The Amrop Digital Interviews: Jamal Khan Australia
A New 'Dawn of Digitization'
In 2017 the Australian Entertainment & Media market was forecast to be worth almost $36Bn dollars and is tracking for $55Bn over the next five years (source - PwC). While a relatively small market in terms of population, the market is an important one to the Australian economy and is diverse including advertising, online entertainment, interactive video games, newspapers, subscription television and free-to-air television.
We invited Jamal Khan, Managing Partner at Amrop Australia and a member of Amrop's Media & Entertainment sub-sector, to share his insights on the changes the industry is rapidly undergoing in Australia and the hiring trends emerging as a result.
A New 'Dawn of Digitization'
In 2017 the Australian E&M market was forecast to be worth almost $36Bn dollars and is track- ing for $55Bn over the next five years (source - PwC). Whilst a relatively small market in terms of population, the market is an important one to the Australian economy and is diverse including advertising, online entertainment, interactive video games, newspapers, subscription television and free-to-air television.
- The entertainment industry is growing at a phenomenal rate
- The advertising industry is an important part of the economy
- The largest growth driver is online video
- Movies and music remain popular, video games generate more revenue
- E&M is in the midst of significant media law reforms
- Smartphones/apps are driving a growing proportion of revenue
Digital advertising has grown significantly. Online video advertising is gaining rapid traction combined with a growing online population and one of the highest screens per head in the world.
We have also seen an increase in the digitisation of out of home advertising and growth in this segment. Consumption habits have progressive- ly digitised with most people now using online and TV sources resulting in a steady decline in the value of the newspaper and print market. Only 30% now read newspapers. Australia’s appetite for news is not in decline, however, it’s becoming diversified across more platforms.
Riding the Pandemic Growth Wave
In 2021 as a result of the pandemic and unprecedented lockdowns across Australia, spending on entertainment, media and internet access services increased exponentially. In particular subscription services and gaming supercharged this phenomenon whilst people were stuck at home in lockdowns looking for something to cure the boredom of their 5km radius! This was further bolstered by people desperate to leave their houses increasing spending on in-person entertainment despite reports that discretionary consumer spending was in decline due to certain parts of the economy hurting. The forecast is that an additional $7+ billion in consumer spend will be there for the taking in entertainment, media, and internet access companies in the coming years.
In the latter part of 2021 marketers had a field day seeking to capitalize on positive consumer sentiment as lockdowns eased, increasing advertising spend by over 20%. So, if you thought everyone was saving money in lockdowns they were certainly not when it came to entertainment & media.
The phenomenal changes ahead as a result of these technological advancements will lead to several opportunities. These advancements are creating an increase in demand for these skills across the board, not just in Entertainment and Media businesses. CTOs and everyone in their teams are in immense demand - Engineers, DevOps etc. There truly is a war for talent with salaries, sign-on bonuses and big counteroffers now being wielded. Data, Cyber Security AI and Blockchain experts are being hunted and companies are struggling to acquire and retain top talent. We are seeing mass poaching of whole teams with uplifts of 20-50% + being offered to seduce people away from their roles.
With the adjustment in valuations of start- up/scale-up technology-based businesses, we have seen mass firing of people in these businesses as VCs get the jitters. The larger companies who were previously struggling to hire top talent (due to VC-backed earlier-stage business being seen as “sexier” and with large ESOPs being offered) suddenly seem a more secure option again – has the tide turned against the scale-ups/start-ups in Australia?
Given the forecast growth and lack of talent in the market we are seeing companies push the Government to bring in seasoned and skilled specialists with Media and Entertainment experience alongside heavy-hitting Executives. Our conversations have started to shift from domestically focused searches to once again undertaking international searches in the hunt for top talent. As a result of the continuing work from home or hybrid models, given the shortage of talent in Australia many CEOs and Boards are deciding whether to relocate their technology talent overseas to lower cost geographies with more abundant talent. Will this permanently shift the employment market, and can people truly work from anywhere as companies such as Atlassian suggest? What will stop businesses hiring for key roles overseas now?
Globally Amrop has a strong Digital Practice Group with Entertainment and Media specialists with extensive experience of undertaking glob- al searches working cross-functionally and on Board and C-level appointments.
Amrop’s Digital Practice Team has deep technology and digital knowledge, combining functional and sector experience. We leverage our own digital tools and systems. We have established a robust sector focus approach, where the Practice Team members form powerful sub-groups based on their in-depth expertise in various digital sub-sectors.
For a confidential discussion regarding your Board and Executive Search requirements in Australia, contact Jamal Khan, Managing Partner.