Australians have always loved entertainment. From the golden age of cinema in the 1920s-30s to today’s explosive growth of online content, this has never changed. In fact, the industry has grown at a rate of 2.9 percent per year between 2008 and 2017. It generated nearly $36 billion.
The overall health of the entertainment industry should not distract you from its volatility. Not all forms of entertainment are growing at the same rate, and some traditional media may even be declining. To help you understand the industry and find your place within it, we have identified six trends. These trends are transforming it and, in some cases, changing the types of jobs it supports.
1. The entertainment industry has grown at an incredible rate
A 2017 report from PwC, titled “Australian Entertainment & Media Outlook,” predicts that the Australian entertainment sector will grow at an average rate of 2.1 percent in the future. This means it will be worth $ 43.7 billion by 2025. As mentioned, the growth in this industry will not be evenly distributed across all segments. Print media revenues (including magazines and newspapers) are expected to decline by around 10% in the years before 2021.
This uneven growth can be seen in the different fortunes of certain careers within the entertainment sector. To take one example, while growth in the number of journalism students recently exceeded predicted future development in the number of journalism jobs, programmers and web developers–both of which play a key role in online entertainment–remain in high demand.
2. Advertising is becoming increasingly important for the Australian economy
Advertising, one of the most important segments of the entertainment sector, is expected to grow by thousands. Advertising expenditures are expected to reach $ 17.3 billion by 2021. This represents a compounded annual growth rate (CAGR) of 1.9 percent.
The growth in advertising is a symptom of the decline of traditional advertising channels. While investment in newspapers and free-to-television advertising are predicted to shrink by 8,9 percent and 4,7 percent, respectively, by 2021 I, Internet advertising is expected to grow by around 10 percent.
The numbers reflect the ongoing changes in the advertising industry. While some traditional careers are declining (such as media buyers and copywriters), there is an increasing demand for digital experts. Many of these have degrees in disciplines like programming, digital, communications, and design. Online advertising will make up 55% of all Australian advertising by 2021
3. Online video is the largest growth driver in the entertainment sector
Online video is by far the biggest contributor to recent (and anticipated future) growth in the entertainment industry. Online video production is dominated by subscription video-on-demand services such as Netflix Stan and Amazon Prime. These are expected to grow at a compound annual growth rate of 16,4 percent over the next five years. Note, however, that over the last five years, the growth forecasts of such businesses tend to underestimate the pace at which Australians adopt them. The rate of online video consumption is increasing by 27 percent every year. Video-oriented apps and services like Netflix and HQ Trivia have seen viewer numbers grow by double digits.
4. Video games are more popular than movies and music.
The Marvel Cinematic Universe, which consists of 16 films released between 2008 and 2017, has earned $12.6 billion in global box office revenue. This makes it the most lucrative film franchise ever. This is an impressive number, but it pales when compared to the amount of money made in the video game industry. Call of Duty is a 2003 video game franchise that has sold 250 million games on multiple platforms. This generated about $15 billion in revenue. The most popular videogame franchise of all time, Pokemon, owned by Nintendo, has earned $55.2 billion in revenue since 1996. 9 Grand Theft Auto V, released in 2013, is the fastest-selling video game. It earned over one billion dollars in its first three days.
The trend of video games outperforming the music and film industries will continue to be observed, particularly as attention shifts toward portable devices like tablets and smartphones. The digital entertainment industry will grow, creating more jobs. Graduates in areas like game development, digital design programming, animation, and marketing will have better career prospects.
5. Media and entertainment law are undergoing significant reforms
Legislators and regulators are updating the laws that govern Australia’s entertainment industry as the sector changes. In 2017, for example, the Federal Government implemented the biggest media reforms since the 1980s. These included the elimination of broadcast licensing fees and media ownership rules, which previously limited the amount of control an individual could have over different media types. 11
There is a heated debate about the short-term and longer-term effects of this reform. What is clear, however, is that these reforms reflect a growing concern by media or organizations that the nature of online entertainment has rendered existing media laws obsolete and that some media types (such as regional television and community radio) need more federal funding.
6. Smartphones and their apps are driving a growing portion of entertainment revenue
The entertainment industry has changed its relationship with consumers as a result of changing consumer preferences. This is especially true in terms walk how and when customers access content. As an example, 88% of Australians own smartphones, and the number of portable devices used for entertainment has tripled from 2016 to 201712. The smartphone has become a portable entertainment system. 56Fifty-six percent of Australians aged 25-34 have exceeded their data limits at least one time due to consumption of dia. The popularity of mobile apps has made smartphones an essential entertainment device. They are now used to watching streaming services, online videos, and other content. According to a report published recently, the global app revenue in 2017 increased by 35% to reach nearly $60 billion.
What does this mean to graduates? We are witnessing a continuous evolution of a brand new industry, which promises huge returns to those qualified. App developers, software engineers, and business graduates have careers in the app industry.