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Why The Entertainment Industry Is Recession Proof


Entertainment-based businesses are recession resistant and here's why: When everyone gets stressed out in the world as we experienced in 2009 and 2010 and 2011 they stopped buying all those big-ticket items They end up staying closer to home

But they've never told Jimmy or Suzie that we they were cancelling their birthday party How many of you canceled your kids birthday party because we were in a recession? Nobody The reality is that when we get into recessionary periods people start to focus on personal satisfaction They want to get themselves out of the doldrums or the uncertainty of what's going on in their world If you take a look at this chart on the bottom here

This is where we stood as a country during the recessionary period Everything you see in red and orange represents severe levels of unemployment Everything that's in green and to some degree yellow represented growth within the marketplace

Someone tell me a state that was affected by this Great Recession Which state? Okay, to some degree, California Where else? Arizona Florida What was happening in those markets? Why would those markets be so severely impacted? The reality is the level of construction and development and growth that was taking place particularly in Florida in Arizona was amazing Massive growth

When the bottom collapsed and all of the construction stopped, all the jobs went away So the reality is if I was a banker in the state of Florida or the state of Arizona or maybe Southern California perhaps suddenly I'm very concerned about the viability of business and whether it can survive We have to take this into account when we are looking to borrow money from a bank because bankers are thinking about this very same issue The graph up top, this gives you an inkling of what happened to consumer spending during that time It literally fell off the cliff

Consumers simply stopped spending money But, in January of 2009 on the front page of The Wall Street Journal, The Wall Street Journal analyzed a few hundred different industries trying to gauge where the impacts of this recession actually were And they came up with a notable interesting comment which was: Despite their inability to understand it or have an answer for it, the entertainment sector during that period of time grew by five billion dollars Entertainment, think about this: When all of those other industries were cratering, the entertainment industry was growing Now, if I'm your banker and I ask you the question, What happens if we go into another recession? What are you going to say to me? You're gonna say to me, if we go into a recession we have ultimately determined as an industry that we are recession resistant

While many of the surrounding businesses and industries may feel the impact of that recession we are confident that we're going to continue to move through our process without impact

Source: Youtube

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