Industry Analysis & Industry Trends
Over the five years to 2016, 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 next five years, industry revenue is expected to continue decreasing as consumers continue to opt for more long-term services such as subscription-based streaming services... purchase to read more
Industry Report - Starting a New Business Chapter
A moderate amount of capital is required to successfully undertake operations in the industry. Industry operators are largely dependent on location to attract customers. These locations are generally highly populated and near high-traffic spots such as retail strips or malls, which have parking space and are easily accessible. Additionally, the store must have ample storefront space to display merchandise and attract potential customers. Given that rent is estimated to account for 9.2% of industry revenue, the cost to rent or purchase a location can pose a barrier to entry.
Supply agreements for recently released films create barriers to entry. Aside from the difficulty associated with negotiating supply agreements as a new entrant, existing agreements can pose an equal problem... purchase to read more