What Is an Entertainment Company in 2021 and Why Does the Answer Matter? — MatthewBall.co

But what is the strongest, most profitable, most defensible part of Disney’s business in the digital era? Its capex-heavy, physical theme parks....By turning hit films into theme park attractions, not only does Disney generate more “upside” from a hit than its competitors do, Disney’s breakeven point for these films is also much lower.

Nearly every one of the underlying drivers behind these digital theme park platforms is growing...Ultimately, every IP owner will need to figure out how to participate in digital theme parks and platforms — to figure out how to execute a digital version of the physical “hug”. This is especially true for those that don’t even have physical theme par... See more

It’s clear that the companies that own the most beloved IP and brands will have a major role in the Metaverse, likely one that’s proportional to their relative love today.

There are two major waves happening today that could accelerate the creation of a new generational storytelling company:

1. Consumer shift toward interactive media (over linear/passive media, i.e. TV/film)


2. Technology advancement driven by generative AI

But crucially, the Metaverse will also lead to the establishment of many new entertainment franchises and consumer-facing brands. This is because new access technologies do more than shift how consumers access content. They change the content itself.