Media and Entertainment

The digitization of content is an ongoing trend and issue for publishers. The old saying “adapt or die” applies directly here. The publishing companies that faced the challenge and are still alive created online content and adapted their products for laptops, tablets, and smartphones. They’ve strategized ways to keep revenue flowing, such as through digital subscriptions. The magazine industry was hit hard during the recession (more than 1,500 magazines went out of print between 2007 and 2009) and has struggled in the years since, with many well-known publications going out of print. For example, the very last issue of the print edition of Newsweek was published on December 31, 2012, ending an 80-year print run. It had been incorporated into the Daily Beast, a news and commentary Web site that closed its doors in 2013. There had been a slight increase in the number of magazines in operation in the United States, growing to 7,218 in 2018, up from 7,176 the previous year. Then came the pandemic, which caused a decline in publishing ad revenue and staffing layoffs starting in 2020. The research group Statista reported that as of September 2023, there were 5,094 magazine and periodical businesses in the United States, representing more than a 2 percent decline since 2018. The printed magazine continues to be popular, however, although the average time most people spend on print media is about 20 minutes.

A Publishers Weekly article, “Startups and the Future of Publishing,” pointed out that with all the available online content, getting readers’ attention is more challenging than ever before. The information that publishers share doesn’t have to be free, but they have to find new platforms to deliver content and to inspire word of mouth, as that has become an important factor in driving the demand for books. Economist Joshua Gans, author of Information Wants to be Shared, suggested that “publishing has returned to its roots of shared content and shared funding via subscription models that also offer the ability to track how content is used and to charge accordingly.” Gans also pointed out that publishers can no longer rely on “display” as a marketing device for books. Traditionally, people have had two reasons to buy books: they want to read them, and they want to display them in their homes or offices. Remove the display option and the reading of books becomes the focus. As with any transition, there is adjustment and falloff. One constant, however, is that people still want to read. Publishers have opportunities to share information in new ways and with broader audiences.

Tablets and smartphones, also known as second and third screens, have become popular devices for access to media and entertainment, including television. Not too long ago nearly every U.S. household had a television set. Now, more than one-third of Americans have several devices in their homes. About 85 percent own a smartphone, about 77 percent have a laptop or desktop computer, and 53 percent have a tablet, according to Pew Research Center. In addition, there is now a "hyper-connected" group: many American households have 20 or more of these devices as well as smart home devices. More television sets are now connected to the Internet, enabling viewers to choose their entertainment online. People are also streaming Web content to their televisions with devices such as Amazon Fire TV Stick, Apple TV, and Roku, which have pre-installed software that brings Internet television and video to televisions. There is still free Internet-based programming available and many of the major TV networks have streaming services, but many services that had once been free now require paid subscriptions. Social media TV also continues to grow, as television viewers are multitasking with social media while they’re watching television programs. They’re using their mobile devices to chat on Facebook, Instagram, TikTok, and other sites.

The film industry continues to recover from the pandemic and many film companies are trying to figure out new ways to attract viewers. During the lockdowns, many people got used to watching movies at home through streaming services. In 2022, Cineworld, which owns Regal, filed for Chapter 11, and industry experts foresee more waves of bankruptcies to come. Some innovative companies have come up with ways to connect with viewers by offering gifts and special meals to movie attendees. The film company Alamo Drafthouse gave packets of googly eyes to attendees at special screenings of its film Everything Everywhere All At Once. Attendees at its horror film The Menu were offered a menu that included poached oysters and biodynamic wines, so they could be in sync with the film characters. Rethinking the traditional film business model is helping companies like Alamo stand out from the pack. According to an article in Variety, "...in a rollercoaster year for movies, Alamo has outperformed the industry by double digits." Film companies that have produced movie sequels have also fared well of late. In 2022, the top box office sales were for franchises, and the majority of the top-grossing films were sequels. Movie studios are also taking into account which film genres are best for theatrical releases or direct to consumer as streaming releases.

There are now new platforms for streaming services, enabling a variety of partnership options for special effects companies, for example, the company Spin VFX partnered with Amazon and Netflix to create a number of original shows. Other movie industry trends and issues, as noted in an American Cinematographer article, include the growth of episodic content, with independent filmmakers creating multi-hours series for a "new kind of Cinema"; the need for more original content vs. more of the same superhero stories; and most importantly, growth in the diversity of movie characters and in the diversity of filmmakers.

In the radio broadcasting industry, many radio brands have been making online video more of a priority, turning radio into something that can be watched as well as heard. Many radio networks have created Web platforms for their on-air products and programs, and are starting to explore incorporating video to their sites. Podcasting continues to grow and many Americans now listen to podcasts and radio broadcasts through smart speakers. This trend is expected to continue to grow and many radio stations are offering podcasts through their Web sites. Another trend that radio broadcasters are paying attention to is the growth of connected cars that have systems such as Apple Carplay and Google Android Auto. As described by a broadcasting executive, in a Radio World article, radio broadcasters have new opportunities to reach more listeners through the connected cars: "It really opens up the opportunity for the audience to interact with the media... Think about NPR or any other content house, and think about how much more they could do with an audience in a vehicle that's moving but with no distraction. Those are the collaboration opportunities we are exploring."