Laughter is something different. Something is funny for some reason and we laugh. Likewise is the need for entertainment.
I am starting to think we are at an entertainment crossroads. While we have no idea what the first entertainment was we could surmise it had something to do with watching something, then telling about what you saw.
You can see how that could branch into fiction and story's. So the old campfire tales, singing, poems and physical humor, with its oohs awe's and laughter.
Someone gifted at the above would start honoring requests. If someone new came along, the group would want to share the old familier acts.
A natural extension would be to send your entertainers to visit friends, tribes, neighbors. Throw a few centuries and you have an industry around entertainment.
With the internet we have a retro back to the storytelling on a wide scale. With that raw unpolished edge that makes it that much more novel. Also, we have captured entertainment from the past that we can discover or recall.
Television in a small way has stepped up its game. There have been some very good shows out the last few years. Movies are struggling trying to find where they belong. radio has lost most of its traction and is being relegated to background noise.