The Great Media Reset: How COVID-19 Changed the Industry Forever

The COVID-19 pandemic profoundly transformed the media and entertainment industry, not only accelerating trends that were already underway but also forcing companies to rethink their strategies for content creation, distribution and monetization. As lockdowns confined people to their homes, digital consumption surged, driving fundamental shifts in viewing habits, business models and operational efficiencies. Now, five years later, it’s time to reflect on the major changes we’ve witnessed. What was once seen as a temporary response to an unprecedented crisis has now become a permanent evolution, shaping the industry’s future in profound ways.

Surge in On-Demand Viewership

With theaters closed and live productions halted, audiences turned to streaming services in record numbers. Platforms like Netflix, Amazon Prime Video and Disney+ saw massive subscriber growth, intensifying what became known as the “streaming wars.” This fierce competition among services highlighted consumer demand for flexible, on-demand entertainment. Binge-watching became a dominant behavior, and studios pivoted to direct-to-digital releases, bypassing traditional theatrical windows in favor of streaming premieres. The long-term impact has solidified on-demand consumption as the new normal, even as traditional TV continues to decline.

Enduring Popularity of Live Sports

Despite the surge in on-demand viewing, live sports have remained one of the strongest pillars of the entertainment industry. The real-time, communal nature of sports creates an engagement level that pre-recorded content struggles to match. Recognizing this, major streaming platforms have invested heavily in acquiring exclusive sports rights. For instance, Amazon secured an 11-year, $113 billion deal to stream National Football League (NFL) games on Prime Video, underscoring the immense value of live sports in driving subscriptions and viewer retention. This trend is expected to continue, with sports streaming becoming a crucial battleground for platforms looking to differentiate themselves.

Operational Efficiency Through Automation and Cloud Solutions

The pandemic forced media companies to optimize their operations, leading to an industry-wide embrace of cloud-based solutions and automation. With production teams working remotely, cloud workflows became essential for collaboration, content storage, and distribution. Automation in content creation, metadata tagging and even AI-driven video editing has streamlined operations, reducing costs and improving efficiency. This shift has made content production more agile, scalable and resilient against future disruptions.

Diversification of Revenue Streams and Ad-Based Models

As economic uncertainty hit consumers and subscription fatigue set in, media companies began exploring alternative revenue models. The ad-supported streaming model, once seen as secondary to premium subscriptions, has now gained traction as a sustainable way to monetize content. Platforms like Netflix and Disney+ have introduced lower-cost, ad-supported tiers, offering a middle ground between affordability for consumers and profitability for providers. This hybrid monetization strategy helps companies expand their reach while diversifying revenue streams beyond traditional subscription models.

Proliferation of OTT Platforms and the Re-Bundling Trend

The explosion of over-the-top (OTT) platforms created an era of content fragmentation, with consumers subscribing to multiple services to access their preferred content. While this fragmentation initially gave audiences more choice, it also led to rising costs and subscription fatigue. Now, the industry is shifting toward a re-bundling approach, where partnerships and aggregation deals aim to simplify access to multiple services under a single package. This mirrors the traditional cable model but with greater flexibility, allowing consumers to customize their viewing options while reducing overall costs.

Emergence of Short-Form Social Media Content

The pandemic also fueled the rise of short-form content, with platforms like TikTok, Instagram Reels, and YouTube Shorts seeing unprecedented engagement. As attention spans shrink and mobile consumption dominates, traditional media companies have had to adapt by creating bite-sized content to stay relevant. News outlets, entertainment brands, and even streaming giants now produce short form clips to capture audience attention in an increasingly competitive digital landscape.

Conclusion

The COVID-19 crisis was a turning point for the media and entertainment industry, acting as a catalyst for transformation. From the dominance of on-demand streaming and the resilience of live sports to the rise of cloud-based production, ad-supported models and short-form content, the industry has adapted to meet the evolving preferences of a digital-first audience. While some changes were a direct response to the pandemic, many have become the new standard, ensuring that the industry remains dynamic, innovative and consumer-centric in the years ahead.

Sources

Wikipedia. “Streaming wars.” EN.WIKIPEDIA.ORG
Wikipedia. “Amazon NFL streaming deal.” EN.WIKIPEDIA.ORG
Netflix Investor Relations. “Ad-supported tier launch.” NETFLIX.COM
Disney+ Press Release. “Introduction of ad-supported subscription.” DISNEYPLUS.COM
Deloitte Insights. “The future of OTT re-bundling.” DELOITTE.COM
Variety. “TikTok’s impact on media consumption.” VARIETY.COM

blog Digitalization of TV

The Great Media Reset: How COVID-19 Changed the Industry Forever

Surge in On-Demand Viewership

Enduring Popularity of Live Sports

Operational Efficiency Through Automation and Cloud Solutions

Diversification of Revenue Streams and Ad-Based Models

Proliferation of OTT Platforms and the Re-Bundling Trend

Emergence of Short-Form Social Media Content

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