The film and video distribution has the highest Gross Value Added (GVA) per head of the service industries at nearly £200,000.  Television and radio also has a GVA per head of £66,900 which is twice the economy average (£31,300).  The GVA for film and video production is similar at £55,400.

The audio visual industries as a whole have a relatively high Gross Domestic Product (GDP) (2.4%).  The largest, fastest growing and most economically significant industry, interactive media, is not currently covered within the SIC system, and therefore, limited data are available.

Source: Skillset 2005a

According to the results of the past two years Skillset Industry Censuses, within sectors covered by the survey employment levels have remained relatively stable with a 3% increase overall since 2003.  It is estimated that around 160,000 people are working in the media industries covered by the Skillset Industry Censuses at the time of the survey (on 30 June 2004).  About 25% of the workforce employed on Census day were working as freelancers, but it is estimated that up to half the actual available labour pool is freelance (including those available to the workforce not working on Census Day).  The number of freelancers available to the workforce but not employed on census day is around 50,000.

Interactive media (electronic games, offline multimedia and web and internet) is the largest industry employing around 53,200 people (these figures exclude in-house interactive media specialists employed outside the media sector, for example in banks or government departments).  Although this industry experienced an initial rapid growth, it is now stabilising.

Broadcast TV is the second largest industry employing around 23,700 people, which is a slight decrease from 25,000 in 2003.  However, this decrease does not take account of employment cuts from the BBC and ITV which took place late in 2004.  Around 22,200 are working in broadcast radio.  Between 20-25% of people working in television and radio are freelancers (including terrestrial, cable and satellite but excludes independent television production).

Between 40-60% of people working in independent production, animation, special effects, commercials and corporate production are freelance.

Employment in commercials has continued to decline, while corporate production has remained stable between 2003-2004 for the first time in several years.  Both of these industries employ around 3,000 people.

In cinema exhibition (16,500) and film distribution (500), the whole workforce is in permanent employment (those with a contract of 365 days).

Source: Skillset website 2005 and Skillset 2005b

Current skills shortages in the media industry are a result of: 

• an ageing workforce
• a lack of people with the right skills and qualifications entering the media sector
• technological developments
• a demand for specialist knowledge
• an increase in film production

In the media, current skill shortages have been reported for: producer skills; script editing; and camera.

In interactive media current skill shortages are for: technical competence with equipment and processes; management and business skills; and interactive media.  Future skill requirements are for web-based and database programming skills

In radio, skill shortages are for: voice and presentation techniques; digital editing; research; communication and team working skills; project management; commercial awareness; and legal knowledge.  Knowledge of IT networking systems and financial skills will be needed in the future.

In the television industry the number of hard to fill vacancies varies with the size of employer.  However, larger employers, who have higher levels of staff employment, are more likely to report vacancies, but the greater proportion of vacancies actually occur amongst the smallest employers. Skill shortages in the industry are for studio crews, the management of performance skills, commercial awareness and business acumen.  Some emerging skill shortages are: electrical engineering; the use of voice recognition; and gallery production assistants.

Click here for further information on future skill requirements in television, interactive media and film. 

Source: Skillset website 2005

This sector will continue to have relatively high levels of non-traditional employment patterns.  Many of the people employed in the media industries are self-employed freelancers: these numbers are set to increase in the future.  Flexible forms of employment contracts are often used in this sector, which will be a continuing trend in the future.  However, this is not the case in all sectors, interactive media and games are less reliant on freelancers for example.

The number of people employed in media occupations is increasing, but entry into both broadcasting and journalism is very competitive.  The occupational group known as ‘media associate professionals’ is forecast to increase from 175,000 to 230,000 in 2010 which amounts to a 2.5% annual increase.

Source: Spilsbury 2002

The future demand for skills will depend upon the economic growth of the sector, changing patterns of customer demand in the way that products and services need to be delivered and the changing patterns of doing business (for example technological changes as driver of skill demand).  The demand for new skill areas need to be mapped onto the existing skill bases of employees.

The interface with information and communication technologies is predicted to have major impact on the audio visual industries over the next ten years.

The audio visual industries will be a key element in the emerging information and knowledge economy which is set to expand.

Increasing competition from other sectors requiring the same skill sets as needed in the audio visual industries.

Emergence of new roles will put a demand on new skills and knowledge.  There is an expected demand for people with web design and specific software applications skills.

Flexible and less formal working patterns are likely to increase across the sector, particularly with the increase in small entrepreneurial companies that are decentralised.

All of the changes has significant implications for training and education in the sector and their role in skills development.

Source: Skillset 2004a, Spilsbury 2002 and Skillset 2001

For more information on the industries see: