Innovation Behind the screen: The infrastructure powering entertainment

Entertainment looks effortless to the consumer today. Movies start streaming instantly, video games connect millions in real time, and recommendation engines serve up exactly what we didn't know we wanted. But behind this seamless experience is a complex technological backbone—one built on artificial intelligence (AI), semiconductors, and digital infrastructure.

The Nasdaq-100® Index, tracked by the Invesco QQQ ETF, includes many of the companies not just producing entertainment, but powering the hidden layers that make it all possible.

The silicon and networks powering every pixel

Every streaming session or multiplayer game starts with raw computing power. The global AI chip market, valued at approximately $53 billion in 2024, is projected to reach $296 billion by 2030.¹ Entertainment's demand for processing power—from training recommendation algorithms to rendering real-time visual effects—is a significant driver.

Companies like Nvidia have redefined graphics processing units (GPUs), making them essential for cloud gaming platforms and AI-powered production tools. Broadcom and Qualcomm supply semiconductors enabling 5G connectivity for mobile streaming and gaming. The 5G infrastructure market is expected to expand from $17 billion in 2024 to $96 billion by 2030.²

Content delivery networks (CDNs) reduce latency for live events and high-definition streaming. The CDN market, valued at $27 billion in 2025, is projected to reach $145 billion by 2032 as demand for ultra-high-definition content grows.³ This layer of infrastructure—silicon chips, 5G networks, and content delivery—makes buffer-free entertainment possible.

Gaming represents entertainment's most demanding use case. Cloud gaming, expected to grow from $10 billion in 2025 to $122 billion by 2032,⁴ requires massive GPU arrays in data centers and ultra-fast networks. Several companies in the Nasdaq-100 supply the chips, networks, and server infrastructure enabling these experiences.

AI transforms production economics

AI is reshaping content creation. Adobe's generative AI tools, integrated across its creative suite, help studios accelerate editing and localization. Industry analysis suggests AI-powered rotoscoping (isolating a subject from its background in video footage) can deliver 20-60% time savings depending on scene complexity.5 One studio reduced localization turnaround from 45 days to 12 days using AI voice synthesis.⁶

Director James Cameron has stated that AI could potentially help cut the cost of visual effects in half by accelerating workflows.⁷ In an industry where major productions allocate tens of millions of dollars to visual effects, efficiency improvements could significantly impact economics. Microsoft's Azure cloud provides AI services for real-time dubbing and in-game personalization.

For entertainment companies, AI may lower production costs and enable new creative possibilities. The AI in film market, valued at approximately $3 billion in 2024, is projected to reach $14 billion by 2033.⁸

Personalization engines at scale

Behind consumer-facing platforms like Netflix and YouTube (owned by Alphabet affiliate Google) are personalization systems processing vast amounts of data. These recommendation engines—powered by AI, cloud computing, and custom processors—determine what content surfaces, when, and how. The technology enabling this personalization is as critical as the content libraries themselves.

The investment consideration

Entertainment is both a consumer story and an infrastructure story. Through the Nasdaq-100, investors can gain exposure to companies across multiple layers:

• Semiconductors: Nvidia, Broadcom, and Qualcomm providing chips for data centers, networks, and devices
• Cloud & AI infrastructure: Microsoft and Amazon offering platforms studios rely on for production and distribution
• Creative tools: Adobe's suite, used by over 30 million creative professionals globally
• Delivery platforms: Companies combining content with technology infrastructure for personalization and distribution

Rather than selecting individual entertainment companies, buying a basket of stocks through an index-based approach may provide broader exposure to the ecosystem supporting them. Infrastructure segments like AI chips, cloud gaming, and CDNs are expected to grow faster than traditional content spending.⁹

Risks and realities

Innovation involves uncertainty. The semiconductor industry faces cyclical demand and supply chain risks. Streaming platforms contend with content costs and profitability pressure. AI tools introduce regulatory and intellectual property considerations that continue to evolve. Technology adoption rates for emerging platforms may differ from forecasts.

However, the trend toward more immersive, interactive, and personalized entertainment appears clear. Meeting that demand requires technology across the production and delivery chain. As entertainment becomes more technically sophisticated, the companies supplying infrastructure play an increasingly important role.

The future of entertainment will be defined not just by content, but by the invisible technologies helping enable its creation and delivery. For investors seeking exposure to this transformation, QQQ provides access to companies building the infrastructure—from silicon chips to AI tools—helping power the industry's evolution.