Winner takes all just means that a few people capture most of the value. That is the case in entertainment. It doesn't say anything about the talent needed to succeed in that industry. What you need to succeed varies depends on the exact industry. Athletes (who are entertainers) have more objective criteria than, say, pop stars. Even in the case of athletes there are factors beyond genetics (e.g. access to coaching.)
For pop stars you need to have some combination of the right look and ability to perform. Ed Sheeran looks a bit like a muppet but seems to be very good at creating catchy songs. Taylor Swift, to me at least, isn't that good at catchy tunes but she has the look and lives the life style. I imagine there are aspects of personality that are not as obvious but very important to survive in the industry.
For pop stars you need to have some combination of the right look and ability to perform. Ed Sheeran looks a bit like a muppet but seems to be very good at creating catchy songs. Taylor Swift, to me at least, isn't that good at catchy tunes but she has the look and lives the life style. I imagine there are aspects of personality that are not as obvious but very important to survive in the industry.