Industry Analysis & Industry Trends
Over the past decade, 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 growth 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 digital versatile discs (DVDs) and Blu-ray Discs have decreased over the past five years, with film piracy and web downloads increasing steadily, to the industry's detriment.
Film and video distributors are required to have solid ties and agreements with local and international film libraries and producers to guarantee a steady flow of existing and new video products to clients... 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. These show that in 2014-15, for every dollar spent on the use and replacement of buildings, vehicles and equipment, an average of $13.98 will be required for wage costs. 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