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From GTA VI to Formula 1: why the future of investing could be entertainment
Equities 5 minutes to read
Key takeaways
Gaming, sports and live entertainment can turn loyal audiences into revenue streams that last for years.
Unique franchises, global fan bases and experiences that are difficult to replicate can create lasting competitive advantages.
Popularity alone is not an investment case. Profitability, growth expectations and the price investors pay still matter.
The business of having fun
On 19 November 2026, Grand Theft Auto VI (GTA VI), one of the most anticipated video games in history, is scheduled to launch. Its publisher, Take-Two Interactive, reported exceptionally strong pre-orders this week and raised its annual revenue forecast.
But for investors, the bigger story is not how many copies GTA VI sells next week. It is how much money the game could generate over the next decade. And that is where entertainment becomes a particularly interesting business. From video games to Formula 1 and live music, the most valuable companies may be those that can turn a moment of excitement into years of customer spending.
A video game that keeps on giving
When someone bought GTA V in 2013, Take-Two earned money from the sale. Through GTA Online, however, players could return for new missions, content and virtual items, generating revenue long after the original release.
In its latest quarter, around 81% of Take-Two's revenue came from repeat consumer spending across its gaming portfolio, including additional content, virtual currency and advertising.
This explains why investors look beyond GTA VI's launch. Selling millions of copies matters, but keeping players engaged for years could be even more valuable.
Nintendo's Mario and Capcom's Resident Evil benefit from similar economics. Familiar characters and stories can attract generations of customers while creating opportunities for sequels, films, merchandise and licensing.
The attraction is simple: create something people love, then give them reasons to keep coming back.
Formula 1: the business behind the race
Since Liberty Media took control of Formula 1 in 2017, the sport has expanded its commercial reach through broadcasting deals, sponsorships, new races, premium hospitality and content such as Netflix's Drive to Survive.
Formula 1 controls the commercial rights to something remarkably difficult to recreate. A competitor can build a racing circuit. Recreating Ferrari's history, the atmosphere at Monza and the global appeal of the championship is another matter.
Last week, Formula 1 reported a 28% rise in quarterly revenue. However, the quarter included an additional race, while revenue over the first nine months remained broadly unchanged. Investors should distinguish between a favourable racing calendar and underlying business growth.
The longer-term opportunity lies in earning more from the same audience. A fan might subscribe to F1 TV, buy merchandise or travel to a Grand Prix. Meanwhile, broadcasters, sponsors and race organisers pay to reach that audience.
One sporting competition, several ways to generate revenue.
When being there becomes more valuable
Live Nation, the concert promoter and ticketing business, reported a 19% increase in quarterly attendance last week and expects to welcome close to 180 million fans in 2026.
That raises an interesting question in the age of artificial intelligence. If digital content becomes easier and cheaper to create, could experiences that are difficult to reproduce become more valuable?
AI might make it easier to create a song or a video game. It cannot quite recreate the experience of watching your favourite artist perform live or taking your family to Disneyland.
The economics differ too. Digital entertainment can reach millions of additional customers at relatively little extra cost. Live experiences benefit from limited capacity, but require venues, staff and substantial investment.
The risks: a full stadium is not enough
Entertainment competes for two things people never have in unlimited supply: time and money. Economic weakness can affect ticket sales, while changing tastes can turn yesterday's blockbuster into tomorrow's forgotten franchise.
Investors should watch costs as closely as audience growth. Developing games, staging concerts and building theme parks can be expensive. And even a wonderful business can disappoint shareholders if its valuation already assumes years of exceptional growth.
The next race for our attention
Next week, GTA VI will remind us how much excitement a new entertainment product can generate. Its predecessor offers a more interesting lesson: the real value of a great franchise may reveal itself over the decade that follows.
From the virtual streets of Grand Theft Auto to the packed grandstands of Monza, the opportunity is to turn people's passions into lasting profits.
For investors, the challenge is finding businesses that do this well without paying too much for future success.
After all, the most valuable entertainment businesses are not necessarily those that capture our attention today. They are the ones that give us a reason to come back tomorrow.