Theatrical Releases are back?
And death of superheroes
My kids don’t like superhero films. Also, a favorite of mine while watching with my kids I noticed how violent it was, Guardians of the Galaxy. That same director will be helming DC films. Shazam flopped at the box office and Flash movie preview didn’t make me want to get off of my seat. And any studio that kills off Robert Downey Jr. (even if he wants out) just doesn’t get it.
What I am seeing is the kids are watching other people playing video games. And watching world creating video games become movies. SuperMario Brothers is probably going to be a very big hit in April.
Comics have been around a long time and the characters we have watched and loved are old. The new generation will find new ways to pass their time.
And as interest rates rise, and there is more confusion about the future, who has time to stream 10 episodes at once. People will have time for much less entertainment and will want to enjoy and cherish the time in doing it. Everyone knows most of the streaming service content is trash.
We will have to look at the data to see if these notions are correct. But what I will say is that like people coming back to the office, people will want to get out again. And if you stay in, these video games are like interactive movies. Pick up anytime you want.
If there is tragedy in public spaces, this will not stop people from socializing. It will effect stock prices, but I feel very strongly socializing and entertainment will be strong drivers and this area of the economy is probably under-invested in.
The problem with entertainment companies is that they tend to move with emotions and feeling as opposed to valuation. So there is art/ science in this and I hope to find a working rule that will help.
Currently, I noticed a REIT that offers the real estate for entertainment properties, EPR. Most people will be eyeballing the 9% dividend yield. What I am eyeballing is the skepticism to this sector. What we need to now focus on is cash flow and locations.
Another thing is PREMIUM quality entertainment that you cannot get in your homes:
Imax - IMAX
Dolby Digital - DLB
Cinemark - CNK
There used to be comic book stands where you picked the adventure you wanted to have. This was what kids in 2000 had. They are now in their 20s and probably want that in their entertainment.
