Sporting events, amusement parks, video games, and traditional linear video are the most effective monetizers of attention, generating the greatest revenue per hour relative to their levels of consumption (Exhibit 3). Media operators have invested heavily in the first three mediums, with new launches (such as Universal’s Epic Universe) poised to benefit from highly efficient monetization. While legacy media is retreating from the efficient monetization frontier, 3 digital mediums are growing toward it. Although this monetization varies within mediums, the mediums across which an organization operates go a long way in determining how effectively that organization converts attention into revenue (and, ultimately, profit). Exhibit 3 fffiffifl- -fi     ffifl-flfl-  US consumer media and efficient monetization frontier ¹ in 2024, by medium 1 Activities that maximize an output for a given level of inputs or constraints. For consumer attention mediums, it represents highest level of monetization for any given level of consumption. Mediums on efficient monetization frontier achieve highest level of monetization for given level of consumption (eg, no medium has both higher monetization and more consumption than console and PC games). Source: EMARKETER; MAGNA; Omdia; PwC; McKinsey analysis Digital media is approaching the efficient monetization frontier, and legacy media is retreating from it. McKinsey & Company 300 350 200 100 250 150 50 Hours consumed/year, billion $/hour consumed, log scale 100 10 1 0.1 0 Sporting events Amusement parks Live music Theatrical video Console and PC games Print newspapers Podcasts Digital magazines Digital newspapers Digital music Social media Streaming video Radio Social video vMVPDs² Audiobooks Print magazines Book publishing Mobile games Circle size = profit pool, $ billion 0 2 5 10 –2 Efficient monetization frontier Projected $/hour 202428 CAGR, % 45 15 2 Linear video 3 A n efficient monetization frontier comprises activities that maximize an output for a given level of inputs or constraints. For consumer attention mediums, it represents the highest level of monetization for any given level of consumption. 7 The ‘attention equation’: Winning the right battles for consumer attention