Game over: Competition from online-only stores causes industry revenue to decline

The Video Game, DVD and Recorded Music Retailing 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.


Industry Analysis & Industry Trends

Video game, DVD and recorded music retailers have faced a challenging environment over the past five years. Despite growth in household discretionary income over the period, many consumers have been cautious about purchasing discretionary goods, including industry products. This trend has been reflected in negative consumer sentiment over much of the past five years. Changing media formats and the increasing popularity of online shopping have also made trading difficult for industry operators. Intensifying competition from online media formats and online-only retailers has significantly contributed to industry revenue declining over the past five years. Industry revenue is expected to decline at an annualised 5.9% over the five years through 2016-17, to reach $1.2 billion...

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Industry Report - Industry Investment Chapter

The Video Game, DVD and Recorded Music Retailing industry is characterised by low capital intensity. For every dollar spent on capital costs, an estimated $17.80 is spent on wages. The industry is labour-intensive, with staff needed for a variety of tasks including customer service, product displays and inventory control. Capital expenditure for industry operators includes the cost of point-of-sale systems, product shelving along with other fixtures and fittings such as sales counter, light fittings and security systems. An initial capital investment is required by new operators planning to enter the industry. Over the past five years, capital intensity has declined, as industry operators have opted to boost customer service to better compete against online-only retailers.


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Industry Products

What is the Video Game, DVD and Recorded Music Retailing Industry?

Industry firms primarily sell video games, DVDs and recorded music. Digital downloads from industry retailers with bricks-and-mortar stores are also included. Businesses that operate online only are excluded from the industry.

Industry Products
Recorded music CDs
DVDs and Blu-ray Discs
Video games
Other products
Industry Activities
CD retailing
DVD retailing
Computer game retailing
Video game retailing

Table of Contents

About this Industry

Industry Definition
Main Activities
Similar Industries
Additional Resources

Industry at a Glance

Industry Performance

Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle

Products & Markets

Supply Chain
Products & Services
Demand Determinants
Major Markets
International Trade
Business Locations

Competitive Landscape

Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
industry Globalisation

Major Companies

Operating Conditions

Capital Intensity
Technology & Systems
Revenue Volatility
Regulation & Policy
Industry Assistance

Key Statistics

Industry Data
Annual Change
Key Ratios

Jargon & Glossary

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