If you have free funds on hand, then why not choose the option when money makes money? From this step, the path to obtaining passive income begins. Investing in entertainment is a profitable direction that opens the way to financial stability. The rapidly changing landscape of the industry poses challenges for market participants. After all, it is necessary to promptly make changes to the business. But the largest companies have a resource advantage. They can be the first to innovate and take the industry to the next level.
Not all entertainment projects are equal. Some companies are struggling to adapt to changing consumer behavior — this is most noticeable with online movie theaters — while others are trying to manage change and create trends at the same time. The jkr.co, for example is interested in investing in entertainment — this niche doesn’t guarantee stable luck, bit it’s far from the roulette: but you should also know what to do.
To reduce risks, the game and its esports direction must be at least as stable as possible. If there are contests and the confidence that it will not be closed is already good enough for investments.
Pros and cons of investing in entertainment
The gaming industry is another area that an investor cannot ignore. Such companies’ shares have been at the top of industry rankings for several years. There are two important reasons for this:
- All video game manufacturers benefit from the shift from selling products through third-party game retailers to paid subscriptions that allow them to sell games directly to users.
- Not only the games themselves are developing, but also their entertainment. Esports events are covered in the best traditions of sports broadcasts. Successful players and teams are not inferior in popularity to outstanding personalities from real sports.
They have the potential to grow profits by generating new revenue streams centered around esports. You can sell broadcast rights, branded goods, negotiate with sponsors. Competition for franchises like Call of Duty or Overwatch has raised millions of dollars. And this is just the beginning of development.
Games are becoming more attractive, which means investing in their producers too. Developers have a lot of opportunities ahead of them related to virtual and augmented reality. This is a great long-term investment. Companies are expanding their spheres of influence by introducing their own products in the mobile segment. You don’t need to own a console to enjoy Call of Duty in single or multiplayer mode. Manufacturers’ franchises are offered for playing on smartphones and tablets, which, in a favorable trend, contributes to the growth of the company’s revenues in an arithmetic progression.
What disciplines to choose
It’s worth starting with the disciplines in which you can sign your first squad. Disciplines are the games in which championships are held. Analyze projects that you consider as an asset for investment. You have to carefully check the prospects of assets, assess risks — independently or with the help of an experienced mentor. At first, the latter is preferable. Do not trust promises of quick fabulous profits — check every word and every fact before you start investing.
Resist the hype and herd instinct. Often, the demand for an asset or the popularity of a particular investment strategy is pumped up and maintained artificially. It is important to separate the grain from the chaff and assess the real market value and feasibility of a particular project or approach, not succumbing to the propaganda of advisers who are not always clean on hand. Manage your finances carefully, passion and blind hope for luck are not the best companions for an investor, especially a beginner.