Blockbusted: On-demand streaming services are undermining the viability of video stores

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 home entertainment 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. These alternative models include expanding into DVD rental kiosks (vending machines) and using online movie streaming instead of traditional bricks-and-mortar video hire shops.The pace at which the industry is succumbing to the penetration of new technology is gathering momentum...read more.

Industry Statistics & Market Size
Revenue
$160m
Annual Growth 13-18
-23.4%
Forecast Growth 18-23
x.x%lock
Profit
x.x%lock
Employment
915
Businesses
520
Market Share of Companies

Industry Threats & Opportunities

  • The industry remains 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 consumption options
  • The industry is likely to shift towards small-scale independent players in specialist segments

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    Industry Report - Industry Key Buyers Chapter

    Industry concentration, while moderate, has declined in recent years as operations have been substantially restructured, resulting in the larger video franchise groups closing stores at a faster pace than small independent operators. The four largest operators account for an estimated 44.4% of industry revenue in 2017-18. This represents a dramatic decline from an estimated 94.5% in 2012-13 when the major franchise groups drove the bulk of industry revenue.Many of the industry's small operators have struggled to compete with major chains or franchisors on price, stock and variety. However, the industry's remaining small-scale outlets have battled to stay in business, while many franchise outlets have closed. The...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 a good reputation
  • Ensuring pricing policy is appropriate

    • 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

    Industry Products

    What is the Video and DVD Hire Outlets Industry?

    Industry businesses and vendors are primarily engaged in the hire and sales of pre-recorded video DVDs, HD Blu-ray products and games for personal use. 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
  • Sale of new and ex-rental DVDs and games
  • Confectionery, beverage and associated product retailing
    • Table of Contents

    About this Industry

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources

    Industry at a Glance

    Industry Statistics Snapshot
    Industry Structure
    Executive Summary

    Industry Performance

    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

    • Products & Markets

    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

    Competitive Landscape

    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • 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

    Major Companies

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

    • Operating Conditions

    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

    Key Statistics

    Table: Industry Data for the Video and DVD Hire Outlets Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)

    • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data

    Jargon & Glossary

    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?

    The Video and DVD Hire Outlets market research report provides key industry analysis and industry statistics, measures market size, analyzes current and future industry trends and shows market share for the industry’s largest companies. IBISWorld publishes the largest collection of industry reports so you can see an industry’s supply chain, economic drivers and key buyers and markets.

    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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