Connect with us

Reports

Less Than Half Pay for Media, News and Entertainment, But Willingness to Pay Is Rising

Published

on

Less than half of consumers pay for media, with 16% paying for news and 44% paying for entertainment – but a willingness to pay is rising, according to new research published by the World Economic Forum.

Between 80% and 90% of consumers spend 24 hours reading, watching or listening to news and entertainment per week. Almost 60% of consumers have registered for a media service (free or paid) and have on average seven media services covering video, sport, gaming, music, podcasts, news and blogs. The study also highlights three strategic shifts in media – new payment architectures, the rise of podcasts and changing advertising environments.

“The current coronavirus challenge only emphasizes the indispensable role that media play in society today. With the value of content growing, the industry needs financial models that enable them to fulfil their social functions while still supporting widespread access to critical content. This can’t happen in isolation: it requires dialogue, including with regulators, to find solutions that balance innovation, consumer welfare and corporate responsibility of every stakeholder in the media industry”, said Kirstine Stewart.

The research is based on a survey, conducted for the Forum by Nielsen between early October and late November 2019, which asked more than 9,100 people in China, Germany, India, South Korea, the United Kingdom and the United States about their media consumption and payment habits and preferences. In addition, between May 2019 and January 2020 the World Economic Forum consulted around 100 executives from advertising, entertainment, news and other parts of the media industry about business strategies to attract and retain consumers – along with the implications these could have for society.

The consolidated findings show that, although the proportion of people paying for content may be small today, future willingness to pay is rising. Globally, those willing to pay in the future is 53% for news and 70% for entertainment.

Furthermore, two of the most dynamic global economies – China and India – show reasons for optimism. In China, 25% pay for news and 59% have at least one paid video or sport service, numbers may be explained by the greater prevalence of pay-per-use models in the country.

In India, consumers report a significant willingness to grow the number of news and entertainment services they pay for. Respondents say they are willing to pay for closer to three entertainment services and four news services, more than the maximum of between one and two services that most other countries report a willingness to pay for. This is juxtaposed with data from other countries, where consumers appear inclined to reduce their number of paid entertainment services, reporting preferences for a reduction in the number they have at present.

The findings also show that across countries young people (16-34) are more likely to pay for content. An average of 61% currently pay for entertainment and 17% for news, figures that are in both cases above the global averages in the general population. Looking at socioeconomic status, however, shows a greater presence of paid news subscriptions among higher income or higher status individuals. This suggests that concerns of emerging “information inequalities”, where wealthier consumers have access to more or higher quality information, are very real.

With this in mind, the Forum’s research considers the important question of who should be responsible for funding the production of content. On average, most consumers (55%) are aware that advertising can subsidise content creation. Yet almost half of respondents skip adverts whenever possible and almost three in four make efforts to reduce their exposure to it.

Although advertisers, consumers and governments each have a role to play in financing content, the survey results suggest that consumers expect governments to take a bigger role in supporting access to news than entertainment: 35% versus 18% respectively.

As these trends play out in an increasingly dynamic media environment, media companies are pursuing strategies to attract and retain paying consumers. The paper discusses the implications of moves into media by so-called “supercompetitors” in the digital economy.

These companies use content to drive value to other parts of their businesses and in doing so create opportunities and challenges for the industry. The Forum argues for further study of the impact of these actions on the media landscape and the wider economy and calls for an examination of how regulation could be used to balance innovation, consumer welfare and corporate responsibility more effectively.

Continue Reading
Comments

Reports

Lithuania: COVID-19 crisis reinforces the need for reforms to drive growth and reduce inequality

Published

on

Effective containment measures, a well-functioning health system and swift public support to firms and households have helped Lithuania to weather the COVID-19 crisis to date. That said, the pandemic still carries significant economic risks, and the recent upsurge in infections is very concerning. Once a recovery is under way, Lithuania should aim to reform public companies, strengthen public finances, and ensure that growth benefits all people and regions, according to a new OECD report. 

The OECD’s latest Economic Survey of Lithuania says that prior to COVID-19, good economic management and an investment-friendly business climate were helping to lift average Lithuanian incomes closer to advanced country levels. While the recession provoked by the virus has been milder than elsewhere – with GDP projected to drop by 2% in 2020 before rebounding by 2.7% in 2021 – Lithuania’s small and open economy will be vulnerable to any prolonged disruption to world trade. Increasing public investment and improving governance at state-owned enterprises could help lift growth and productivity. Other reforms should focus on improving the effectiveness of spending and taxation. Over the longer term, Lithuania should establish a clear debt reduction path and a long-term debt target.

“Lithuania’s sound economic management of recent years, and its swift response to both the health and economic aspects of the pandemic, are helping the country to weather the COVID-19 crisis,” said OECD Secretary-General Angel Gurría. “It is now key to build on these achievements and restart the reform engine to ensure robust, sustainable and inclusive growth for the future.”

The pandemic has exposed high levels of income inequality in Lithuania, where relative poverty is high among the unemployed, the less educated, single parents and older people due to a tax-benefit system that is insufficiently redistributive. The Survey recommends Lithuania to continue providing temporary support to people and businesses hit by COVID-19, as well as to increase regular social support while retaining incentives to work.

In terms of support to the economy, the Survey notes that while Lithuania’s government spending has increased considerably over the past two years, it remains below the OECD average. Public investment also remains low. Given the importance of modernising infrastructure and stimulating crisis-hit demand, the Survey recommends maintaining or increasing current levels of investment and improving investment quality by carrying out rigorous cost-benefit analysis for individual projects. Increasing investment in rural areas, and giving local government more say in tax policy and spending, could help reduce regional disparities and promote inclusive growth.

The Survey also recommends phasing out environmentally damaging fossil fuel subsidies and increasing environmental taxation, which would benefit public finances while helping the shift to a lower-carbon economy.

Continue Reading

Reports

United States confirms its leading role in the fight against transnational corruption

Published

on

The United States continues to demonstrate an increasing level of anti-bribery enforcement, having convicted or sanctioned 174 companies and 115 individuals for foreign bribery and related offences under the Foreign Corrupt Practices Act (FCPA) between September 2010 and July 2019. The United States is thus commended for a significant upward trend in enforcement and confirming the prominent role it plays globally in combating foreign bribery.

The 44-country OECD Working Group on Bribery has just completed its Phase 4 evaluation of the United States’ implementation of the Convention on Combating Bribery of Foreign Public Officials in International Business Transactions and related instruments.

Given developments since the United States’ last evaluation in 2010, the Working Group made a range of recommendations to the United States, including to:

  • Consider ways to enhance protections for whistleblowers who report potential FCPA anti-bribery violations by non-issuers and provide further guidance on available whistleblower protections;
  • Continue to further evaluate and refine policies and guidance concerning the FCPA;
  • Make publicly available the extension and completion of NPAs and DPAs with legal persons in foreign bribery matters as well as the grounds for extending DPAs in FCPA matters;
  • Continue to evaluate the effectiveness of the Corporate Enforcement Policy in particular in terms of encouraging self-disclosure and of its deterrent effect on foreign bribery; and
  • Continue to address recidivism through appropriate sanctions and raise awareness of its impact on the choice of resolution in FCPA matters.

The report praises the United States for its sustained commitment to enforcing its foreign bribery offence as well as its key role in promoting the implementation of the Convention. This achievement results from a combination of enhanced expertise and resources to investigate and prosecute foreign bribery, the enforcement of a broad range of offences in foreign bribery cases, the effective use of non-trial resolution mechanisms, and the development of published policies to incentivise companies’ co-operation with law enforcement agencies.

The report also notes a large number of positive developments and good practices, such as the DOJ’s reliance on several theories of liability to hold both companies and individuals responsible for foreign bribery, and the United States’ successful co-ordination that has allowed multi-agency resolutions against alleged offenders in FCPA matters. In parallel, the United States has increasingly sought to co-ordinate and co-operate in investigating and resolving multijurisdictional foreign bribery matters with other jurisdictions. Finally, the United States has helped foreign partners build their capacity to fight foreign bribery through joint conferences and peer-to-peer training thus enabling the law enforcement authorities of these countries to better investigate and sanction prominent foreign bribery cases.

The United States’ Phase 4 report was adopted by the OECD Working Group on Bribery on 16 October 2020. The report lists the recommendations the Working Group made to the United States on pages 111-113, and includes an overview of recent enforcement activity and specific legal, policy, and institutional features of the United States’ framework for fighting foreign bribery. In accordance with the standard procedure, the United States will submit a written report to the Working Group within two years (October 2022) on its implementation of all recommendations and its enforcement efforts. This report will also be made publicly available.

The report is part of the OECD Working Group on Bribery’s fourth phase of monitoring, launched in 2016. Phase 4 looks at the evaluated country’s particular challenges and positive achievements. It also explores issues such as detection, enforcement, corporate liability, and international co-operation, as well as covering unresolved issues from prior reports.

Continue Reading

Reports

Skills and lifelong learning critical for all workers

Published

on

The International Labour Organization has published a new guide for trade unions on skills development and lifelong learning.

The guide “Skills Development and Lifelong Learning: Resource Guide for Workers’Organizations” , published by the ILO’s Skills and Employability Branch and Bureau for Workers’ Activities (ACTRAV) addresses key challenges facing workers’ organizations, including best practices, key priorities and main challenges. It also outlines why trade unions should be involved in skills development and lifelong learning.

According to the guide, building the capacity and engagement of workers’organizations in skills development and lifelong learning, based on a human-centred approach and International Labour Standards, will help build a ‘better normal’ in the post-COVID-19 World.

“What matters in the end, is that ALL workers can acquire the skills of their choice to get jobs and to keep jobs, and to be equipped to face the transitions they will be confronted with over the working life. Skills development and lifelong learning are essential to enhance workers’ capabilities to participate fully in decent work, to contribute to human development, active citizenship and the strengthening of democracy,” said Maria Helena André, Director of the ILO’s Bureau for Workers’ Activities.

The guide is designed for workers’ organizations, trainers, facilitators and ILO officials. It is part of a comprehensive programme of support for workers’organizations in preparation for the 2021 International Labour Conference (ILC), which will discuss skills and lifelong learning. It also paves the way for the general discussion on standing setting for apprenticeships, which takes place at the ILC in 2022 and 2023.

“If the lifelong leaning notion has to become a reality, the link between the world of education and the world of work needs to be very strong, bringing these together, through a process of social dialogue where governments, employers, and workers organization jointly formulate policies and programmes,” said Srinivas Reddy, Director of the ILO SKILLS Branch.

A Global webinar  bringing together workers’ organizations, technical experts, academics and senior ILO officials was held on the November 18th 2020 to launch the guide.

Continue Reading

Publications

Latest

Defense59 mins ago

On the Universality of the “Logic of Strategy” and Beyond

Just like several other scholars, military strategist Edward Luttwak argues that “the universal logic of strategy applies in perfect equality...

Environment3 hours ago

Oil and Gas Industry commits to new framework to monitor, report and reduce methane emissions

In a move that will help tackle one of the biggest and most solvable contributors to the climate crisis, major...

Africa Today5 hours ago

Somalia at a crossroad, UN envoy urges ‘deepened’ political consensus

The “broad political consensus” reached in September that ended a two-year stalemate in Somalia must be “preserved and indeed deepened”,...

Green Planet7 hours ago

Climate Change – call for a united front

“Nature bears long with those who wrong her. She is patient under abuse. But when abuse has gone too far,...

Energy News9 hours ago

$600 Million ADB Loan to Expand Energy Access in Eastern Indonesia

The Asian Development Bank (ADB) has approved a $600 million loan to help the State Electricity Corporation (PLN), Indonesia’s state-owned...

Human Rights11 hours ago

Urgent action to end ‘pandemic of femicide and violence against women’

COVID-19 is overshadowing what has become a “pandemic of femicide” and related gender-based violence against women and girls, said independent UN human rights expert Dubravka Šimonović on Monday, calling for the universal establishment...

EU Politics13 hours ago

Inclusion for all: Action plan on Integration and Inclusion 2021-2027

Commission is presenting the action plan on Integration and Inclusion for the period 2021-2027. The action plan promotes inclusion for...

Trending