The way to fix the Oscars is simple: Build a time machine.
Those ratings ain't ever coming back and any hang wringing about "fixes" that doesn't acknowledge the fact that streaming has radically changed how TV is consumed is disingenuous (I'm talking about reporting in the media more than folks like us just shootin' the shit). Politics and popular movies are convenient excuses for people who want that agenda advanced, but the cold reality is EVERYTHING is down.
This is a pretty basic comparison but look at the most popular shows of 2020:
100 Most-Watched TV Shows of 2020-21: Winners and Losers
Now here's 2010:
Full 2010-2011 TV Season Series Rankings
The #1 show last year (football) would've been 5th in 2010. Ok not bad.
#2 show (also football) would've been tied for 13th. Eh not great. But times change, right?
#3 show (still football!) would be 26th a decade earlier. Behind Bones.
#4 is tied between the first scripted show (This is Us) and the first reality show (Masked Singer). Compared with 2010 they'd be .... 81st a decade ago. Essentially tied with Community, which was in annual fight to stay on the air and The Cape which was canned after one season (but did, funny enough, make for an amusing running bit on Community).
So the MOST POPULAR scripted show in 2020 is watched by the same amount of people who watched The Cape, which was the 82nd most watched show and 57th most watched scripted show a decade earlier.
That's not HOLLWOOD'S TOO LIBERAL. That's not THEY DIDN'T NOMINATE MY FAVORITE SUPER HERO.
That's an evolutionary event that hit all of broadcast that folks for some reason still act like hasn't happened or hasn't hit the industry to the degree that it actually has.
There's an entire cornucopia of streaming options (legal and illegal) that did not exist before the last few years and there are more things to watch than we've ever had. Add in social media, which in a very real sense, has become yet another platform and series of programs (or people) we watch.
I think the Oscars can and probably will do better with ratings, but the old days (even five years) ago aren't coming back. I think everyone involved needs to adjust their expectations about what's possible in these times.