Industry Analysis & Industry Trends
The Video and DVD Hire Outlets industry is not maintaining its share of total consumer expenditure on recreation and culture. This is due to significant competition for household discretionary income from several sources, such as the internet and pay-TV operators. Other retailers are continuing to encroach on the traditional territory of video stores, especially in the sale of DVDs and Blu-ray Discs, generally at reduced prices. Companies outside the industry, such as Telstra, Optus and Fairfax Media, have begun offering digital video-on-demand services, while other companies have started online ordering systems, which feature posting DVDs to households. These services have extended hire periods at significantly reduced prices relative to video stores... purchase to read more
Industry Report - Industry SWOT Analysis Chapter
The specialist video hire and sales establishments are in decline. The industry structure has now changed; the growth and expansion of major participants was achieved through mergers and acquisitions rather than organically. To highlight the point, even mergers between major operators have occurred as revenue and profit growth continues to disappoint. Thus, IBISWorld expects industry gross product over the ten years to 2017-18 to decline at an annualised rate of 14.8%, significantly lower than the expected GDP growth of 2.4% per year over the same period.
The market is now physically saturated with independent, specialist and franchised stores. Also significant is that overall number of stores is decreasing across all three categories, along with industry revenue... purchase to read more