Jobs in Entertainment Industry Are Struggling — Here Are 5 Reasons Why
Throughout the years, jobs in the entertainment industry have expanded because of digitalization. While film, television, music, print, and radio used to be at this field's core, other platforms like online gaming and digital media have entered the picture. This global industry, worth billions of dollars, employs diverse workers, such as writers, actors, producers, and marketers, who create and deliver content to engage and captivate audiences.
What makes media and entertainment jobs attractive is their power to influence trends and culture while offering creative fulfillment. The industry also provides networking opportunities and career paths matching various skills and interests. Working in this industry also provides job satisfaction and potential global reach.
However, the entertainment sector also offers some downsides. Because it's highly competitive, employees must be adaptive and able to meet their work's changing and unpredictable demands. If you're a freelance or contract worker, job and income stability may be an issue, especially with lulls between projects. Also, pressure and stress are given in this industry, characterized by tight deadlines and a fast-paced environment, which may cause burnout for some employees.
Salary as per industry standards
According to JobStreet's Salary Report, most salaries in the Philippines remain mainly consistent, showing only minor changes, typically within a 2% range. But the most significant salary disruption happened in the entertainment industry, fluctuating at almost 5.5%.
This phenomenon is happening all over the world. In its global entertainment and media outlook for 2023 to 2027, PricewaterhouseCoopers (PCW) states that consumers are spending less and, instead, holding on to their hard-earned money due to the lingering effects of the COVID-19 pandemic. Consumer spending on media and entertainment is predicted to increase by only 2.4% CAGR from 2022 to 2027. Meanwhile, the global industry's earnings climbed to 5.4% in 2022, nearly half its progression rate of 10.6% in 2021, when businesses began recovering from the pandemic crisis.
Based on job ads placed by hirers like you on JobStreet, our Salary Report notes that other fields also experienced pay cuts besides the entertainment industry. These include electronics, banking and finance, hospitality, and many others. On the other hand, some industries could afford salary increases, such as human resources, advertising, and BPO. The government also placed more job ads this year, signifying compensation growth in rank-and-file roles and growing demand for skilled professionals in this sector despite job market disruptions.
Download the full report for free to learn which sectors had the top pay cuts and rises!
With salary analytics from 90,000 Filipino jobseekers from different fields, professions, and locations, the report aims to arm hirers like you with specialized knowledge that helps target the right talent for your business. With insights on salary and employment trends, you can upgrade your recruitment process, empowering you to formulate strategies for attracting talent and retaining your best people.
6 reasons why the entertainment industry is facing challenges
While showbiz-oriented jobseekers previously only concerned them with the question, "Which entertainment industry pays most?", today's candidates are thinking twice about entering the field because of the pay cuts. We've compiled the possible reasons to understand better why the entertainment sector is struggling.
1. Consumers are tightening their belts
Inflation has gotten consumers to prioritize their basic needs and cut down on the non-essentials, which include entertainment-related services. Because people are tightening their purse strings to manage the soaring prices of goods, companies bear the brunt, pushing them to spend less on advertising. With fewer ad placements, media and entertainment giants have less revenue and profit.
2. Pressure to churn out fresh content
At the height of the pandemic, broadcast companies could get away with airing replays because of the lockdowns and stringent restrictions on group gatherings. But now that these have been lifted, networks need to produce new shows, which entails considerable spending.
3. Rise of administrative costs
Expenses for fuel, food and other basic commodities continue to increase, impacting salaries and administrative and operation costs. Some entertainment businesses shell out constantly for facilities, electricity, and transportation — and with continuous price hikes, this kind of extensive spending cuts deep into the budget. With these challenges, being frugal while sustaining quality programs is a struggle.
This is a problem locally and in world-famous Hollywood, wherein television actors are given lower pay, contributing to the ongoing Hollywood strike.
4. Geopolitical instability
International conflicts make all industries suffer across the globe. Economies are disrupted, particularly commerce, supply networks, production pipelines, payments, etc. Inflation is already in place, and additional uncertainty drives prices even higher, making it difficult for businesses to thrive. When there's a war, investors are likely to hold back. This worsens financial situations for all industries, including the entertainment sector.
Traditional entertainment platforms like television and radio now compete with digital versions, such as online streaming and social media. But the 2023 media and entertainment report published by Deloitte emphasizes the current users' clamor for high interactivity, which can be found in video games. Everything from simple game apps to immersive and story-driven gaming universes are expected to rule the global media and entertainment industry. Because video games are attractive across demographics and have messaging components (like in social media), these can be viable advertising and consumer spending channels. Gaming revenue in the US is slated to increase by almost 8%, with advertising revenues doubling in 2027.
6. Evolving consumer preferences
In the US, streaming video on-demand (SVOD) services are killing network television. Meanwhile, social media are tapping into their target market's interests by churning out user-generated video content. While social media can still connect to contacts, it has evolved into a customized television for its users. All these developments have made traditional entertainment businesses rethink strategies to stay afloat in a highly digital environment.
How the entertainment industry can get back on track
While the entertainment industry is struggling, new technologies can help them recover faster. For example, artificial intelligence (AI) can help boost productivity. Companies can harness virtual and augmented reality to create visually rich content, enhancing storytelling. Regarding research and development, entertainment companies can benefit from data analytics to learn about consumer preferences and habits. This can help shape content production, marketing efforts, and pricing strategies.
However, the industry can also view this challenge as an opportunity to think of fresher content and more creative ways to present them. Though technology boosts production techniques, distribution, and interactivity, good old fashioned creativity generates imaginative shows and emotional impact, translating to commercial success.
Be our partner today!
As the preferred job portal of Filipino jobseekers, JobStreet is the talent partner of choice among private and government organizations. We offer an extensive talent roster of 15 million, letting you reach the right candidates you need for your business. With customized job ads that showcase your company culture and offerings, you can make your hiring process even more effective.