Online Entertainment Industry Props Up World Economies

Across the globe, online entertainment companies are still making money despite numerous countries reporting shrinking economies over the past few months.

People may be cutting down on their visits to game arcades, cinemas, and other entertainment venues to save costs, but it seems they are still more than willing to invest in online entertainment. This may come as good news to some economies but bad news for those economies that do not have any tech firms offering online services.

For example, Netflix is a US company and generally operates tax-free in most of the countries its services are sold. As Netflix revenues reach into the £1 billion zone, the company is yet to pay any tax in places such as the UK. However, for the US government, the success of Netflix means the online giant is raking in cash for the US government which contributes to the country’s GDP.

Other large corporations registered in the US and reporting huge profits include Google, Microsoft, and HBO. These firms play an important role in keeping the US economy propped up.

In Europe, a similar story is true – after the EU lost one of its largest contributors – the UK – the success of online entertainment companies is paramount.

Online companies are making up for the lack of tax revenue coming in from brick and mortar entertainment venues such as pubs, clubs, bowling alleys, cinemas, and the huge loss of tax revenue from a usually very busy summer when it comes to film and music festivals.

It even looks like Oktoberfest could be one of the quietest this year in Germany. This festival could offer a lifeline for German pubs and entertainment venues this year. Over 7.5 million litres of beer is consumed, plus millions of Euros spent on amusement rides, side stalls, and games on which more than 6 million people get involved – but this year there is expected to half that number. Since the beginning of the Pandemic, German citizens often protested against the Coronavirus policies.

However, in countries such as Malta, tax revenues are through the roof. The country has long been a playground for online casino companies looking to set up their business operations where although they enjoy a certain amount of tax relief, the profits these companies earn a result in more people on the island being hired to work within the casino industry, higher bonuses, and in turn, this increases spending on the island.

The same applies to UK Gambling Commission registered online casinos. The UKGC is a UK government-run organisation that regulates all online gambling from sports betting, lotto, and bingo to poker and online casino gaming. Sportsbetting took a huge hit and is just recovering as the most popular sports are now back on such as horse racing, premiership football, and Champions League.

It was the UK’s online casino, poker, bingo, and lottery segments of the gambling industry that thrived during 2020. Many of these UKGC licensed online casinos have been reviewed by Playcasino. Their online slots were the most popular games played while casino table games played via live casino studios with webcams streaming live dealers and croupiers hosting blackjack, baccarat, poker, and roulette tables also thrived thus creating tax revenues for the Uk government.

In India, several online entertainment sites are reporting large profits and increased interest this year. ScoopWhoop is an online media platform that circulates articles and guides on the topics of lifestyle, humour, as well as travel in English and Hindi. With its huge following, many Indian firms, as well as overseas brands with a market share in India, started to plough cash into the ScoopWhoop advertising space helping this platform soar in profit over Q2 and Q3 this year.

Pinkvilla, Bollywood Hungama, Film Companion, and MissMalini, which are all Bollywood news and entertainment media sites have also reported huge revenues.

It is such a shame that so many brick and mortar entertainment establishments will be going out of business before the year is out, while some will struggle to make it into 2021. However, the entertainment industry is still very much alive and kicking and hopefully, online websites will encourage people to support their local entertainment venues.

For now, those in the online magazine, film, music, and gambling industries are going to see out any up and coming recessions. Governments will be relying on these online services for tax revenue as well as to counter the negative economic impact current world events will have on brick and mortar entertainment venues, retail stores, and services.

 

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