All industries are facing disruption right now, but entertainment and media companies feel more pain than most—and employees know it. In PwC’s latest Global Workforce Hopes and Fears Survey 2023, more than two-thirds of employees in the industry said they find their work fulfilling. However, just over 60% of employees still plan to change jobs in the next 12 months, raising questions about what firms must do to retain their workforce.
The large number of employees looking to move may make sense when you consider the industry’s prospects. Disruption from digital publishers and streaming services continues to put pressure on the business models of traditional media, film and television companies. Worst of all, growth is decelerating. As we discussed in PwC’s Global Entertainment & Media Outlook 2023–2027, total annual entertainment and media industry revenue growth slowed from 10.6% in 2021 (which was artificially high because of the rebound from covid-19) to just 5.4% in 2022. The outlook projected that growth will decline sequentially each year through to 2027, when it will be just 2.8%—a pace that is slower than the overall rate of global economic growth. No wonder some employees are looking for the exits.
Facing these challenges, leaders in the media industry should focus on a few key priorities:
Focus on strategic planning instead of reducing costs in isolation. Some companies that face acute cost pressure and disruptions from digitisation are seeking to reduce costs quickly. They often look to decrease the size of the workforce first, before addressing broader business challenges. But reducing costs in isolation can leave the company without critical talent—eroding trust and morale at the same time. Instead, companies need to think about lowering costs in conjunction with business model upgrades and strategic workforce planning. Integrated transformation can help companies emerge with a new target operating model along with a workforce of the right size, shape and with the necessary capabilities to execute it.
Strike the right balance between build, buy, borrow and bot. Entertainment and media companies can access new digital skills and capabilities in a range of ways—such as upskilling their workforce, recruiting and hiring new employees, using contractors, and tapping into AI-enabled tech solutions. Upskilling, in particular, is a point of contention for employees. In our Hopes and Fears survey, 70% of media employees said that they need new skills, but only 30% had confidence that their company will help them develop those skills. (Given that companies in survival mode aren’t likely to invest in an upskilling programme, those employees could be right.)
Capitalise on AI. The industry will always need creative talent, but companies can use technology—particularly AI—to become more productive and effective. There are risks, to be sure—as recent strike action triggered by the use of AI in creative industries has shown. Leaders need to take a careful approach to bringing in AI, but they should also recognise the opportunities it presents. News organisations may be able to spin off multiple pieces of content from a single interview using generative AI. Similarly, advertising companies can use the technology to create new video, print and radio spots, in multiple languages. Traditional AI can help companies segment their audiences more effectively and personalise marketing messages. And all companies can use AI in support functions like finance, legal and HR.
Lead with compassion and empathy. Perhaps most importantly, leaders need to be open, empathetic and flexible. Especially when employees are rattled, top-down, authoritative leadership styles are likely to fall flat. Leaders need to be comfortable with ambiguity and uncertainty, and they must acknowledge that they don’t have all the answers. (Right now, no one does.) Moreover, as they set a plan for their company’s future, leaders need to communicate it in a clear and consistent way that inspires and engages employees in the transformation process.
Amid the huge turmoil in the industry, and the transformative change that AI is rapidly bringing, leaders who prepare their workforce for the future will be in the best position to benefit from new technologies—and they shouldn’t underestimate the power of an integrated workforce strategy to bring about the best results.
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