Film and Video Distribution in Australia Industry Market Research Report Now Updated by IBISWorld

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Film and Video Distribution industry growth is linked to box office takings at cinemas and film distribution to free-to-air TV, pay-TV and other networks. However, sales and rentals of DVDs and Blu-ray Discs have decreased in recent years, with increased film piracy and web downloads increasing steadily to the industry's detriment. For these reasons, industry research firm IBISWorld has updated its report on the Film and Video Distribution industry in Australia.

IBISWorld Market Research

IBISWorld Market Research

Revenue growth has been in slow motion as demand weakens and prices fall

Over the past decade, the digital age has driven demand for visual entertainment and films delivered to households in a variety of new media and formats. Film and Video Distribution industry growth is linked to box office takings at cinemas and film distribution to free-to-air TV, pay-TV and other networks. However, sales and rentals of DVDs and Blu-ray Discs have decreased in recent years, with increased film piracy and web downloads increasing steadily to the industry's detriment. “In the five years through 2012-13, industry revenue is estimated to increase an annualised 0.4%,” according to IBISWorld industry analyst Alen Allday. In 2012-13, IBISWorld projects that the industry will generate revenue of $2.61 billion, with growth of 0.7% for the year. This growth is related to increases in movie theatre attendance, but tempered by continued DVD and Blu-ray Disk retail price declines. Purchases of box sets and limited release films have shown greater resilience.

The Film and Video Distribution industry requires film and video distributors to have solid ties and agreements with local and international film libraries and producers to guarantee a steady flow of existing and new video product to clients. The downstream Cinemas industry continues to invest in digital screens, supporting sound and projection technology at a substantial cost. This allows the screening of 3-D format films and means higher prices can be charged to customers. Allday adds, “more significantly, digital technology will provide the capability to distribute video products via digital media, rather than on film stock”. As a result, this will lower the major movie duplication and distribution costs for industry operators. The Film and Video Distribution industry is, however, being requested by the Cinemas industry to share some of the digital-conversion costs.

Market share concentration in the Film and Video Distribution industry is medium. The four major players are Village Roadshow Limited, Warner Bros Entertainment Australia Pty Limited, News Australia Holdings Pty Limited and Sony Pictures Home Entertainment Pty Ltd. Despite increased movie demand from free-to-air TV and pay-TV networks and steady cinemas growth over the next five years, industry revenue is expected to decrease on average due to continued declines in DVD and Blu-ray Disk prices and volumes. Industry revenue is forecast to decrease in the five years through 2017-18.

For more information, visit IBISWorld’s Film and Video Distribution report in Australia industry page.

Follow IBISWorld on Twitter: http://twitter.com/#!/ibisworldau

IBISWorld industry Report Key Topics

This report relates to establishments that lease or wholesale motion pictures on film or video (DVD and Blu-ray) to cinemas for exhibition, to wholesalers and retailers for sale, to video rental stores, and to TV and pay-TV stations for public viewing. This industry also includes agents that lease and wholesale films and videos to organisations.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
International Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Industry Globalisation
Major Companies
Operating Conditions
Capital Intensity
Technology & Systems
Revenue Volatility
Regulation & Policy
Industry Assistance
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
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.

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Gavin Smith
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