To say that the media industry is rapidly evolving would be an understatement.
New technologies are changing how films are made, TV shows are produced, and entertainers monetize their craft. Companies ranging from advertising agencies to studios and streamers are overhauling how they work with tech tools like artificial intelligence — which, ironically, are also at the heart of the writers' and actors' strikes that have largely ground Hollywood production to a halt.
"Every day there's a new article or a story or disruption taking place," Andrew Howard, a partner at Shamrock Capital, told Insider this summer about the firm's media strategies. It's "really hard to invest" in the space, he added, "if you're not paying attention." Shamrock, which is based in California, pursues strategies in the private markets, mainly through equity or debt-based investments. Earlier this year, the firm reported managing roughly $4.4 billion in assets.
So, in a niche that's undergoing such rapid evolution, how do investors stay on top of all the developments?
"It helps that we're thematic investors, meaning we're constantly evaluating the trends and deciphering where the puck is headed for the foreseeable future," Howard explained, adding that Shamrock is deliberate about its investments. Decisions to back new portfolio companies "may take long" or follow a series of meetings with management teams, he said: "We're following them for a period of time, so when they're ready for capital, we're already up to speed as to what the business is doing and why they need capital and what we can do to help effectuate and continue their growth trajectory."
Founded as a family office in the late 1970s for members of the Disney family, the firm has blossomed into an institutional investor exclusively focused on media, entertainment, and communications. It launched a designated debt opportunities fund in 2021, announcing it had raised nearly $200 million, to help support "owners of entertainment IP across the film, television, music, games, sports media rights and other content sectors." Earlier this year, Shamrock announced a new fund intended to "acquire a diverse and global portfolio of content and media rights," saying it had raised some $600 million.
Howard likened the speed of today's transformations to the dot-com arms race that defined the Internet landscape two decades ago.
"Has the disruption always been there? No doubt," he said. "It goes back even to the late nineties with the burgeoning Internet, which is very similar to where we are today with AI."
He pointed to one helpful strategy: Turning to the young — or at least the young at heart — for their insights about where consumers' heads are, and how they're spending their money.
"It's so important to get the perspective of some of our 20-year-olds, our 20-somethings, because they have a different consumption behavior," Howard said. "Where do they spend their disposable income? It's essential to get that viewpoint," Howard said, adding that the firm's leaders routinely ask more junior team members about their media and entertainment habits: "What are you seeing? What are you doing on the weekends?"
Then there's another factor that doesn't hurt: Being an industry insider.
"We're coaching kids whose parents are running major studios and companies within media and entertainment," Howard said. "This is why it's wonderful to be here in Los Angeles. It enables us to really genuinely understand the ins and outs of what's going on in our space."
Do you work in the entertainment industry or at the intersection of media and finance? Contact this reporter. Reed Alexander can be reached via email at ralexander@insider.com, or SMS/the encrypted app Signal at (561) 247-5758.
