Industry Analysis & Industry Trends
The industry is swiftly declining as technology replaces in-store rentals with online downloads and purchases. Competition from substitutes, such as cable TV and internet rentals, will continue to adversely affect industry operators, as they struggle to remain relevant in a changing market. However, as some companies diversify and begin to offer different services, industry operators may have an opportunity to grow... purchase to read more
Industry Report - Industry Investment Chapter
For every dollar spent on wages in this industry, about $0.43 is spent on the use and replacement of new DVDs and games after rental. The largest capital costs for industry participants relate to purchasing and renting DVDs. Rapid depreciation of stock values of past and new releases also exists because demand for new titles often exceeds demand for the titles that were released a few months prior. In this industry labor is used for a variety of tasks, depending on the company's method of distribution, and can be used in customer service, kiosk maintenance and store upkeep.
Capital intensity has decreased over the five years to 2014; in 2009, for every $1.00 spent on wages, $0.50 was spent in capital investment... purchase to read more