Grand theft: Rising demand for online platforms and purchases drives down revenue for retailers

The Video Game, DVD and Recorded Music Retailing industry has faced a challenging operating 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 five-year period. Changing media formats and the increasing popularity of online shopping have also made trading difficult for industry operators. The consequent rise in external competition from digital media formats and online-only retailers has contributed to the industry's decline over the period. Overall, industry revenue is expected to fall at an annualised 4.8%...read more.

Industry Statistics & Market Size
Revenue
$1bn
Annual Growth 14-19
-4.8%
Forecast Growth 19-24
Profit
Employment
5,172
Businesses
625

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 media formats is anticipated to continue falling over the next five years
  • Industry Report - Industry Key Buyers Chapter

    The Video Game, DVD and Recorded Music Retailing industry is characterised by moderate market share concentration, with the four largest operators accounting for over 60% of industry revenue. While the three major players, JB Hi-Fi, EB Games and Sanity Entertainment, dominate the industry, numerous smaller players also exist, typically selling a niche product, such as vinyl records, or servicing a local region. However, over the past five years, intensifying competition internally and externally has put pressure on these smaller players, causing many to exit the industry. The major players have fared better over the period, due to their greater economies of scale and scope, which have helped them to compete with external threats. Con...purchase to read more.

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

    IBISWorld has determined the most important Key Success Factors for the Video Game, DVD and Recorded Music Retailing 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 only operate online 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 50 and older
  • Consumers aged 15 and under
  • 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
    Electronics Boutique Australia Pty Limited, JB Hi-Fi Limited, Sanity Entertainment Pty Ltd,
  • Table: Electronics Boutique Australia Pty Limited - financial performance
  • Table: JB Hi-Fi 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 (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)

  • 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?

    IBISWorld’s Video Game, DVD and Recorded Music Retailing market research report offers insightful industry analysis and research into the market at the national level. IBISWorld’s in-depth industry market research is presented in a logical and consistent format. The industry report contains key industry statistics, market size, industry trends, and growth and profit forecasts for a 5-year outlook period.

    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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