Got some extra money sitting around in your pocket? Why not put it to good use by investing in some of the most lucrative entertainment businesses that have gone off the charts in recent years?
From live events and e-sports to mobile gaming, many entertainment industry sectors have become lucrative powerhouses with little room for error. Take a look at 5 areas in the entertainment sector where you are almost guaranteed to get a good return on your investment.
E-sports
Starting off with an entertainment sector where competition and entertainment are closely intertwined, e-sports are a form of video gaming that’s become increasingly popular. At the moment, e-sports are a multi-million dollar industry with a fan base that spans around the world. Unique tournaments, like the League of Legends World Championship, have turned e-sports into a huge attraction.
Unlike traditional sports events, e-sports are played through a device and feature substantial prize pools and millions of viewers. The greatest prize pool for 2024 was Dota 2, as it had a cumulative prize pool of $23.86 million. Investing in e-sports nowadays is easy, as all you have to do is find top stocks or exchange-traded funds (ETFs). By doing so, you stand to gain a lot from a market that’s expected to exceed $1.87 billion in 2025 in terms of revenue, showing the growing interest this entertainment sector has been experiencing.
Mobile gaming
Does it really come as a shock that mobile gaming has taken the world by storm, considering how convenient and accessible it is? This entertainment sector makes it easy for gamers to play the most popular games on the go, utilizing every minute of their spare time. And it’s not just games like Candy Crush and Fortnite that have popularized mobile gaming – the global gaming market is also enriched with online casinos available on all types of gadgets.
In the past, avid gamblers had to plan a trip to the nearest city with a land-based casino; today, they get to play those same games on licensed casino sites without leaving the comfort of their own homes. Online casinos come with every benefit typically associated with traditional casinos, like a plethora of table games and slots, but they offer the additional perk of choosing among numerous payment methods.
Whether you want to invest in online gaming or gambling, you are highly unlikely to make a wrong choice – provided that you do your research, of course. With the global gaming market size projected to grow at a CAGR of 10.39% from 2024 to 2029, now’s the right time to grab your piece of cake.
Streaming services
While not impossible, nowadays, it is rare to find a home that doesn’t pay for at least one streaming service. Platforms like Netflix and Disney+ have taken the world by storm, generating insane amounts of revenue. To be precise, as reported by Statista, the global streaming video subscription revenue is expected to amount to $137 billion.
If you are already hooked on some of the most popular streaming services, then you probably know they are here to stay. If so, you might decide to invest in the one used in your household by buying streaming company shares through the stock exchange. Unsurprisingly, Netflix remains the top streaming stock to consider for your portfolio, closely followed by Alphabet, Amazon, and Disney.
Live events & concerts
This part of the entertainment industry inevitably had to take a back seat during the coronavirus pandemic; in fact, the complete absence of live events helped online games become as popular as they are. But with the world back to normal, live events and concerts are more popular than ever. There’s nothing like seeing the artists you’ve been listening to since you were a teenager standing in front of you, singing their greatest hits. The entire ordeal becomes even more special if you attend the event with your closest circle.
Festivals like Coachella will never go out of style; they draw in people from all over the world, resulting in staggering incomes. In fact, only the top-ten highest-grossing tours of 2022 managed to pull in more than $2.2 billion. Add to that profits from all the other festivals and concerts and you get a number that’s hard to beat.
Movie theaters
A date night that consists of movies and popcorn will never go out of style. Granted, the presence of streaming services makes it easy to watch any movie almost as soon as it’s released, but they can’t replace the special feeling of sitting in a movie theater with your loved one.
If done correctly, becoming an owner of a movie theater can be quite profitable. Usually, the impending success depends on the area, as big cities tend to draw in bigger crowds. Then again, rural areas don’t feature as many movie theaters as larger places, so there’s less competition – sometimes, there’s no competition at all. The only downside to investing in movie theaters is the substantial sum of money it entails, as building an establishment of this size is expensive.
The bottom line
The entertainment sector isn’t considered one of life’s necessities; however, people have needed to find a way to entertain themselves for hundreds of years. The 21st century has given rise to different forms of entertainment, such as online games and streaming services. While the way we have fun has significantly changed in comparison to bygone times, one thing remains the same – we’re always on the lookout for the best, most budget-friendly way to keep ourselves entertained.
Therefore, if you are thinking about building an investment portfolio, the entertainment industry stands apart as one of the best options. All you have to do is find which stocks you want to invest in and make sure you track their progress frequently; it will give you room for selling them if things take a sudden turn for the worse.
