Analysis of Entertainment Business - Essay Example

Business of Entertainment Business of Entertainment Titus Rock Manickam Order No. 214056 27 March 2008 Table of Contents 1. Introduction 3 2. Equity.3 3. The British film industry4 4. The Demand Curve for Actors4 5. The Supply Curve. .5 6. How minimum wage works on this diagram..6 7. The effect of minimum wage..7 8. Argument for or against minimum wage7 9. Conclusion..8 10. Bibliography..9 Business of Entertainment 1. Introduction The business of entertainment is monopolized by those who have made it to the top over the years. Actors, producers, directors, writers, designers, and others responsible in the making of films, theatre, music, and dance who have established their names and presence do not need trade unions. It is the thousands of those on the side involved in stunts, supportive roles, assistants, and helpers who eke out a living as paid employees that turn to associations and unions for improving working conditions, provision of health benefits and other benefits, and increase in wages and salary raise. 2. Equity Founded in 1930, Equity upholds the causes of performers and creative artists across Europe and the United States. Equity has experience and a long history of espousing the performers' causes. Its contribution to the film industry is noteworthy, especially considering the tremendous availability of manpower in the industry where jobs and openings are sought after by ambitious, glamour-hungry young adults. However, in recent times, Equity seems to be flourishing in the United States while floundering in the United Kingdom. Although Equity in Britain continues to paint a rosy picture about its activities, it is silent on the issue of the future of the British film industry. It has not provided any statistics about its role in the rise or turnaround of the film industry in any part of the world. 3. The British film industry The British film industry is going through a critical phase with the number of films produced dropping over the past several years from the turn of the century. Uncertainty in tax legislations for relief is largely being blamed for the downturn. Competition from Hollywood is another factor held responsible for the debacle. In such uncertain situation, it is too much to expect Equity to come to the aid of its members holding jobs and contracts in the British film industry. Even if Equity makes an attempt it will be only a token measure aimed at assuaging the members. There is no reason to doubt the prominence and good track record of Equity. However, its one-sided support in the cause of the employees in the industry cannot help the industry as a whole. For the industry to make a come back, the collective will of the whole enterprise must focus on win-win situation for everyone. The stars are satisfied with compensation, the employees with their wages, and the promoter with his unit's performance. 4. The Demand Curve for Actors The demand for actors is constantly changing. It depends on the number of hits scored during a year. The British film industry has been lagging for external and internal reasons. The main external reason has been uncertainty about tax relief, and the internal one has been failure of the film industry to produce box office hits and competition from Hollywood. It is also the inability of British film industry to capitalize on technological innovations through personalities and programs that has actors of all hues in a tight corner. The media's exclusive coverage of Britney Spear's frailties and foibles and similar negative presentation of performing artists seems to have evoked some kind of revulsion for the film fraternity in the public eye. The cine celebrities cannot be devoid of human frailties and foibles.The media's role is to blame to some extent for the dismal state of affairs of the British film industry. Even if a Britney Spears has to be featured in the paper every other day, there is the responsibility to ensure a fair deal both for the unfortunate celebrity as well as the callous public. Nevertheless, the demand curve for actors has been better now than it was a decade ago. Video productions and distributions have provided much needed succor and with innovations in technology, televisions shows, animation, and advertisements the demand for professional actors will be stable in the foreseeable future. (Hollywood outshines British film industry at Baftas). 5. The Supply Curve One of the interesting sources of supply is Equity. The good health of the British film industry is in the interest of this actors' trade union. The union has everything to gain by keeping its members busy with work. The other sources are agencies, other creative industries like the television, and direct talented individuals. The history of entertainment in Britain has a great past. With more pragmatic and concerted efforts it is in a position to regain its lost sheen in Europe. Moreover, the British youth is starved of star icons of the likes of Shakespeare, the Beatles and Cliff Richard. All efforts at reviving the industry may prove insignificant as compared to the phenomenal capabilities of icons whose extraordinary peculiarities quickly strikes a chord with almost the entire nation. One wonders why the British television is unable or unwilling to provide the youth a British version of American Idol, or something of the kind. Something is wrong somewhere. The industry lacks the charismatic pull of rugged stars. It has failed to cash in on the allurement of intoxicating beauties. Many of these stars are in the making. There seems to be a lack of forum for fresh talents to present their potential. An intellectual audience is not averse to any talent, be it Charlie Chaplin or Marlon Brando. The supply is not in the hands of Equity or the film industry. One may well ask, why not Film personalities are saleable and their unique sales point is the reflection that the public see of the ordinary public through the medium of the stars. The British film industry seems to be passively allowing Hollywood and other foreign films to merrily encroach into their territory. It is time the spirited and talented youngsters are given the platform to let the supply curve find its moorings. (The British Film Industry). 6. How minimum wage works on this diagram A dull industry cannot but tend to be uncompromising on the issue of minimum wage. A close look at the British and American chapters of Equity reveals the advantages the American Equity members enjoy which their British counterparts do not. However, the minimum wage figure does not appear anywhere in their website. Obviously, the rates are fixed according to expertise and seniority. Minimum wage can cause diverse reactions depending on the context and circumstances. If it is transitory in nature, or introduced for a short period of time to overcome some economic anomaly, it is not difficult for the management to carry the workforce with them through appropriate and honest assurance. However, a perennial minimum wage without any prospect of rise in the industrial output will only cause the best talents to leave the sinking ship in the shortest time possible. (Armin Falk, Ernst Fehr and Christian Zehnder). 7. The effect of minimum wage Ewan McGregor earned millions of pounds in Star Wars. However, his appearance in Othello as the character "Lago" will fetch him only 400 pounds as Equity's minimum wage for his class. The theory and practice of minimum wage are followed by employers according to their own discretion. The employer may choose to pay higher than the minimum as a reward for good performance or as an incentive to get the best output from the employee McGregor's case is unique because of the inequality in his compensation. Normally, the inequality between the top earners and the middle class earners is so vast that even a reasonably good minimum wage does not satisfy the middle class earner. 8. Arguments for or against minimum wage Minimum wage is desirable for ensuring fair and equitable compensation. It enables the worker to receive enough wages for his output to acquire the basic requirements of a reasonably decent lifestyle. It raises the standards of the people so that the social and economic status of a nation rises appreciably. However, minimum wage creates a sense of dj vu which stunts an individual as also the industry. All it does is hold on to some form of past glory for emotional reason. It does not provide any relief or solution. It does not promise anything either. It does not promote the idea of being where the action is. It allows for the wage earner to simply exist like a vegetable or a comatose. (Alex Bryson and John Forth). 9. Conclusion Trade unions the world over have lost some clout. The new era of information and communication technologies have created a huge dent in the armor of the unions. Equity, as the voice for the workers in the entertainment industry, has challenging times ahead. If it succeeds in playing the stellar role of reviving the fortunes of the British film industry it will earn the gratitude of the industry and the people. It has a fine track record of persuasion and pragmatism. It is capable of playing the role of a successful sheet anchor. Bibliography: Actors' Equity, http://www.actorsequity.org/. Alex Bryson and John Forth, The Theory and Practice of Pay Setting, National Institute of Economic and Social Research, http://www.niesr.ac.uk/pubs/dps/DP285.pdf. Armin Falk, Ernst Fehr and Christian Zehnder, The Behavioral Effects of Minimum Wages, University of Zurich, March 2003, http://cep.lse.ac.uk/seminarpapers/27-06-03-ZEH.pdf. Equity, Performing for you, http://www.equity.org.uk/. Jobs in UK film industry fall 20%, BBC News, Tuesday, 20 September 2005, http://news.bbc.co.uk/1/hi/entertainment/film/4264940.stm. David Simms, Hollywood outshines British film industry at Baftas, Monday, 20 February 2006, http://www.abcmoney.co.uk/news/2020061991.htm. The British Film Industry, House of Commons; Culture, Media and Sport Committee, Sixth Report of Session 2002-03, Volume 1, http://www.publications.parliament.uk/pa/cm200203/cmselect/cmcumeds/667/667.pdf. Read More