Although political events,  such as Brexit can disrupt areas like the fuel economy, the sector as a whole is strong. Why? Simple: because we always need energy.

However, in terms of a general investment strategy, there are times when non-essential commodities can be profitable. For example, since 2009, cryptocurrencies such as Bitcoin have become popular. Although experts will argue from an ideological standpoint that we need cryptos and blockchains, the reality is that they aren’t necessary (i.e. we already have currencies).

Non-essential markets may be essential investments

Of course, that could change as developers find new ways to use blockchain technology to prevent fraud and the like. However, right now, crypto technology remains a niche market. But, even though that’s the case, you can still make a lot of money from investing in Bitcoin, Ethereum and other tokens. The same can be said of other innovative yet non-essential industries. A prime example is gaming. Although it doesn’t fall into the same class as energy or forex, it presents no less value in terms of opportunities if you understand the market.

When you look at gaming as a whole, it’s currently worth an estimated $137.9 billion. According to the Global Games Market Report, 2.3 billion gamers now enjoy a combination of online, console and mobile games. In fact, the latter is the largest entity within the gaming industry, generating $70.3 billion in revenue in 2018. However, when you delve further into the market, an abundance of similar but diverse revenue streams present themselves. For example, online casino operators such as GVC Holdings are now among the largest gaming companies in the world.

With casino sites attracting casual players through welcome bonuses, such as free spins, complete novices are now becoming familiar with Vegas-style gaming online. In fact, such is the variety of promotions out there, third-party sites have become an essential way of directing players to the best spots. By reviewing the latest free spin offers and, more importantly, explaining the terms and conditions, review sites have made casino gaming more attractive and accessible to novices. Put simply, these sites, as well as the operators, have turned online casino gaming into a $45 billion+ entity.

Investing in gaming isn’t a game

Alongside gaming operators such as Amaya, which completed a $4.4 billion takeover of PokerStars back in 2014, video game companies have been flexing their muscles in recent years. Perhaps one of the best-known developers is Electronic Arts (EA). Boasting a share price of $95+ in August 2019, this gaming company saw revenue top $5.15 billion in 2018 for a net income of $1.04 billion. Helping to bolster EA’s balance sheet is a list of acquisitions that stretches back to 1987. Starting with Batteries Included and moving into the present day with takeover of mobile developer Industrial Toys, EA has been one of the industry’s most active players.

However, it’s not just EA making moves. Everywhere you look in gaming, something big is happening. With virtual reality (VR) and augmented reality (AR) starting to evolve, the market looks set for another rush of activity. For any savvy investor, this has to be worth considering. Even though games are, in essence, ephemeral, it seems their appeal isn’t. While the likes of Activision or Ubisoft might not form the foundations of your portfolio, they certainly have their place. Indeed, if you’re considering entering the investment game, gaming could be an ideal market.

Your kids won’t stop talking about it, your friend hasn’t come out of his house all week because he’s addicted to it, some of the world’s biggest sports stars and youtubers are doing it. It’s not a drug, it’s a game; Fortnite, and with so many playing the game month to month, the creators are making quite a killing. Below Ken Wisnefski, CEO of digital marketing firm WebiMax, discusses the microtransaction element behind Fortnite’s big profits and the future of this clever new way of selling.

Like so many quarters fed into an arcade machine, an around-the-clock influx of outside cash has turned the video game industry into a revenue resource like no other. Whereas video games were once a one-time purchase rarely exceeding $50, we now have free-to-play offerings like “Fortnite” that can rake in millions. How is that possible? “Microtransactions” and “platform-based business models” allow gamers to customize their experience by spending real-world cash in exchange for in-game goodies. The fact that Fortnite developer Epic Games earned just shy of $300 million in April 2018 alone tells me a few things as a digital marketing expert, but chief among them is this: We’re not in Super Mario World anymore.

For the unacquainted, Fortnite is a co-op survival game that takes place in a “sandbox” universe and drew a record 3.4 million concurrent users in February 2018. On the revenue side of things, there are aspects of Fortnite that are free to download. There’s also a roughly $10 seasonal “Battle Pass” that’s optional, last for a few months and provides additional immersion. The microtransactions that I mentioned earlier – and the platform that makes this exchange possible – is a hotly-debated concept among gamers. In the case of Fortnite, many say Epic Games got it right and I agree.

“Rank your Battle Pass up before it expires, and you'll earn more than enough in-game cash to unlock the next Battle Pass,” a March 2018 GamesRadar.com article says. “That eliminates the dread of having to pay more and more cash to stay up-to-date in a living game, and it encourages you to keep playing for the whole season and into the next. So smart!”

The Emperor’s New Clothes

Microtransactions are, as the name suggests, a way for users to pay a nominal amount of real-world cash or in-game currency and receive small game-enhancing perks as a result. There are right and wrong ways to implement microtransactions into a game. The wrong way, as Electronic Arts (EA) learned in 2017, is to sell “loot boxes” to users that create an unfair playing field. This crisis came to a head upon the release of “Star Wars Battlefront II.”

“We’ve heard the concerns about potentially giving players unfair advantages. And we’ve heard that this is overshadowing an otherwise great game. This was never our intention. Sorry we didn’t get this right,” a statement from EA read following player backlash.

Only months later, “cosmetic-only” microtransactions were up and running again inside that galaxy far, far away. Back here on Earth, I think the majority of us can see the parallels between EA now selling “loot boxes” that don’t affect gameplay and what Fortnite has been doing since launch. In my experience in digital marketing, someone who wants to spend their own money on attainable goals should be able to do so. When you start toying with the framework, such as paid-for results at the top of a Google search page, then we need to throw in some disclaimers or other ways to give everyone equal footing.

The Conduit

Try and find Apple’s brick-and-mortar “App Store” in your neighborhood. We won’t wait around, because we all know it isn’t there. Slate reported in early 2018 that this non-physical outlet for iPhone programs earned $38.5 billion in 2017 and “is poised to double its 2015 revenues by some time in 2018.” What readers should understand is that there’s no longer a need to offer physical goods as the only way of making money. Today, we have people streaming their live feeds of Fortnite gameplay on the Twitch website and reportedly making $500,000 per month doing so. Amazon may be building local warehouses to help expedite shipping, but it started as an online-only book-ordering company and its CEO is now the richest man on Earth.

I find it helpful to think of ride-sharing services as a more tangible example of what digital platforms can offer: An actual good or service that’s obtained for a payment on a middle ground – or “platform,” if you will. I only have to look under my own roof, where kids are playing Fortnite, to see what microtransactions have evolved into and how in-game “V Bucks” can be spent on spiffy new avatar outfits.

The viewership of major sports championships such as the Premier League, Winter Olympics and the NFL has recently taken a substantial downturn. This poses the question, is the popularity of traditional sports on the decline? A recent study conducted by Limelight showed that young men are now watching esports more than traditional sports. In fact, esports is their second most preferred media source behind movies. The world of esports is growing rapidly, so we decided to delve into the statistics to find out just how big esports has become.

The increasing viewership of esports has led to major brands investing in this new and growing industry in the form of sponsorships, advertising and takeovers. Amazon purchased Twitch for $970m in 2015 and has promoted Twitch as the primary platform for esports ever since. It has been reported that by 2020, esports will overtake the NBA’s reported 400m fans worldwide, with estimates predicting that there could be 500m fans of esports around the world in the next two years. Approximately 11bn hours will be spent by fans watching all forms of esports, with 70m enthusiasts tuning in to watch championship finals through online streaming services such as YouTube Gaming and Twitch. That’s more than the current viewership of the NBA and MLB finals. Overall, esports has amassed more than 600 sponsors. Although esports may not be able to compete with other traditional sports when its comes to revenue from sponsorships just yet, they do have more in total. This shows how esports is growing financially and how this could grow and impact the market further in the future.

Due to this increase in popularity, advertisers have flocked to the platform in order to promote their brand or service. Reportedly, it won’t be long until esports overtakes traditional sports when it comes to yearly revenue. Revenue generated from esports is said to hit the £1.2bn mark by 2020, with viewing figures potential exceeding 600 million people.

Esports began truly growing in the early 90’s, as improvements to internet connectivity led to online gameplay becoming more user friendly and playable. Around the same time, the UFC was also beginning to grow and be recognised as a mainstream sport. Esports and the UFC are two of the most exciting and fastest growing sports today, but who earns the most? Pro-gamers or pro-athletes? We analysed the top 10 highest earning gamers and UFC fighters to find out do you earn more from playing video game or getting punched in the face competitively? We compared their overall earnings, and created an average based on how long they had been involved in the sport. Surprisingly, pro gamers dominate the yearly earnings list. The gamer Miracle, who plays Dota 2 professionally and competes in regular competitions is second on the list only behind UFC superstar Conor McGregor. Miracle has earned just over $1m per year since he began his journey in esports. Overall, there are 8 gamers who have earned an average of $600,000 per year since they start out in the sports, compared to only 2 UFC fighters earning over the same amount, Conor McGregor and Alistair Overeem.

The overall revenue of esports already matches that of Cricket’s Indian Premier League and Major League Soccer, but what about the overall prize pools on offer to competitors at events? The Dota 2: The International 2017 event, which was recently hosted in the KeyArena in Washington, boasted a prize pool of $17.5m. This was the biggest prize pool ever offered at a professional esports tournament and eclipses the current combined prize pool of other major sporting events, such as the Tour de France and the Cricket World Cup.

Does this mean that the next generation will dream of being behind a controller or out on the pitch? Betway predicted that 2018 is set to be another exciting year for esports.

Behind the Design is a series of sleek and concise videos about the design of everyday objects we take for granted. This episode uncovers the anti-capitalist roots of the Monopoly board.

Drone U, an internet-based drone training company, will be holding its first ever Fly-In at its Albuquerque headquarters next month. The sold-out event will be an opportunity for drone pilots, enthusiasts and advocates to meet, network and compete in a series of professionally-designed "missions".

Hosting 75 pilots from around the United States, Drone U's Fly-In is the first event of its kind. Members of the ever-growing drone community will gather to take part in six separate drone competitions, each constructed to highlight key skills involved in drone flight. Prizes will be awarded.

While designed to test each pilot's flying ability, the competitions are intended to reflect the practical application of drones in real-world situations. Challenges will include race courses, vehicle tracking, and "rescue missions" based around the transportation of life preservers.

It is the goal of Drone U to promote the growth of the drone industry and its participants. The company, which trains pilots of all ages and skill-levels, specializes in helping drone hobbyists transition into the professional world. The membership-based platform provides online training and industry advice to its rapidly growing network of pilots.

Here's a map of the scheduled event.

Drone U's first drone olympics or Fly-In is Sold Out.

(Source: DroneU)

PwC has released its 18^th annual Global Entertainment and Media Outlook 2017-2021, an in-depth, five-year outlook for global consumer spending and advertising revenues directly related to entertainment and media (E&M) content. Rapid changes have created a gap between how consumers want to experience and pay for E&M and how companies produce and disseminate their offerings. E&M companies were accustomed to competing and creating differentiation primarily based on two dimensions: content and distribution. Now, they must focus more intensely on a third: user experience (UX).

Global E&M revenues are expected to rise from $1.8 trillion in 2016 to $2.2 trillion in 2021 at a compound annual growth rate (CAGR) of 4.2% – down from the 4.4% CAGR the firm forecast last year. By comparison, PwC's 2017 Outlook expects US E&M revenues to reach $759 billion by 2021, up from $635 billion in 2016, increasing at a CAGR of 3.6% – holding steady at the same CAGR as last year. While there are increases in revenue, E&M is approaching an industry plateau. Traditional, mature segments are in decline; the internet and digital E&M content is growing though at a slowing rate; and the next wave of content and entertainment is in areas, such as e-sports and virtual reality, which are just beginning to accelerate.

"E&M companies are operating amidst a wave of geopolitical turbulence, regulatory changes and technological disruption. Even if the macro context is set aside, these companies are facing significant pressures on growth," said Mark McCaffrey, PwC's US Technology, Media, and Telecommunications Leader. "In order to thrive in the marketplace, PwC suggests that these companies understand and develop sustainable relationships with consumers to advance their UX. Pursuing a growth and investment strategy to enhance and differentiate the UX will help them flourish in an era where a changing value chain is slowing top-line growth from the traditional revenue streams that have nourished the E&M industry to date. Essentially, we've entered The Age of the Consumer. It's no longer sufficient to be 'consumer-centric,' one must be 'consumer-obsessed.'"

PwC has identified eight emerging technologies as having the biggest potential to improve UX: augmented reality (AR)/virtual reality (VR); artificial intelligence (AI); Internet of Things (IoT); Big Data/data analytics; cloud; 3D printing; access, not ownership; and cybersecurity.

"The next era of differentiation in E&M is being defined and propelled by consumers' increased demand for live, immersive, sharable experiences. Consumers want to get closer, more engaged and better connected with the stories they love – both in the physical and digital worlds," said Deborah Bothun, PwC's Global Entertainment & Media Leader. "At the same time, companies can start to empower those experiences through a number of emerging technologies. Perhaps big data and artificial intelligence will create the most dramatic change, redefining how the industry can connect with all stakeholders and drive growth. We're already seeing a number of ways that AI is being used to personalize, customize and curate entertainment content and experiences at scale."

Key US Entertainment & Media Highlights –
A total of 68M Virtual Reality (NEW) headsets will be in use in the US by 2021 with the installed base growing at a CAGR of 69.2% over the forecast period. In fact, the segment is projected to add nearly the same revenue as TV advertising between 2016 to 2021, a total of $4.6B. VR truly started to reach consumers in 2016 and has no legacy issues or false starts to look back on. The downside is a highly immature market with underdeveloped business models, flaky hardware, and lots of experimental or low-quality content. 2017 should at least see major advances in "inside out" movement tracking and lower cost headsets. It's worth noting VR's close relationship with the gaming market, yet many news and content organizations are pinning their hopes on VR to reinvigorate programming and recapture audiences lost to the internet.

Video Gaming continues to be a paradox: at once a large, growing business and yet a market where firms can fail in record time and new business models arise seemingly from nothing. It is this dynamism that both fascinates and concerns financial markets and partners in media, telco and IT spaces. Video games revenue was $21.0B in 2016 and is forecast to grow by a 6.3% CAGR to reach $28.5B in 2021.

The development of E-sports (NEW) has contributed to the video gaming boom. The nascent genre's revenue is forecast to reach $299M in 2021, from $108M in 2016, rising at a 22.6% CAGR. The US is the largest market in revenue terms, having overtaken South Korea in 2015, although the latter will stay far ahead in terms of per-capita revenue. Not only does the ongoing popularization of competitive gaming by broadcasters bring new consumers into the gaming fold, but the games themselves help to boost online/microtransaction revenues on both consoles and PCs.

Data Consumption (NEW) is forecast to reach 290.7T MB by 2021, up from 117.9T MB in 2016 and representing a 19.8% CAGR. The US will remain the largest market in the world in terms of data traffic in 2021, ahead of China despite the latter's faster growth. The single biggest driver of growth is the increased adoption of smartphones, and in particular the rise of video streaming on smartphones. Video represents 83.4% of all data traffic in 2016, ahead of other digital content (7.8%), and music (3.1%). By 2021, video will account for more than 247T MB of data in the US, some 85% of total traffic.

The US Internet Video (NEW) market is by far the largest and most established in the world, accounting for 47% of global revenue in 2016. This percentage is expected to fall to 43% by 2021 as internet video becomes more established in others regions, although international growth will be driven by US companies' expansion overseas. Internet video will grow at a 9.6% CAGR – the fourth largest US E&M segment CAGR, following Virtual Reality, E-sports and Internet Advertising, respectively – to produce revenues of $18.8B in 2021. Nearly 75% of revenue at this time will be attributable to subscription video-on-demand (VOD) services, with transactional VOD platforms accounting for the remainder.

Internet Advertising revenue in the US reached $72.5B in 2016, comfortably the largest market in the world. This figure is forecast to reach $116.2B in 2021, rising at a CAGR of 9.9%. While it was previously predicted that internet advertising would overtake TV advertising in 2017, the former actually surpassed the latter by the close of 2016. New tech innovations, especially around AI, will create both challenges and opportunities for incumbent players. The introduction of new screens, such as those in connected cars; the rollout of new content formats, like VR; and changes in the way we interact with technology, such as voice-activated search, create opportunities for new ways of engaging with and advertising to audiences. However, all require innovation and investment in order to meet their potential. Separately, the dominant force that is mobile advertising comprised 50.5% of total internet advertising revenue in 2016, rising from 34.7% the previous year and besting the contribution from wired internet advertising in the process. By 2021, PwC expects mobile to account for 74.4% of all US internet advertising.

Cinema revenue will grow over the forecast period by a 1.3% CAGR. Specifically, box office revenue will rise from $10.6B in 2016 – the biggest box office year in all of American history – to $11.2B in 2021, a CAGR of 1.2%. PwC had expected China to overtake the US in box office revenue in 2017, which would have marked this as the first time the US has not held the leading position in an E&M segment. However, the second half of 2016 and the first half of 2017 were much softer at the Chinese box office than had been expected. That said, Chinese cinema revenue is still the most lucrative and the fastest-growing in the world. The big studio blockbusters remain the driving force, but the perennial debate about the three-month exclusive "window" for films in cinemas is intensifying – especially faced with intensifying competition from disruptors.

The Music industry has continued to turn the corner on nearly two decades of decline. The market was worth $17.2B in 2016. Total music revenue is forecast to increase at a 5.6% CAGR to reach $22.6B in 2021. The ongoing growth of digital music streaming – up an astonishing 99.1% year-over-year in 2016 to total $3B – was THE music story of last year as consumers turned in huge numbers to on-demand services. Competition for new subscribers will likely be fierce in 2017. In addition to the uptick in streaming, the live music sector continues to deliver, with fans appearing to have a nearly insatiable appetite for music events and festival brands eager to franchise overseas.

Additional Industry Segment Data Points –

• Book revenue is expected to go from $36.6B in 2016 to $38.3B in 2021 (1% CAGR)
• Business-to-Business revenue is expected to grow from $88.5B in 2016 to $103.0B in 2021 (3.1% CAGR)
• Internet Access revenue is expected to rise from $140.3B in 2016 to $189.8B in 2021 (6.2% CAGR)
• Magazine revenue is expected to go from $30.2B in 2016 to $30.5B in 2021 (0.2% CAGR)
• Newspaper revenue is expected to decline from $29.6B in 2016 to $23.9B in 2021 (-4.1% CAGR)
• Out-of-Home advertising revenue is expected to rise from $9.2B in 2016 to $11B by 2021 (3.7% CAGR)
• Radio revenue is expected to rise from $22B in 2016 to $24.1B in 2021 (1.9% CAGR)
• Traditional TV and Home Video revenue is expected to contract from $109B in 2016 to $105B in 2021 (-0.7% CAGR)
• TV Advertising revenue is expected to grow from $70.6B in 2016 to $75.2B in 2021 (1.3% CAGR)

(Source: PwC)