The Impact of Generation Z Consumers on the Film Market:

Behavioral Shifts and Industrial Transformation

Haoyang Yu

School of Liberal Arts Macau University of Science and Technology, Macau, China

Keywords: Generation Z Consumers, Consumer Behavior, Film Market, Interactive Marketing.

Abstract: The movie market has changed significantly in recent years, due in large part to the emerging influence of

Generation Z consumers, born between 1995 and 2009, who have become a dominant force in the consumer

marketplace, including the movie industry. The purpose of this paper is to explore the impact of Generation

Z consumers on the film market, focusing on their unique behavioral shifts and the resulting changes in the

industry. The Characteristics of Generation Z consumers, such as their preference for diverse and personalized

content, their reliance on Internet word-of-mouth, and the impact of these characteristics on film content,

distribution methods, and marketing strategies are explored. It also explores the impact of these characteristics

on movies, distribution methods and marketing strategies, providing valuable insights for the movie industry.

By understanding the preferences and behaviors of Generation Z, the film market can adapt and thrive in an

ever-changing consumer environment.

1 INTRODUCTION

As society changes, consumer groups have also

undergone tremendous changes, with Generation Z

consumers (the generation born between 1995-2009)

gradually becoming the main force of consumption,

and the movie market is no exception. The

characteristics of consumer behavior and preferences

have had a profound impact on various industries,

including the movie market. Generation Z consumers

are said to be the generation that grew up on the

Internet, which shows that the Internet has had a

profound impact on Generation Z consumers, whose

consumer behavior in the movie market mainly

focuses on their preference for diversified products,

and their acceptance of the scope and degree of

acceptance of the means of communication is

different from that of the previous generations. There

are no gaps in existing research on Gen Z consumers,

but there is a shortage of research on the movie

market.

Based on the above thesis, the combination of

Gen Z consumers and the film market is shorter for

the analysis. The purpose of this paper is to explore

the impact of the characteristics of Generation Z

consumers and the characteristics of the movie

market. Understanding the importance of Generation

Z consumers in the movie market can help the movie

industry better meet the needs of Generation Z

consumers and develop more effective marketing

strategies. At the same time, it also provides a

reference for consumer behavior research in other

industries.

It has been suggested that Gen Z consumers are

eager to get news online and are easily influenced by

online information (Lim et al., 2024). Some scholars

also point out that Generation Z is passionate about

digital media (Statista, n.d.) Other scholars have

explored how Gen Z's values affect consumer

behavior from the perspective of the theory of

planned behavior, suggesting that values can also be

a major factor influencing Gen Z consumer behavior

(Zimand-Sheiner & Lissitsa, 2024). However, there is

still a lack of comprehensive research on the impact

of Z-generation consumers on the film market.

This paper is divided into five parts. The first part

is the introduction, which mainly introduces the

background of the study, the research topic, the

importance of the study and the literature review. The

second part is the characteristics of Generation Z

consumers, which mainly analyzes the upbringing,

values, and consumption behavior of Generation Z

consumers. The third part is the impact of Generation

Z consumers on the movie market, which mainly

discusses the impact of Generation Z consumers on

230

Yu, H.

The Impact of Generation Z Consumers on the Film Market: Behavioral Shifts and Industrial Transformation.

DOI: 10.5220/0013989100004916

Paper published under CC license (CC BY-NC-ND 4.0)

In Proceedings of the 2nd International Conference on Public Relations and Media Communication (PRMC 2025), pages 230-234

ISBN: 978-989-758-778-8

the transformation of movie content and changes in

communication and marketing modes. The fourth part

is based on the analysis to provide appropriate

suggestions for the development of film marketing,

with reference to certain case studies. The fifth

section is the conclusion, which mainly summarizes

the research results and looks forward to the future

development trend.

2 THE CHARACTERISTICS OF

Z-GENERATION CONSUMERS

Based on the previous research, the next section will

discuss the external environment of life, values

(internal), and the consumption characteristics

presented by today's Generation Z consumers.

Within the framework of the two-factor needs

theory, Generation Z, who grew up in an environment

rich in external material conditions, will be

intrinsically motivated to focus more on higher-level

needs such as emotional connection, belonging, and

respect, once their physiological and safety needs

have been fully satisfied. This shift in demand

motivation is reflected in a significant increase in

consumer behavior, with a preference for goods with

social attributes and products that provide emotional

value. At the same time, with the development of the

Internet, Generation Z consumers have a higher level

of trust in the Internet, which leads to their

vulnerability to online information relative to other

generations.

In addition to the influence of the external

environment on the consumer characteristics of

Generation Z consumers, internal values also have a

significant impact on consumer behaviors and

decision-making. For example, if a vegetarian will

not buy meat, or if marketing about meat does not

appeal to them, it is important to identify what the

values of the Gen Z consumer target group favor.

Under the influence of the external environment

mentioned earlier, Generation Z consumers are more

concerned about gender equality, social responsibility

and environmental protection than other generations

of consumers (Sawicka & Marcinkowska, 2023).

They prefer products and services that are in line with

their values. In the movie market, they are willing to

choose movies that reflect positive values, such as

movies about social issues and environmental

protection. Growing up in the Internet era, they have

a strong sense of globalization, reject the traditional

value judgment system, and pursue a personalized

and liberal lifestyle.

Based on the above analysis, we can conclude that

Generation Z consumers have the following

consumption characteristics. The first feature is

pursuing unique and diverse content and rejecting the

mainstream. Generation Z seeks unique and non-

mainstream experiences and therefore favors diverse

film genres and independent films. The second

feature is personalization. Generation Z values

personalized experiences and prefers content that

relates to their own experiences. The third feature is

focusing on Cost-Effectiveness (Jiang, 2024). Gen Z

consumers will compare the value for money of

different films and are more inclined to choose the

films that they consider to be the best value for

money, with data suggesting that Gen Z consumers

are more likely to engage in price compared to other

generations. They may prefer streaming services that

offer a variety of content at a lower cost. Greater

Reliance on Online Word-of-Mouth Social word-of-

mouth communication mechanism (Rahadjeng &

Harsono, 2024). Different from the traditional word-

of-mouth communication with one-way reception,

the online grass-raising behaviors of Generation Z

come with the social currency attributed to changing

the unilateral information dissemination into a two-

way window that can be issued and accepted. When

they post comments after grabbing a purchase on the

live stream, participate in a 10,000-person discussion

under a review video, or show off their unboxing

ninth in their circle of friends, they are essentially

constructing a digital identity through their

consumption behaviors. This sense of belonging

brought about by group interaction makes word-of-

mouth communication no longer a mere transmission

of information but evolves into a bond that sustains

social relationships.

The table reflects the amount of time adults spend

using different electronic devices at different ages.

Based on the data in the table below, it can be

concluded that Gen Z spends far more time online

than other generations.

The fourth feature is that Z generation consumers

prefer to make decisions by accessing information.

As technological development continues to permeate

their lives, Generation Z is more inclined to access

information and influence consumer decisions

through digital means. These Internet natives have a

natural trust in real evaluations within their social

circles - feedback from their classmates' groups,

reviews from vegetarians on RedNote, and unboxing

videos on B station are often more influential to their

consumption decisions than TV advertisements.

The Impact of Generation Z Consumers on the Film Market: Behavioral Shifts and Industrial Transformation

231

Table 1. Usage time of electronic products for people of all ages.

Age

Group

Smartphone Tablet Compute

Total Internet

18+ 3.25 hours 0.53

hours

0.53 hours 4.33 hours

18-24 4.62 hours 0.65

hours

0.77 hours 6.02 hours

25-34 4.05 hours 0.28hours 0.53 hours 4.85 hours

35-44 3.83 hours 0.47

hours

0.42 hours 4.72 hours

45-54 3.18 hours 0.40

hours

0.48hours 4.05 hours

55-64 2.65 hours 0.60

hours

0.55hours 3.78 hours

65+ 1.78 hou

s0.80

hours

0.58 hours 3.17 hours

Data source: Online Nation 2024 Report (Ofcom, 2024)

3 THE IMPACT OF

Z-GENERATION CONSUMERS

ON THE FILM MARKET

Based on the change of the main consumer, the

consumption characteristics of Generation Z have

also had an impact on the film market, not only in the

content creation of the film, but also in the way of film

distribution and the way of marketing before, during,

and after the film.

3.1 Promote the Diversification of Film

Content

In terms of film content, subsequent content creation

in the film market should present more innovative

storylines or promote core cultural values. For

example, this year's summer holiday hit film ‘Ne Zha

2’ was successful partly because it promoted the

cultural value of ‘man can win’, and in the film's

storyline, it did not completely follow the plot of the

classic story by writing the two protagonists as

adversaries, but instead wrote them as close friends,

which to a certain extent broke the stereotypical

thinking and brought unexpected developments to the

audience. At the same time, in the plot of the film, it

did not follow the classic story of the two protagonists

into a hostile relationship, but instead wrote them as

close friends, which to a certain extent breaks the

original inherent thinking, and also brings unexpected

development to the audience, which also corresponds

to the consumer characteristics of the Z generation of

consumers who pursue individuality and do not

follow the trend.

3.2 Promote the Transformation of

Playback Methods

The film distribution market is currently

characterized by a variety of models and an evolving

dynamic relationship between traditional cinemas

and streaming platforms. Traditional models that

have long emphasized the theatrical experience are

adapting to accommodate shorter shelf lives. Larger

studios such as Disney as well as Walt are developing

hybrid models (corporate production models) to

balance the interests of theatres and streaming

platforms (Orankiewicz & Adamczak, 2025).

Streaming platforms such as Netflix are pushing

direct streaming releases (executive production

models), while some films are launched in theatres for

very short windows of exclusivity before release on

streaming platforms (hybrid models).

Based on the way the film market is distributed

and communicated today, the traditional ‘window-

dressing’ effect is no longer effective in attracting

Gen Z consumers. In other words, more and more

films and film-related messages are coming to the

consumer, resulting in less time to sift through each

one, which leads to a much higher level of attraction

efficiency to match the habits of today's consumers.

This has led to the need for films to be much more

effective in engaging today's consumers.

3.3 Promoting the Change of

Marketing Models

In today's film market, interactive and participatory

marketing strategies have emerged as a significant

transformation. Film producers and distributors are

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now designing interactive activities that encourage

audience participation in movie promotion. For

instance, "Nezha 2" launched a series of interactive

activities on social media platforms, where fans could

vote for their favorite characters or participate in

creative contests. These activities not only increased

audience engagement but also generated a large

amount of user-generated content, further promoting

the film.

Another important aspect is fan meetings and

offline events. It has also become an important part of

film promotion. The organization of fan meets,

premieres, and other offline events provides fans with

the opportunity to interact with the cast and crew.

These events enhance the connection between fans

and the film and provide a newer way for audiences

to learn more about the film, not only through the

screen but also through interaction with the cast and

crew, and to a certain extent promote word-of-mouth

marketing. This is particularly effective for Gen Z

consumers, who are heavily influenced by online

information. Studies have shown that interactive

engagement has a greater impact on a film's box

office performance than individual engagement

(Castillo et al., 2021). As a result, these offline events

play a critical role in engaging young audiences and

driving film success.

4 SUGGESTION

The above discussion shows that there is a mutual

influence between Generation Z consumers and the

film market. On the one hand, Generation Z

consumers have had a significant impact on the film

market, contributing to the diversification of film

content, changes in broadcasting methods, and

changes in marketing models. On the other hand, the

film market has had a significant impact on Gen Z

consumers, providing them with a wide range of film

content and a variety of broadcasting methods, as well

as satisfying their need for emotional value. In the

following section, we will make recommendations for

the film market based on the current situation of the

film market and the characteristics of Generation Z

consumers.

In the part of improving interactivity, it is

believed that the movie market can boldly try new

technologies such as VR and AR technology to

stimulate the senses of consumers to give consumers

a deep impression, especially the movie theme and

science fiction special effects class related to the high

degree, it is easier to stimulate the senses of

consumers, in addition to the movie producers can be

in the relevant games or interactive AR and VR

buried a series of colorful eggs about the movie

provided to the audience (Kim et al., 2023). In

addition, movie producers can plant a series of eggs

about the movie in related games or interactive AR

and VR to provide the audience with a series of

measures that can continuously attract the audience

and extend the product life cycle.

In addition to the previously mentioned changes

in distribution and increased marketing interactions,

the focus on personalization and customization as

well as embracing sustainable and ethical practices is

also beneficial to the film market.

Focus on personalization and customization.

Generation Z consumers value personalization and

customization. Providing tailored advice, exclusive

content and personalized merchandise can increase

engagement and loyalty. A successful example of this

is the Harry Potter aftermarket game ‘Sorting hat’

which allows Gen Z consumers to be assigned to

different colleges based on the questions they answer,

which is a side-effect of the Harry Potter game. This

is a testament to the value of asserting that everyone

can be different and unique. In addition to giving

specific titles, other activities such as offering limited

edition collectibles or personalized digital content can

create a sense of exclusivity and special treatment.

What’s more, generation Z consumers are

increasingly concerned about environmental and

social issues. Promoting sustainability and ethical

practices in film production and marketing can be a

powerful way to market the environmental message

of a film's production but be careful not to fake it or

it could lead to word-of-mouth collapses. For

example, using environmentally friendly materials

for merchandise or partnering with organizations that

support environmental causes can resonate with their

values. Transparency and authenticity: Be transparent

in your business practices and clearly communicate

your film's values and mission; Gen Z values

authenticity and brands that demonstrate genuine

commitment to their values will build a stronger

connection with their audience.

5 CONCLUSION

By analyzing the characteristics of Generation Z

consumers, this paper further summarizes the impact

of Generation Z consumers on the film market, which

not only influences the noisy creation of film content

but also promotes the change of film promotion

methods. The symbiotic relationship between the

movie market and Generation Z consumers has

The Impact of Generation Z Consumers on the Film Market: Behavioral Shifts and Industrial Transformation

233

formed a distinctive interactive pattern. New

generation audiences are reshaping the industry

ecology with their unique cultural consumption

patterns: at the content level, giving rise to diversified

narrative themes and subcultural expressions; at the

communication level, promoting the innovation of

streaming media platforms and immersive viewing

experience; and at the marketing level, leading the

social fission and user co-creation of content

production models. In the face of such changes, the

industry has continued to meet the growing demand

for emotional resonance and value recognition of this

group through the development of segmented genre

films, the construction of cross-media narrative

systems, and big data-driven precision promotion and

distribution strategies.

According to the study, the industry needs to

grasp three core directions for future upgrading:

firstly, to build a personalized content

recommendation system based on user profiles, and

strengthen the conversion efficiency of the fan

economy; secondly, to integrate the concept of

sustainable development into the production process,

and convey youth values through the application of

green filming technology; and thirdly, to build an

ecosystem of UGC content, and enhance the

audience's participation in the creation experience by

making use of cutting-edge technologies such as

virtual production. These findings not only provide a

practical path for the transformation of the film and

television industry but also provide a new theoretical

perspective for the study of the characteristics of the

consumption behavior of digital aborigines.

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