TLDR:
- Investors are moving away from Hollywood to areas like sports and AI.
- Venture funding in media, entertainment, and gaming fell in 2023.
Investors are shifting their focus away from Hollywood as the era of peak TV comes to an end. Venture funding in media, entertainment, and gaming dropped significantly in 2023, with private-equity and venture-capital firms turning to other areas like sports and AI. According to a report by Alignment Growth, investment in these new sectors has increased as funding in filmed entertainment has declined to its lowest level in six years.
Institutional investors are now pouring money into AI companies like Runway, live entertainment platforms such as Dice, and sports-related startups, signaling a shift away from traditional entertainment investments. However, these new areas also come with their own set of risks, including labor agreements, high ticket prices for live events, and challenges in navigating international sports markets.
Overall, investors are diversifying their portfolios and exploring new opportunities beyond Hollywood in response to changing market trends and consumer preferences. It remains to be seen how these investments will fare in the long run amidst evolving technological and industry landscapes.
