Industry Analysis & Industry Trends
Over the five years to 2014, revenue for the DVD, Game and Video Rental industry has severely contracted amid increasing external competition and a wider shift toward substitute services such as on-demand television and subscription-based streaming services. Because of their relative affordability and increasing convenience, more consumers are using these services, decreasing demand for brick-and-mortar stores offering rental services for DVDs and video games. Over the five years to 2019, industry revenue is expected to continue decreasing consumers continue to opt for more long-term services such as subscription-based streaming services... purchase to read more
Industry Report - Industry Investment Chapter
The DVD, Game and Video Rental industry rents and retails a variety of physical media, merchandise and confectionery goods. Stock replacement, store locations, security equipment, and computer inventory and checkout systems constitute the greatest capital cost to the industry. Additionally, the industry does not require high-skill labour to operate equipment, restock shelves or checkout customers.
Although labour still accounts for a higher portion of revenue than capital investments, the industry maintains a high level of capital intensity. IBISWorld estimates that for every $1.00 spent on wages, industry operators spend $0.40 to replace DVDs, Blu-ray discs and video games among other capital investments... purchase to read more