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Entertainment Industry:Tweaking tunes at times of slowdown

June 19, 2008

It is but clear that, the coming times are going to be testing times for the world economy. The subcontinent is though yet to feel the real force but inflation has started making some inroads into our common vocabulary.

At times like these, when an inflationary nightmare is looming over our heads and the slowdowns have become (to some extent) visible, portfolio management has suddenly become one hot topic.

Its interesting actually, to notice some of the sectors getting their due attention.
FMCG for one.

But off late, I have been doing some back checks and actually found certain good news for entertainment industries. This really doesn’t suit common senses but entertainment industries ,more true for some sectors than others, are found to be more or less recession proof.

Why? I am yet to figure it out, but going by the existing currents of entertainment, the wave is at least not showing any signs of pattering down.

The Sex and The City on its first weekend garnered a brisk 55.7million dollars. The fifth best opening weekend for any R rate film.

Not bad huh?

Closer home, it had been a more of a ‘damn-the-torpedoes’ type of move .Recent T20 matches saw some amazing TRP points being amassed. Huge ad money, huge eyeballs. And Sony Max is a paid channel across the satellite distributors packages.

But the real test will come sooner than expected and the effects will be felt stronger than predicted. It should be kept in mind that this thumb rule is not really a commandment of wise investing

So, which sectors exactly will romp home with the awards? Cable TV for one, or rather Satellite TV distributors should see some growth. But again, not necessarily that the content providers will see any upside movement. Although not much study has been done on this section of the industry, but it is normally found that industry as a whole has shown quite some movement on the positive side.

A more interesting thing comes up, when you factor in the video game industry.

Video Game Industry, experts say is a more or less a very robust industry. They themselves are in two minds,but what I believe is, video game has a better future in the coming days.

Why?
First video game industry emerged as a strong sector during the 2001 dot com bust. ANd it has posted handsome returns since then.

Secondly, the entire gaming industry has made its consumers die hard worshippers and fantatics [which of course is good for the industry]. So is it something like, “dont give me my milk, momma, give me my Half Life 2?”

Remains to be seen.

But overall, Indian investors have something good as well as bad too.They dont have real good matured gaming entities here, on which we can actually reap some profits.
But yes, there are companies like Dish, Balaji etc, which can show some movements.

Parting Words:
This sector is going to be one of the watched out section of the market, and it may makes sense, to get onto this gravy train. But on a cautious note, it also remains to be seen how strong is this sector, for the last big fall (remember 1989?) didnt have any big analysts obsessing themselves with gaming.


[The author, Soham Das takes a passionate interest in economics,electronics and environment [coincidentally,all three Es], not necessarily in that order. When he is not blogging on markets, technology and their business issues, he spends his time conceiving and executing projects for a hi-tech electronics startup based out of South India. Talk to him at Jump Up! He is listening]

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3 Comments leave one →
  1. Paulraj Madasamy permalink
    June 19, 2008 10:53 pm

    i strongly believe in the media (music, movies and gaming) sectors to really bring home the bucks when all others are struggling to balance books or whatever they use πŸ˜›
    the sad fact in india , or for this generation is that the PARENTS are being soo frikin’ scared for their childrens “career scope.. blah blah” when they wish to join any of these..
    one example , my EX-fellow college-mate just wasted two years of his life in my college , pretending to go to class and write the exams.. when actaully he wasnt..
    reason?.. he hated the course , he really wanted to do a course in game design.. reason why he has there ?.. parental pressure..
    sad..
    India needs or its people needs to grow up , mature up a little and come out the little hole that their forefathers buried themselves in and passed it on their descendants..
    damn man..
    that was a BIG rant :P..
    guess i need to start blogging my self :)..lol !

  2. Soham Das permalink*
    June 19, 2008 11:02 pm

    I am just finding myself nodding and saying “Look at him!Thats my boy!”

    Well said…Paul

  3. Paulraj Madasamy permalink
    June 19, 2008 11:31 pm

    *bows gracefully and acknowledges the compliment πŸ™‚

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