Conference Presentation, Panel
L.A. as Entertainment Capital: Chasing Global Markets or Global Talent?
Milken InstituteNoah Wintroub, Beatriz Acevedo, Jeffrey Hirsch, Jon Jashni, Michael Kriak, Chris Silbermann, Eric Schmidt
- The entertainment industry faces an imminent shift from a surplus of talent to a shortage of jobs in Los Angeles, driven by a rapidly changing skills gap and fundamental migration from B2B to direct-to-consumer (B2C) models.
- Industry participants plan to leverage data science to bridge art and talent, optimize content for specific platforms like Snapchat and Facebook, and use digital formats to incubate concepts for traditional studios, while maintaining a strong preference for high-level production in Los Angeles to sustain the local professional ecosystem.
- Strategic plans include launching specific content for underrepresented markets such as the Latino audience and female demographics, establishing a content beachhead in China, and expanding internship programs with paid compensation and loan support to foster diversity.
- Future expectations involve a transition toward generalist roles for multi-hyphenate clients, the potential relocation of direct-to-consumer data analytics capabilities to wherever talent resides, and the utilization of VR primarily for marketing or novelty rather than as a main production engine until hardware improves.
- Significant risks include the lack of current capabilities in acquiring and understanding consumers, the challenge of VR headset limitations, the need to import crews for non-Los Angeles production locations like Michigan, and the slow pace of systemic change for underrepresented communities within the traditional industry structure.
- Predictions suggest that while the apprenticeship system remains unique to LA, it may be perceived as outdated compared to historical training methods, whereas the perpetual feedback loop of influencer data and the "masterclass" content model are expected to naturally drive diversity and generate revenue.