Entertainment


Invest in some of the leading companies in the entertainment industry spanning TV, film, music production and distribution.

The film entertainment industry is forecasted to grow to $110.1 billion by 2018.

Bollywood produces around 1000 movies a year, almost twice as much as Hollywood.

Netflix stock has increased more than tenfold since 2009.

Movie theaters hit a record in 2015 exceeding $11 billion in ticket sales.

According to PwC estimates, the global entertainment and media industry was estimated to be worth US$1.7 trillion in 2013 and expected to grow to US$2.23 trillion by 2019. Specifically, the filmed entertainment industry earned revenues of US$88.3 billion in 2013, and forecasted to grow to $110.1 billion by 2018. While a major share of it is in the US, the rest of the world, primarily Asia, is catching up.

Entertainment industry has also transformed and developed with advance in technologies. Online channels have grown rapidly as a means of distributing content – Hulu, Netflix (NFLX-US) and YouTube have achieved very high penetration rates in the US. The established players in the entertainment industry are also not sitting idle. Walt Disney (DIS-US) and 21st Century Fox (FOXA-US), both included in the Entertainment Vue, are some of the stakeholders behind Hulu. Apart from distribution, we are seeing new technologies, especially in 3D effects and animation, taking the quality of entertainment a notch higher. DreamWorks Animation and Walt Disney’s Pixar studios are at the forefront of this revolution. Comcast (CMCSA-US) offered to buy DreamWorks Animation in late April for US$3.8 billion. The transaction will most likely close given it has already received approval from antitrust officials in late June 2016.

The Indian film industry, popularly known as Bollywood, is already the global leader in terms of the number of movies produced every year. Bollywood produces around 1000 movies a year, almost twice as much as Hollywood. The average Bollywood movie costs only $1.5 million to make while in Hollywood it would cost $47.7 million on average. The disparity exists on the revenue side too – Bollywood generated revenues of $3 billion in 2011, while Hollywood can make as much as $51 billion. That is set to change however. Average ticket prices for Bollywood movies are going up with rising incomes and affordability. Accessibility is also set to improve with better distribution.

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