The Peak-End Rule & Rethinking Entertainment

Let’s try something. Think back to a recent significant event in your life. Maybe it was an important presentation, a family gathering, or a job interview. What is your lasting impression of it? Was it a positive or negative experience?

Now, consider how you arrived at that conclusion. Chances are, you didn’t replay every moment from the event to come up with your overall assessment. Instead, a few key highlights likely shaped your opinion.

This is because people don’t remember experiences by taking the sum of individual events that occur throughout the experience. Instead, we remember experiences based on their most intense moment (the peak) and how they ended (the end). This psychological bias, known as the Peak-End Rule, was first identified in a 1993 study by Daniel Kahneman, Barbara Fredrickson, Charles Schreiber, and Donald Redelmeier.

The researchers conducted a fascinating experiment. Participants underwent two different discomforting experiences:

1. A shorter episode of intense pain.

2. A longer episode of pain, but with a slightly less painful ending.

Logically, the second experience should have been worse since it lasted longer. Yet, participants actually preferred it over the shorter, more painful episode of pain, proving that our memories don’t evaluate experiences based on total duration. Instead, we judge based on how bad (or good) the peak was and how it ended. This explains why we often remember our favorite vacations as those that ended on a high note, even if there were stretches of boredom along the way.

I recently saw this phenomenon in my own life when planning my wedding. I used The Black Tux to rent matching tuxedos for myself and my groomsmen, spending hours beforehand browsing their website and trying on outfits. But my final opinion of the service wasn’t shaped by this longer, preparatory phase. Instead, what mattered was:

1. The Peak – Did the suits look great on the big day?

2. The End – Did everything arrive on time, avoiding stress?

If someone asked me about my experience with The Black Tux’s service, I wouldn’t go into every detail leading up to the wedding day. My answer would simply come down to whether it got the job done or not.

Keep in mind the Peak-End Rule doesn’t just apply to one-off situations. For example, it’s shaping the entertainment industry in ways investors, marketers, and startups can capitalize on.

Why High-Demand Entertainment Works Across Formats

With 91% of consumers feeling more optimistic about a brand after engaging in an interactive experience, companies are increasingly transforming high-demand entertainment into new formats. Whether it’s turning a hit show into an immersive event or reimagining sports with innovative viewing experiences, businesses are tapping into the power of familiarity, giving people fresh ways to enjoy what they already love.

Here are some of the best examples of this in action:

🎮 Fortnite Concerts – Gaming Meets Live Entertainment

• Fortnite's virtual concert featuring Snoop Dogg, Juice WRLD, Eminem, and Ice Spice attracted a record 14.3 million players.

• Fans didn’t just watch a concert—they lived it. They experienced exhilarating visuals and vocal performances through immersive in-game interactions.

• Even after Fortnite's peak popularity had passed, the game found a way to capitalize on its appeal, creating new and engaging experiences for its audience.

🏈 Nickelodeon x NFL – Cartoon Meets Live Sports

• CBS Sports & Nickelodeon’s NFL Wild Card Game became the most-watched in seven years, proving that repackaging a familiar experience (football) with a new emotional twist (Nickelodeon's playful animations) resonates with audiences.

• For traditional football fans, it may be surprising to see this production had success. But the key is that it’s not designed for them. It’s designed for a completely different audience that introduces new fans to the experience.

🏌️‍♂️ TGL – Golf Reimagined for TV Audiences

• The debut of Tiger Woods and Rory McIlroy’s indoor golf league drew 919,000 ESPN viewers, which outperformed major live golf events such as any LIV Golf event in 2023 or 2024 and the PGA Tour’s season opener (The Sentry).

• By transforming golf from a slow, four-day tournament into a fast-paced, two-hour event, TGL is making the golf viewership experience more accessible and appealing to casual fans.

🦑 Squid Game – Bringing a Streaming Hit to Life

• Netflix transformed its global hit Squid Game into a live, interactive event where fans can play the show’s famous challenges.

• By collaborating with experiential companies to create immersive, real-life versions of the games portrayed in the show, participants can compete in iconic games like "Red Light, Green Light" in a themed environment.

The Takeaway

People don’t just want to watch entertainment. They want to feel it, live it, and share it. Companies that recognize this are winning by transforming high-demand content into new formats. And by leveraging the Peak-End Rule through immersing consumers in thrilling moments and delivering memorable endings, these companies and brands can create the most compelling and desirable experiences.

It’s not about how long the experience lasts. It’s about how it makes people feel.