The media and entertainment industry is facing some fundamental challenges, as a result of advancing communication technologies. According to media industry analyst, Booz and Co, traditional media audiences are shrinking as digital media is increasing in popularity with both media agencies and modern consumers. As a result, many media companies and businesses are undergoing a process of restructuring, searching for the correct combination of strategy and direction to ensure future growth. Booz and Co went further to state that those media businesses wishing to survive and thrive in this challenging and evolving environment require competencies that are substantially different from those that ensured success during the analog era. Therefore, the quality of staff and the skills they bring to the industry are becoming the major basis for securing media and advertising contracts, as well as creating a competitive edge in the marketplace. A media organisations ability to delive r high quality and consistent results is a direct result of the quality of the staff that is employed.

The modern advertising and entertainment environment is creating new challenges for both the media companies and staff that are working within the industry. The modern era is characterised by increasing levels of media types, mediums, interactivity and an ever expanding level of consumer choice, both in the range of products/services and how they choose to find and purchase such products and services. It is suggested that in order for those in the media industry to survive in this challenging environment, media companies must develop a broad base of skills that not only focus on traditional mediums, but the expansion of social and comparative forms of social shopping, and how this affects the industry.

Additionally, the need for targeted media and marketing activities is placing increasing pressure on media agencies to thoroughly understand their audience and the factors that make up, and affect, their decision making process. Creating targeted content specifically aimed at positively affecting consumer behaviour to purchase, while utilising multiple media options, will be key factors for those media companies, both large and small, who will continue to succeed in the industry.

Additionally, Buzz and Co have highlighted that in reaction to the recent downturn in the global economy, nearly all media organisations have attempted to reduce costs and streamlined their operations. A focus on productivity, and the employment of staff that create real increases in the businesses productivity and market share, that can multitask and integrate the online and offline media activities and strategies, will be the focus of many media companies short and long term strategy to gain a competitive edge.

Media recruitment agencies are now becoming a key partner in the industry. As quality staff is becoming the main route to gaining a competitive advantage and increased market share, having a qualified, experienced and skilled employee base is essential.