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2 Top Entertainment Stocks to Buy Now

Leading entertainment providers have historically brought excellent returns for investors. As the economy grows and incomes rise over time, consumers tend to spend more on entertainment. This means that investors can rely on top media companies to sustain them in those inevitable periods of economic weakness and continue growing when the economy recovers.

Whether you’re looking for growth or a value stock that could rebound, Live Nation Entertainment (NYSE:LYV) and Discovery (NASDAQ:DISCA) (NASDAQ:DISCB) (NASDAQ:DISCK) are solid choices to consider in the entertainment business.

Image source: Getty Images.

Concert spending is on the rise

The music industry is currently doing very well. Streaming services like Apple Music and Spotify Technology provide growing revenue streams for the big music labels after years of suffering declines in physical sales and losing billions from piracy. The music business is expected to double in size to $131 billion by 2030, according to Goldman Sachs. One crucial piece of that economic pie is spending on live events, which is expected to increase by 46% to $38 billion. 

Younger generations are spending more on music than previous generations, and they are spending more and more on going to concerts. Chances are they are attending a show produced by Live Nation, the largest live-entertainment company in the world. 

Last year, Live Nation put on 34,996 events worldwide. The beautiful thing about the business is that it not only has relationships with 4,500 artists, including big names like Beyonce, Justin Timberlake, and U2, but it also has its claws in every link of the value chain.

Live Nation sets up the shows and then sells the tickets through Ticketmaster, which it acquired by way of a merger in 2010. Thousands of events each year bring in substantial revenue streams from concessions, parking, and merchandise. Revenue from concerts totaled $8.8 billion in 2018

Article source: https://www.fool.com/investing/2019/08/23/2-top-entertainment-stocks-to-buy-now.aspx

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