Gradually, the metaverse is set to revolutionise advertising and is projected to generate an incredible $1.53bn in revenue in 2023 alone.
The first fully electronic television system was invented almost a century ago, and it took the news industry ‘only’ 30 years to respond to the disruption. News production is heavily influenced by the available tools of the time, and when these tools change, the industry is slow to adapt.
Today, news consumers demand interactivity and with the growing accessibility of metaverse technologies such as augmented reality (AR), virtual reality (VR) and mixed reality (MR), the industry can leverage new opportunities. In fact, according to a report by Deloitte, the MENA region could potentially experience an additional GDP contribution of up to $83bn per year by 2035 through the implementation of the metaverse.
The Outlook for AR, VR and MR in News Production
The potential of the metaverse to revolutionise key sectors in the Middle East is immense. The region is already capitalising on this opportunity, with significant metaverse initiatives in Saudi Arabia and the UAE. Notably, in July 2022 Dubai launched a Metaverse Strategy. The initiative aims to position Dubai as one of the world’s leading metaverse economies by prioritising innovation in tourism, real estate, education, retail and government services. As MENA news organisations explore the possibilities of interactive experiences, riding this wave could transform the way news and media consumption are perceived.
The range of possibilities includes the creation of virtual newsrooms where viewers actively participate, explore different aspects of stories and even contribute to news production. This not only allows viewers to shape and personalise their news experience but also establishes a stronger connection with the information shared. A study conducted by Statista reveals a significant rise in digital news consumption in the EMEA region, with social media emerging as the main news source for over 50% of consumers in each surveyed country, alongside online newspapers, websites and apps.
Opportunities and Challenges
The integration of the metaverse into news broadcasting presents both opportunities and challenges for the media industry. On the one hand, it opens new possibilities for transforming audience engagement and involvement in news production. On the other hand, there are valid concerns regarding data privacy, protection and security that cannot be overlooked. As the journey towards digital transformation progresses, ensuring security becomes a collective responsibility. According to the recent PwC Global Digital Trust Insights Survey, 4% of senior executives observe an increase in cyber breaches since 2020. However, it is encouraging to note that about 40% of forward-thinking companies affirm that their cybersecurity and privacy programmes have effectively mitigated the risks of data breaches.
Globally, the metaverse is set to revolutionise advertising and is projected to generate an incredible $1.53bn in revenue in 2023 alone. To harness this potential, media organisations may capitalise on virtual advertising spaces within immersive newsrooms. This not only means increased revenue but also paves the way for sponsorships, partnerships, co-branded virtual events and interactive sponsored content. Moreover, virtual environments within the metaverse hold immense potential for collaboration and training within news organisations. These virtual environments can accurately replicate real-life scenarios, enabling journalists to gain valuable hands-on experience in a risk-free setting.
A Game-Changer for News Production and the Media Industry
Recent data from McKinsey Digital reveals that the MENA region has witnessed a rapid increase in digital adoption, with a substantial internet penetration rate. The level of digital adoption, encompassing both fully digital and remotely assisted processes, is 75-80%. This highlights a favourable environment for the acceptance of innovative technologies like the metaverse.
Advancements in the metaverse offer exciting possibilities for advanced interactive tools to engage with media and news consumers. For numerous companies, the real question is not whether they should engage in interactive experiences, but rather whether they can afford to miss out on the opportunity.
Alfred Manasseh is co-founder and Chief Metaverse Officer at Shaffra.
