5 Reasons to Invest in the Entertainment Industry

by | May 24, 2021 | Finance

The entertainment industry has one of the largest market capitalization percentages, on par with the food, tech, and other global industries. This level of development in the entertainment industry has become possible due to close ties with all social strata that need interesting leisure time. However, a fairly large proportion of investors still do not enter this market, preferring to make deals in more proven areas or believe that investments in this industry are too high risk.

All preconceptions and myths aside, there are many reasons to invest in the entertainment industry, which will be the main reason for such an investment. A striking example is the jkr group, which has been maintaining strong business relationships with the entertainment business for several years and demonstrating the success of such investments. If such a strong partnership is not a worthy reason, then here are 5 reasons to invest in the entertainment industry.

Long-term profit of Entertainment Investment

Since most entertainment products continue to exist even after their release, there is an opportunity to generate profits over the years. Movies are one such example. 

After being released to wide distribution, television channels buy the rights to show, the price of which depends on the box office success of the film. In addition, the film may be re-screened or have its merchandise, the sale of which may be equal to the received rental amount, if not higher. All this can bring annual income to the investor without the need for additional investments.

Wide range of products

The choice of where to invest in entertainment is overwhelming. These are game publishers, movies, independent developers, technical components for devices, and more. Plus, as the entertainment industry continually adapts to new technologies, there has been a steady increase in options. For example, virtual reality technology is gaining momentum at an enviable pace, and at the moment many immersion devices have been released, and a large number of projects for this technology are in development.

Different entertainment investment levels

Despite the fact that entertainment projects require rather large budgets for their implementation, investors with small amounts can also get to the market. This can be done in several ways:

  • pooling finance with other small investors;
  • investment in independent developers;
  • investment through kickstart sites;
  • buying shares in small volumes and then selling them.

Thus, an investor who has in his hands a thousand, if not less, can make a deal that will bring millions.

Huge profit opportunities

Indeed, investment in entertainment has a high risk, since everything depends on the success of the project. However, these risks are fully justified by the large percentage of profits that can be obtained. Especially when you consider big-budget films or franchises. Such films can make money both at the time of release and over several years. 

For those who prefer a small investment, the option of investing in an independent team may be the most suitable because films on a low budget have repeatedly performed better than expected after release.

Raising social status

It may sound strange, but investment in entertainment can make a big name. This is possible due to several factors. 

First, if an anticipated film finds itself on the verge of collapse due to lack of funds, the sudden appearance of an investor and his help build a favorable reputation among the fans. That is, the help effect can attract people to itself. 

Secondly, those people who are actively involved in the field of entertainment already have a major influence and, even, their own business in other areas. Thus, by investing in a film, an investor can create useful connections that can open up more investment opportunities.

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