Movie & Video Distribution in the US Industry Market Research Report Now Available from IBISWorld

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Despite growing competition from media studios with in-house distribution arms, the industry will fare well in the coming years. As content becomes easier and more convenient to access on cell phones and iPads, consumers will demand more of it. Finally, movie theaters are increasingly switching to 3D projectors, which facilitate digital content distribution to the benefit of the industry. For these reasons, industry research firm IBISWorld has added a report on the Movie & Video Distribution industry to its growing industry report collection.

IBISWorld Market Research

IBISWorld Market Research

Mobile devices will make it convenient to access audiovisual content, supporting growth

The Movie and Video Distribution industry's growth slowed in response to streaming and social media creation, which enables production companies to distribute content with relatively low initial costs. Major studios distributed more movie content over the past five years because of these technological advancements. As a result, such studios paid less to the third-party distributors that make up this industry. Consequently, industry revenue declined 2.6% per year on average over the five years to 2012. “During this time, the industry increased its reliance on existing libraries of content and independent productions to support revenue,” says IBISWorld industry analyst Agata Labianca.

New technologies that allow consumers to indefinitely store and access digital content are expected to promote consumer choice and further ease access to movie content. Such technology has the potential to boost consumption because it does not allow users to "rent" or "share" content. It will also result in distributor bypass by facilitating retail directly to consumers. Self-distribution by movie studios heightens the competition for distribution firms. As a result, the number of enterprises will likely decrease over the next five years. Consolidation is expected during this time as distributors struggle to offer studios value-added services. Employee numbers are also expected to decline due to industry consolidation and competition. According to Labianca, greater funding for the movie and TV production industries will lead to more content production, which may result in some outsourcing to the Movie and Video Distribution industry. In 2012, growing consumer demand for content is anticipated to drive revenue up 0.8% to $1.9 billion. Mobile devices will make it more convenient to access content, increasing demand for it. Meanwhile, cinemas are expected to continue transitioning to digital distribution in 2012 and beyond since major players already have contracts to install projectors and systems compatible with digital formats. This trend will cut distribution time and costs, helping boost the industry profit by 2017. Industry revenue is expected to grow over the five years to 2017.

The top four players in the Movie and Video Distribution industry are estimated to generate less than 15.0% of industry revenue. This low-level of industry concentration is because of the fragmented and private nature of distributors that rely on industry contacts in niche and local markets. Distributors are heavily dependent on content produced by movie and TV studios, and must set up long-term contacts in cinema, TV broadcasting and retail industries to make sales. The personal nature of these contacts, combined with the costs of acquiring content, often limit distribution companies to a specific region or to a specific genre of content. In addition, the establishment and increased reliance on in-house distributors of major movie and TV studios have further limited the content available to independent distribution companies. For more information, visit IBISWorld’s Movie and Video Distribution in the US industry report page.

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IBISWorld industry Report Key Topics

This industry includes establishments that are primarily engaged in marketing and circulating audiovisual works to cinemas, TV networks, other exhibitors and stores. The industry excludes movie and TV distributors that are also involved in audiovisual content production, as well as retailers, rental stores and merchant wholesalers that distribute prerecorded physical media and music distributors.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognized 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 US 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 Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.

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Gavin Smith
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