Block's still busted: Demand will continue to plummet as consumers increasingly opt for online entertainment

The DVD, Game and Video Rental industry is expected to contract at a staggering rate over the five years to 2018. The convenience and instant access of Video on Demand (VOD) and the dominance of streaming services have decimated demand for brick-and-mortar services and forced former major players, including former industry giant Blockbuster, into bankruptcy. Furthermore, streaming services benefit from lower operating costs and are able to competitively price their products, driving brick-and-mortar operators to lower rental prices and limit their returns. As a result, industry operators are contending with a permanent diminution in the value of their services and revenue is anticipated to fall precipitously...purchase to read more.

Industry Statistics & Market Size
Revenue
$3bn
Annual Growth 13-18
-10.5%
Forecast Growth 18-23
Profit
Employment
13,710
Businesses
2,949

Industry Threats & Opportunities

  • Consumers have pivoted almost exclusively to digital home entertainment through streaming services
  • Online streaming now accounts for the majority of movie consumption
  • Free and subscription-based online media will continue to strangle industry profitability
  • Industry Report - Industry Products Chapter

    Non-subscription rental servicesNon-subscription rental services account for the majority of industry revenue with 62.3%. Streaming services and kiosk rentals have considerably reduced this segment's share of industry revenue over the past five years. According to NPD Group, a market research company, stand-alone kiosk rentals began to exceed brick-and-mortar rentals in the beginning of the current period. Moreover, many streaming services offer the same films at a much lower price, cutting into industry revenue.Subscription rental servicesSubscription rental services are anticipated to account for 32.0% of industry revenue. Whi...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

  • Selling and renting from high profile outlets
  • Supply contracts in place for key inputs
  • Ability to effectively manage debts from late returns of rental products
  • IBISWorld analysts also discuss how external factors such as Percentage of services conducted online and Business sentiment index 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?

    Industry operators rent videos and discs containing movies, shows or games. The industry does not include kiosk-distributed, on-demand and web-streamed rentals.

    Industry Products
  • Nonsubscription rental
  • Subscription rental
  • Industry Activities
  • DVD rental
  • Blu-ray rental
  • Video rental
  • Video game rental
  • Computer game rental
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Percentage of services conducted online
  • Business sentiment index
  • Consumer Confidence Index
  • Time spent on leisure and sports

  • Current Performance
  • Competition and costs
  • Going digital
  • Chart: Revenue Growth

  • Industry Outlook
  • Hybrid threat
  • Specialization in niche markets
  • 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

  • Key Selling Industries
  • Confectionery Wholesaling
  • Movie & Video Distribution
  • Video Game Software Publishing

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

  • Demand Determinants
  • Technological change and prices

  • Major Markets
  • Consumers aged 25 to 34
  • Consumers aged 35 to 44
  • Consumers aged 18 to 24
  • Consumers aged 45 to 54
  • Consumers aged 55 to 64
  • Consumers aged 65 and older
  • 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 utilitiesOther
  • 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
    Redbox Automated Retail LLC, Netflix Inc.,
  • Table: Redbox Automated Retail LLC - financial performance
  • Table: Netflix Inc. - financial performance

  • 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)
  • Percentage of services conducted online (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Blu-Ray
  • An optical disc format designed to display high-definition video and store large amounts of data.
  • Brick-And-Mortar
  • A business that has a physical storefront, rather than (or in addition to) an online presence.
  • Digital Video Recorder (Dvr)
  • A device that records video in a digital format to a disc drive, USB flash drive, SD memory card or other storage device.
  • Set-Top Box
  • A device that connects to a TV and an external source of signal, turning the signal into content that is displayed on the TV screen.
  • Ultraviolet (Uv)
  • A cloud-based digital rights authentication system that lets users download or stream purchased content on several devices and platforms.
  • Vhs
  • A trademark used for the videocassette format; the acronym is also used to refer to a video home system, which is a videocassette recorder system that uses half-inch magnetic tape.
  • Video On Demand (Vod)
  • An interactive TV technology that lets subscribers view programming in real time or download programs and view them later.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s DVD, Game & Video Rental Industry Research Report offers insight into the market at the national level. Our analysis highlights macro trends in the overall sector and the micro trends faced by companies that do business in the DVD, Game & Video Rental industry. Our five-year outlook forecasts explain how the market is set to change and the product segments that will drive growth.

    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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