Media and Entertainment

The digitization of content and ongoing innovations in technology will continue to drive growth and force changes in the media and entertainment industry. Publishers and broadcasters alike will continue to experiment with new revenue streams, particularly to reap the benefits from digital subscriptions and online advertisements. Overall, the global media and entertainment industry is expected to grow to $2.9 trillion by 2027, according to a PricewaterhouseCoopers report (PwC).

The coronavirus pandemic disrupted growth in the media and entertainment industry in 2020. Some sectors of media and entertainment fared better than others, though. For example, the social distancing requirements forced the shutdown of live entertainment, but in turn increased the demand for over-the-top video and data consumption, meaning that film and television delivered via the Internet grew during the pandemic. Streaming services are expected to continue growing. In 2022, the U.S. streaming services sector averaged about $49.4 billion in revenue, and that number is forecast to climb to $75.5 billion by 2027, according to PwC.

There will be a slowdown in growth in some sectors of the media and entertainment industry, as the high demand for some services during the pandemic, such as podcasts, have since eased. Still, PwC predicts consumer spending for entertainment and media will grow at an average annual rate of 2.4 percent from 2022 to 2027, to reach more than $903 billion. The PwC report also noted that advertising spending will be a growth hotspot in the next few years. "Advertising is on track to be the first category to approach $1 trillion. In the U.S., the largest traditional TV market, a key inflection point will be reached in 2023, with advertising spending surpassing revenue from cable and other subscriptions." The revenue from advertising-supported video on demand is poised to almost double by 2027. Streaming-device manufacturers such as Roku, LG, and Samsung are expected to continue expanding in the connected televisions and streaming channels business.

The publishing industry continues to experience a decline in advertising revenue and drop in readership due to the increased availability of free online content. The global magazine publishing industry was expected to have a compound annual decline of nearly 1 percent from 2022 through 2027. The newspaper advertising market was projected to decline at a compound annual growth rate of more than 10 percent in that same time period, to reach a market value of $3.56 billion. Greater demand for online content on mobile devices, tablets, televisions, and game consoles will increase public exposure to news syndicates. These companies have adapted to the changing media environment by using online technologies that have made content less expensive to produce and faster and easier to distribute to customers. Trade magazines will continue to recoup some of their losses through digital ad revenue. The digital advertising market is expected to have 15 percent compound annual growth from 2022 to 2027, to reach $1.3 trillion.

The book publishing industry has had slow growth in recent years, with about .2 percent compound annual growth between 2018 and 2023. According to an IBISWorld report, the market size of the global publishing industry has grown slower than the overall economy. E-books are also expected to continue growing and online publications and services will offer the most opportunities for employment. The global digital publishing market is expected to have strong growth (more than 10 percent annually) from 2022 to 2027, to reach nearly $67.9 billion.

The Bureau of Labor Statistics (BLS) predicts that editors will experience a 4 percent decline in employment growth through 2032. Online media will offer some job opportunities but the continued decline in demand for traditional editing jobs in print newspapers and magazines will offset the overall employment growth in the publishing industry. In 2022, approximately 122,100 editors were employed in the publishing industry, and the BLS predicts that number will drop to 117,300 jobs by 2032. Writers and authors will experience small employment growth, about 4 percent, through 2032. Writers, authors, and editors who are adept at writing and working online and on social media, with various electronic and digital tools, will have improved changes of finding work.

Broadcast television will continue to experience significant changes as television continues to be more interactive and customized for viewers. The trend toward online viewership of TV is expected to continue. Traditional TV advertising spending was expected to have a compound annual decline of about 1 percent from 2023 through 2027. On the other hand, connected TV ad spending was expected to grow from $20.69 billion in 2022 to $40.90 billion by 2027. Advertisers will continue to face intense competition to gain viewers' attention through various media and mobile devices. Global TV revenue is expected to drop from $200 billion in 2017 to $173.6 billion in 2027. Pay TV will also continue to lose its presence as more people are cord-cutting to reduce their expenses; by 2027, the number of homes in the U.S. with pay televisions is expected to drop to 49.9 million, representing 38 percent of U.S. households.

Radio and television broadcast announcers will have a 4 percent decline in employment growth, whereas broadcast, sound, and video technicians will average employment growth through 2032, according to the Department of Labor (DOL). There are approximately 51,800 broadcast announcers and disc jockeys, and 142,800 broadcast and sound engineering technicians employed in the United States. News analysts, reporters, and journalists will have heightened competition in the hunt for work as employment for them is predicted to decline by 3 percent in the coming years. The consolidation of broadcast networks has decreased the need for experienced reporters, announcers, and technicians, and many will seek work in stations with medium and smaller markets, which means newcomers to the field will face more competition. Many radio stations are also relying on voice-tracking or “cyber jocking,” which enables announcers to pre-record their segments rather than airing them live. This reduces the staff needed during air time for editing material and doing other off-air technical and production work.

On the positive side, the growth of Internet radio stations may create new opportunities for broadcast professionals. Internet radio stations have lower startup costs than land-based radio stations, and it’s relatively cheap for them to identify and reach their target demographic and listening audience. The DOL also forecasts that the increase of national news and satellite stations will increase the demand for more local radio and television stations. As the DOL described it, “Listeners want localized programs with news and information more relevant to their communities. Therefore, to distinguish themselves from other stations or other media formats, stations are adding a local element to their broadcasts.” The increased demand for online news and podcasts may also create some new employment opportunities for media and entertainment workers.

The film industry will have slow growth in the next few years. An increase in distribution channels for motion pictures and an expanding global market will be the key contributors to growth. The Bureau of Labor Statistics forecasts that producers and directors will experience about 7 percent growth in employment through 2032, which is faster than the average for all professions. Approximately 175,300 producers and directors worked in the United States in 2022; by 2032, the BLS forecasts 187,000 will be employed in the business. Since the pandemic, there has been increased demand for more movies and television shows, as well as a growth in demand from audiences overseas for American-made movies. Production companies are also experimenting with various methods for content delivery, such as online television and with mobile devices, which could open up more jobs for producers and directors in the future. Also, the growth of Internet-only platforms, such as streaming services, will increase the demand for television and film production workers and directors. More independent films are expected to be made in the next few years, and self-employed producers and directors will directly benefit from this, with job growth expected.

Film and video editors will also have excellent job opportunities in the next few years, with 7 percent employment growth through 2032. The growth of streaming services and the increase in special effects will create more opportunities for film and video editors. Camera operators will have 3 percent employment growth, with this growth potentially limited by the use of robotic cameras and the popularity of amateur film footage. Most job openings will be in Los Angeles and New York City. Competition for jobs will continue to be intense, however, as there are usually more people interested in broadcasting and motion picture work than there are jobs to fill.