The rise of internet streaming has changed how the public consumes and purchases media such as TV, movies, music and games, by making online one-stop-shops a key source of home entertainment. Consumers can now access on-demand media online through Smart TV’s, gaming consoles, PCs and mobile phones. The prevalence of online streaming is expected to cut revenue from bricks-and-mortar media sales by 6.4% in 2017-18. To counteract this trend, retailers have increasingly sought to generate revenue by selling products with extra or exclusive content.
Trading as EB Games, video game retailer Electronics Boutique Australia’s bricks-and-mortar revenue is expected to contract by 4.0% in 2017-18, due to increased competition from online and bricks-and-mortar retailers. In comparison, the Online Video Games Sales industry is anticipated to grow by 10.8% in 2017-18. EB Games has attempted to counteract this trend by offering customers exclusive in-game and physical content. Customers who pre-order a game or purchase it during a promotion receive exclusive in-game content, such as alternative packaging, additional gameplay, customisation abilities and peripheral items such as weapons, cars or character outfits. Through this approach, EB Games has improved its performance with consumers that want premium video game content, while satisfying video game development studios that want to increase awareness of their products.
The rise of streaming and online retailing has also affected JB Hi-Fi Limited. One way in which JB Hi-Fi has responded to this challenge is by emphasising vinyl record sales. Older analogue mediums have become more popular in the music retail market over the past five years, prompting artists, record labels and retailers to produce more vinyl records and cassette tapes.
Streaming services provide unbeatable convenience to consumers, leading video game, DVD, and recorded music retailers to focus on niche audiences that enjoy the extra features and collectability of physical media. With the Video Game, DVD and Recorded Music Retailing industry forecast to contract over the next five years, physical retailers are looking to offer a wider range of products. As streaming services and online retailing continue to grow, bricks and mortar retailers will need to give consumers more reasons to visit their stores.
For a printable PDF of this release, click here.
Relevant companies include:
Electronics Boutique Australia Pty Limited
JB Hi-Fi Limited