Would it be wise to be a freelancer in the media industry since it is so difficult to find a job? The job market is getting insanely competitive, would freelancing make a better option (temporarily)?

Definitely!

Something is better than nothing.

A question that your future bosses may ask would be " What have you been doing during the COVID-19 period?"

If you reply with erms and ahhs,how would that reflect well on your potential as a job candidate? At least, with your freelancing gigs (assuming you have landed on some), you can reply that you have been actively scouting for clients and managed to land a few projects to work on. If you can get testimonials from your clients about your work quality, that would be something to showcase proudly to your future employers and set yourself apart from others.

Furthermore, it doesnt mean that you stop looking for jobs once you start freelancing. Brush up your CV and update your interviewing skills. If you need help with these, do let me know via my profile or check out my blog :)