A Forecast On Media Investments

DUBAI, UAE, August 6, 2017 /EINPresswire.com/ — “…global spending on entertainment and media is projected to rise from $1.6 trillion in 2011 to $2.1 trillion in 2016, a 5.7 percent compound annual advance….” (PwC’s Global Entertainment and Media Outlook 2012-2016).

This is an astonishing figure, but when you consider the breadth and depth of media, it’s easy to see why. Alongside food, clothing and energy- media is one of the few industries that pervades into the lives of practically every consumer on the planet- delivering content ranging from news to gaming, films, TV programs and more. As technology has advanced, the number of channels (and types of content) has grown meaning that investors can now access everything from global hits (such as the film Avatar which grossed over $2.7billion in cinemas alone from an investment of around $300million) to niche events and productions targeting specific communities.

Entertainment and media are growing and globalizing. Media assets which once would have only been shown or experienced in their country of origin are now global instruments, which can be exploited in markets worldwide. Previously developing economies such as the Middle East, Latin America and Asia have also become incredible consumers (and producers) of media. These fundamentals represent a powerful case for investors.

To learn more, I spoke to Ethan Young, CEO of Ennahar Production who- since their debut in 2006 – have raised and invested over $3bn in the media and entertainment sectors.

Ethan is the Chief Executive of Ennahar Production with overall responsibility for the company’s fund raising and investment activities across its target sectors of cinematic animation & effects, music copyrights acquisition, and gaming developments. Ethan previously worked for a leading media and entertainment law firm specializing in media finance.

Q: What is the case for investing in media?
Ethan Young: Our model is very much investing in media cash-flows. We don’t take positions in quoted media stocks, as that introduces too much exposure to volatile equity markets- and media tends to get hammered more than other sectors when the markets have any degree of turbulence in them. We’re platform agnostic. People tend to see the market in terms of discrete sectors such as film, TV, music, video games, live and so on. We like to invest in content you can view many different ways- and that gives us depth and diversity within our portfolio.

Q: What makes a film ‘investable’?
Ethan Young: On features, we look for two key things. Firstly, the track record of the film making team- next, that the project has access to the best possible distribution. When we’re investing in independent films, we look for market tests in the form of pre-sales. This demonstrates that there are end-buyers for it. When we’re investing in studio-films, it’s about finding the closest possible alignment with the interests of the studio itself and making sure we’re accessing the economics of studio distribution.

Q: What do you see as the big sector opportunities in the future?
Ethan Young: Gaming is gonna be huge. Right now it’s worth an annual 100 billion USD and growing! That’s worth more than the movie industry. Mobile gaming has become such a big industry, its eclipsing PC and console gaming. So now is the time to focus on this rising trend and while it’s still relatively new, stamp your authority in it.

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