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Investing in Entertainment Startups
10 Nov, 2020 / 02:40 PM / OMNES

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Investing in entertainment startups is very much a debated and thought about idea for the startup companies. Global media and entertainment is a $2 trillion industry consisting of filmed entertainment and  The United States represents a third of the global market — over $700 billion in annual revenue and has traditionally produced the most prolific media assets, which are subsequently distributed around the world. Media, perhaps more than any other industry, has been radically transformed since the advent and mass adoption of the internet. Prior to the internet, the vast majority of media and entertainment content was produced and distributed by a select few gatekeepers: movie and TV studios, record labels, book publishers, and newspapers. Industry incumbents have thus far survived and adapted, relying on their high-quality talent networks and capital advantages while ramping up investments in promising media startups.

For an investor to start with entertainment startups is a risky gamble, as content is highly subjective, and it’s difficult and expensive to produce quality at scale. In fact, entertainment is a hits-driven industry .The media industry is a complicated ecosystem, still dominated by mergers and acquisitions.. The soul of the media and entertainment industry is the talent. As demand and competition for quality content has increased in recent years due to the on-demand nature of the internet, prolific creators have commanded record financial incentives, making it even more capital-intensive to produce premium content — a significant barrier to entry for newcomers.

Technologies and innovations have driven the entertainment industry into a different level . Now that we’re entering a world which each content provider requires membership in its private OTT service to access original content plus its archive of movies and shows, it’s no longer so simple. In fact, there’s a lot of friction and overhead between the user and their shows.

We see a huge opportunity for startups to address this by creating a meta-layer on top of the fragmented streaming environment that abstracts away the complexity for viewers while preserving the underlying integrity of the individual services. Fragmentation of content across closed services makes that more challenging. Luckily, AI capabilities have evolved as well, to the point that we don’t need to think only in terms of personalizing viewing options, but personalizing the entire viewing experience.

 There’s a great opportunity for startups to bring forward all that is  learned about UX design, customization and personalization, plus a layer of AI to simplify search and discovery of content users prefer, to make the whole streaming world much simpler.

Since the entertainment industry is all about technology and creativity ,the investor needs to put in good effort and capital to come up in the industry. To entrepreneurs, the more pressing focus is on what the next generation of companies to transform entertainment will look like. Like other sectors, the underlying force is advances in artificial intelligence and computing power.