Entertainment Agencies And Managers Face Financial Difficulties
It has become a known fact that there are extremely large income gaps in the entertainment industry. Seemingly glamorous stars on television were revealed to be only the top 10 percent. What recently came to light, however, was that entertainment agencies and managers were suffering the same problem.
Agencies and managers with world celebrities make a fortune every year, but a large majority can barely afford to pay their office rent.
The CEO of an acting agency shared on October 22, “It’s hard to run the company solely through the money actors make through dramas or movies. We can only make a profit when we have actors who shoot advertisements.”
He continued, “Even if you have many well-known actors, there’s nothing left after deducting gas prices and staff salaries unless they can shoot advertisements or specialize in working overseas.” Accordingly, most acting agencies are hard to maintain without investments made by external sources.
Music agencies, on the other hand, bet for either all or nothing. The agencies grab a fortune when idol groups hit jackpot, but in most cases where they don’t, agencies simply end up wasting money on training and debuting. There are more than a few managers who set out to debut an idol group and failed, losing all their money. Still, agencies line up to bet their chances, dreaming for the next Girls’ Generation and BTS.
A source from the entertainment industry pointed out that the extreme income gaps between celebrities reflect the worse reality of the managers working for them. “Of course there are successful cases where they make large money, but most have to worry about meeting up with others and paying for their transportation and food,” they added.