The media industry is facing numerous challenges in 2023, with rising costs, decreasing interest from advertisers, and news avoidance being among the top concerns for publishers. In addition, media companies are expected to shift their focus to youth-based social networks such as TikTok, while newspapers may stop daily print production and broadcast news may see layoffs due to competition from streaming services. The industry is also predicted to experience a correction in the creator economy, with collectives and micro-companies emerging as a new trend.
The new report has highlighted the challenges facing news media in 2023, including inflation, household spending cuts, and global events such as Russia’s invasion of Ukraine and the impacts of the COVID pandemic. While journalism has thrived in these conditions, the relentless nature of the news agenda is leading to news avoidance and disconnection from audiences. The report suggests that publishers may need to rethink their offer to include more hope, inspiration, and utility in their content. Big Tech platforms are also facing pressure to prioritize content that benefits society over outrage and anger, with the hope that new networks and models will emerge. The report also highlights the potential for artificial intelligence to offer more personalized information and formats, but warns of ethical concerns such as deep fakes and deep porn. The report emphasizes the importance for news organizations to fully embrace digital and transform their content to meet changing audience expectations.
According to the report, media leaders are less confident about their business prospects for the year ahead, with rising costs, lower advertiser interest, and a softening in subscriptions being the biggest concerns. Despite this, most publishers are worried about increasing news avoidance, especially around topics like Ukraine and climate change. To counter this, publishers plan to produce explainer content, Q&A formats, and inspirational stories, while some are investing in subscription and membership as their top revenue priority. The report also highlighted that publishers are putting more effort into platforms like TikTok, Instagram, and YouTube, with LinkedIn emerging as the most popular alternative to Twitter. Additionally, media companies are increasingly integrating AI into their products to deliver more personalized experiences and experimenting with new formats like podcasts and email newsletters.
The report also predicts other possible developments in the media industry for 2023, including a continuation of newspapers stopping daily print production due to rising costs and weakening distribution networks. TV and broadcast news may also see journalistic layoffs due to news fatigue and competition from streaming services, with more broadcasters discussing the possibility of turning off linear transmissions. There may also be a correction in the creator economy, with collectives and micro-companies becoming a new trend for journalism businesses. As for the metaverse, Smart glasses and VR headsets are expected to continue to attract attention, with the addition of ‘legs’ to Facebook’s metaverse taking years and billions of dollars in investment, but the report suggests it won’t win over critics or make the concept more relevant for journalism.
The entire report can be found here.