The problem of the degradation of the photography industry isn't caused by any economic crisis but by a few major trends:
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Oversaturated market
While technology advances and good cameras are more affordable, more people are beginning to own a piece of DSLR. Therefore, it seems like "everyone is a photographer", especially when social media platforms like Instagram and Facebook allow people to showcase their work easily.
I don't see myself as a masterclass photographer since there are still many things I don't know. However, I have seen the work of many so-call professional photographers and they make me feel better about my work. My point is that there are just too many photographers, including newbies.
There's absolutely nothing wrong with new photographers trying out to do it professionally - I started up as a newbie as well. However, what I did was that I practice on family and friends first, until I was satisfied with my work before I started taking up requests from clients. I quickly increased my rates in order not to spoil the market. Unfortunately, some "photographers" start with ridiculously low rates and maintain them.
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Bad judgment of photo quality
With the huge number of "photographers" who have been sharing their work online, internet users' judgments are somehow influenced by amateur work. It could be instigated by peer pressure.
For instance, when a "photographer" who has high popularity posts a new photograph, his friends would tend to react to his post, adding flattery comments, and thus anyone who sees the post would think that the photograph is a masterpiece. Likewise, if the post is a photograph of a hot girl, the reactions would be even more whelming.
When I was new to photography, I mistook some bad photographs for good work also. I think most people aren't born with good art sense. I work hard by looking at more good work, doing more actual photoshoots and learning from the professional before I develop my judgment of work, and I'm still learning. Therefore, I wouldn't be surprised that most people can't differentiate between good and bad work.
Many people, including aspiring models, have been approaching me to take photographs of them. They sing compliments of my work until I almost float in the air. However, further interactions would show their ignorance as they start complimenting the work of some hobbyists as well. Some weeks later, they start posting amateur photographs of their photoshoots. Of course, they have stopped replying to me "due to their busy schedules".
During the first couple of years when I started photography, I was requested to guide people in photography - I wasn't even good at looking at light. This further proves that many people are clueless about the qualities of photographs.
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Low budget
Due to many reasons, clients have set low budgets for photography. As they experience more ridiculously low quotations from "photographers", they start assuming professional photography should be cheap. This has somehow led to the lowering of budgets.
When a corporate client has set a (low) budget, the high quality of work that a very experienced professional photographer can produce doesn't matter much anymore. Eventually, the client would decide on a photographer who can accept the low rates.
Don't expect all big brands to set a high budget; some may be using their brand name to bargain for low photography rates. Therefore, don't assume that all photographers who shoot for big brands to be earning a lot.
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Social media - time-consuming and over-saturated
Social media is a double-edged sword. It helps photographers to reach out to people from all over the world but at the same time, it requires more time for the photographers to manage their accounts and thus less time for the actual photography work. Updating social media accounts properly can be very draining.
Social media platforms want to make profits. Therefore, they have been making sharing work more difficult. A fan or follower of a page may not get to see the new posts in his newsfeed and thus social media platforms are trying to push owners to buy advertisement space to reach out to more people.
While it makes reaching out to potential clients easier, social media also invites more time-wasters and creeps. Most people tend to approach many photographers at the same time. Many creeps would contact me because they mistake me for a female model after seeing me posting photographs of (different) girls.
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Most clients just need a photographer
Most clients cannot differentiate between good and excellent photographs. With tight budgets, they just want photographs to be taken, as long as the photographs aren't ugly looking. Having good skill and equipment and putting in extra effort in photography don't help much in this case.
From my experience, I can see that some clients seriously don't need very high-quality photographs. There was once when I worked with a very established educational institute in Singapore. Their main goal was to put together all the photographs into a photo montage (video). Given that the video wasn't in very high resolution, the high quality of photographs wasn't very necessary. Therefore, I thought it wasn't necessary to engage my photography sessions. Nevertheless, the person in charge of the project wasn't someone who could appreciate good photography as well.
Since most people would only upload photographs to social media like Facebook and Instagram, which would automatically reduce the resolution of the uploaded photographs, much of the details would be lost. Furthermore, nowadays, more people are using their mobile phones to view photographs and on the small screens, flaws of the photographs can hardly be seen. Therefore, most people probably don't need very good quality photographs.
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Lack of respect for professional photographers
While almost everyone is a photographer nowadays, people are showing less respect to professional photographers. There are many misconceptions of professional photography.
Some people think editing photographs is as easy as selecting a few options on their phone applications. Therefore, they think they can do the job well.
Some clients would even demand raw files. They actually indirectly indicate that they can do better post-production work than professional photographers.
The great improvement in phone cameras (in both hardware and software) creates the illusion to some people that professional photography is redundant. Given very good lighting, indeed camera phones can do a very good job as well. However, the sensor size, by far, is impossible to match an entry-level DSLR's APS-C one - with a bigger sensor, bigger glasses (lenses) are needed and thus impractical to be built into a phone. Since most people nowadays view photographs on small screen sizes, they don't see the real quality of the photographs.
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Photographers spoils market
Both photographers and "photographers" have been undercutting the market to grab more business.
Many experienced photographers are charging low rates to secure more jobs. To survive, they will have to reduce their effort though.
For example, when I was quite new to taking up event photography jobs, a friend got me to shoot as a second photographer for a community event that covered a large area. The pay was pathetic but I decided to help out for the sake of gaining experience and also to help him. After the shoot, my friend highlighted that I didn't need to do post-production for the photographs and then instructed me to not generate "too big" JPG files. It was an eye-opening experience for me to find out how professional photographers could afford to charge low rates and how some clients wouldn't care about the quality of photographs. This is the real world.
There was once when I had to reject a businessman friend's job due to other commitments, I referred him to my photographer friend who had at least eight years more professional experience than me. After that, I found out from my businessman friend that the photographer friend charged $30/hr lower than me (at that time). My businessman friend approached me in the subsequent years and after comparing the photographs, he saw that I produced higher-quality work. I supposed I got the job because of the friendship, or otherwise, my businessman friend would have gone for the lower quality work because of the much lower price.
There are many "photographers" in Singapore. Many are hobbyists who have been paying freelance models for shoots. Given the opportunity, they don't mind being paid peanuts to get to shoot, which is a "raise in status" - they can then start calling themselves commercial photographers. In other words, a "photographer" who usually has to pay models to shoot, not only has the chance to shoot for free now but also be paid for shooting - he doesn't mind earning just a cent, which is an income finally.
One of the most ridiculous stories I have heard is that a "photographer" has offered $30/hr for a wedding shoot.
Charging clients at ridiculously low rates is highly damaging to the photography industry. Many naïve and big-headed people think lowly of the cost and effort of professional photography. Therefore, I won't be surprised that after getting to know about the freaky $30/hr wedding shoot quotation, they would assume professional photographers would simply charge double that rate.
I have heard stories about bridal shops that come out with wedding packages to attract clients and they pay really pathetic rates to amateur photographers. At least, clients don't know the exact amount the photographers make from such wedding packages, which doesn't hurt the photography industry as much as how freelance "photographers" do by quoting the low amount directly to clients. Nevertheless, those bridal shops have also helped in lowering the value of photographers.
Some photographers come over from neighbouring countries. Due to the money conversion rate, any cent they earn in Singapore (strong currency) is a few times their own countries. Therefore, they can afford to charge lower rates in Singapore to attract clients, since they will still be earning a lot more than back in their own countries.
For those local photographers who have been charging extremely low rates, they will probably realise that it's unsustainable in the long run unless they are only taking up photography jobs as a hobby and the income from their main jobs can support them. The rest would have to give up. However, there will always be new pools of photographers who would continue to damage the photography industry.
I know of a full-time photographer who used to work for a photography studio shop for many years, being badly "utilised" by the company. I suppose the company tries to stay competitive and thus offers lowly priced packages and the employees are being fed with excessive work. Therefore, this photographer has probably been exposed to low rates that he assumes are the market standards, and also, he's used to the quality of work that can be produced with the bare minimum effort. He seems to be doing very well after he starts his own photography business.