Piracy threatens industry revenue, while advertising offers some gains
Melbourne, Australia (PRWEB) November 08, 2012
The Recorded Media Manufacturing and Publishing industry in Australia has undergone significant change and damage over the past five years. The rise of digital media in the form of online downloads is becoming the preferred method of purchasing media. In addition, new media solutions have allowed users to access music and video more easily than ever before. Aside from the structural change in media formats, online media piracy has become increasingly problematic. According to IBISWorld analyst Jeremy Edwards “consumer attitudes towards music piracy, in conjunction with higher bandwidth speeds, have resulted in increased illegal downloads”. The industry has seen improvements only in the publishing aspect of the industry due to an increase in the use of media in advertising and marketing campaigns. As a result, the industry has declined by a compound annual rate of 3.5% over the past five years.
The Recorded Media Manufacturing and Publishing industry’s outlook is poor as digital media downloads show no sign of slowing, and physical formats are expected to slowly face extinction over the long term. New formats and the rise of cloud computing are allowing consumers to access and use media in new ways. The industry is expected to experience a structural shift towards this form of manufacturing. “However, due to overseas companies being able to penetrate global markets with ease, Australian operators will face extensive competition in the new format,” Edwards adds. Piracy issues are expected to continue due to higher bandwidth speeds as well as trade slumping as physical imports and exports are not required as extensively as they were in the past. As a result, the industry is expected to experience further declines over the five years through 2017-18.
The Recorded Media Manufacturing and Publishing industry in Australia is characterised by low market share concentration. The three biggest players are Technicolor Pty Limited, SCA Music Holdings and Regency Media. The larger companies in the industry are expected to increase in size over the next five years however, as the declining nature of the industry results in increased consolidation. Larger companies are moving to invest in digital format technology and provide modern solutions to customers as the trend moves away from physical CD and DVD manufacturing and publishing. There is some scope for new players to enter the industry over the next five years, as being at the forefront of the digital movement will result in significant returns on investment. For more information, visit IBISWorld’s Recorded Media Manufacturing and Publishing in Australia industry report page.
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IBISWorld industry Report Key Topics
Companies in this industry manufacture or publish pre-recorded audio, video or data media, including vinyl records, CDs, DVDs and legal digital downloads. In this case, publishing refers to the licensing of using the rights of a sound or image.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Technology & Systems
Regulation & Policy
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Recognised as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every Australian industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Melbourne, IBISWorld serves a range of business, professional service and government organisations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com.au or call (03) 9655 3886.