The media industry accelerates its change with Covid-19

The media industry has accelerated its change with the Covid-19 pandemic, according to an analysis published by the World Economic Forum (WEF).

Accenture forecasts that the contribution to global GDP of the communications, media industry and platform sectors, which include traditional media companies and digital native companies, will see a compound annual growth rate (CAGR) of 8% from 2019 to 2022, compared to a CAGR of 0.5% across all industries.

Despite this relatively strong anticipated growth, the industry is not insulated from the economic fallout of the Covid-19 pandemic.

According to the WEF, monthly global household spending on media and entertainment in 2022 is projected to be 30-40% lower compared to 2019, while global advertising spending for 2020 is expected to decline 8.1% from 2019 levels.

Covid-19 has accelerated secular changes in the media and entertainment industry. The consumer gap between digital and traditional channels has widened.

For example, in the United States, the CAGR for media time between 2018 and 2022 is projected to be + 5% for digital channels and -2% for traditional channels.

Meanwhile, in China, the gap is widening faster, an 8% annual growth for digital channels and a 3% annual drop for traditional channels. The WEF analysis shows that much of this incremental time in digital media will be spent on social media platforms and digital video.

Media industry

Since the pandemic began, 50% of Millennials and Gen Zers report spending more time on YouTube, 47% spend more time on Facebook, and 34% on Instagram.

Consumers are expected to maintain high levels of consumption on these platforms once the crisis subsides.

These economic and behavioral changes are accelerating transformation throughout the ecosystem.

This WEF document is part of a series investigating the impact of Covid-19 on the media and entertainment industry, outlining the long-term implications for the media ecosystem, including changes in the structure of the media industry. media, user experience, monetization, and data practices.

The report highlights six implications for the media and entertainment industry, each with a value map to illustrate the main impacts for industry players.

Overview of key implications

Source: WEF.