COVID-19 has upended the media industry. This is how it can come back stronger

The fallout from the COVID-19 crisis is reaching every aspect of people’s lives and livelihoods. Global poverty is expected to increase for the first time since the 1998 Asian Financial Crisis, the US jobless rate is above 10%, and many nations are facing stark economic realities in light of the pandemic. No individual or business is immune, but small businesses and those who are part of the informal economy are disproportionately feeling the pain.

The media industry itself – from content creators to distributors – has been severely impacted. While consumer demand for content has skyrocketed, advertising revenues have steeply declined. The crisis has accelerated the devastation of local news organizations. There has been a widespread cancellation of events, lowered consumer spending outside the home due to closures and self-isolation, and disruptions to sectors such as music, gaming, sports and others.

A new report by the World Economic Forum and Accenture explores how the media industry has adapted to a number of challenges and stepped forward to help society in this crisis. It also highlights some considerations for the future of the industry.

Media companies have been stepping up financially:

Beyond direct financial contributions, paywalls have been removed for some COVID-19 content and many publishers are experiencing record audience levels in response. Information hubs and APIs such as Verizon Media’s Yahoo COVID-19 dataset have been built to keep the public informed and have made these tools available to the open source community.

Publishers are also stepping in to support mental health. Globally, social distancing and isolation have increased anxiety for millions of people, impacting their overall health and wellbeing. A recent report by the United Nations and the World Health Organization (WHO), for example, finds that concerns over COVID-19 have been contributing to a "high prevalence" of mental distress worldwide, particularly among healthcare workers and children.

The utility of largescale platforms with significant reach is clear in the light of COVID-19.

Use of media technology has also had a significant impact in responding to the crisis. For example, the WHO has been working with telecommunications companies to text people directly on their mobile phones with vital health messaging to help protect them from COVID-19.

In terms of direct response to the pandemic, technology has also played a critical role in supporting frontline workers.

While innovation has arguably reached new heights in the media sector, the pandemic has challenged the structure of industry and society as we know it, prompting players from across the media ecosystem to act and adapt to remain relevant to their stakeholders more than ever before.

Some late night talk shows and Netflix programmes are going remote, and new shows with ensemble casts have emerged. Concerts have been replaced with “live at home” shows, or series like #HappyAtHome: LIVE! from Bytedance’s TikTok, and even made their way on to gaming platforms like Fortnite featuring Travis Scott, allowing for creators to take their work directly to millions of consumers. Facebook and Instagram have pushed into e-commerce through their partnership with Shopify. Business models continue to change rapidly.

The industry has adapted to fulfil its mission to inform. Facebook took an approach to “remove, reduce, inform”. Fact checkers flag content and users who interact with misinformation are alerted. YouTube has said it’s updating its policies to remove videos that contradict WHO guidance.

The industry has embraced a mission to educate and has facilitated a vital means for schools and teachers to enter into a widespread global online education experiment. And for society in lockdown, entertainment has been critical to keeping spirits up.

Consumer trust has grown significantly across all institutions between January and May 2020 as measured by Edelman’s Trust Barometer. Society’s search for reliable information during the crisis is being fulfilled mostly by the government with trust at an all-time high.

It is evident that more can be done to build trust in media news and information. 67% of respondents agreed that “I worry that there is a lot of fake news and false information being spread about the virus”. While the media industry has taken steps to combat harmful content, there are still many falsehoods circulating online.

So while the pandemic has wreaked havoc on a media industry left reeling, there is nevertheless an opportunity to build further on a rising sentiment of trust as the post-pandemic media landscape emerges.

The media’s role to inform, educate, connect and entertain society has measured up. If it is to be sustained, a financially viable and sustainable media ecosystem requires careful direction. Collaboration across the public and private sector in areas such as using data for public good, keeping the public informed with quality content, and keeping people safe online, will be key to coming out of this crisis stronger.