The Economics of Entertainment

The driver of financial development

Scrolling on streaming platforms has become a daily activity for most of us reading this article, something we do out of boredom, and in desperation of finding the right thing to keep us entertained for a little while. Little do we know we are looking at SO MUCH MONEY, more than we could ever imagine; all the scrolling through movies and shows that we do each day, makes the world billions richer.

Let’s talk about it.

Besides the more obvious: buying cinema tickets or paying monthly to watch things, the entertainment industry generates trillions each year, for instance, the global box office: easily 42 billion, the music industry: 21,5 billion (not to count the many more revenue sectors alike those). It creates jobs, actors, directors, writers, editors, cameramen, technicians and many more, and in many sectors, like television, film, theater, music and sports.

It also drives other industries such as tourism and hospitality, because, let’s be honest, when we see a beautiful place in a movie, we are already running to our parents to propose an impromptu vacation.

Entertainment is a business like any other.

The gambling industry was also affected by the many films made surrounding such activities, encouraging watchers to try out gambling, in hopes of achieving the luxurious and lucky life characters do.

Concerts, the big ones at least, which there are numerous, can make up to 25 million each, or even more, so just imagine all those concerts adding up. Music streaming apps as well, like Apple Music, generating multiple billions per year.

Government support also plays a big part, they provide tax incentives and subsidies (a sum of money granted by the state to help an industry/business keep the price of a commodity/service low) to the entertainment industry to encourage growth and job creation, and can include tax credits for film production or tax breaks for new infrastructure projects.

Speaking of infrastructure, governments may invest in infrastructure and facilities to support the entertainment industry. This can include building new theaters or music venues, upgrading existing facilities, or developing new tourism attractions. And these investments can help with attracting more visitors and stimulate economic growth in the designated area.

All in all, the conclusion is that the entertainment industry will continue to prosper as long as we, easily bored humans, are alive.