We are very excited to see Amazon’s Fire TV as a new entrant in the set-top-box community. As content consumers cross the chasm from an early to mass market adoption of internet based TV apps and set-top-boxes, content creators benefit by realizing dramatic home entertainment market revenue gains which may someday soon rival the highs of the 1990’s DVD market.
The 1990’s home entertainment marketplace saw feature films that received successful domestic theatrical distribution subsequently achieve two-to-four times the domestic box office receipts in DVD sales. Since the commercialization of the Internet, DVD sales realized a significant decrease finally hitting a bottom in 2012 and posting an approximate 14% gain in sales during the 2013 calendar year.
Meanwhile, electronic sell-through, VOD and pay-per-view sales continue to climb dramatically each year. Several years from now, adoption of devices like Fire TV and new Internet based delivery services will enable the electronic marketplace to potentially meet or even exceed the multiples DVD’s once provided to content creators and investors.
Individual investors utilizing managed-risk approaches like Media Society’s pioneering platform to produce and distribute top-tier content will significantly benefit. In-home technology adoption enables alternative investors to achieve outsized, yet stable non-correlating return-on-investment gains from their entertainment focused investments.
Stable returns with high growth potential should be the investor’s mantra. The equity markets have been in a boom and bust pattern that has been consistent since the mid 1990’s, creating dramatic rallies and equally significant and sometimes even more spectacular market corrections. This pattern occurred in 1996-2002, 2002-2008, and is most likely to be seen again this year 2008-2014.
At this very moment the stock market has hit an all-time intra-day high on very low volume. The thirty-year bond market rally ended in 2013 as noted by famed bond investor Bill Gross (PIMCO).
The investor shift of a portion of their market assets into alternatives like a managed-risk entertainment focused investments, has been continuing to climb. Unfortunately, most investors wait too long to make the transition as they desire the market to repay what was lost in the last bust cycle and end up without a chair to sit down on when the music stops once again.
Smart money investors are taking public market profits while we are at this current market top and while they are dramatically reducing their public market risk. Their reallocation of a portion of their capital into an entertainment focused non-correlating investment means that when the market and economy make a major downward cycle correction the global and domestic entertainment markets are likely to reach new all-time box-office and home entertainment highs as they did sequentially since 2008.
Remember, the old adage in entertainment is that “in good times people love to go to dinner and enjoy a movie, but in bad times, they skip the dinner and escape to the movies again, and again.”
Investors using hindsight as foresight to make entertainment allocation shifts now, take advantage of these cyclical moves so they will be enjoying both a sumptuous dinner and movie from the outsized returns provided by the bulk of market participants who believe history will not repeat itself.