A losing game: Competition from online-only stores has caused revenue to decline

The Video Game, DVD and Recorded Music Retailing industry has faced a challenging environment over the past five years. Despite growth in total 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 digital 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 5.2% over the five years through 2017-18, to reach $1.0...read more.

Industry Statistics & Market Size
Revenue
$1bn
Annual Growth 13-18
-5.2%
Forecast Growth 18-23
Profit
Employment
5,369
Businesses
662

Industry Threats & Opportunities

  • Changing media formats and online shopping have made trading difficult for industry operators
  • Smaller retailers are increasingly being pushed out of the industry as they become unviable
  • Demand for physical formats is expected to continue falling over the next five years
  • Industry Report - Industry SWOT Analysis Chapter

    The industry is in the declining stage of its life cycle. Industry value added (IVA), a measure of the industry’s contribution to the wider economy, is projected to decline by 4.6% annualised over the 10 years through 2022-23. This represents a significant underperformance relative to the economy, with GDP forecast to grow by an annualised 2.5% over the same period. Enterprise, establishment and employment numbers are all falling as smaller businesses exit the industry due to strong competition from online-only retailers and the major retail chains.Online-only businesses are taking demand away from the industry. Online stores provide easy access, convenient purchases and lower prices due to their relatively low overhead costs. Lar...purchase to read more.

    Additional Insights for the Video Game, DVD and Recorded Music Retailing Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Video Game, DVD and Recorded Music Retailing Industry are

  • Production of goods currently favoured by the market
  • Attractive product presentation
  • Proximity to key markets
  • IBISWorld analysts also discuss how external factors such as Real household discretionary income and Consumer sentiment index in the Video Game, DVD and Recorded Music Retailing industry impact industry performance..

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    What's in this report

    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

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Real household discretionary income
  • Consumer sentiment index
  • Demand from online shopping
  • Internet connections
  • Average weekly hours worked

  • Current Performance
  • Online competition
  • Digital formats
  • Physical resilience
  • Niche stores
  • Chart: Revenue Growth

  • Industry Outlook
  • Amazon
  • Digital formats
  • Industry structure
  • Table: Video Game, DVD and Recorded Music Retailing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Video Game, DVD and Recorded Music Retailing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Consumers

  • Key Selling Industries
  • Computer and Computer Peripheral Wholesaling
  • Motion Picture and Video Distribution
  • Paper Product Wholesaling
  • Reproduction of Recorded Media

  • Products & Services
  • Video games
  • DVDs and Blu-ray discs
  • Recorded music CDs
  • Other products
  • Chart: Video Game, DVD and Recorded Music Retailing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Consumers aged 16 to 34
  • Consumers aged 35 to 49
  • Consumers aged 15 and under
  • Consumers aged 50 and older
  • Chart: Major Market Segmentation for the Video Game, DVD and Recorded Music Retailing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Video Game, DVD and Recorded Music Retailing

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Video Game, DVD and Recorded Music Retailing Industry

  • Industry Globalization
    JB Hi-Fi Limited, Electronics Boutique Australia Pty Limited, Sanity Entertainment Pty Ltd,
  • Table: JB Hi-Fi Limited - financial performance
  • Table: Electronics Boutique Australia Pty Limited - financial performance
  • Table: Sanity Entertainment Pty Ltd - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Video Game, DVD and Recorded Music Retailing 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 Game, DVD and Recorded Music Retailing 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
    Digital Downloads
  • Recorded music, video or gaming content downloaded via the internet from reputable sources for a fee.
  • Nbn
  • The National Broadband Network, which is an Australia-wide infrastructure project to boost internet connectivity across the nation.
  • Point-Of-Sale Systems
  • Computer technology that processes retail transactions and provides data to a company regarding sales and inventory management.
  • What Our Customers Say

    Why buy this report?

    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.

    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 Game, DVD and Recorded Music Retailing:
    • 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 Game, DVD and Recorded Music Retailing 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 Game, DVD and Recorded Music Retailing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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