Bad review: Falling Blu-ray and DVD sales continue to reduce industry revenue

Operators in the Motion Picture and Video Distribution industry have faced difficult operating conditions over the past five years. The increasing digitisation of media has changed the way that visual entertainment and films are delivered to households and shifted the industry's operating landscape. The industry's performance is influenced by box office takings at cinemas and demand for films from free-to-air TV, pay TV and other networks. Combined sales and rentals of DVDs and Blu-ray Discs have decreased over the past five years, while film piracy has remained a considerable problem.Film and video distributors need to have solid agreements with local and international film libraries and producers to guarantee a steady flow of video products for clients...read more.

Industry Statistics & Market Size
Revenue
$2bn
Annual Growth 14-19
-3.4%
Forecast Growth 19-24
Profit
Employment
2,800
Businesses
229

Industry Threats & Opportunities

  • Profitability has fallen, largely due to declining DVD and Blu-ray Disc sales
  • SVOD service providers such as Netflix represent a growing source of industry demand
  • Demand for DVDs will continue dropping due to an increasing number of digital downloads
  • Industry Report - Industry Investment Chapter

    The capital intensity level outlines the amount of capital used in the industry compared with labour costs. To calculate capital intensity, wages and depreciation from the industry cost structure are used as proxies for labour and capital, respectively. For every dollar invested in capital, $17.57 is expected to be spent on wages in the current year. This indicates the industry has low capital intensity.The industry has a high component of film rental, license and royalty fees in its cost structure due to the nature of film distribution and the need to have a significant library. Labour costs are moderate across the industry as staff are required to negotiate film rights, raise finance, monitor film production agreements, and duplicate and distribute films. Som...purchase to read more.

    Additional Insights for the Motion Picture and Video Distribution Industry

    IBISWorld has determined the most important Key Success Factors for the Motion Picture and Video Distribution are:

  • Guaranteed supply of key inputs
  • Having a high prior success rate (including completed prior contracts)
  • Ready access to investment funding
  • IBISWorld analysts also discuss how external factors such as Demand from video game, dvd and recorded music retailing and Demand from cinemas in the Motion Picture and Video Distribution industry impact industry performance..

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    What's in this report

    What is the Motion Picture and Video Distribution Industry?

    Firms in the industry lease or wholesale motion pictures on film or video (i.e. DVD and Blu-ray Disc) to cinemas for exhibition, to wholesalers and retailers for sale, to video rental stores, and to TV and pay-TV stations for public viewing. Firms in the industry acquire the distribution rights for motion pictures and videos. The industry also includes agents that lease and wholesale films and videos to organisations, and distribute video products via digital media.

    Industry Products
  • G rated films and TV shows
  • PG rated films and TV shows
  • M rated films and TV shows
  • MA15+ rated films and TV shows
  • Films and TV shows with other classifications
  • Industry Activities
  • Film distribution
  • Motion picture leasing to cinemas
  • Motion picture distribution to TV networks
  • DVD and Blu-ray distribution to and rental outlets
  • Television program distribution
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Demand from video game, dvd and recorded music retailing
  • Demand from cinemas
  • Demand from television broadcasting
  • Demand from internet publishing and broadcasting
  • Demand from video and dvd hire outlets

  • Current Performance
  • Steady revenue falls
  • Profit and demand
  • Cinema box office
  • Rental versus retail
  • Online piracy
  • Chart: Revenue Growth

  • Industry Outlook
  • Digital downloads
  • Traditional markets
  • Industry structure
  • Table: Motion Picture and Video Distribution Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Motion Picture and Video Distribution Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Department Stores
  • Video Game, DVD and Recorded Music Retailing
  • Cinemas
  • Video and DVD Hire Outlets
  • Free-to-Air Television Broadcasting
  • Pay Television
  • Supermarkets and Grocery Stores

  • Key Selling Industries
  • Motion Picture and Video Production

  • Products & Services
  • M rated films and TV shows
  • PG rated films and TV shows
  • MA15+ rated films and TV shows
  • G rated films and TV shows
  • Films and TV shows with other classifications
  • Chart: Motion Picture and Video Distribution Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Cinemas
  • Subscription video on demand providers
  • Television broadcasters
  • Retailers
  • Video and DVD hire outlets and other markets
  • Chart: Major Market Segmentation for the Motion Picture and Video Distribution Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Motion Picture and Video Distribution

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Motion Picture and Video Distribution Industry

  • Industry Globalization
    Village Roadshow Limited, Warner Bros Entertainment Australia Pty Limited, Universal Sony Pictures Home Entertainment Australia Pty Limited,
  • Table: Village Roadshow Limited - financial performance
  • Table: Warner Bros Entertainment Australia Pty Limited - financial performance
  • Table: Universal Sony Pictures Home Entertainment Australia Pty Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Motion Picture and Video Distribution 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 Motion Picture and Video Distribution Industry
    Includes:
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)
  • Wages (2010-2024)
  • Purchases (2010-2024)
  • Profit (2010-2024)
  • Depreciation (2010-2024)
  • Rent (2010-2024)
  • Utilities (2010-2024)
  • Other (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Blu-Ray Disc
  • Discs used for HD video and data storage that have up to 10 times the storage capacity of a standard DVD.
  • High Definition (Hd)
  • Video with a resolution substantially higher than standard definition video, and is used by Blu-ray players and HD TV channels.
  • Piracy
  • The illegal copying and distribution or selling of copyrighted material.
  • Sell-Through
  • Sales of DVDs direct to the consumer, as opposed to sales to a video store for rental.
  • Standard Definition (Sd)
  • Has a resolution that is lower than HD due to fewer pixels, and is supported by all free-to-air TV broadcasters.
  • Video On Demand
  • A system that allows users to select and view content at a time and place of their choosing.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Motion Picture and Video Distribution market research report offers insightful industry analysis and research into the market at the national level. IBISWorld’s in-depth industry market research is presented in a logical and consistent format. The industry report contains key industry statistics, market size, industry trends, and growth and profit forecasts for a 5-year outlook period.

    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 Motion Picture and Video Distribution:
    • 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 Motion Picture and Video Distribution 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 Motion Picture and Video Distribution, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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