Entertainment, it’s something that human beings have sought after since day one. It’s something that we as a species simply crave and the more we can get of it, the better. Is it any wonder then that we now find ourselves in a hi-tech climate of YouTube videos and streaming services comprising hundreds of channels and shows? Theatre, art, music and shows – it all goes back thousands of years. We’ve certainly come a long way; a thousand years ago gladiators battled it out to the death, nowadays wrestlers combine actual combat skills with theatricalities and battle it out for money, celebrity and bragging rights. The entertainment industry, as defined by the happenings of the twentieth century – the invention of film, cinemas, the Hollywood studio system, television, video machines, CD’s – have all led us to where we are today. Bring in the real game changer of the last 30+ years, the internet, and it seems that change will continue to be inevitable. The point is, entertainment is an inherent need, bolstered by the technology of the day. It’s not going to disappear overnight and for that reason, it makes for an appealing investment option. With all this in mind, let us now look at some of the best entertainment stocks to invest in.
The Walt Disney Company (NYSE:DIS)
It would be impossible to speak about entertainment stock without speaking about the Walt Disney Company. The house of mouse has come a long way, seen its fair share of ups and downs and now owns some of the most lucrative franchises in the entertainment industry. From its acquisition of LucasFilm and Marvel Entertainment to its acquisition of 20th Century Fox, Disney has built its empire by way of its own laurels and through a smart consolidation of power. Even now while the word still reels from the global situation of 2020, Disney has showcased its ability to survive and strive with a slew of high quality content on its Disney+ streaming service.
Nintendo’s an interesting one; in its native country of Japan it’s traded on the Tokyo Stock Exchange, but in the US it’s traded on the OTC (over-the-counter) market as ADRs (American depository receipts). In other words is falls into the world of shares, currencies, trading USD and GBP as an option, commodities and other financial instruments. Technicalities aside, Nintendo, like Disney, has walked a long road to become the multinational consumer electronics and video game company it is today. Over the years it’s faced off against the best of Sega, Microsoft and Sony to still maintain its dominance of the market. The global fallout of 2020 strengthened its share price as gaming on the whole experienced an upward trajectory and even though its share price has declined ever so slightly, in part because the Nintendo Switch is now considered a mature product, Nintendo is the type of company that is ripe for long-term investing.
To not speak of Netflix would be akin to not speaking about the big red elephant in the room of entertainment. Not only has Netflix changed the traditional Hollywood system forever, it’s made its own mark of quality and enforced it. What started off as a DVD rental shipping company has become the biggest streaming company of the lot. Put another way, within a span of 10 years, Netflix’s share price went from $25 per share to $520 per share. The global ramifications of 2020 worked in the company’s favour as many who were forced to stay indoors did so taking comfort in a slew of self-produced quality content. “Netflix and chill” is here to stay.