And why home entertainment will never be the same
Ric Edelman: It's Monday, June 12th. All this week and all next week, I'm going to be covering the biggest tech of all: video games. You know, the latest Harry Potter got released in May, generating $850 million for Warner Brothers in just two weeks. But get this, it wasn't a movie. So, yeah, if you're wondering, gee, the new Harry Potter movie, I don't remember. No, it wasn't a movie. It's a video game. $850 million in two weeks for a video game.
Consumers are going to spend $185 billion on video games this year. That's five times more than what they will spend at the movies, 70% more than what they'll spend on Netflix. 3.2 billion people play video games. That's 40% of the global population. And that number is rising. 100 million people a year. Two thirds of the people in rich countries play video games and half of them are women. So don't give me this nonsense. It's just about teenage boys. There are now more players in their 30s and 40s than in their teens and 20s. The Walking Dead. The latest season is now an interactive video game. We've got musicians performing concerts in Fortnite. Fitness videos? They're now fitness games.
And this is creating entirely new business models. Free to play games that feature ads in-game purchases. Now there are subscriptions. Apple. Netflix. Sony. Google. The New York Times. All of them offering video games.
Seven of the ten most valuable tech firms are active in gaming. The future of home entertainment. Gen Z – those are the people under the age of 25 – they rank their favorite home entertainment: video games. We're going to be talking about this all this week and all next week. That's how much there is for me to share with you about this. If you want, I'll give you a little bit of a preview. If you want a little bit of an opportunity to add video game technology and companies in that industry into your diversified portfolio, take a look at the Global X Video Games and Esports ETF. The symbol is HERO. You can learn about that at Global X ETFs.com or by talking to your financial advisor.
All this week. All next week. Video games.
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