Impact of Entertainment of Economy

Introduction

The entertainment industry has become a fundamental part of today's economy; benefiting millions of people have high profit margins. A sector of entertainment is film industry and especially the exhibition of films in theaters, tourism industry is another aspect of the entertainment while Olympics play a great role in the economic growth. Interest in leisure and recreation is something that is present in human nature, a basic principle that has driven man since its existence, the entertainment is essential for optimal development. The activities that can be mentioned relating to the entertainment industry are in excess and are generally related to the type of goods called information goods, which are those that need not be tangible for exploitation. The entertainment industry handles huge amounts of all factors of production worldwide while generating growth and development. Movie theaters have evolved from projectors and makeshift rooms in the beginning to large complexes of multiple rooms which are operated by large retail chains (Gleckman, 35). They are currently part of the film industry worldwide representing more than 31 billion dollars only in exhibition activity. The economic importance is the reason why this paper is focused on this study. The paper aims to discuss the impact of entertainment on the economic growth while maintaining its scope mainly within the tourism, Olympics and movie industry within the broad phenomenon of entertainment.

Discussion

Defining Entertainment

In the late twentieth century, other business in the United States no longer existed but entertainment played its part in contributing to the growth of economy. Worldwide demand for entertainment venues is ever increasing; people seek to satisfy their need for recreation and relaxation. This type of activity in most of the world can be anything from reading a book, watch television, listen to the radio, see a live show, visit a recreational park, playing games, going to a casino, visit a museum, go the film and any activity to determine the preferences of a consumer entertainment. Preferences are often connected by determinants, social and cultural rights (Gleckman, 35). But to study this type of industry more broadly is necessary to know the source, understand it and know its other meanings.

Economic Importance of Entertainment Industry

Movies and Theaters

Economic contribution of the entertainment industry in recent decades has become notorious contributing to the GDP, employment, and other economic indicators. As the research is focused on creative services, it should be mentioned that world exports of creative services had increased to an average annual rate of 8.8% between 1996 and 2005, with a momentum greater than exports of creative goods (6.1% over the same period). In monetary terms, in 2005, exports of creative goods (335.500 million) were higher than those of services (89,000 million). In 2005, international trade in creative goods and services accounted for 3.4% of world trade, in particular, exports of services accounted for 1.7%. Latin America contributed only 2.2% of world exports of creative services (Bhushan, 29). In 2005, the leading exporters of creative services were the United States, Germany, UK, ...