Industry Agenda Digital Media And Society Implications In A .

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Industry AgendaDigital Media and SocietyImplications in aHyperconnected EraWorld Economic Forum Shaping the Future Implications of Digital Media for Societyproject reportPrepared in collaboration with Willis Towers WatsonJanuary 2016

WORLD ECONOMIC FORUM, 2016 – All rights reserved.No part of this publication may be reproduced ortransmitted in any form or by any means, includingphotocopying and recording, or by any informationstorage and retrieval system.REF 181215

Contents5Executive Summary8Introduction9Methodology10Section 1: User Behaviour,Preferences and Concerns20Section 2: User Engagement26Section 3: Impact of Digital Mediaon Individuals, Organizations andSociety26Benefits and Opportunities31Downsides and Risks38Section 4: Outlook and Call toAction42Project Contributors44Tables58EndnotesPrefaceWe need only look to our own experience – at home, inpublic spaces and at work – to see that technologicalinnovation and digitization are fundamentally reshaping ourpublic, private and professional lives. The Fourth IndustrialRevolution is upon us, and the Media, Entertainmentand Information (MEI) Industries are at the core of thistransformation; they provide the digital tools, services,applications and content we engage with, increasinglyanytime and anywhere.Sarita NayyarManaging DirectorThe emerging digital MEI offerings are the main driver toWorld Economicsmartphone, tablet and other connected device adoption,Forum USAas well as to our changing relationship with many otherelements of daily life, such as health, consumer productsand mobility. Around the world, people now spend moretime using laptop computers and smartphones than theydo in other daily activities, and our “connected time” is onthe rise. This is referred to by the World Economic Forumas hyperconnectivity, and it will continue to affect how weinteract with one other, how we learn and work, in ways thatare both profound and impactful.MEI businesses have greatly benefited from the digitaltransformation of their industry, but the challenges ofcontent and service congestion and of rapidly evolvingend-user needs and preferences cannot be ignored. Noindividual, enterprise or government can afford to beunaware of the implications that the growing use of digitalmedia, entertainment and information content and services(“digital media”) will have on industry and society. MEIenterprises must continue to innovate to keep pace withthe emerging media consumer who continually challengesindustry business models and offerings. At the same time,we must begin planning for how our increased connectionto digital media is and will continue to change the very fabricof our society.With this Digital Media and Society report, the WorldEconomic Forum strives to raise general awareness,catalyse further discussion and stimulate action fromits readers. Much can be done by decision-makers inboth the public and private sectors to foster the positiveimplications of increased digital media use and to recognizeand address its potentially unfavourable impacts. However,as much as public-private cooperation can improve thelives of citizens, in the context of hyperconnectivity muchof this responsibility lies in the hands of the individual. Assuch, the report has been designed to speak to all types ofreaders. Whether the reader is a parent, a senior companyexecutive or a government policy-maker, this study providesfacts, figures and supporting evidence to all its claims, andincludes tangible recommendations to all stakeholders foraction.We hope this collective effort by an extensive groupof organizations and individuals will stimulate furtherconsideration of, and research into, the implications of everincreasing digital media use in our lives. Through action,partnership or further research, the ultimate objectives of theWorld Economic Forum are to ensure that an increasinglyconnected lifestyle remains an asset to business, individualsand society rather than a liability, and that all stakeholdersbenefit from our work and insights.Digital Media and Society3

Executive SummaryInnovations in technology, particularly in digital media,increasingly are changing the way people use Media,Entertainment & Information (MEI) services. More thanthis, the very fabric of daily life is being altered. Peopleare interacting and connecting with each other in differentways. Their sensibilities and psychologies are changing.Blurring boundaries between private and professional lives,and the hunger for immediate information are driving onlineconnection time. Trust in individuals’ relationship with digitalmedia has become an increasingly prominent issue. In someways, new generations are leading the evolution in changingbehaviour, but in others, older generations are “catching up”surprisingly quickly.The World Economic Forum’s Shaping the FutureImplications of Digital Media for Society projectwas launched to provide insights on today’s media,entertainment and information consumer, as well as onthe broader impact of digital media use on individuals,organizations and the larger society.1 As part of that project,the Digital Media and Society report aims to highlightopportunities in digital media that can be encouragedand nurtured. The report also signals potentially negativeconsequences that need to be tackled – individuals andfamilies can address some; others require the attention ofinstitutions, from schools to corporations, and states tonational governments.Digital Media and Society is based on evidence collectedthrough desk research, project workshops, expert interviewsand an online survey. Although the scope is large, it is notintended to be comprehensive. Rather, the report presentsa broad picture of developments in digital media and theirimplications, in order to raise awareness, spark furtherdiscussion and stimulate the MEI industry and policy-makersto cooperate in two crucial ways: by cultivating the positiveimplications of digital media use and by addressing, andthen re-dressing, its potentially negative impacts.DefinitionsFor the purposes of the Digital Media and Society report,digital media is defined as products and services thatcome from the media, entertainment and informationindustry and its subsectors. It includes digital platforms(e.g. websites and applications), digitized content(e.g. text, audio, video and images) and services (e.g.information, entertainment and communication) that canbe accessed and consumed through different digitaldevices.People’s online behaviours shape their digital identities.Individuals may show different behaviour patterns indifferent contexts (e.g. private versus professional), whichmay be described as different digital personae.User behaviour, preferences and concernsPeople are spending more and more time online. Considerthese approximate figures for 2015:2–– 3 billion internet users–– 2 billion active social media users–– More than 1.6 billion mobile social accountsWhile laptops and desktops are still most commonlyused, mobile devices are gaining fast on them, causinga significant change in people’s engagement with digitalmedia. Growth in mobile encounters is particularly strong inemerging countries, where consumers are leapfrogging from“no digital use” straight to “mobile use”.Increased online connection time appears to be drivenmainly by work or information seeking, followed bysocial and entertainment needs, based on findings fromthe five countries surveyed for this report. Digital mediaconsumption for private and professional motives is moreand more integrated, with individuals using digital mediato move seamlessly back and forth between work andpersonal activities.Digital Media and Society5

Sharing content has become a very important element ofusing digital media, with users most likely to share contentthat entertains, informs or inspires. Digital media also hasmade it possible for billions of online media consumers toparticipate in content creation. One-third of respondentsto the Implications of Digital Media Survey conducted inOctober 2015 for this report, say they post written content,pictures or videos on social media sites either daily or a fewtimes each week.The main characteristics of today’s consumption patternscan be summarized as follows:–– Mobile: People now spend an average of two hoursdaily on the mobile web, one-third of their total onlinetime, with Millennials and digital media users in emergingcountries emerging countries leading the mobilerevolution.3 The obvious advantages are that mobileusage is less dependent on place and time, and devicesare more affordable than laptops/personal computers(PCs).–– Social and interactive: Social networking is by far themost popular online activity, clocking in at an average of1.8 hours or 30% of daily online time.4–– Flexible and personalized: Users can have a moreactive role and more control over the digital mediaofferings they use and engage, compared withtraditional media. User accounts and cookies allowfor customization of content displayed based on usercharacteristics and usage patterns.–– Fast, instant and convenient: Fast internet and newtechnologies (hardware and software) allow for easieraccess and use, and enriched content.–– More content: As content creation and distributionbecome simpler, a greater amount of content andservices are becoming available. Content is morediverse, but consumption is potentially focusedmore on breadth than depth, as capacity is limited.The importance of content filtering, curation andrecommendation has grown.–– Collective: The possibility to connect, share,recommend and communicate creates a collectiveexperience that shapes not only behaviours andpreferences, but also a collective consciousness ofshared beliefs, ideas and moral attitudes.–– Fragmented and multi-channel: The huge numberof channels and creators makes content ever morefragmented. Users access multiple platforms frommultiple devices. Adapting content to these multipleplatforms becomes imperative.–– The higher the usage of digital media, the higher thewillingness to pay: Increased connection and use ofdigital media should tip the revenue scale in industry’sfavour, but innovation in creating better user experiencesis crucial, as it is clearly evident that traditional digitaladvertising is losing its appeal and efficacy.6Digital Media and SocietyBut new consumption patterns, along with the presence ofmore players and creators in the market, bring challenges.Consumer trust is at risk because of fundamentalconcerns about:–– Truthfulness of content, given its volume, the largenumber of creators and sources, and need for moreclarity around filtering mechanisms.–– Integrity of the company/consumer value exchange.–– Security of personal data and digital identities fromcybercrime, given the significance of this information to aconsumer’s professional, financial and social well-being.User engagementEngaging consumers through digital media requires muchmore than simply “pushing” marketing content or servicesat them. Consumers have become savvy at ignoringubiquitous display advertisements and more and more areusing ad-blocking software.Instead, engagement requires providing valuable contentthat meets user needs for information, convenience andentertainment, stimulates content sharing and “pulls” inconsumers. For any brand or service, critical elements ofthis engagement strategy include:–– Entering into a conversation with consumers throughsocial media–– Engaging employees to advocate the company throughtheir social media activities–– Exhibiting socially responsible behaviour, particularlyregarding use and control of users’ personal data.The impact of digital media on individuals,organizations and societyThe greater use of digital media today is changing people’severyday lives and the way they connect and collaboratein the broader societal context, at work and in civil society.This project’s research into five countries from differentregions concludes that this is a global phenomenon. Muchof the impact of this heightened use is beneficial to bothindividuals and society. Digital media has empoweredpeople so that they no longer are passive bystanders orrecipients in the transformations wrought by the digitalrevolution, but are actively shaping digital media and itsmeaning for society.The benefits to both individuals and society of increaseddigital media usage include the following:–– Assists social interaction and empowers individuals,connecting the like-minded across vast distances, aswell as connecting those usually separated by social,economic, cultural, political, religious and ideologicalboundaries–– Offers the means to increase civic participation andfacilitates the creation of communities with a commoninterest or cause–– Enhances flexibility for workers and employers,boosting productivity and enabling greater work-lifeintegration–– Facilitates education and life-long learning to buildand source skills

The main risks of higher digital media consumption includethe following:–– Can be used with harmful intentions to spreadpropaganda and mobilize followers–– Influences human decision making as a resultof content filtering mechanisms that can targetspecific information to certain people with potentiallydiscriminatory effects. This can happen throughinformation sharing or manipulation of information,for example, during an electoral process (“digitalgerrymandering”)–– Potential for near term inequality due to thedisruptions in labour markets and different skillrequirements brought about by digital technology–– Changes in social skills and sense of empathy aschildren and adults spend more time online. Facilitatesbullying, harassment and social defamation, reflectingthreats and patterns seen in the offline world–– May impact mental and physical health if screentime is excessive. The harm includes stress, greatervulnerability to addictive behaviour, and less time spent inphysical activity. Can pose health and developmentalrisks for young children if usage is not monitoredOutlook and call to actionThe report’s research suggests that action from diversesocial players will make it more likely for people to takeadvantage of more-frequent use of digital media even asthey mitigate related risks:–– Public and private sectors should partner formultistakeholder collaboration to drive action onthe effects noted in this report. The World EconomicForum can facilitate public-private collaboration. Bothregulators and industry can engage with academiaand non-governmental organizations (NGOs) toincorporate research findings and initiatives in creatingand implementing new socially responsible MEI industryofferings or public policies.–– The public sector can help to update, promote andenforce evidence-based standards and regulationsin order to facilitate the benefits of digital media andinnovative solutions to mitigate the negative effects. Itcan also facilitate the creation of social institutionsand programmes that assist individuals and the privatesector in making digital culture healthier at home, ineducation, at work and in public life. For example, theEuropean Commission’s DG Connect group has adirectorate dedicated to digital society, trust and security– every governmental body should establish similarresources for their country or region. However, anymodel of guidance and support should be adaptable tochanges in the marketplace and user behaviour.–– The private sector, principally industry, shouldconsider the implications for individuals whendesigning platforms and services or creatingcontent. The private sector can deepen efforts to buildtrust with consumers, for example, by becoming moretransparent about how personal data are used andshowing a corporate ethos of accountability and socialresponsibility. An effective tool is sponsoring public andnon-profit organizations that help to promote beneficialuse of digital media. From an employer’s perspective,organizations should forge a strategy to integrate digitalmedia and technology into workflows, and should beproactive in addressing the opportunities and pitfallsthat increased connectivity brings to the business andemployees.–– Finally, individuals are encouraged to enhancetheir digital literacy and skills, and use digital mediaresponsibly. Individuals thus can protect themselves andothers, especially those who are vulnerable. Individualscan also get involved with civic organizations andNGOs on digital media issues that have an impact ontheir lives.Digital Media and Society7

IntroductionThe digitization of the Media, Entertainment & Information(MEI) industry has established new opportunities forconsuming, sharing and creating media content through agrowing number of devices and platforms – at any time andfrom any place. Today’s media content and advertising aredistributed online and disseminated through social networksand digital platforms. As engaging with digital media growseasier, so does the time dedicated to content, platformsand services. New platforms and changing consumptionpatterns affect an individual’s everyday life and socialinteractions, alter how work is done, and impact learningand civic action.Changing digital media consumption patterns and theirimpact on society are direct consequences of the fourthindustrial revolution.5 The World Economic Forum iscommitted to helping organizations in both the private andpublic sectors to navigate through this transformationalchange. The Shaping the Future Implications of DigitalMedia for Society project is one of many initiatives fromthe Forum to stimulate multistakeholder collaboration inaddressing some of the implications on society of this fourthindustrial revolution. More specifically, the project looks atone of the MEI industry’s roles in this revolution.8Digital Media and SocietyThe objective of Digital Media and Society, a report that ispart of the Forum’s project, is to provide insights on today’semerging MEI consumer, focusing on the factors that shapean individual’s behaviour and preferences for digital mediausage. Additionally, the report links those developmentsto broader impacts on the individual, organizations andsociety, highlighting the opportunities and benefits, as wellas the risks and potential downside.After a “wild childhood”, it is now time for digital media’s“coming of age”. Industry, the public sector, and theindividual must assume responsibility for fostering theopportunities offered by digital media, while helping tomitigate the negative effects on individuals, organizationsand society.

MethodologyThe evidence presented in this report was collectedthrough desk research, expert interviews, sessions at WorldEconomic Forum events and an online survey conductedin October 2015 across the USA, Germany, South Africa,Brazil and China, with a representative sample of about1,000 digital media users in each country. Opinions andadditional supporting evidence have been provided througha project blog series.While it cannot be comprehensive, this report offers a broadpicture of relevant developments in digital media and theirwider implications. The aim is to raise awareness, sparkfurther discussion and stimulate the Media, Entertainment& Information (MEI) industry as well as policy-makers tocollaborate on cultivating the positive implications of digitalmedia and discouraging the negative.Project sessionsSee Section 4: Outlook and Call to Action and Project Contributors for detailsJakarta, Indonesia 19 April 2015World Economic Forum on East Asia“Analogue Hearts and Digital Minds: The Impact of Digital Media on Human Behaviour”New York, USA 13 May 2015MEI Industry Spring Strategy Meeting“Exploring the Drivers behind Changing Media Consumption Habits”Geneva, Switzerland 12 August 2015Young Global Leaders (YGL) and Alumni Annual Summit“Digital Changes in Society”Dalian, People’s Republic of China 10 September 2015Annual Meeting of the New Champions 2015“China’s Media Society: Impacts of Changing Media Consumption Patterns in China”Project videosExpert interviews conducted for the project were filmed and extracts of these interviews are featured in a series of videosfocusing on the different topics covered in the report.Blog seriesA number of project-related articles were published on the World Economic Forum’s Agenda Blog. They can beaccessed through the Shaping the Future Implications of Digital Media for Society project website on weforum.org.NB: All opinions expressed in the project videos and blog series are those of the interviewees and authors respectively.The World Economic Forum is an independent and neutral platform dedicated to generating debate on the key topicsthat shape global, regional and industry agendas.Implications of Digital Media SurveyThe Forum conducted an online survey in October 2015, in collaboration with comScore and Willis Towers Watson, witha representative sample of 5,070 digital media users aged 15-69 years drawn from:–– Brazil (1,033 participants)–– People’s Republic of China (1,019 participants)–– Germany (1,023 participants)–– South Africa (997 participants)–– USA (998 participants)See Table 1 for an overview of demographic characteristicsSegmentations used in Implications of Digital Media SurveyGenerationMillennials: reported age between 15 and 34 (born 1981-2000)Generation X: reported age between 35 and 50 (born 1965-1980)Baby Boomers: reported age between 51 and 69 (born 1947-1964)Sporadic users versus frequent usersSporadic users: the sample who reported spending less time than average per week consuming digital mediaFrequent users: the sample who reported spending more time than average per week consuming digital mediaDigital Media and Society9

Section 1User Behaviour, Preferencesand ConcernsRespondents to the Implications of Digital Media Surveyare most frequently using PC/laptops (94%), televisions orTVs (93%) and smartphones (87%) for media consumption(Table 2a). Among heavy digital media users (14-plus hours/week), PC/laptop strongly dominates other types of devices,most likely because it is still the most important device usedat home and for work, at least in developed countries(Table 2b).User attention is focused on key devices, platforms andformatsWhat are the dimensions of digital media usage and how areconsumption patterns changing?Global internet penetration is deepening, with more than 3billion internet users in 2015. Global Social Media Trends2015, a report from the European Publishers Council,counts more than 2 billion active social media accounts andmore than 1.6 billion mobile social accounts in 2015(Figure 1).6 People spend more time online, extensivelyusing social media and increasingly accessing digital mediafrom mobile devices. This is especially so in emergingcountries, which are leapfrogging fixed internet and personalcomputers (PCs) to go directly to smartphones.Traditional media (e.g. printed press and magazines, TV andradio) have a dwindling share of media consumption, alreadyaccounting for less than one-half of time spent, accordingto a 2014 statistic from GlobalWebIndex, a market researchfirm (Figure 3). On average, people spent more than threehours a day social networking and (micro-)blogging.Online communication platforms, such as social networkingCurrently, access to digital media from laptops andplatforms and messaging services, play an important roledesktops is still dominant globally, with roughly 60% of allin media content and advertising distribution. Content isweb pages being viewed from laptops or desktops, andposted or shared via news feeds or discussion threads or30% from mobile devices (Figure 2). But mobile viewing isincreasingly within private groups in messaging applications.growing fast, especially in emerging countries.7 Tablets andother devices still represent a small share in comparison, butSocialmedia isthe fastestgrowingcategories of media, anda trendis evolvingof oneusingofmultipledevicessimultaneously,with content being consumed via numerous channels. 8GLOBAL SOCIAL MEDIA TRENDSGLOBAL SOCIAL MEDIA TRENDS2015readers and potential readers.brands and content to both activeis quickly becoming the most important way to expose publishers’Figure 1: Global DigitalLandscapeVideo usageand revenues are growing exponentially around the world.Publishers should drive strategies and tactics to leverage this inexorable trendGlobal digital landscape and year-on-year growthIn total user numbers, percentage of penetration and growth, by categoryTotalpopulationActiveInternet UsersActive SocialMedia AccountsUniqueMobile UsersActive MobileSocial lionWNMNBillion WNMNBillionWORLD NEWSMEDIA on53%42%29%51%FIGURE REPRESENTSTOTAL GLOBALPOPULATION,INCLUDING CHILDRENFIGURE INCLUDESACCESS VIA FIXEDAND MOBILECONNECTIONS 1.6% 115 MillionSource: We Are Social, 2015 21% 525 MillionFIGURE REPRESENTSACTIVE USERACCOUNTS, NOTUNIQUE USERS 12% 222 MillionYEAR-ON-YEAR GROWTHFIGURE REPRESENTSUNIQUE MOBILEPHONEUSERS 5% 185 MillionWORLD NEWSMEDIA NETWORKPenetration23%FIGURE REPRESENTSACTIVE USERACCOUNTS, NOTUNIQUE USERS 23% 313 Million World Newsmedia Network 2015Source: We Are Social, 2015; Global Social Media4 Trends 2015, European Publishers Council10Digital Media and Society

Figure 2: Share of Web Traffic, by DeviceJAN2015SHARE OF WEB TRAFFIC BY DEVICEBASED ON EACH DEVICE’S SHARE OF TOTAL WEB PAGES SERVEDSHARE OF WEBPAGE VIEWS:LAPTOPS & DESKTOPSSHARE OF WEBPAGE VIEWS:MOBILE PHONESSHARE OF WEBPAGE VIEWS:TABLETSSHARE OF WEBPAGE VIEWS:OTHER ON-YEAR:YEAR-ON-YEAR:-13%We Are Social 39% 17% 18%@wearesocialsg 19 Source: StatCounter, Q1 2015Source: We Are Social, 20159Figure 3: Global Time Spent onGLOBALMediaPer Day, 2014SOCIAL MEDIA TRENDS 2015Global time spent on media, by typeIn amount and percentage of time spentTraditional pressOnline radio5% Blogging5%0.6 hrs.0.53 hrs.5%23%0.61 hrs.2.58 hrs.6%Online TVTraditional TV0.70 hrs.Online press6%0.71 hrs.Micro-blogging15% Social networking1.69 hrs.7%0.79 hrs.Gaming via console10%7%1.14 hrs.0.81 hrs.Traditional radio10% 1.06 hrs.Other online activitiesSource: GlobalWebIndex, 2014 World Newsmedia Network 2015Source:GlobalWebIndex,SocialMedia TrendsEuropeanPublishersThe largestchunk of time is still2014;spent onGlobalwatchingtraditionalIn 2014,2015,the averageglobal userspent moreCouncilthan six hoursonline, compared to 5.5 hours in 2012. Almost two hours werespent on social networking and almost an hour was spentThe Implications of Digital Media Survey found that 21%on micro-blogging in 2014, compared to just an hour anda half spent on social networkingless thanan hourspendingonof andusersreportmore than three hours per daymicro-blogging in 2012. The steady growth of contributionschattingandmessaging(Table3). Most popular platformsfrom social media platforms is prominently driven by Facebook use, followed by YouTube,accordingGWI. Thenetworkingmix ofusedfortosocialvary across the countriespercentage of time spent on various online activities varies by(Figure 4): WhatsApp is the most visited socialcountry, according to the GWIsurveyedstudy.television, or 23 percent of the day (2.58 hours), according toGWI, while a growing amount of time is spent on online television, or 6 percent (.61 hours). Meanwhile, 10 percent of themedia users’ time is spent on radio, and another 5 percent (.61hours) on online radio. and another 10 percent on non-socialnetworking Internet.Things that started out as communicationplatformsbecomeOver time, the numberhaveof hours spentonline, on socialreal-timenetwork and on micro-blogging sites like Twitter have increased.media consumption platforms; contentnetworking site in South Africa and is No 2 in Germanynetworking is the No. 1 activity online in every country,that feels like a conversation isSocialbeingandorBrazil,justFacebook. In the USA, however,followed by either micro-bloggingonline press.ThebehindmostGlobal time spentonsocial andnetworks,prolific social networking countriesby percentageof timeFacebookis byfar the most used platform, with more thanconsumedinvideotextcombined,spent are Japan, the Netherlands, Germany, France, Ireland,2012-2014ofKingdom,respondentsAustralia, Sweden, Poland, thehalfUnitedSouth Koreavisiting the site daily. In China, WeChatandisnumberaccessibleon smartphones.In averageof hours spent per dayand Spain.7 hours20122013dominates the other social networking sites listed in terms20146Participantat project workshop in New York in May54daily usage.Finally, Brazil respondents are heavier usersThe most popular countries forofmicro-blogging,by percentageof online time spent, are the Netherlands, Poland, South Afofallthesocialnetworking sites included in the surveyrica, India, Turkey, Brazil and Saudi Arabia. The most prolific2015users of online press are France,Sweden, the UK,SouththoseKorea, from other countries. Given thecomparedwithSingapore, Taiwan, the United States, Argentina, Turkey, Indocontinuedintroductionof new apps, changes in preferrednesia and the Philippines.platforms are likely over time.Whyare online communication platforms so Thepopular?The3number of hours spent on social media varies by country.reasons: most users do not pay per messagebutusersthroughThosefrom Thailand, Saudi Arabia, Brazil, the Philip2pines, Indonesia, Malaysia, the United Arab Emirates,mobileplans; they are easy and convenient touse; and1whilefeeds make it possible to always be up-to-dateTurkey, Mexicoandand Argentina are by far the biggest users ofsocial private,networking. Those from Thailand, Saudi Arabia, Brazil,discovercontent, messaging applications allow0the Philippines, Indonesia, Malaysia, the United States, MexiTotal timeTime spentonTime spent onmore spenttargetedgroupconversationsand contentco and exchange.Argentina are the most rabid users of micro-blogging,onlinesocial networkingmicro-bloggingaccording to GWI.Source

the broader impact of digital media use on individuals, organizations and the larger society.1 As part of that project, the Digital Media and Society report aims to highlight opportunities in digital media that can be encouraged and nurtured. The report also signals potentially negative consequences that need to be tackled - individuals and

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