoy such as cool avatars, virtual pop-ups, in-game events, and more.
You are more likely to find brands integrated into video games than ever before
Burberry x Minecraft BMW x Rocket League Vans x Roblox
FIFA 23 x Ted Lasso
The fictional football coach and his team AFC
Richmond are playable in EA’s FIFA23, which
marks a significant merger between AppleTV+
IP and the video game world.
Stranger Things VR
A VR game is in development based on the
successful series after multiple mobile games
were already launched through Netflix. Fortnite x Marvel seasons and spin-ofs
Fortnite is no stranger to IP injections, but its
collaboration with Marvel goes well beyond a
one-time promotion. The world of Fortnite is
ofcially part of the Marvel universe, which
means the game is filled with playable charac
–
ters from comics lore. This collaboration has
even generated a new series of comic books
and tie-in content.
ENTERTAINMENT
©2023 Newzoo / Media & Entertainment Report 23 / 36
How Entertainment IP Can Transcend
Single Forms of Media
CD Projekt’s Cyberpunk 2077 and The Witcher are two perfect examples
of how to leverage existing IP to build a cross-media franchise. Following
a successful crossover to TV with The Witcher, the games publisher built
out the Cyberpunk 2077 franchise across nearly every type of entertain-
ment available.
Here’s a breakdown of how this video game publisher crossed the bound –
aries of entertainment to create a digital franchise.
Music
CD Projekt had many artists compose original
songs for its soundtrack, including acclaimed
hip hop duo Run the Jewels. The complete
soundtrack is available on streaming services
like Spotify.
Movies & Series
Edgerunners is an animated series based on the
game launched in September 2022, which rein –
vigorated the player base after several game-
play updates.
Books & Comics
To date, six comics based on Cyberpunk 2077
have been released by Dark Horse Comics.
Games
The much-awaited game Cyberpunk 2077
launched in December 2020.
ENTERTAINMENT
©2023 Newzoo / Media & Entertainment Report 24 / 36
People Spend More Leisure Time
Engaging with Digital Interfaces than
on “Real World” Activities
Leisure Time Activities
How much time people spend per day on digital vs. physical activities
LEISURE TIME
This section covers 23 diferent types of leisure activities and 7 distinct ways that people can engage
with these activities. We’ve split these into two interaction categories: digital and physical.
For reference, we’ve classified activities as digital when the primary medium is a digital interface.
6.6hrs
per day per person
2.9hrs
per day per person
Source: Newzoo Consumer Research | US Online Population Aged 10-50 | 1,336 respondents | June 2022
PHYSICAL
DIGITAL
©2023 Newzoo / Media & Entertainment Report 25 / 36
When it comes to digital leisure time activities, most engagement hours are
spent passively watching content, including videos and on-demand TV.
We asked respondents to list their top 5 leisure activities out of a list of 13, based on time spent.
Here is how the data breaks down by generation.
LEISURE TIME
Digital Leisure Time Activities
Includes: Watching movies, TV, or news on demand (e.g., using Netflix, Hulu, Amazon, Disney+, etc.),
Watching video on social platforms such as Facebook, YouTube, Twitch, Reading e-books, Playing
video games, Writing and sharing blogposts or online content, Online shopping, Listening to music,
podcasts or audiobooks through apps or streaming platforms, Reading online news, blogs or social
feeds, Creating or live-streaming video content or podcasts, Making digital art, music or play –
lists/DJ-sets, Engaging with friends or meeting new people on social media, in games or apps.
Gen Z
Watching video content on platforms
such as Facebook, TikTok, Instagram, YouTube, Twitch; live-streamed or on demand (excl. TV and streaming services)
Watching movies, TV, or news on demand (e.g., using Netflix, Hulu, Amazon, Disney+, etc.)
Playing video games, on a console, PC/ Laptop, mobile or VR device.
Listening to music, podcasts or audiobooks through apps or streaming platforms.
Watching movies, TV, or news as scheduled/ live as it airs(e.g., broadcasted on TV, at the cinema, etc.) Watching movies, TV, or news on demand (e.g., using Netflix, Hulu, Amazon, Disney+, etc.)
Watching video content on platforms such as Facebook, TikTok, Instagram, YouTube, Twitch; live-streamed or on demand (excl. TV and streaming services)
Listening to music, podcasts or audiobooks through apps or streaming platforms.
Playing video games, on a console, PC/ Laptop, mobile or VR device.
Watching movies, TV, or newsas scheduled/ live as it airs(e.g., broadcasted on TV, at the cinema, etc.)
Millennials
Watching movies, TV, or news on demand (e.g., using Netflix, Hulu, Amazon, Disney+, etc.)
Watching video content on platforms such as Facebook, TikTok, Instagram, YouTube, Twitch; live-streamed or on demand (excl. TV and streaming services)
Watching movies, TV, or news as scheduled/ live as it airs(e.g., broadcasted on TV, at the cinema, etc.)
Listening to music, podcasts or audiobooks through apps or streaming platforms.
Playing video games, on a console, PC/ Laptop, mobile or VR device.
Gen X
Digital: Using a digital interface is the primary way to enjoy this activity
1
2
3
4
5
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When it comes to physical or real-world leisure time activities, every
generation spends the most time socializing with their family or friends.
Includes: Reading printed books, newspapers or magazines, writing books, painting, drawing, or
other physical creative arts, Playing a musical instrument, Attending live concerts, music festivals or
conferences, Going to a cinema, theatre, museum or attending live sports events, Socializing in
real-life with friends or family, Going out to restaurants, clubs, bars to socialize or meet new people,
Visiting and playing at physical casino’s or betting agencies, Playing board- or other physical games,
Participating in sports or other physical/mental exercises, Shopping in physical stores.
We asked respondents to list their top 5 leisure activities out of a list of 9, based on time spent.
Here is how the data breaks down by generation.
Gen Z
Socializing in real-life with friends or
family at home or an outside location.
Participating in sports or other
physical/mental exercises, including yoga, fitness, walking.
Playing a musical instrument, singing, or playing music/ DJ ’ing live.
Going out to restaurants, clubs, bars to socialize or meet new people.
Writing books, painting, drawing,
sculpturing or other physical creative a r t s (n ot d ig it a lly). Socializing in real-life with friends or
family at home or an outside location.
Participating in sports or other
physical/mental exercises, including yoga, fitness, walking.
Shopping in physical stores, alone or with others.
Reading physical books,
newspapers or magazines.
Writing books, painting, drawing,
sculpturing or other physical creative a r t s (n ot d ig it a lly).
Millennials
Socializing in real-life with friends or
family at home or an outside location.
Participating in sports or other
physical/mental exercises, including yoga, fitness, walking.
Shopping in physical stores, alone or with others.
Playing a musical instrument, singing, or playing music/ DJ ’ing live.
Reading physical books,
newspapers or magazines.
Gen X
1
2
3
4
5
Physical Leisure Time Activities
LEISURE TIME
©2023 Newzoo / Media & Entertainment Report 27 / 36
People Engage in Digital vs. Physical
Activities in Diferent Ways
Share of Time Spent Per Type of Activity
Digital vs Physical Activity
Viewing
Listening Reading Playing
Creating
Shopping
Socializing
Source: Newzoo Consumer Research | US Online Population Aged 10-50 | June 2022
Viewing is by far the most popular way to engage in digital leisure
time activities.
Out of all the ways people can partake in leisure activities, the vast majority
of respondents prefer viewing content. The next largest chunk of time spent
on leisure activities goes to listening to media, with playing, reading, creating,
socializing, and shopping all taking a far smaller piece of the pie.
On the other hand, physical activities have noticeably diferent patterns. Most
hours are spent socializing with friends and family in-person followed by
creating and playing.
Most importantly, the boundaries between digital and physical experiences are blurring, if not disap –
pearing entirely. Many traditional physical activities are taking place in the digital realm. Live music
events in games and AR shopping are two prevalent examples.
Blending digital and physical experiences is becoming increasingly crucial for brands. It’s becoming
essential for optimal reach and engagement.
Digital Physical
0% 10% 20%30%40% 50% 60% 70%80% 90%
100%
of the time spent
on digital activities is spent viewing content.
41 %
LEISURE TIME
©2023 Newzoo / Media & Entertainment Report 28 / 36
Source: Newzoo Consumer Research | US Online Population 10-50 | June 2022
Diferent Generations
Don’t Create Equally
“Creative” Digital Leisure Activities
Gen Z spends 3X more time
on digital creation per week than Gen X.
Creating or live-streaming video content or podcasts.
Creating and sharing blog post, online articles, or reviews.
Creating digital art, music or playlists/DJ sets.
For clarity, we’ve excluded in-game creating from this list of activities.
Content creation is an increasingly powerful form for Gen Z consumers to engage with their favorite
IPs and brands within the gaming world and across most media forms. IP holders and brands should
seek to include this creative element in their strategies moving forward.
Inside the gaming world, Gen Z consumers enjoy creating content they can call their own. UGC
elements power today’s most popular franchises like Roblox, Minecraft, and Fortnite.
Digital Creative Activities by Generation
Digital
Percentage of people who
create digital content
within each generation
Avg time they
spend per week 69%
59%
46%
6.9
hrs/week
Digital
6.8
hrs/week Digital
5.9
hrs/week
Gen Z
10-25 years old
Millennials
26-40 years old
Gen X
41-50 years old
~ 3 X
LEISURE TIME
©2023 Newzoo / Media & Entertainment Report 29 / 36
Brand Partnerships Combine
Physical and Digital Spaces
A brand partnership can cross the boundaries of digital and
physical, driving business in new ways while delighting and
engaging customers.
McDonalds & Overwatch 2
Fast food brands have been trying to get into
the gamification game since before the McDon-
ald’s Monopoly promotion, and now they are
one of the industries bridging the gap between
digital and physical, while also showing the
power of cross-media promotion.
In late 2022, McDonald’s partnered with Over-
watch 2 to ofer app users the chance to unlock
unique character skins by purchasing certain
menu items.
Ballantine’s x Borderlands
Ballantine’s joined the fray in 2022 with a
collaboration with Gearbox Entertainment.
Players can now get their hands on a limited
edition Scotch whisky evoking the popular NPC
character Mad Moxxi.
Every bottle of this co-branded elixir comes
with unlockable content for Borderlands 3.
LEISURE TIME
©2023 Newzoo / Media & Entertainment Report 30 / 36
The future of media and
entertainment is about…
MEDIA
ENTERTAINMENT
LEISURE TIME
An increasing convergence of activitiesin the digital and physical world.A generational shift to more
active forms of engagement .
People engaging with all forms of
entertainment in a single environment.
©2023 Newzoo / Media & Entertainment Report 31 / 36
Defining the Metaverse in Contrast to Virtual Worlds
The term metaverse dates back to the 1992 novel Snowcrash by Neal Stephenson and has evolved
into the concept of a shared virtual space bringing together every conceivable virtual world.
Though there isn’t a definition everyone can agree on, one thing we can say with confidence is
that it’s a wholly diferent concept than virtual worlds. These are isolated virtual spaces like in
Minecraft or other multiplayer games, where the metaverse is the convergence of all these plat-
forms. To achieve a metaverse that’s universal would take all the brands operating virtual worlds
to band together and unite their universes into one.
THE METAVERSE
The metaverse defies a single definition, mostly because no one in the tech community can really
agree on what it is or what it should be. One thing we can say is that the metaverse, however it mani –
fests, will play a huge role in the blending of physical and digital spaces. Here are a few helpful frame –
works for how to think about the metaverse from thought leaders in the gaming world.
A persistent, infinitely-scaling virtual space
with its own economy and identity system.
Jonathan Lai | a16z
Persistent, shared, 3D virtual spaces in a virtual universe.
Tim Sweeney | Epic Games
Realtime 3D social medium where people can create and engage in shared
experiences as equal participants in an economy with societal impact.
Roblox
An interconnected and interoperable network of persistent, virtual
worlds that are populated by large numbers of players who interact with
each other via 3D digital avatars, ofering users a heightened sense of
immersion and presence.
Newzoo
©2023 Newzoo / Media & Entertainment Report 32 / 36
The Metaverse Ofers Richer
Engagement Possibilities for
All Types of Consumers
THE METAVERSE
Traditional media mostlyfocuses on
passive engagement while social
media adds a socializing layer and
facilitates creation.
Game environments add even more
possibilities by bringing active play
into the mix.
Active engagement breeds fandom
Blending diferent forms of engagement leaves a more lasting impression. While listening to an album
or playing a video game on a console are both enjoyable, most likely an in-game concert that involves
active participation in some way will be a much more impactful experience. This will be critical moving
forward for brands that want to engage with younger generations, who treat fandom more actively.
Metaverse & Fandom: Fueled by Richer Engagement
Playing Creating
Socializing Viewing
Listening
Listening
Viewing Socializing Creating
More
Engagement
Maximum
Engagement
Richer
Engagement Playing
SEQUENTIAL
SIMULTANEOUS
Playing Creating
Socializing
Viewing Listening
Listening
ViewingSocializing CreatingPlaying
M E TAV E R S E
& FA N D O M
Traditional Media
Social MediaGames as Media
©2023 Newzoo / Media & Entertainment Report 33 / 36
RTFKT Acquisition by Nike
Nike is swiftly becoming a mainstay in digital realms thanks to how the brand is successfully sharing
its iconic culture and building communities in this digital space. From launching Nikeland in Roblox
in November 2021 to acquiring RTFKT in December 2021, Nike’s foray into digital is just getting
started. In 2022 Nike launched SWOOSH, a new community experience, where people can build,
display, and trade virtual branded wearables.RTFKT Studios is one of the most popular digi-
tal fashion brands on the market. It has
amassed a sizable audience and is known for its
virtual sneakers and popular NFT collections.
In April 2022, Nike launched its Cryptokicks
NFT collection, comprising 20,000 sneaker
NFTs, including one designed by artist Takashi
Murakami. This particular NFT sold for an
eye-watering $134,000.
“This acquisition is another step that accelerates
Nike’s digital transformation and allows us to
serve athletes and creators at the intersection
of sport, creativity, gaming and culture,” says
John Donahoe, President and CEO of NIKE, Inc.
THE METAVERSE
©2023 Newzoo / Media & Entertainment Report 34 / 36
John Kosner
President
Newzoo’s first ever Media & Entertainment
Report goes beyond deconstructing the
gaming revolution. It helps IP holders make
smarter, better informed decisions about active
compared to passive engagement, combining
digital and physical experiences, reaching
younger audiences via mobile, and more.
©2023 Newzoo / Media & Entertainment Report35 / 36
Brands and companies will need to be more creative than ever to
connect with their audience, engage with new people, and build
dedicated fandoms that keep coming back.
Newzoo is here to help navigate this shift.
Join a growing community of early adopters and disruptors:
Explore Newzoo
The future of media and entertainment
will be about blending digital and
physical experiences.
questions@newzoo.com