Entertainment companies are connecting screen stories, games and physical experiences, but licensing complexity, operating costs and uncertain returns could limit the model.
Over seven weeks in summer 2025, Boulevard Riyadh City hosted the Esports World Cup alongside more than 1,500 community, cultural and entertainment activities. Saudi Arabia’s state news agency reported more than 3 million visitors to the site. The event placed gaming at the center of a broader entertainment destination, connecting competition with live experiences.
The model reflects a shift in entertainment economics. A single intellectual property (IP) can generate revenue across games, film and television, live events, sponsorship and merchandise. But each channel has different costs and revenue drivers. The challenge is to connect them without assuming every crossover will generate additional growth.
Extending franchises beyond release cycles
Entertainment businesses have traditionally monetized through distinct channels. Films rely on theatrical windows, licensing and streaming; games combine sales, subscriptions and in-game spending; live events depend on ticketing, sponsorship and venue utilization.
Games, streaming platforms and permanent attractions give companies additional ways to engage audiences between releases. The goal is to make intellectual property useful across more of its life cycle, rather than rely on each launch to restart demand.
A games-market intelligence firm estimates that global gaming revenue reached $201.6 billion in 2025, up 9.1% from 2024. Its estimate covers gaming rather than film or live entertainment, but illustrates the scale of the business that studios, publishers and event operators may seek to connect with other channels.
The cost of convergence
Rights management becomes more complex when characters, music, footage, interactive mechanics and merchandise cross formats. Contracts must specify territories, licensing periods, fees, creative approvals, data access and revenue allocation. Film release schedules, game development cycles and event planning rarely align automatically.
Poorly defined agreements can trigger disputes over brand control, customer relationships and revenue allocation. Live experiences bring additional costs, including property, staffing, insurance and safety. Without repeat attendance or sufficient spending, these expenses can outweigh the benefits of a physical extension.
Digital connections also create security and privacy exposure. In its 2024 report, Banking in video games and virtual worlds, the U.S. Consumer Financial Protection Bureau documented reports of account theft, scams, and cases in which users struggled to recover valuable digital assets. The report did not estimate an industry-wide incident rate.
The findings highlight consumer protection concerns for companies linking gaming accounts with payments, ticketing or memberships. These services need access controls, fraud monitoring, data minimization and clear responsibility for incident response.
Rules governing child safety can also affect cross-platform services. On July 14, 2025, the EU’s executive body published guidelines recommending proportionate safeguards for minors using online platforms. The measures address risks including harmful content, grooming, cyberbullying, and addictive design. The guidelines are nonbinding recommendations that can inform the Commission’s assessment of compliance with the binding Digital Services Act. They do not establish a global standard.
Making every extension count
The Esports World Cup in Riyadh used competition as the center of a broader live destination. The format creates opportunities for sponsorship, community participation and related experiences beyond the matches. However, visitor totals alone do not prove profitability or establish how much spending was incremental.
Organizers need to measure revenue per visitor, sponsor renewal and repeat attendance to determine whether audience reach translates into sustainable returns.
Nintendo, the Japanese game maker, reported in its investor materials that “The Super Mario Bros.” movie generated $1.361 billion in worldwide box-office revenue and reached an estimated 169.84 million moviegoers. The company attributed the estimates to Universal Pictures and said the film introduced its intellectual property to people both familiar and unfamiliar with the games.
The figures demonstrate the film’s reach, but do not establish additional game sales or the company’s net profit. Cross-media exposure becomes commercially meaningful when audience growth translates into additional spending, licensing income or other measurable benefits.
Netflix offers a different model through Netflix House, its permanent entertainment venues. The company opened its Philadelphia location in November 2025 and its Dallas location in December. The venues offer free entry, while many immersive experiences require payment. Attractions include multiplayer virtual-reality games, mini golf, dining, and merchandise tied to Netflix shows and films.
The venues give Netflix a physical channel for engaging fans beyond streaming. However, public announcements do not disclose standalone profitability, limiting assessment of their financial contribution.
Together, the models serve different purposes:
Live events can turn participation into a destination experience
Films can introduce a franchise to audiences beyond existing fans
Permanent venues generate opportunities to monetize screen properties through in-person experiences.
These approaches can complement one another. Executives should approve an extension only when its purpose is clear: audience acquisition, repeat engagement, or incremental revenue. Direct returns should be measured separately from downstream effects, and cross-channel gains should be demonstrated rather than assumed.
Gaming, film and live events are not becoming one product. They are becoming connected routes through which a franchise can hold attention across release cycles. The strongest operators will define licensing rights, customer-data responsibilities, and performance measures before committing capital, then test whether each channel strengthens the wider portfolio. Expansion alone does not establish value; a connected franchise earns its place when it extends audience relationships and produces measurable returns.
