The modern face of the media and entertainment industry globally has seen a massive change in recent times. The digital nature of how we access news, movies, music and TV shows has now opened up a whole new front in this industry.
The numbers for the media and entertainment sector certainly reflect the health it is in. UK A recent report by accounting giants PwC alone predicted he would be worth £72bn by 2021. That figure was up from an equally impressive £62bn in 2016. The same figures Wholesome can be seen in media and entertainment around the world, as the US-based Netflix showed with 109 million members in 190 countries.
What does all this mean as an investor? The state of the industry and the money in it suggest there are great opportunities to consider.
Investment ideas for media and entertainment in 2018
If you have the money to invest, this is a growth industry that you definitely need to think about carefully. With many thinking he will only grow over the years due to new technology helping us connect more with him, entering now might be a wise move.
Here are some areas of the industry that make interesting investment ideas:
- Technology Funds – of course, many investors will consider buying stocks and shares in media and entertainment companies to profit. Although this is an option, it may also be worth considering investing in funds instead. While there are no current funds that contain exposure to real media or entertainment companies as such, you can invest in more technology-based funds that provide services to companies in the industry. The beauty here is that you have a good contingency against a price drop from one company because the others will hopefully compensate.
- film industry – an interesting investment to consider is the film industry. The UK film industry, for example, is currently booming and gaining a generally positive reputation. Edgar Wright’s Baby Driver earned around $226 million at the box office despite only grossing $34 million. It’s a great return for the investors who backed it, and it shows why many are now investing in movies.
- Blockchain based companies – a new development that many believe will have a huge impact on media and entertainment is blockchain. This advanced technology provides an open and transparent system to facilitate things such as online payments. Many believe this is an area that will take off very soon, so it might be worth investing some money now. Try researching blockchain-based media and entertainment companies or those that can provide key services to businesses in the industry.
- Online games – online gaming is a massive industry to get involved in. Currently, it generates $13,551 million in revenue per year and is quickly becoming the primary way people enjoy video games. From online casino games to multiplayer battle royales, they connect with millions of consumers worldwide. This makes companies that develop the games or platforms that people play online an investment opportunity worth considering.
- Online streaming platforms – whether it’s TV, movies or music, online streaming is now a major player in the industry. This is the number of consumers who choose to access the media channel of their choice. If you are considering investing money in media and entertainment, online streaming platforms such as Amazon Prime are definitely worth considering. With their popularity only expected to increase, this could yield a good return on your initial investment.
And virtual reality?
One area that many believe will take off in the coming years is virtual reality (VR). Virtual reality has long been talked about as the next big breakthrough in entertainment with its uses in games and the way TV and movies are watched. This makes it an area of entertainment that could be worth investing in now for handsome returns. From companies that make VR games to the equipment needed to use them, investing in stocks here or helping fund VR start-ups could make perfect sense.
Invest in a growing sector
Naturally, the above is only advice on potential areas of the industry in which to consider investing. It is essential to do your own research and due diligence before actually investing real money.
Whichever media and entertainment niche you decide to invest in, there’s no doubt that the entire industry is on the rise right now. With more people than ever using the latest technology for entertainment at home or on the way to work, it looks like this will only continue into the future. This means investing money in the industry now could be a wise move.