The entertainment industry has grown to become an incredibly lucrative one, with hundreds of billions of dollars in shareholder value created over the past decade. The industry is also incredibly diverse, spanning a wide range of entertainment media and content for all consumer demographics. Many investors and traders often contemplate whether to choose stocks or forex for their long-term financial goals, as growth rates and overall performance can vary greatly. When assessing forex compared to stocks, variety is one of the main selling points for stocks. The entertainment industry is particularly rapidly growing, which attracts millions of investors to the market every year. Some entertainment stocks are expected to grow massively over the next few five years and identifying them can lead to lucrative returns for their shareholders.
Spotify Technology SA (NYSE:SPOT)
The global music streaming giant, Spotify, has enjoyed a period of incredible growth over the past few years – returning more than 100% over the past 5 years. The active user base has grown to over 615 million individuals. 239 million of which are premium users. While the numbers are impressive, Spotify’s growth story seems to be far from over. As more underserved communities around the world enjoy economic and personal wealth growth, the number of Spotify users is likely to rise sharply. A bulk of this growth can be attributed to the African continent, with economic growth accelerating over the past decade. Active competition with Apple Music is the main hurdle in Spotify’s path, while affordable premium fees make the platform accessible to a global audience of music listeners.
Liberty Media Corp Series C (NASDAQ:FWONK)
Liberty Media Corporation, the company that owns and operates the Formula 1 brand, has enjoyed impressive growth over the course of the past 6 months – climbing by roughly 25% in the process. The increasing global prevalence of Formula One, coupled with improved coverage and popularization efforts, mean that the sport still has plenty of room for growth across the world. The likes of Max Verstappen, Charles Leclerc and Lewis Hamilton have millions of fans globally – and the number has been steadily rising over the past 5 years. As more and more viewers gain access to Formula One, the stock price of Liberty Media Corp is likely to continue growing strongly in the coming years.
Walt Disney Co (NYSE:DIS)
The Walt Disney Company is a household name in the entertainment industry that has endured a difficult period in recent years, due to commercially unsuccessful releases and disappointing Disney Plus numbers. However, the company has devised a new long-term plan that involves releasing a combination of old IP and new titles to movie theaters and streaming services. While the stock has gained 10% over the past year, the price declined from $122 closer to $95 towards summer 2024. This also means that the stock has shed some of its excess value from previous years and could be poised for long-term, consistent growth. Much of this growth will depend on the success of the new IP-s released by Disney, as well as the growth numbers of Disney Plus in the coming years.
Netflix Inc (NASDAQ:NFLX)
Netflix is the largest streaming service in the world, with a library spanning thousands of movies and TV shows and with a global audience of over 277.5 million users. After a slowdown of subscriber growth, Netflix has overhauled parts of its catalog, with new original titles on the horizon driving growth in the coming years. The stock has already returned massively in 2024 – gaining just under 50% over the course of 12 months. Changes in pricing strategy and a crackdown on password sharing also means that Netflix loses less revenue due to loopholes in its business model. Sustained growth and an introduction of an advertisement level has helped Netflix deliver positive results in recent quarters.
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