SAS MBA Life/Sejong MBA2017.04.16 15:40




The Economics of the Global Entertainment Industry








After writing my last piece on the global economy and its investment implications, I realized that I mostly repeated what I said in an earlier article. Despite what the CNBC “talking heads” say, the fundamentals of the global economy change very slowly. Right now, global unemployment continues to rise. This means we have not yet reached the bottom. The investment implications of this are to find some safe, high yield investments. And when the economy does bottom out, you should invest in energy, food and emerging market countries while betting against the dollar.

When I have something new to say on this matter, I will let you know. But in the meantime, I will write a few articles on the global economics of things that interest me, such as the global entertainment industry.

The Economics of the Global Entertainment Industry


Entertainment Defined


The Totals



Drugs – Cannabis, Cocaine, and Ecstasy







Computer Games

Live Performances








On one hand, the findings tell a pretty sorry tale about the human race: the leading entertainment items we purchase are alcohol, drugs, and prostitution. They are all escapes from everyone’s daily reality. But I want to emphasize that the above are the purchased entertainment items. Much of what entertains and gives us joy costs very little: taking a walk, socializing with friends, etc.

In doing work on this project, I was continually reminded of the move from physical to digital information transfer: consider what I reported on movies, music, and the growing importance of video games.

Posted by Intoxicated BK
SAS MBA Life/Sejong MBA2017.04.16 15:00



Services like Netflix and Hulu will help keep the U.S. as the biggest entertainment market in the world for the foreseeable future, says PricewaterhouseCoopers.




Fueling growth worldwide is “the democratization of content,” in part due to the proliferation of smart mobile devices, says Mary Shelton Rose, U.S. entertainment and media content advisory leader for PwC. While mobile-Internet subscription penetration in mature markets was at 24 percent in 2008, it has surged to 60 percent in 2013 and will be at 83 percent by 2017. In developing markets, mobile-Internet subscription penetration ranged from 5 to 7 percent in 2008, but will grow to 52 to 54 percent by 2017.






Pay-per-view (PPV) is a type of pay television service by which a subscriber of a television service provider can purchase events to view via private telecast. The broadcaster shows the event at the same time to everyone ordering it (as opposed to video-on-demand systems, which allow viewers to see recorded broadcasts at any time). Events can be purchased using an on-screen guide, an automated telephone system, or through a live customer service representative. Events often include feature films, sporting events, and other entertainment programs. With the rise of the Internet, the term Internet pay-per-view (iPPV) has been used to describe pay-per-view services accessed online. PPV is most commonly used to distribute combat sports events, such as boxing, mixed martial arts, and professional wrestling.



Video on demand (display) (VOD) are systems which allow users to select and watch/listen to video or audio content such as movies and TV shows when they choose to, rather than having to watch at a specific broadcast time, which was the prevalent approach with over-the-air broadcasting during much of the 20th century. IPTV technology is often used to bring video on demand to televisions and personal computers.[1]

Television VOD systems can either "stream" content through a set-top box, a computer or other device, allowing viewing in real time, or download it to a device such as a computer, digital video recorder (also called a personal video recorder) or portable media player for viewing at any time. The majority of cable- and telephone company-based television providers offer both VOD streaming, including pay-per-view and free content, whereby a user buys or selects a movie or television program and it begins to play on the television set almost instantaneously, or downloading to a digital video recorder (DVR) rented or purchased from the provider, or downloaded onto a PC or to a portable device, for viewing in the future. Internet television, using the Internet, is an increasingly popular form of video on demand. VOD can also be accessed via desktop client applications such as the Apple iTunes online content store.

Some airlines offer VOD as in-flight entertainment to passengers through individually controlled video screens embedded in seatbacks or armrests or offered via portable media players. Some video on demand services such as Netflix use a subscription model that requires users to pay a monthly fee to access a bundled set of content, which is mainly movies and TV shows. Other services use an advertising-based model, where access is free for Internet users, and the platforms rely on selling advertisements as their main revenue stream.



Over-the-top content (OTT) is a term used in broadcasting and technology business reporting to refer to audio, video, and other media transmitted via the Internet without an operator of multiple cable or direct-broadcast satellite television systems (so-called multiple-system operators) controlling or distributing the content

Posted by Intoxicated BK