MARKET ANALYSIS

The value of the whole of world filmed entertainment revenue is already considerable - expected to reach $110.1 billion in 2018. This is in spite of the volatile characteristics of hits and misses. Whilst 2014 and 2015 were bumper years for UK film, the UK Films Global Market Share graph shows more stability than some might expect in the last 15 years, particularly for independent film. The film business as a whole has been profitable for the past hundred years even during severe economic downturns and it is still growing at an attractive pace.
Global Media and Entertainment value grew by almost $100 billion from 2015 to 2016 and is predicted to grow by a compound annual growth rate of 4.4% over the next 5 years.
In the UK, the Media and Entertainment market is estimated by PwC to be the largest market in the EMEA and set to rise to by over 6.5% to a value of £67 billion by 2019. Such size means it takes an important role in driving UK Plc growth. The largest sub-sector in UK Media and Entertainment is television, comprising 40% of revenue in the top 100 companies, but investment by new digital services like Spotify, Sky, Amazon, Apple Music and Google has resulted in sales of music, video and games increasing by £1bn in just four years.
Uncorrelated to mainstream equity
Portfolio theory dictates that, that it is important to include uncorrelated assets with price movements that are largely independent of one another, rather than moving up and down in tandem.Even at the height of the last financial crisis, demand for film remained stable and Avatar became the highest grossing film of all time in 2009, as the world economy continued to struggle. This kind of resilience is extremely valuable to investors and film has a long history of non-correlation, making it an ideal alternative asset to hold against fluctuating fortunes from other sectors. Source: Intelligent Partnership - Media and Entertainment Investment Sector Report