Game over: Revenue will significantly contract due to increased pressure from nonindustry competitors

The DVD, Game and Video Rental industry in Canada experienced a massive contraction over the past five years due to increased pressure from nonindustry competitors, including video streaming websites, on-demand services and rental kiosks. The affordability and flexibility associated with these substitutes compelled consumers to rent DVDs, games and videos from these competitors, diminishing demand for industry services. Over the five years to 2018, consumers pivoted almost exclusively to subscription streaming services such as Netflix for their home entertainment needs, which can be viewed across a range of digital platforms. Over the next five years, online content, such as streaming and downloaded media, will continue to service an increasing share of industry demand...read more.

Industry Statistics & Market Size
Revenue
$572m
Annual Growth 13-18
-9.6%
Forecast Growth 18-23
Profit
Employment
3,550
Businesses
385
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • As consumer spending increases, consumers will opt for more long-term services
  • Digital content has grown to replace physical media as the main form of content distribution
  • Streaming content will continue to replace many of the services offered by operators
  • 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 and utilities are estimated to account for a combined 9.4% 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. Asi...purchase to read more.

    Additional Insights for the DVD, Game & Video Rental Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the DVD, Game & Video Rental Industry are

  • Supply contracts in place for key inputs
  • Ability to effectively manage losses from late- or no-returns
  • Access to exclusive or rare merchandise
  • IBISWorld analysts also discuss how external factors such as Number of fixed broadband connections and Consumer spending in the DVD, Game & Video Rental industry impact industry performance..

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    What's in this report

    What is the DVD, Game & Video Rental Industry?

    This industry comprises operators that rent out prerecorded media such as movies, TV and video games. This industry excludes revenue generated from mail-distributed, kiosk-distributed, on-demand and online streaming rentals.

    Industry Products
  • Nonsubscription rental
  • Subscription rental
  • Industry Activities
  • Renting video games (both computer and console)
  • Renting video cassettes
  • Renting video DVDs
  • Renting Blu-ray discs
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Number of fixed broadband connections
  • Consumer spending
  • Leisure time
  • Demand from movie theatres
  • Number of households earning $100K or more

  • Current Performance
  • External competition
  • Digital markets
  • Chart: Revenue Growth

  • Industry Outlook
  • Survival through specialization
  • Future threats
  • Table: DVD, Game & Video Rental Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - DVD, Game & Video Rental Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Consumers in Canada

  • Key Selling Industries
  • Candy Production in Canada
  • Movie & Video Distribution in Canada
  • Software Publishing in Canada

  • Products & Services
  • Nonsubscription rental
  • Subscription rental
  • other
  • Chart: DVD, Game & Video Rental Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Households with income between $50,000 and $100,000
  • Households with income over $100,000
  • Households with income between $30,000 and $50,000
  • Households with income less than $30,000
  • Chart: Major Market Segmentation for the DVD, Game & Video Rental Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesDepreciation and wagesRent and utilitiesMarketingOther
  • Chart: Cost Structure Benchmarking – Sector vs DVD, Game & Video Rental

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the DVD, Game & Video Rental Industry

  • Industry Globalization
    There are no major players in this industry. This report includes analysis of other companies.
    Capital Intensity
  • Chart: Level of Capital Intensity for the DVD, Game & Video Rental 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 DVD, Game & Video Rental Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)
  • Number of fixed broadband connections (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Blu-Ray
  • An optical disc format designed to display high-definition video (1080p) and store larger amounts of data.
  • On-Demand
  • An interactive TV technology that allows subscribers to view programming in real time or download programs and view them later.
  • Personal Video Recorder
  • A device that records video in a digital format to a disc drive, USB flash drive, SD memory card or other storage device.
  • Ultraviolet
  • A cloud-based digital rights authentication system that lets users download or stream purchased content on several devices and platforms.
  • Vhs
  • Refers to video home system, which is a videocassette recorder system that uses half-inch magnetic tape.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s DVD, Game & Video Rental market research report can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.

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

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