Rewinding: Streaming services have severely reduced industry revenue, leading to exits

The days of scouring the shelves of the local movie rental store are over for many Australians, as the Video and DVD Hire Outlets industry succumbs to substitution by other delivery systems. Many of the larger industry players are exploring alternative delivery models to maintain market share and make use of their short-term rental business knowledge. This includes expanding into DVD rental kiosks (vending machines) and using online movie streaming instead of traditional bricks-and-mortar video hire shops.The industry has been capturing a diminishing share of consumer spending on entertainment, as players compete with telecommunications firms, pay-TV operators and internet companies for household discretionary more.

Industry Statistics & Market Size
Annual Growth 12-17
Forecast Growth 17-22

Industry Threats & Opportunities

  • The industry will remain deeply entrenched in the decline phase of its economic life cycle
  • Demand for the industry’s services has plummeted due to the popularity of online video options
  • The industry is likely to shift towards small-scale independent players in specialist segments
  • Industry Report - Industry Products Chapter

    The industry derives the bulk of its revenue from movie rentals, but also generates significant revenue from other avenues such as confectionery sales, electronic games rental and late fees.DVD and Blu-ray rentalsThe largest component of industry revenue comes from rental income from DVDs and Blu-ray Discs, which accounts for an estimated 55.8% of revenue. This share has gradually climbed over the past five years as the industry has shifted towards rentals made through vending kiosks, which supply only DVD and Blu-ray products. In the past, consumers were unwilling to wait for films to appear on broadcast TV and hired them instead. However, customers can now download these films or purchase hard copies shortly after their release to video stores...purchase to read more.

    Additional Insights for the Video and DVD Hire Outlets Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Video and DVD Hire Outlets Industry are

  • Availability of car parking
  • Having contracts which are favourable to purchaser
  • Superior financial management and debt management
  • IBISWorld analysts also discuss how external factors such as Real household discretionary income and Demand from internet publishing and broadcasting in the Video and DVD Hire Outlets industry impact industry performance..

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    What's in this report

    What is the Video and DVD Hire Outlets Industry?

    The industry consists of businesses and vendors mainly engaged in hire and sales of pre-recorded video DVDs, HD Blu-ray products and games for personal use only. Operators also sell general merchandise such as snack food and drinks. Businesses can operate through a variety of mediums including stores, kiosks and mail order.

    Industry Products
  • DVD and Blu-ray rentals
  • Video game rentals
  • Sales of ex-rentals
  • Confectionery and other goods sales
  • Late fees
  • Industry Activities
  • Pre-recorded electronic media rental (DVD or Blu-ray Disc)
  • Video game rental (PS3, PS4, XBox, Nintendo and Wii)
  • Sale of new and ex-rental DVDs and games
  • Confectionery, beverage and associated product retailing
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Real household discretionary income
  • Demand from internet publishing and broadcasting
  • TV density
  • Demand from motion picture and video production
  • Average weekly hours worked

  • Current Performance
  • Industry decline
  • Cheaper DVDs
  • New avenues
  • Chart: Revenue Growth

  • Industry Outlook
  • Dwindling revenue and jobs
  • Competitive pressures
  • Technology and

    cost concerns

  • Table: Video and DVD Hire Outlets Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Video and DVD Hire Outlets Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Consumers

  • Key Selling Industries
  • Book and Magazine Wholesaling
  • Motion Picture and Video Distribution
  • Soft Drink and Pre-Packaged Food Wholesaling

  • Products & Services
  • DVD and Blu-ray rentals
  • Confectionery and other goods sales
  • Sales of ex-rentals
  • Late fees
  • Video game rentals
  • Chart: Video and DVD Hire Outlets Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Highest income quintile
  • Fourth income quintile
  • Third income quintile
  • Second income quintile
  • Lowest income quintile
  • Chart: Major Market Segmentation for the Video and DVD Hire Outlets Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Depreciation
  • Rent and utilities
  • Franchise and group fees
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Video and DVD Hire Outlets

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Video and DVD Hire Outlets Industry

  • Industry Globalization
    Video Ezy Australasia Pty Limited, The Network Entertainment Group Pty Ltd, Leading Edge Group Limited, Civic Entertainment Pty Ltd,
  • Table: Video Ezy Australasia Pty Limited - financial performance
  • Table: The Network Entertainment Group Pty Ltd - financial performance
  • Table: Leading Edge Group Limited - financial performance
  • Table: Civic Entertainment Pty Ltd - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Video and DVD Hire Outlets Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Video and DVD Hire Outlets Industry
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Blu-Ray Disc
  • Designed to supersede DVDs, Blu-ray Discs have up to ten times the storage capacity of a standard DVD and are therefore used for high-definition video.
  • Cost Per Turn
  • The number of hires of a DVD to recoup initial cost.
  • Internet Protocol Tv
  • A means of downloading video content directly to a TV via a digital set-top box.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Video and DVD Hire Outlets market research report can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Video and DVD Hire Outlets:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Video and DVD Hire Outlets market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Video and DVD Hire Outlets, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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