Quick trivia question: Which of these has the most annual revenues? NFL football, the video game industry, the movie industry, Exxon Mobil, or all internet advertising? I started looking into this because I was trying to get a sense for the internet advertising business, since so many relatively new, very large market cap companies rely almost entirely on internet advertising for their profitability (e.g., Facebook, Google, and Twitter). I was also just generally curious about different media and which is more significant. So the answer is, Exxon Mobil, by a long way. Internet advertising is approximately $43 billion a year. Exxon Mobil did $397 billion in revenues alone. Number 2 on the list is actually the video game industry, clocking in at $93 billion a year. Movie sales are a paltry $11 billion a year, and NFL football is $9 billion a year.
I thought the video game industry was pretty big, but I did not expect it to be 10x larger than the movie industry or the NFL. Also interesting, Exxon Mobil makes about 9 times more in revenue than the entire internet advertising industry, yet the market capitalization of Google is about the same as Exxon Mobil. Of course more goes into valuing a stock than its revenues in a given year, but it is still food for thought.