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Ups and downs - growing gap in Q3 2020 revenue of online platforms vs traditional media companies

What’s happening?

Ups: After a slight decline on online platforms revenues on average in Q2 2020 due to the COVID-19 pandemic, the digital native segment (and each and every company in it) proves a significant growth in Q3 2020 according to latest financial reports of publicly trading companies. 

Downs: However, the revenue trends of traditional media companies do not seem to be so positive despite most of them having additional revenue sources other than advertising. After an average decrease of 22% in Q2 some of them started to grow, but their revenue index compared to Q1 2018 is still below the base quarter’s revenue.

It means that there is a growing gap between online platforms and traditional media companies due to the COVID crisis.

Why is it important?

We face not only an economic crisis but a radical shift to digital because of social distancing measures since March 2020. Traditional media companies are hit by both, and the natural advantage of digital natives adds a new layer to the growing competition gap between their less regulated businesses and opportunities versus of traditional media companies.

This phenomena has to be considered in regulatory, policy making and state aid discussions and decision making.

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