DALLAS, April 15, 2004 - Wall Street Futures, a leading news source for small-cap investors, has identified the home entertainment sector as a long-term growth industry with a number of attractive investment opportunities. It is now closely monitoring Gold Entertainment (Pink Sheets:GEGP) as a company that small cap investors may want to continue considering in this space.
GEGP announced this week that it has acquired Quality of Life Marketing, Inc., a multi-level marketer of consumer DVD and video game products. Through the acquisition, GEGP gains immediate entry into this booming consumer market; and by utilizing a multi-level approach, the company substantially reduces its marketing costs. GEGP now sells and rents more than 5,000 DVD and video game titles through an independent network of distributors. Its distributors market and promote the products, which are then shipped directly to consumers.
According to a 190-page report issued just ten days ago by market research firm DFC Intelligence, the worldwide video game and interactive entertainment market is expected to grow from $23.2 billion in 2003 to $33.4 billion in 2008, and this is the researcher's most conservative five-year forecast. More adults are playing video games than ever before, and most notably, "online distribution is becoming a reality," said DFC President David Cole.
Wall Street Futures believes that, given an affordable and reliable online alternative, consumers are likely to continue migrating to online providers for DVD and video game products -- as they have for books, music and other leisure products; and companies, like GEGP, that brand themselves effectively in this space are likely to enjoy significant growth as demand for their products soars.
The success of Netflix (Nasdaq:NFLX) has proven the efficacy of the online sales and rental model for the home entertainment industry, and it has dulled the outlook for traditional DVD and video rental companies like Viacom (NYSE:VIA), Blockbuster (NYSE:BBI), and Hollywood Entertainment (Nasdaq:HLYW), the latter of which recently declared it is going private. Wall Street Futures believes that Netflix's decision not to enter the video game market creates an opportunity for another player to establish itself as the one-stop resource for all DVD and video game products.
GEGP shares began trading this week at $0.50, a price that should attract investors looking for a viable, long-term investment in this space.
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