Considered as one of the best stocks out there, the world of media and entertainment is a big money industry as well and that’s why investing on such stocks can be a rewarding return for one’s investments.
To explain further about the field, media channels are connected to one another in different ways and even in the connection, the money flow is massive.
Let’s say a company is in needs of promotion. This company will consult an advertising expert of an advertising agency and dish out the possible campaigns that are available. Note that a campaign can cost up to millions of dollars depending on what kind of advertising material is needed, also the duration counts. A slot on a media channel can cost up to thousands of dollars and multiply that in a month that can reach up to millions already. That’s how money plays a huge role in a media company. Advertising is the heart of the media company.
Also, a company has partners that resort to direct advertising which means that they don’t have to consult agencies and with that said; they negotiate directly with the media channel for a possible slot or two – for a fee of course.
The Kinds of Media and Entertainment Companies
Advertising Agencies – These are the most important company in the field for they provide the management, materials and correlations of one media company to client company. Advertising agencies like aforementioned is the heart of the media because without them, the media world wouldn’t function as well as the other fields does.
The Media – The media has three different channels: the television, radio and the print media but now another channel is coming in the scene and that is the social media. A media company can have all channels depending on their competencies but some has just television or radio. The print media can be stand alone as well. These are the publishing house that place ads on printed materials such as books, magazines and newspapers.
The Music Industry – Recording labels are also huge companies in the stock market. Artist who produces music can be seasonal however. Music production may not be as fast as generating new products but the demand of a certain artist’s album can be a hit to the charts. Whether singles, albums, digital or hardbound copies, Music is always in demand.
The Film Industry – There are a lot of high grossing film companies. Low-budgeted films or yearlong production, film sales are always high depending on the content and story line of course. Celebrity’s fame can count as a factor on sales as well. The more known the artist is, the more customers it can real in.
The media industry often changes in style as the year of technology improves. Technology companies are also great partners of the media corporations as they provide enhancements for the materials they air on live television or any other media resources. With all that going on, it is a great investment to place on for the media never sleeps, it keeps going on and on and that can be the result of your returns: it will keep on improving.
Currently, the best stock performance is Netflix as the company keeps its track on a rise. As for social media, the best is Facebook who similarly keeps gaining good performances as a stock.
So there we have it! Those are the things you need to know about the entertainment industry. Subscribe to have more useful knowledge for your trading experience! Trade12basics waits for you.