Why You Need to Invest in New Content
From Bill Gates to the music industry…you should be investing in great original content, not technology.
In 1996, Bill Gates predicted the future of businesses.
At a turning point for technology, he wrote:
“Broad opportunities for most companies involve supplying information or entertainment. No company is too small to participate.”
Fast forward 23 years and today’s “TV” is now, the smartphone. Making the phrase “Content is king” more relevant than ever.
Why? One word: Access.
We now live in a world where getting access to almost anything is a fingertip away. And with that, we can expect new challenges and opportunities.
What does this mean for businesses? Building a brand is the key to generating relationships with potential customers, building unbelievable consumer loyalty and differentiating near-identical companies from each other.
And guess what? You need great content to do so.
The Internet has revolutionized the structure of virtually every industry. And its virtually unlimited space has paved the way for masses of independent content creators across social media and personal blogs.
What’s the most influential place for anyone to post their ideas and opinions? YouTube.
On average, there are 63 million YouTube daily viewers across the globe and viewers spend an average of 19 hours on YouTube each month.
Yet, capturing a significant portion of that audience is an impossible feat for most and fleeting for those who do. What does this leave us with? Businesses have to consider new innovative avenues to capture audiences.
A New Generation of Content
Investing in content isn’t a recent trend, either. Consider Netflix’s long-term business approach…
Founded in California in 1997 as a DVD rental service, Netflix is now a global entertainment content streaming service. With its focus on producing Netflix-original content, they successfully shifted their business model from content licensor to content producer.
Just halfway through 2019, Netflix has been tracked as the fastest-growing American company with its brand value increasing by 105% to $21.2 billion.
In 2018 alone, Netflix reportedly spent $12.04 billion on content which is 35% more than the $8.9 billion it spent on creating original content in 2017. Variety also notes that Netflix has taken a disruptive approach to media, forcing traditional media to rethink their business approach.
As traditional media giants begin to enter the streaming service market, Netflix is planning long-term by making investments into its own library of original content. Netflix CEO Reed Hastings has repeatedly explained this strategy as a “virtuous cycle.” Wherein investing into content attracts audiences which then increases the value they place in the service.
The Content Goldmine
Netflix is just one extreme example of leveraging content as an investment and the results are clear. If the streaming service’s trailblazing methods aren’t enough to convince you of how crucial content creation is, here are three more reasons to invest in content:
1. Content builds relationships with customers
As you add to your library of content, consumers gather an idea of your company identity. The content on your website is an indirect expression of your company’s values and priorities. When people consume it, they are developing a relationship with your brand and the material they like. People who are attracted to your mission and your product are much more likely to become loyal customers once there’s an emotional connection.
2. Content amplifies brand awareness and credibility
It’s no secret that advertisements are pervasive in today’s world. People are now exposed to more ad content than ever before, so making your brand stand out is also harder than ever before. Content directly attracts people because it serves a larger purpose than simply being another ad. For your message to actually reach consumers, content needs to be entertaining or informational. Once they’re interested, their personal curiosity will generate traffic to your website and connected social media accounts.
3. Content magnifies ROI
Quality content also has the power to generate traffic to your website and social media accounts. For example, an informative article with well-placed keywords will continue to get viewed as long as the article remains posted online. This type of traffic magnifies ROI if you have multiple avenues of content or a diverse portfolio. Search engines will naturally direct people to more content related to your company’s original material once it has gained traction and views online.
All of this simply says that content supplies information about your brand, your product, and your mission in an entertaining way. Research shows that communication that employs the audiovisual is more effective at persuading.
Up Next, the Music Industry
So we’ve established that content is the future of successful investment strategies. Now if you’re looking for the next addition to your investment portfolio, which industry is going to generate its own original content?
Of course, following the growth of movie streaming services, the music industry was next to join the streaming bandwagon. Following the introduction of Napster in 1999, the peer-to-peer file-sharing Internet service catalyzed a dramatic loss of revenue for the music industry. Listeners illegally downloaded their music for free for more than a decade.
Since 2015, the rise of streaming services has revived the music industry and substantially improved its profitability. In 2017, the industry generated $62 billion, its most profitable year since the early 2000s.
By now, Goldman Sachs is forecasting that music industry revenue will reach over $131 billion by 2030.
Now, with a transforming industry that is on the rise with untapped potential, investors can incorporate music companies and music-related companies into their portfolio. According to Forbes:
“Investing in the music companies and music-related companies makes sense right now because streaming has not even scratched the surface of penetrating potential users and using their influence to create revenues in other areas.”
Today, 28 of the top 30 most viewed videos on YouTube are music videos, illustrating the public’s appetite for entertainment content and the popularity of the industry worldwide.
Think Long-Term
Just as Bill Gates forecasted over two decades ago, content is a vital asset that all companies can benefit from. There is no better long term investment than content.
So the next time you’re considering an investment, consider the very resources that will maximize reach and revenue in an industry with further room to grow: music.
How Can You Invest?
New innovative platforms like Neufund.org are making it easier than ever for investors to connect with inventors. Don’t miss out on the chance to be one of the first to invest in tomorrows billion-dollar companies!
Article written by Alina Yen for Black One Entertainment
