Five Media and Entertainment Trends to Watch in 2025

The media and entertainment (M&E) industry is poised for significant transformation in 2025, driven by technological advancements, evolving consumer preferences, and strategic shifts by companies. Here are five key trends shaping the industry:

1. Experiential Entertainment Takes Center Stage

In 2025, consumers will increasingly prioritize immersive and interactive experiences. Advances in augmented reality (AR), virtual reality (VR), and location-based entertainment will redefine how audiences engage with content. From live concerts enhanced with AR effects to VR-powered theme parks, the demand for experiential entertainment is expected to soar. Companies that invest in creating these unique, memorable experiences will gain a competitive edge as consumers seek more than just passive content consumption.

2. AI’s Role Expands Across the Industry

Artificial intelligence (AI) is set to revolutionize the M&E sector in 2025. While traditional AI applications like automating workflows remain important, generative AI (GenAI) will take center stage. GenAI will accelerate content creation, improve personalized marketing, and optimize content distribution. For instance, AI-driven tools can generate scripts, edit videos, and even create virtual actors, significantly reducing production timelines.

To harness AI’s potential, companies must first organize their vast data reserves, enabling AI systems to function effectively. Additionally, partnerships with big tech firms to train large language models (LLMs) could unlock new monetization opportunities. However, as AI adoption grows, organizations must address risks related to copyright norms, safety standards, and fair compensation for talent. Executives will also demand clear returns on investment (ROI) from AI pilot projects before scaling their implementation.

3. Streaming Services Pursue Sustainable Profitability

The streaming industry has reached a critical juncture. After years of heavy investment and financial losses, 2024 saw major players break even or turn a profit. In 2025, the focus will shift to achieving long-term profitability through strategic measures.

Key drivers of this financial turnaround include:

• Growth in advertising revenue.

• Price increases for subscriptions.

• Bundling partnerships with other platforms.

• Streamlined content spending and operational efficiency.

To thrive in a competitive landscape, streaming services must achieve scale—both domestically and internationally—while minimizing subscriber churn. Offering diverse programming, including live events and sports, will be essential to maintaining consumer engagement and attracting advertisers.

However, the question remains: how many streaming platforms can coexist profitably? Consolidation through mergers or joint ventures may become inevitable for smaller players unable to compete with top-tier services. While challenging to execute, consolidation offers benefits like increased subscriber bases, higher ad sales, and reduced operational costs.

4. The Rise of Direct-to-Consumer (DTC) Models

Direct-to-consumer strategies continue to reshape the M&E industry as companies seek closer relationships with their audiences. By bypassing traditional distribution channels, DTC models allow brands to collect valuable consumer data and deliver tailored experiences. Subscription-based platforms remain a cornerstone of this approach, but diversification into ad-supported tiers is gaining traction.

In 2025, companies will refine their DTC strategies by integrating advanced analytics to understand viewer behavior better and enhance engagement. This shift not only boosts revenue streams but also positions brands as more agile in responding to market demands.

5. Sustainability Gains Momentum

Sustainability is no longer optional for M&E companies; it’s a business imperative. From eco-friendly production practices to reducing carbon footprints in live events and digital operations, organizations are committing to greener practices. Consumers increasingly favor brands that align with their values on sustainability, making it a key differentiator in the marketplace.

2025 promises exciting opportunities for innovation across the M&E industry. Companies that embrace these trends—experiential entertainment, AI integration, sustainable streaming profitability, DTC evolution, and sustainability—will be well-positioned to thrive in an ever-changing landscape.

2025: Moving from Social Media to Private Chat

The media landscape has undergone a seismic shift over the past two decades, with digital platforms overtaking traditional media in consumption and influence. In 2025, this evolution is accelerating, particularly in social media, where users are increasingly retreating to private, closed environments to escape toxicity and reclaim control.

The Decline of Traditional Media and Rise of Digital

By 2025, U.S. adults are projected to spend nearly eight hours daily on digital media, with four hours dedicated to digital video—surpassing traditional TV by over an hour. Traditional TV consumption continues to decline, from three hours and 16 minutes per day in 2021 to just two hours and 48 minutes in 2025. This trend reflects broader shifts toward mobile-first content and on-demand viewing experiences, especially among younger demographics like Gen Z.

Social Media’s Dual Role: Influence and Toxicity

Social media remains a dominant force, shaping consumer behavior and cultural trends. Platforms like TikTok, Instagram, and YouTube drive engagement through video-centric content. However, the same platforms are increasingly criticized for fostering toxic environments. Issues like misinformation, harassment, and algorithmic echo chambers have alienated many users. For example, over 85% of users engage in second-screening activities like scrolling social media while watching TV, but this multitasking often amplifies exposure to polarizing content.

The Shift Toward Private Digital Spaces

In response to toxicity, more users—especially younger ones—are gravitating toward private messaging apps and closed communities. Platforms like WhatsApp, Discord, and private Instagram accounts offer safer spaces for personal interactions away from public scrutiny. This trend aligns with a broader desire for authenticity and meaningful connections in digital interactions.

The shift away from traditional social media platforms toward private group messaging is becoming increasingly evident. According to Gartner, in 2025, 50% of consumers are expected to abandon or significantly limit their interactions with social media due to declining platform quality, including issues like misinformation and toxic behavior. Additionally, only 20% of users still share personal life moments on Facebook as of 2024, highlighting a broader trend of disengagement

Implications for 2025 and Beyond

1. Content Personalization: Media companies must adapt by offering personalized experiences across platforms. For instance, hybrid models like ad-supported streaming tiers cater to diverse user preferences while maintaining affordability.

2. Social Media Evolution: Platforms will likely prioritize features that enhance user safety and privacy while leveraging technologies like generative AI for content moderation.

3. Marketing Adjustments: Brands must pivot toward engaging audiences in private or semi-private spaces while maintaining transparency and trustworthiness.

As media consumption habits evolve further in the new year, the balance between connectivity and control will define the next chapter of digital engagement.

Sirius/XM Pivot

2001 when Lee Abrams changed the world again with the launch of XM Satellite Radio, the birth of radio’s new era began.

XM and Sirius merged in 2008 and subscriptions to the new form of radio eventually have settled in at around 35 million but has stalled in recent years. The company tried a strong push to a digital option to attract younger consumers, but as the company reported this week that that effort failed.

So what to do?

To revive SiriusXM’s business, the strategic focus falls to enhancing its core in-car satellite radio offerings while leveraging digital opportunities effectively. The “Back to the Basics” Game Plan:

1. Strengthen Core In-Car Services

• Enhance Content: Invest in exclusive, high-quality content that differentiates SiriusXM from competitors.

• Partnerships with Automakers: Strengthen and refresh relationships with car manufacturers to integrate SiriusXM as a standard feature in new vehicles.

• User Experience: Improve the user interface and experience of in-car systems to make them more intuitive and appealing.

2. Optimize Digital Strategy

• Selective Streaming Focus: Maintain streaming services but target niche markets or unique content that complements the core offering.

• Leverage Pandora the godfather of streaming: Utilize Pandora’s platform for personalized music experiences, integrating it more closely with SiriusXM’s offerings.

3. Cost Management and Efficiency

• Operational Efficiency: Continue cost-cutting measures while ensuring they do not impact core service quality.

• Marketing Optimization: Redirect marketing efforts towards high-value, low-churn segments to improve ROI.

4. Innovate and Adapt

• Technology Integration: Explore new technologies like AI for personalized content recommendations and voice-controlled interfaces.

• Feedback Loops: Establish robust customer feedback mechanisms to adapt services based on user preferences and trends.

Improve customer relations. This presents a powerful opportunity to differentiate. Customer experience satisfaction is at an all time low.

To attract younger listeners, SiriusXM can implement several strategies:

1. Enhance Personalization

• Artist-Centric Channels: Allow users to select music preferences by artist, not just genre, to align with younger listeners’ tastes.

• Customized Recommendations: Implement features similar to Apple Music’s personalized recommendations to help users discover new content.

2. Develop Engaging Content

• Celebrity-Led Shows: Introduce channels curated by popular artists like Kelly Clarkson and John Mayer to draw in fans.

• Diverse Programming: Launch initiatives like “Listen Next” to promote diverse voices and appeal to younger audiences interested in fresh perspectives.

3. Competitive Pricing and Accessibility

• Lower Price Points: Offer more affordable streaming options to compete with services like Spotify.

• Free Tier Consideration: Explore introducing a free tier to attract budget-conscious Gen Z listeners.

4. Strengthen Digital Presence

• App Enhancements: Continue improving the app with interactive features and seamless user experience.

• Brand Partnerships: Leverage partnerships with brands like Audible and Hilton to expand reach beyond traditional radio.