Industry Analysis & Industry Trends
Over the past decade, the rise of the digital age has changed the way that visual entertainment and films are delivered to households, with a variety of new media and formats changing the industry's operating landscape. Industry performance is linked to box office takings at cinemas, and film distribution to free-to-air TV, pay TV and other networks. Combined sales and rentals of DVDs and Blu-ray Discs have decreased over the past five years, while film piracy and web downloads have increased steadily, to the industry's detriment.
Film and video distributors need to have solid agreements with local and international film libraries and producers to guarantee a steady flow of video products for clients. Keeping up with technological advancement is also important... purchase to read more
Industry Report - Industry Investment Chapter
The capital intensity level outlines the amount of capital used in the industry compared with labour costs. To calculate the capital intensity level, wages and depreciation from the industry cost structure are used as proxies for labour and capital, respectively. In 2014-15, depreciation is expected to account for 0.8% of industry revenue, with wages at 11.2%. These show that for every dollar invested in buildings, vehicles and equipment, an average of $13.98 will be required for wage costs in 2014-15. This indicates the industry has a low capital intensity level.
The industry has a high component of film rental, license and royalty fees in its cost structure due to the nature of film distribution and the need to have a significant library... purchase to read more