Entertainment Stocks

Media is consumed by audiences across demographics and various avenues, such as films, television, radio, out-of-home (OOH), animation, visual effects (VFX), music, gaming, digital advertising, live events, filmed entertainment, and print. The Media and Entertainment (M&E) industry of India is a sunrise sector for the economy and is making significant strides. The industry has benefited significantly from growing salaries, more affordable and fast internet, and an increase in consumer durable purchases.

The country’s entertainment and media industry is likely to witness a growth of 9.7% per annum in revenues to reach US$ 73.6 billion by 2027. Revenue of the Indian video OTT market, which is dominated by players such as Amazon Prime Video, Netflix and Disney+ Hotstar, is set to double from US$ 1.8 billion in 2022 to US$ 3.5 billion by 2027.

The Indian government has implemented several measures, including digitising the cable distribution industry to draw in more institutional funding, and raising the foreign direct investment (FDI) cap in cable and direct-to-home (DTH) satellite platforms from 74% to 100%.

Investing in the Media & Entertainment sector can be rewarding, but it also comes with its own set of risks and challenges. Here are some key factors to consider before investing in stocks within this sector:

• Industry Trends and Dynamics: Stay updated on current trends and dynamics within the media and entertainment industry. Streaming services, digital transformation, and changing consumer behaviour can significantly impact companies in this sector.
• Competition: Evaluate the level of competition in the sector. Identify key players and assess their market share, strengths, and weaknesses. Consider how new entrants or disruptive technologies may impact the competitive landscape.
• Distribution Channels: Examine the distribution channels used by the company. With the rise of digital platforms, companies that can effectively distribute content through various channels, including streaming services, traditional TV, and online platforms, may have a competitive advantage.
• Regulatory Environment: Understand the regulatory environment in which the company operates. Changes in regulations can have a significant impact on media and entertainment companies, affecting everything from content creation to distribution.
• Financial Health: Assess the financial health of the company. Look at key financial metrics, such as revenue growth, profit margins, and debt levels. Evaluate the company’s ability to generate consistent cash flow.
• Subscriber and User Metrics: For streaming services and digital platforms, pay attention to subscriber and user metrics. Monitor trends in user acquisition, retention rates, and average revenue per user (ARPU).

To invest in sector stocks via Angel One, follow these steps:

• Log in to your Angel One account.
• Click on the search icon and look for your desired entertainment sector stock.
• Now, place your buy order. Simply click on the ‘Buy’ button, enter your desired quantity, and select the order type.
• To complete your transaction, click on the ‘Buy’ button.

You can track the status of the purchase from the ‘Positions’ section in the ‘Orders’ module. Once the stock is delivered, you can track its gains and losses from your ‘Portfolio.’