Entertainment and investment are not necessarily so different—tell a good story and people will buy what you’re selling
Global Group Focus
Making money in the entertainment industry is not for the faint of heart. But with a bit of discipline and the right contacts, it is absolutely possible to earn consistent returns while also bringing joy into people’s lives.
That, at least, is the view of Johnny Hon, founder and chairman of Hong Kong’s Global Group. His company acts as a bridge between China and the world, connecting Western projects and investors with opportunities in the world’s most exciting economy—and increasingly vice versa.
In the entertainment sector, the company provides financing to movies, television shows, plays and musicals, along with innovative technologies that are changing the way content is consumed. Being at the cutting edge and understanding the direction of the industry is key to making successful long-term investments.
“The movie industry is being disrupted,” says Hon. “Just as newspapers were disrupted by new media, so people nowadays are watching content very differently. In the past, the business model was that movies would make 50 per cent from the box office and 50 per cent from DVDs, but fewer and fewer people are buying DVDs now so this whole model is under pressure.”
This type of structural change, says Hon, typically presents a good opportunity for innovators to enter a market and capture new ground. And this is particularly exciting in the context of mainland China, which has yet to experience the full extent of the changes that are happening in the US and Europe.
“We’re seeking to make investments with partners in the west, understand where things are heading and then adapt those solutions for the China market,” says Hon.