External competition from free online entertainment has stifled demand for professional casting services
Los Angeles, CA (PRWEB) October 27, 2013
The Casting Agencies industry is closely tied to its downstream markets; when movie and television production perform well, demand for talent mounts and industry revenue grows. On the other hand, when consumers tighten their budgets and cut spending on entertainment, demand from movie and TV production companies drops, causing industry revenue to suffer. Over the five years to 2013, the latter has been the case. According to IBISWorld Industry Analyst Nikoleta Panteva, “During the recession, Americans reduced their spending on movie theater visits and cut back on non-essential expenditures like cable TV subscriptions.” Consequently, downstream markets reduced their budgets and sought out fewer actors to cast in roles. Industry revenue has declined a 0.3% annual average over the five-year period.
Moreover, external competition from free online entertainment (such as user-created content on websites like YouTube) has stifled demand for professional casting services because user-created content often does not have a budget for talent. With consumers opting to turn to the web for entertainment, casting agencies have been hard-pressed to drum up demand.
However, over the past few years, advertising channels have become more prominent forms of entertainment. “Advertising agencies have increasingly sought out big-name talent for print and television campaigns as advertising budgets have grown,” says Panteva. A market that had previously accounted for a small share of revenue is expanding its presence as other downstream markets (namely television production) rely on advertising for revenue. In 2013, industry revenue is estimated to grow 1.9% to $495.1 million in line with a 3.0% jump in total advertising expenditure.
The momentum the industry has garnered over the past three years will carry to the next five years, as consumer spending on entertainment fully recovers. Downstream demand from television production and advertising agencies in particular will drive future revenue growth. Television shows will continue making the internet their new home and relying on advertisements to generate revenue. Consequently, demand for casting agencies' services will strengthen, taking the industry up a notch over the next five years.
For more information, visit IBISWorld’s Casting Agencies in the US industry report page.
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IBISWorld industry Report Key Topics
The Casting Agencies in the US industry are paid by movie and television producers to find actors and extras to cast into roles. Movie casting agencies typically work on a fixed-fee basis.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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