Economics Of The Entertainment Industry

 The first thing that comes to mind when we talk about the entertainment industry now is OTT platforms- eg. Netflix, Prime Video, etc. The idea of entertainment has greatly changed over time, now the most entertaining thing to do is lying on your couch and binging shows, alone. But, let's talk about the OG entertainment industry and the economics behind it.

What is the "OG entertainment industry," you may ask? I'm talking about theatre, musicals, magazines, the Hollywood glitz and glamour. But what is the economics behind it? If we're talking about Hollywood, it's no secret that netizens are obsessed with every little thing the actors do, from where they go on vacation to which hair wash they use. But how do they pull this off?

• Advertisement: Hollywood is great at advertising, they sure know how to stay relevant. They make great use of social media platforms and gossip blogs. Dropping hints for scandals, sparking controversies, organising red-carpet events to keep the buzz alive. 
•  Hits and flops: people often say, that a good plot and storyline can make or break the movie. I believe a popular actor can make or break a movie, it's obvious now that even a terrible storyline can run if it's played by a popular actor (e.g., a blockbuster with poor reviews but high earnings). A popular actor comes with a huge fan base who follow him/her religiously, so as soon as his/her movie hits the screen there definitely are a lot of ticket sales. 
• Research: They do their research. The market is studied before a movie is released, they study the current trends, public interest etc.  

The Hollywood glitz and glamour never go out of style. They strive to stay relevant and go to great lengths for that. Due to their smart marketing, star-driven appeal, and market research, they managed to stay relevant despite the rise of OTT platforms. Our habits have changed over the years, and we’re leaning more towards binge-watching on our couch, but there is something about the magic of Hollywood that keeps bringing us back. The glitz, the drama, the stories remind us Hollywood never goes out of style.

Though Hollywood remains a dynamic powerhouse, we can't quite say the same for the other OG's of the entertainment industry. People in recent years have stopped going to musicals and plays, they prefer watching everything in the comfort of their homes. As a result, the market for musicals and plays has significantly dropped since their major source of income was ticket sales. As for magazines, most people no longer wish to read them anymore, because they can get the same information for free on the Internet. (e.g., circulation drops for famous magazines or Broadway ticket sales trends)

In conclusion, the entertainment industry has evolved with changing trends. While OTT platforms dominate today, Hollywood continues to thrive through its timeless charm, star power, and smart marketing. Meanwhile, traditional forms of entertainment, like theatre and magazines, struggle to keep up with modern preferences, posing as a reminder that even the classics must adapt. 

This raises the question---Would we see a different present if OTT platforms didn't dominate the entertainment industry?