Challenges Faced By Entertainment Industry Introduction Under the current competitive and dramatically ever-changing environment, many companies are succeeding whereas at the same time many are failing terribly. Offering the right products for the right markets at the right time is the main reason why some companies and it states an important way in terms of forecasting the shape of things, analyzing strategic alternatives and developing greater sensitivity to long-term implications. Analyzing situation prior a strategic decision is critical for generating or sustaining competitive advantages, especially when facing the dynamic environmental trend, which can affect corporations’ performance positively or negatively. The main task for a situation analysis is to explore the external factors and internal factors and requires a corporation using its relative corporate strengths to better satisfy customer needs and finally achieve maximum positive differentiation over its competitors in a numbers of internal and external variables. The market situation today is changing rapidly followed by increasing keen competitors hence the main objective is to maintain competitive advantage Background Today, Entertainment Industry is a significant part of the society. It takes different forms like televisions, prints, and films. It also includes smaller segments like radio, music, OOH, animation, gaming and visual effects (VFX) and Internet advertising (Peterson, 1994, P.78). Nearly everyone uses either of the above. For instance it is common to see people taking photos or video or even accessing Internet using their mobile phone. Entertainment Industry has become one of the icons of today’s life, a symbol of an instant society, connection and organization. Many people find Entertainment exceedingly convenient resources for everyday life, but very few people stop to consider the negative impacts the Entertainment Industry forms could have on society if not handled appropriately or in the right places. Behind the iconic triviality lie grave issues, which have a negative impact to the members of the society. While different forms are arguably convenient, they can also be rather obnoxious (Dowswell, 2002, P.57). This report explores the different challenges facing the Entertainment Industry. Problem statement The purpose of this research is to investigate the challenges facing Entertainment Industry. It intends to explore how different entertainment forms can adversely affect general welfare the society. The entertainment industry is ever changing and faces challenges mainly from technological changes, changes in consumer behavior, and variety of different forms, which make the industry unstable and create an unpredictable environment (Lüsted, 2011, P.123). The media and entertainment organizations are obliged to become efficient, proactive, forward thinking and embrace the technological advancements in the industry. The traditional approach used by most ...

1. Challenges Faced By Entertainment Industry
Introduction
Under the current competitive and dramatically ever-changing
environment, many companies are succeeding whereas at the
same time many are failing terribly. Offering the right products
for the right markets at the right time is the main reason why
some companies and it states an important way in terms of
forecasting the shape of things, analyzing strategic alternatives
and developing greater sensitivity to long-term implications.
Analyzing situation prior a strategic decision is critical for
generating or sustaining competitive advantages, especially
when facing the dynamic environmental trend, which can affect
corporations’ performance positively or negatively. The main
task for a situation analysis is to explore the external factors
and internal factors and requires a corporation using its relative
corporate strengths to better satisfy customer needs and finally
achieve maximum positive differentiation over its competitors
in a numbers of internal and external variables. The market
situation today is changing rapidly followed by increasing keen
competitors hence the main objective is to maintain competitive
advantage
Background
Today, Entertainment Industry is a significant part of the
society. It takes different forms like televisions, prints, and
films. It also includes smaller segments like radio, music, OOH,
animation, gaming and visual effects (VFX) and Internet
advertising (Peterson, 1994, P.78). Nearly everyone uses either
of the above. For instance it is common to see people taking
photos or video or even accessing Internet using their mobile
phone. Entertainment Industry has become one of the icons of
today’s life, a symbol of an instant society, connection and

2. organization. Many people find Entertainment exceedingly
convenient resources for everyday life, but very few people stop
to consider the negative impacts the Entertainment Industry
forms could have on society if not handled appropriately or in
the right places. Behind the iconic triviality lie grave issues,
which have a negative impact to the members of the society.
While different forms are arguably convenient, they can also be
rather obnoxious (Dowswell, 2002, P.57). This report explores
the different challenges facing the Entertainment Industry.
Problem statement
The purpose of this research is to investigate the challenges
facing Entertainment Industry. It intends to explore how
different entertainment forms can adversely affect general
welfare the society. The entertainment industry is ever changing
and faces challenges mainly from technological changes,
changes in consumer behavior, and variety of different forms,
which make the industry unstable and create an unpredictable
environment (Lüsted, 2011, P.123). The media and
entertainment organizations are obliged to become efficient,
proactive, forward thinking and embrace the technological
advancements in the industry.
The traditional approach used by most organizations in this
industry concentrated their efforts on innovation, TV
broadcasting and syndicated services (Oleksy, 1996, P.89).
They also rely heavily on retailers to distribute their content
and this excludes the main purpose of entertainment is to reach
the customer who should be viewed as an asset. The industry is
facing several challenges.
Some of these challenges include;
1. A decline in video margins resulting from price erosions and
increase in costs.
2. The increase in retailers bargaining power, which means they
will demand, low prices and expect higher services. For
example, those that uses DVDs as their loss leader items
3. The increase in threats of market fragmentation resulting
from distribution channel proliferation like broadband; video

3. streaming, DVR, VOD, video pod casts, and cable (Greene,
1958, P.58).
4. The technical savvy set of consumers. Consumers are
defining the future of media consumption and looking for
technologies that will enable them to consume content on their
own terms.
5. The change of consumer habits, behaviors, and wants
6. The increase in complexity of intellectual property rights
(Kay, 1959, P145)
In particular, the results of this research came from the
entertainment industry where different organizations and
consumers interact in several ways creating a market structure,
which is prone to several factors, which at times come as
challenges. . With random selection and using both qualitative
and quantitative content analysis, the organizations and
customers’ reaction will be analyzed. As media utilization
increases, the need for society, businesses and organizations to
provide guidelines on appropriate usage and also state the
related risks and legal obligation of inappropriate usage must
become a priority. Failure to develop and communicate the
policies exposes every organization to significant financial,
security, legal and reputation risk. The research questions to be
answered are; what are the challenges facing entertainment
industry?
Methodology
This methodology part will categorize the major determinants
the research results which include; case study design,
geographical location, and population trial. Different
instruments can be used to collect data. They are chosen
depending on type of research to be conducted or the type of
data to be collected ( Jha, 2008, P.48). Qualitative methods of
data collection are mostly interpretive techniques, which aim to
decode, describe, translate and come up with a definite meaning
which can be addresses by different interested parties. On the
other hand, quantitative is the data that can be counted or

4. quantified. This research has been analyzed by use of both
qualitative and quantitative data to provide an opportunity for
exploring diverse dimensions of specific marketing issues. Most
researchers use interviews, observations and diaries for
qualitative data analysis whereas questionnaires and surveys are
used to analyze quantitative data. Despite the use of both
qualitative and quantitative methods for the primary research,
the key objective is to analyze the challenges facing the
entertainment industry (Welman et al 2005, P.24).
The research instruments are questionnaires and interviews.
Questionnaires usually form an integral part of description and
opinion. The research team distributed a total of 500
questionnaires to the entertainment organizations and customers
of different forms. All questionnaires are to be given to non-
patients.
During research, interviews are carried out mainly to form a
relationship with participants to attract and make a platform for
their cooperation. The main question to be interviewed will be
to ascertain whether people perceived entertainment as
advantageous to the public and a boost to the economic
development of a nation.
Interviews have more comprehensive data than what can be
collected by other methods of data collection. They also provide
a more comfortable environment in which to gather information
(Sharma $ Jain 2004, P.123)
Generally, interviews have a few restrictions and pitfalls, as is
described below
They are prone to bias:
This can lead to biased interview responses. Many reasons can
make the respondents give wrong information. The researcher
should make great efforts to minimize biasness by designing
good interview procedures.
They are time consuming
Much time is required to carry out all activities of conducting
the interviews, transcribing the individuals, and analyzing the
end results. When researchers are planning on how to collect

5. information they should likewise consider time is also required
for transcription of the data.
Other restrictions are the intensive training required to prepare
interviewers and the fact that interviews require detailed
analysis because they cannot be generalized...
The Process of interviews
This will try to explain the manner in is interviews are
conducted during a research. Most researchers aim to ask
several or multiple questions which the respondent’s can
negatively approach. To ensure there is gathering of the most
viable information the procedures and guidelines for conducting
an effective interview should be followed. Conducting
interviews have to follow similar procedures like any other
survey technique. They have to go through developing
instruments, gathering data, analyzing the collected data and
disseminating findings.
Research Setting
The analysis setting, which is the environment within which
studies are run, offers important consequences regarding
experimental design, the data that collected and the
interpretation of final results. So, for example using a study in
an experimental laboratory may allow you to control variables
in a way you cannot carry out in field do the job, and the results
could possibly be criticized for not reflecting real world. It is
often crucial that you conduct complementary studies in a
variety of research settings so as to build arguments to the
generalizability of findings.
Sampling criteria
For the purpose of conducting the research, there was a need to
select an appropriate sample, which was selected based on
certain criteria to meet the required standards. The criteria had
to consider specific aspects like,
· Level of sanity and ability to agree to agreements
· Willingness to participate
· Age bracket. This case considered only the persons above 10
years of age but ordering participants below 18 years to seek

6. their parents’ consent.
· To eliminate gender biasness, the subjects where to include
both sexes.
Data Collection
This research uses two data collection tools, which include
questionnaire and interviews. Both instruments are effective and
reinforce each other by bringing together information which is
gathered, they are normally both used concurrently because
some respondents may feel it hard either to give a written
response or to speak their opinions out. This study uses open-
ended questionnaires, which were effective as they allowed
respondents to answer the questions using their own words,
which usually is more comprehensive and provides more details.
For this case, major success of the research can be attributed to;
· Good response rate because the questionnaires were
distributed to the respondents by the research team. They also
collected them in person.
· Good time allocation which eased the administering process
· Anonymity offered to the respondents gave them courage to
fill the questionnaires completely
· The presentation was in a regular manner which kept aside
chances of biasness
· A big percentage of the respondents filled the questionnaires,
which gave the researchers humble time for making
comparisons.
Common errors from questionnaires come are due to the
weakness they have. Sometimes these instruments may be
inaccurate or invalid which arises when subjects do not give
their opinions or they do the procedures to please the
researcher. This can lead to emission of valuable information,
which may compromise the true opinions of other respondents,
and this reduced the validity of this tools. To minimize this, the
research team included both open ended and closed ended
questions. The respondents had only choices to select from in
the closed ended questionnaire and could give their opinions on
the other. It has been the trend of most researchers to use only

7. closed ended questionnaires because they are easy to administer
and analyze.
Findings
Questionnaires are regarded as well respondent if they can be
rated between 85% to 100%. The responses can be broken down
and be listed in a table. In this study participants were allowed
to list all the views they have about problems facing the
entertainment industry. People had different perceptions about
the problems facing the entertainment industry. Based on our
research, we classified different perceptions in relation to the
questioned asked and came up with the following chart which
will help in the interpretation of the results
Personal perception towards problems in the entertainment
industry
Strongly
Agree%
Agree
%
Disagree
%
Strongly
Disagree
%
The entertainment industry is facing a lot of problems
65

8. 15
15
5
Discussion/ interpretation of results
From the research, 65% were of the opinion that the
entertainment industry is facing a lot of challenges. Only 5%
strongly disagreed with that point. The second data collection
instrument was interview. The research team comprised of well-
trained and aggressive members who adequately carried out the
process. The respondents did not complain of harassments of
been forced to answer. There was collection of enough data
based on several questions.
Validity and Reliability
Reliability refers to the degree of regularity with which an
instrument measures the attribute or aspect it is designed to
measure. Minimizing causes of measurement error like data
collector tendency can also ensure reliability. Data collector
tendency was minimized from the researcher’s being alone to
administer the questionnaires, and standardizing conditions like
exhibiting similar personal attributes to all or any respondents,
e. g., friendliness and assistance.
The physical in addition to psychological environment where
data was obtained was made at be ease by ensuring comfort,
confidentiality and basic physical comfort. These subjects were
presented comfortable chairs. In addition to all no interruptions
were allowed. Subjects were requested never to write their

9. names within the questionnaires, which ensured there is optimal
confidentiality.
The validity of an instrument is the extent to which an
instrument measures an aspect in respect of what it can be
intended to evaluate.
Content validity is the term for the extent to which an
instrument represents the factors under study. To realize content
validity, questionnaires included a number of questions that
sought to know responses based on the data or information the
respondents.
Written content validity was additionally ensured by regularity
in administering the questionnaires. All questionnaires had been
distributed to subjects by the research team strictly. The
questions had been formulated in uncomplicated language for
clarity and simple understanding. Clear instructions where
ingested to the subjects plus the researcher completed the
questionnaires for those subjects who could hardly read. More
so all the subjects completed the questionnaires in the presence
of the researcher. This was done to counteract subjects from
giving questionnaires to other people to complete them on their
behalf. For validation, the questionnaires were submitted to the
research team and statistician. Because of this more questions
were put in to ensure higher representativeness. Rephrasing of
several questions was done to clarify the questions plus much
more appropriate alternative reaction choices were put into the
closed-ended questions to provide for meaningful information
analysis.
External validity seemed to be ensured. External validity would
be the extent to which study findings can be generalized beyond
the sample used in order to access the whole population. Most
of the persons approached to engage in the study completed the
questionnaires. Not even a single person who was approached
refused to participate. Generalizing the findings to all or any
members of a given population is not easy to warrant. Seeking
subjects who are willing and able to participate in a research
can be tough, particularly if case study requires extensive

10. variety of time or other designs of investment by subjects. If the
volume of the persons approached to engage in a study
diminishes, generalizing the findings to all or any members of a
population is just not easy to justify. The study should be
planned to restriction the investment needs on subjects so as to
increase participation. To ensure validity, any persons
approached but declined to engage in a study should be
reported. As the percentage of those who decline to participate
increases, outside validity decreases.
Conclusion
Various organizations and consumers to create a stable
environment should address with the entertainment industry
challenges. This can be done through;
Renewed focus on communications: It is difficult to watch a
great company struggle, but adversity can be good news for
communications as a function. In major corporate crises, the
business impact of communications failures becomes more
obvious to senior executives throughout an industry or across a
country. As a result, the communications function often gets
part of the blame, but it also gets a chance to improve, receives
additional resources, and gets more management attention
(Sayre, 2008, P.129). This ultimately enhances the role that
communications professionals are able to play in building and
protecting reputation.
Alignment of internal standards of success and external
measures of satisfaction: An organization’s values are never
more on display than in a crisis. The best definition of a great
entertainment industry is where organizations and consumers
deals with problems well, and achieves business goals while
delivering results in a way that is consistent with the common
interests of all its constituencies. There should be an alignment
in quality control, financial risk management, customer
satisfaction, and corporate citizenship (Rigg, 2000, P.46).
Shift from brand thinking to reputation strategy: Business
leaders must now realize that some of the factors that create
challenges are true for all companies, and are moving the global

11. economy from the brand era to the reputation era. Twenty years
ago, brand became the focus of value creation in many
industries. The idea then was to use the growth of media and
higher disposable incomes around the world as platforms for
increased consumer loyalty and price tolerance. By reducing
the story of a brand to a few attributes, differentiated from
competitors, and repeated thousands of times, branding and
brand awareness became a fundamental approach to marketing
and communications.
Recommendation
I recommend that every organization in the entertainment
industry should adopt measures that lead to their success and
delivery of desirable products to the consumers. The companies
should adopt strategic marketing plans, which is inclusive of
budget and upholding the overall organization goals and
objectives. As we all know, their main purpose is to increase
volume of sales and profitability making it a matter of decision
and choices for the managers to choose the best strategies for
the benefit of the organization and society in general. With
changes in consumer preferences, the entertainment industry
should also be viewed and dynamic and ever changing hence
customers are expected to look for products with specific
characteristics or special services (Burch, 2005, P.78). The
organizations should ensure there are official policies regarding
the use different forms of entertainment. The policy should
include restrictions and malpractices, which should be avoided
to limit the challenges facing this industry. The stakeholders in
this industry must come up with ways of dealing with these
challenges and making sure that they do not affect their
business.
They should implement plans for facing the competition they
face in this industry. To beat this competition one should come
up with good marketing strategies. This entails making choices
of target markets through market segmentation and market
analysis as well as analyzing scientifically the consumer
behavior (Lal et al, 2005, P.134). In view of the various

12. concepts that stakeholders in the entertainment industry should
choose to operate, a good strategy ensures successful marketing
management, which shapes the market offerings, create a long-
term growth and deliver a communication value.