2022 is expected to be a year of careful consolidation for a news industry that has been both disrupted and galvanized by the drawn-out COVID-19 crisis, according to the results of a journalism, media and technology survey released by Reuters Institute and the University of Oxford.
Among highlights:
In many parts of the world, audiences for news media have been falling throughout 2021 – not an ideal situation at a time when accurate and reliable information has been so critical to people’s health and security. A key challenge for the news media this year is to re-engage those who have turned away from news – as well as to build deeper relationships with more regular news consumers.
Generational change will also continue to be a key theme, leading to more internal soul-searching in newsrooms over diversity and inclusion, about emerging agendas such as climate change and mental health, and about how journalists should behave in social media.
On the business side, many traditional news organizations remain relentlessly focused on faster digital transformation as rising newsprint and energy costs look to make print unsustainable in some countries. Charging for online news is the end-destination for many, but expect subscription fatigue to limit progress, especially if economic conditions worsen.
After a period where digital advertising revenue has leaked away to giant platforms, publishers have an opportunity to secure better results this year. Tighter privacy rules limiting third-party data, along with concerns about misinformation, have already started to swing the tide back towards trusted brands, but advertising remains a competitive and challenging business, and not every publisher will thrive.
How do Media Leaders View the Year Ahead?
Almost six out of ten of our respondents (59%) say their revenue has increased over the last year, despite the fact that more than half (54%) also reported static or falling page views. Publishers report that digital advertising has boomed with more people buying online, while subscription revenue has also increased.
Three-quarters (75%) of our sample of editors, CEOs, and digital leaders say they are confident about their company’s prospects for 2022, though fewer (60%) say the same about the future of journalism. Concerns relate to the polarization of societies, attacks on journalists and the free press, and the financial sustainability of local publications.
More publishers plan to push ahead with subscription or membership strategies this year, with the majority of those surveyed (79%) saying this will be one of their most important revenue priorities, ahead of both display and native advertising. At the same time, many respondents (47%) worry that subscription models may be pushing journalism towards super-serving richer and more educated audiences and leaving others behind.
Publishers say that, on average, three or four different revenue streams will be important or very important this year. Almost three in ten (29%) expect to get significant revenue from tech platforms for content licensing or innovation, with 15% looking to philanthropic funds and foundations – both up on last year. Others are hoping to restart events businesses that stalled during the COVID-19 crisis.
Publishers say they’ll be paying less attention to Facebook (-8 net score) and Twitter (-5) this year and will instead put more effort into Instagram (+54), TikTok (+44), and YouTube (+43), all networks that are popular with younger people. At the same time many news organizations will be tightening their rules on how journalists should behave on social media. In our survey most editors and managers feel that journalists should stick to reporting the news on Twitter and Facebook this year and worry that expressing more personal views could undermine trust.
Specifically, publishers say that they will be putting more resource into podcasts and digital audio (80%) as well as email newsletters (70%), two channels that have proved effective in increasing loyalty as well as attracting new subscribers. By contrast just 14% say they’ll be investing in voice and just 8% in creating new applications for the metaverse such as VR and AR.
Media companies continue to bet on artificial intelligence as a way of delivering more personalized experiences and greater production efficiency. More than eight-in-ten of our sample say these technologies will be important for better content recommendations (85%) and newsroom automation (81%). More than two-thirds (69%) see AI as critical on the business side in helping to attract and retain customers.
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