The Show Must Go On: The Entertainment Industry Shows Itself To Be Crisis-Resistant

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People's very own desire for entertainment is unbroken. This hardly changes even in difficult times or crises - it is probably the opposite. Although companies in the entertainment sector were affected by the problems during the coronavirus crisis, which others are also experiencing, the interest of the target groups, however, is unbroken and has even increased in some sectors. In 2019, the entertainment and media industry in Germany grew, showing a healthy growth of 3% to 61.7 billion euros according to industry data. Slightly declining figures were then observed in 2020, but in 2021 things started rising steeply again - despite the ongoing coronavirus pandemic. 

The video games and e-sports segments experienced a real boom. The fans are growing more and more and the community is slowly bursting at the seams. Since 2019, growth has been stable at around 5%. The largest European e-sports market is developing rapidly, with a total turnover of 77 million euros, an increase of over 25%. E-sports has slowly but surely entered the mainstream, thanks to companies such as Fandifi CA and Electronic Arts EA. In Germany, the video games and e-sports segment is already ranked sixth in the entertainment and media industry - just behind television. According to Statista, sales in 2020 amounted to 5.226 billion euros. More and more sponsors are becoming aware of the industry, which has long been in the shadows in the entertainment industry. Innovative companies are making a hype that has also reached the stock exchange. 

Stocks and funds in the entertainment industry

Fandifi CA: The Canadian entertainment company has made a name for itself with a system-generated crowdsourcing prediction platform. Predictions for sports, e-sports and other broadcast content are presented on this platform. The Group offers tools for content enrichment, fan engagement and monetization. The involvement of fans in the entertainment industry can thus be raised to a whole new level. Fandifi also operates a marketplace for NFTs on "fandomart.com". Rewards are traded there on a blockchain-agnostic platform. Recently, the company changed its own name from Fandom Sports Media Corp. to Fandifi to reflect the broad application possibilities of its technology and to increase brand awareness. FDMSF FDM

AMC Entertainment US: as a global operator of cinemas, the company from the USA belongs to a segment that has suffered from the coronavirus pandemic. However, the Group has recovered and wants to benefit from the positive development in the entertainment industry. He is represented in Germany by his subsidiary, United Cinemas International. AMC

Gamestop US: at the beginning of 2021, the Gamestop GME share gained worldwide fame due to the rapid price movement. Meanwhile, the securities of the world's largest retailer of computer games have stabilised. A big player in the entertainment industry.

Invesco Global Consumer Trends Fund LU: a fund made up of almost 50% companies from the IT and entertainment industries. Top holdings include Amazon AMZN AMZN, Sony 6758SNEJF and Nintendo 7974 NTDOF. 

RobecoSAM Global SDG Engagement Equities LU: this fund is also home to many corporations from the IT industry. These include Electronic Arts EA EA, Apple AAPL AAPL and Samsung (KRX:005930) SSNLF. 

The entertainment industry was shaken up briefly during the coronavirus pandemic, but can look forward to a lot of potential. Some segments were even able to benefit from the past few years, as is particularly evident in the area of video games and e-sports. Corresponding equities are therefore moving into focus. 

Image sourced from Unsplash

This post contains sponsored advertising content. This content is for informational purposes only and not intended to be investing advice.