Please revise the attached paper based on the below instructions. Please note that the entertainment sector has been selected:Each student will select a unique commodity or instrument or a market sector to analyze and report onUse any available resources (Wall Street Journal, reputed Internet sources, library, books, research papers, etc.) Write a full description of the commodity, instrument, or sector, and profiting from it will form the crux of the reportYour paper should have at least 80% of your own original thought, not ?borrowed, paraphrased [or] quoted? from material pulled from the Internet, articles, journals, books, etc. Your thoughts, not someone else?s!The more detailed and complete the report ? the higher will be the earned gradePlease address your strategy as how you will profit from the entertainment sector. Generalities will not be accepted. What instrument will you use? i.e. stocks, options, futures, etc. The guidelines are specific regarding the project:
Running Head: ENTERTAINMENT INDUSTRY ENTERTAINMENT INDUSTRY AND SPECIAL ACQUISITION COMPANYS Author?s Name Institution Affiliation 1 ENTERTAINMENT INDUSTRY 2 It is important to appreciate the fact that the entertainment industry has managed to
record a tremendous rise in the manner in which it conducts its businesses. Many investors have
in the past few years shown industry interest in this industry since it has proven its worth.
According to Malaki (2016), the entertainment industry which comprises of both media and
entertainment has managed to outgrow other sectors such as oil to become among the most
profitable businesses to look up to when it comes to profit margins (Biederman, 2011). There is a
projection that this industry is expected to surpass the leading stock market indicators. In
addition to that, an independent study group has also managed to come to a conclusion that the
number of investors shunning other industries for the entertainment industry has been on the rise
Another primary factor to consider when introducing the entertainment industry is the
fact that the earnings before and after tax have been on the rise, something that can be attributed
to the manner in which companies are opting to conduct their businesses. Most media and
entertainment companies have decided to shift their attention from the general production to
production systems that add value to the society. In addition to that, many companies are
reconsidering divesting the most underperforming businesses with the aim of maximizing returns
from the creation of digital platforms (Bochner, Keller and White, 2008). Some of the most
important factors that are considered to be in the forefront when it comes to profitability in the
media and entertainment industry are acquisitions, advertising spend, emerging markets and
digital distribution. ENTERTAINMENT INDUSTRY 3 According to Mokeira (2016), the entertainment sector remains one of the most profitable
industries that is yet to reach its maximum potential. Many media players are getting into the
market with little knowledge on the exact spots that needs maximum attention and exploration.
John Nendick, a global leader in the entertainment industry, has an opinion that the digital
platform likely brings a lot of profits to the sector. In addition to that, he is the view that there is
an untapped potential in the digital platform due to the fact that many consumers are thinking of
migrating and adopting a digital platform (Dorsey, 2014). This is an indication that the insatiable
demand for content in the industry is likely to fuel growth regarding profits. There is a universal
estimation that the industry is likely to outperform several other cross-industry stock market
Globally, the media and entertainment industry have managed to gain a lot of popularity
among institutions as well as investors primarily because it has created a lot of flexible
opportunities allowing an individual to multitask. Digitalization has made accessibility to this
industry very flexible with minimal restrictions in regards to investment. Many companies are
reconsidering incorporating some element of media and entertainment in their platforms as a way
of increasing their publicity to their potential customers. This clearly indicates the level in which
independent bodies are willing to adopt different models that are trending in the media industry,
an indication of the quality and rich untapped potential. In addition to that, many governmental
restrictions that were making the process of adopting media and digital platforms difficult have
been removed to pave the way for a smooth transformation into the digitalization of the forecasts
industry (Duncan, 2016). ENTERTAINMENT INDUSTRY 4 The entertainment industry has proven to be a very exciting industry which requires a lot
of strategic planning with adequate knowledge if one is looking forward to being successful in
this field. One of the most crucial areas that have been well captured by the entertainment
industry is the broadcasting medium. This is because it encloses magazines, newspapers, radio
and TV. Other most commonly used a form of entertainment are music, film, books and the
recently launched internet (Fontanills and Gentile, 2011). The compound yearly growth rate of
the media and entertainment industry has already been predicted starting from 2013 to 2018. The
projections have managed to confirm that the sectors that will experience higher growth rates are
the use of internet in advertising. This alone should be able to grow by at least 10.7 percent
within the stated time.
A comparison between this and magazine publishing shows that the publications for
journals are likely to shrink by at least 1.9 percent on an annual basis. Even though some of the
entertainment businesses may seem to want a lot of starting capital and investments to enable
them to start moving, numerous opportunities can be intensively explored on a small scale with
minimal capital investment (Haupert, 2006). The entertainment industry remains one primary
asset that is yet to reach its full potential regarding investments and growth. To achieve this,
several tools can be used to make precise projections of how to make profits from the
entertainment industry. This paper has outlined the various tools that can be in cooperated in a
particular business model and how it is likely to work out regarding how to widen further the
margin of profits. ENTERTAINMENT INDUSTRY 5 Some untapped opportunities in the entertainment sector need to be explored thoroughly.
Most of these do not require a significant initial investment capital to make them running. The
first untapped venture is investing in actor?s photo portfolios. Photography is one field in the
media industry whose tremendous growth has been a surprise to many. If one has the large
interest in portrait photography, he/she can decide to start an actor?s photo portfolio business
with little resources (Holt, 2011). One main advantage of this venture is that as much as it yields
a lot of revenue regarding profits, it gives one time to focus on other personal commitments. Its
market is quite vast, and anyone who would want to venture in the entertainment industry can be
a potential customer. The second venture that is likely to yield maximum profits when
thoroughly explored is the ad film making business.
The necessary skills necessary to be able to set this venture rolling is to have some little
knowledge of commercial filmmaking. It is important to note that corporate houses have regular
service or product promotional services hence in every promotion, the houses heavily rely on ad
filmmaking companies. This makes it an important sector that can be explored for the realization
of maximum profits. Its main advantage is that it is flexible enough to create room for diversity.
Other sub-ideas can be focused on and run concurrently with the ad film making business
(Kaeppel, 2009). The first tool that can be very instrumental in spearheading profit margin is the
futures trading. This trading method opens opportunities regarding encouraging participation in
both financial and the physical commodity markets with minimal capital. ENTERTAINMENT INDUSTRY 6 This can then be used to control a huge contract. This trading approach can be utilized by
various entertainment businesses to amass wealth since the starting capital is always defined. The
use of amusement parks with the main aim of making profits is another opportunity that is still
laying bare, unexplored. It is a venture for those who have been passionate enough about selfrewarding businesses that are highly profitable. A real case scenario that can be used to explain
this further is the various success stories of individuals such as Disney Land, Cedar Point, and
Knoebles. Their business models in the entertainment industry took almost the same path as that
required for the amusement parks (LeBoeuf, 2012). In addition to that, for one to be able to
maximize profits from this model, the initial investment capital must be enormous.
This is because the vast tract of land with readily available water is required for this
purpose. It is important to note that there has been a tremendous rise in the use of amusement
parks over the last five years. There is still much need to capitalize on the rising domestic as well
as international tourists who have a crave for amusement parks. Growth in this sector is expected
to tremendously be on the rise in the next few years due to the increased number of drivers that
continue to create a positive influence on this industry. A real instance is a projection that the
spending on travel is likely to increase by a huge margin in the next five years. To be sure of
maximizing profits from this sector, there must be a proper business plan before the
commencement of this project (Lehu, 2007). ENTERTAINMENT INDUSTRY 7 In addition to that, critical parameters such as physical planning as well as attraction mix
of the major components required. Engaging a team of experts in the initial planning process is
not only going to aid in the aesthetics of the project but also in the maximization of profits. The
entertainment industry has been flexible enough to be able to accommodate a lot of stakeholders
who never had any prior knowledge about what to do to be able to generate some revenue from
the sector (Miner, 2009). Hence, profit making opportunities are open to all and sundry, provided
one has the will to explore. Some of the formal legalities that one must be able to adhere to
before coming up with an amusement park for profit include registration of the business.
In addition to that, it is important to note that this is a very sensitive sector of the
entertainment industry that is likely to attract a number of permissions and safety rules. When all
this are adhered to, the business is likely to create a lot of revenue that can even surpass the
initial projection. Another sector of the entertainment industry that can be used to amass profits is
the career expo. The beauty of this industry is that it is quite diverse and creates all manner of
opportunities. Many companies have not been aggressive enough to explore this sector to the
fullest since its inception. One needs to understand all the loopholes that are currently in the
industry about career expos (Moss, 2010). To be able to maximize the profits obtained from this
sector, one only needs to have proper contacts, and the deal will be done. ENTERTAINMENT INDUSTRY 8 According to Mokeira (2016), the entertainment industry has been a blessing regarding
the vast opportunities that can be explored. A good example of a company that took this
approach was the Virgin Atlantic. It managed to record an 80 percent profit during its first
quarter of operation, proof that it is a venture worth pursuing if at all one needs to amass a lot of
benefits. The rise and rise of comedy clubs within the entire continent are another inspirational
factors for entrepreneurs who would consider venturing into this space (O'Keefe, 2010). Look at
Bill Cosby?s show which was at its epitome during the late nineties. He used to make lots of
profit from just making the show lively and ensuring that it had a fit with the society.
Sooner than he knew, many high-end TV shows wanted to feature him and sign contracts
with his show. In addition to that, comedy clubs are never restrictive to who needs to be given a
performance as it is open to people of all ages. To be able to make profits from this show, two
approaches can be taken. The first approach will be running the show from a fixed location
though this will require a lot of investment capital. The second method involves moving to areas
of demand with potential customers (Roush, 2006). It has proven to be a very sure way of
pushing the entertainment industry to the limit since it is considered an investment with
tremendous potential though hasn?t been given the desired attention. ENTERTAINMENT INDUSTRY 9 Another valuable tool that can be used to spearhead profit making is the call option
device. This is a very secure trading platform that can be able to completely redefine the
entertainment industry. Some of the industries in the entertainment sector that are quite dynamic
with the capacity to apply this model are outlined in this chapter. It is a very dynamic sector that
requires a lot of concentration since it is only wise to buy a particular stock when it is deemed to
be profitable (Shrum, 2006). Corporate hospitality and events planning business is another
venture that offers a description of being able to give services in events organized and held by
corporate companies. Profitability in this scheme of activity comes about when one can keep all
clients happy and well entertained during a function.
When this happens, there is a likelihood that one is likely to be called for other events
through referrals. This recurrence of events is likely to be a major platform for maximizing
profits. The benefits obtained from such events are typically due to the demand for such services
at any particular moment of time. Hence it is conclusive to say that there are several aspects of
an entertainment industry that cannot be changed whatsoever. On the other hand, what is
expected of the players interested in this industry is to take advantage of the seasons that are
usually characterized by high demands. In addition to that, it is necessary for an individual or
company interested in this venture to grow their networks as it is the key towards a successful
business (Sickels, 2009). ENTERTAINMENT INDUSTRY 10 According to Sparrow (2007), the success of any business enterprise in the entertainment
sector is largely dependent on one?s will to go an extra mile in pursuit of business opportunities
that have not been explored yet. The primary strategy, in this case, will be the reliance on
statistics and future projections. According to Info track, a survey company that focuses on
tourism projections, the number of corporate events has been on the rise for the last five years.
This is a good indication that this is a very profitable business enterprise that is worth investing
in. Hence the main tool, in this case, is the reliance on future projections based on statistics
Another valuable tool that has proven to be very instrumental in creating profits is the
stock. An entertainment business that would want to re-invest the profits obtained from the
routine business has the chance to invest their profits in the stock exchange markets. Through
this, they can be able to monitor their shares and determine whether they are making any
significant progress or not. The most important part of this venture can understand all the factors
that affect the stock market and interpret them regarding business. In addition to that, another
important strategy that cannot be overlooked is re-investing the profits obtained from an
entertainment industry into smaller business units with the aim of amassing more profits. This is
a very rare concept, but it has proven to be extremely successful especially on companies that
have adopted it (Strohmeier, 2012). The benefits obtained can be monitored via a chart that offers
full analysis and projection of how dynamic the market is likely to be short. ENTERTAINMENT INDUSTRY 11 Special Purpose Acquisition Companies
Before investing in any company, it is important for any investor to be able to outline
some of the most crucial necessities that will act as determinants of whether the investment is
worth it all. It?s unfortunate that Special Purpose Acquisition Companies do not always have this
information during the first public offering. Many foreign financial products have been in
existence not necessarily because they are appealing to investors but because they are a source of
profit to their promoters. SPAC, as they are commonly known, have always been linked to a poor
man?s equity since most of the developers, in this case, can only get at most 20 percent for just
finding a target company (Oshwall, 2009).
When it comes to the entertainment industry SPAC is likely to raise money through an
initial public offering which would then be placed in a trust. This is liable to revolutionize the
manner in which regular business is carried out regarding profitability and expansion. For
security purposes within this industry, it is very imperative for a SPAC to place 90 percent and
above of all the gross proceeds that had been initially raised in a particular IPO. This is to be put
in a trust account immediately all proceeds have been received. This approach is likely to
revolutionize the order of business in the entertainment industry regarding making profits (Ulin,
2011). It is important to note that the approach gives a lot of confidence when it comes to where
one is willing to take a risk and make profits. ENTERTAINMENT INDUSTRY 12 Any investment opportunity must be critically thought of before executed. One may not
be sure whether he/she is channeling funds into the right venture and may want to include some
sense of security in the investment. When it comes to the entertainment industry, SPAC is very
instrumental in stimulating and encouraging growth. This is categorical because SPAC has
invested heavily in experts who have vast knowledge in the entertainment industry and can be
relied on when making crucial investment decisions. In addition to that, it has the responsibility
of ensuring that the concerns, interests, and needs of all investors are met to aid in developing a
mutual trust between different stakeholders. Since the entertainment sector hasn?t been fully
explored, SPAC can be able to create necessary measures that will ensure that the industry has
been under full exploitation.
In addition to that, they also ensure that value is created based on very firm foundations
in both market knowledge and trade. Other huge benefits of SPAC are its ability to offer
immense opportunity for one to invest in a high growth company. The company should be
having a risk exposure of between 5 and 10 percent. The benefit of this is that there is a chance
of the returns being at least three to four times the initial investment and this is entirely
dependent on the original value that was created upon the SPAC. Another significant benefit of
the SPAC is that all funds obtained from the IPO are usually well protected which can be
returned to investors if at all the SPAC has failed to meet the set deadline. In addition to that, all
investments that have been channeled by the SPAC have to go through a panel of experts, a
regulator and in rare cases, the shareholders. ENTERTAINMENT INDUSTRY 13
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