Gen Z’s hold on digital entertainment is growing stronger and their preferences are now shaping how media looks and feels. They are not just consuming content passively. They are curating it, engaging with it and creating it, which is pushing platforms and brands to adapt or be left behind. A recent report shows this generation spends over 41 hours each week on digital entertainment, with a strong preference for user-generated content rather than traditional TV or film.
Australians overall are subscribing to multiple platforms to access the content they want, but Gen Z households are leading this trend. The average number of paid digital subscriptions has increased to nearly four per household. Gen Z respondents are spending around $101 each month on entertainment subscriptions. Unlike previous generations, over half of Gen Z are now paying for these services themselves rather than using shared accounts from friends or family.
However, this generation does not remain loyal to services for long. While 98% have at least one active subscription, more than half have cancelled a service in the last six months. What matters most to them is early access to new content and having control over their user experience. These preferences dictate whether they continue with a service or move to another. Older age groups are more likely to respond to discounts, while younger consumers prefer exclusive content. This shows that retention strategies must be specific to each demographic.
Even though overall social media use is slightly declining, Gen Z is still heavily engaged with user-generated content. Platforms such as TikTok, YouTube Shorts and Instagram Reels are thriving as they provide fast, relatable and creator-focused content. More than 60% of Gen Z say they prefer UGC over TV or movies. This highlights a major shift. Instead of simply watching media, they want to be a part of it. Likes, shares and comments are not passive interactions. They are social currency in the digital world Gen Z inhabits.
This shift is influencing more than just platforms. It is also reshaping how advertising works. Gen Z responds best to ads that appear naturally in their feeds and come across as authentic. Around 75% say social media ads impact what they buy, compared with only 13% for TV ads. To connect with this group, brands must behave like members of the community rather than outside voices trying to sell something.
Beyond video, Gen Z is highly active in audio content too. They are spending over 12 hours each week listening to music, podcasts and audiobooks. These formats match their habit of multitasking, especially while browsing other media. Audio presents another way for brands to engage with them, but the message must feel like a natural part of the experience.
The lesson for brands is simple. Gen Z is not just consuming content. They are influencing culture. Their actions are changing how platforms operate, how creators gain followers and how advertisers must adapt. Brands that involve Gen Z as participants, rather than viewing them only as consumers, will be better positioned to succeed in this rapidly changing digital media landscape.
