The GP.Bullhound Q1 2022 Digital Media Sector Update highlights the potential of media companies to capture audience demand and rival the advertising prowess of Big Tech. As media giants reach scale, they are implementing strategies to unify their digital ad stocks and leverage their audience size. Non-news content, such as culture and lifestyle, is becoming increasingly popular among subscribers, and investing in this vertical is crucial for publishers. The global video game space has seen a surge in M&A activity, with 2021 breaking records, and consolidation is expected to continue. Web3 strategies have the potential to close the profit gaps in the music industry, enabling artists to directly profit from their work. The decentralized music communities are evolving rapidly, with several DAOs launching in the past few months, and a secondary market in the digital music industry could be made possible by the non-fungible ownership of music using the Web3 model.
