A shift in consumer entertainment choices
This trend started to emerge in mid-2022, with studies clearly showing that due to rising inflation consumers cut down on entertainment spending such as movie theaters, live concerts, and night life, just to name a few. Soon after the first COVID-19 restrictions were lifted in 2021, the industry experienced a boom in consumer interest. After an extended period of time spent indoors, the public were keen to re-engage with pre-pandemic habits and hobbies, and as a consequence, their spending soared substantially. However, the economic downturn the year after meant that they had to curb their spending again, which is clearly illustrated by the rapid drop in consumer entertainment spending growth in 2022.Extra charges and ticket prices – curbing consumer entertainment
The biggest culprit behind the changed behavior are fees and admissions. While prices for everything grew significantly in the last two years, ticketing and additional fees seem to deter consumers the most. Therefore, in 2022, spending on entry to events, concerts, and movie theaters grew by less than 30 percent from the previous year, around half the growth in consumer spending on admissions and fees between 2020 and 2021. However, this behavior is not common across all age groups. In fact, compared to older generations, Gen Zers claim they increased their monthly spending on entertainment since the pandemic. Live concerts, theater, and cinema are the top pastimes to see higher spending from Gen Z, which highlights the importance of out-of-home entertainment for this demographic.All in all, consumers in the United States are conscious of their expenses, which is the main driver of media consumption and recreation choices. While the younger generations still opt for live entertainment, other consumers prefer to skip the lines and costly entry fees and find alternative leisure activities at home with friends and family.
