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Motion Picture and Video Distribution in Australia Industry Market Research Report Now Updated by IBISWorld
  • USA - English


News provided by

IBISWorld

Feb 21, 2015, 09:00 ET

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IBISWorld Market Research
IBISWorld Market Research

Combined sales and rentals of DVDs and Blu-ray Discs have decreased over the past five years

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Melbourne, Australia (PRWEB) February 21, 2015 -- Over the past decade, the rise of the digital age has changed the way that visual entertainment and films are delivered to households, with a variety of new media and formats changing the Motion Picture and Video Distribution industry's operating landscape. Industry performance is linked to box office takings at cinemas, and film distribution to free-to-air TV, pay TV and other networks. According to IBISWorld industry analyst Alen Allday, “combined sales and rentals of DVDs and Blu-ray Discs have decreased over the past five years, while film piracy and web downloads have increased steadily, to the industry's detriment.” 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. Keeping up with technological advancement is also important. The downstream Cinemas industry has continued to invest in digital screens and the associated sound and projection technology, at a substantial cost. This has enabled the screening of 3D films, which means higher prices can be charged to customers.

Over the five years through 2014-15, industry revenue is expected to decrease at an annualised 5.6%. In 2014-15, IBISWorld projects that the industry will generate revenue of $1.8 billion, with a decline of 3.6% in the current year. This fall is associated with the overall decline in retail prices and sales volumes for DVDs and Blu-ray Discs for the year. However, “purchases of box sets, and limited release films and TV shows, have shown greater resilience,” says Allday. Demand from rental stores has also fallen significantly, while digital downloads have surged. Despite expected increases in movie demand from free-to-air TV and pay-TV networks, and steady growth in demand from cinemas, industry revenue is expected to decrease over the next five years. Increasing digital downloads will contribute to falling DVD and Blu-ray Disc prices and sales volumes.

Industry concentration measures the extent to which the top four players dominate an industry. While there are several large companies in the Motion Picture and Video Distribution industry, there are also many small firms that only handle narrow product ranges with small volumes, specialising in niche markets and operating within small geographic regions. Within the cinema distribution segment the major companies have links with major movie producers in the United States and elsewhere, while some are cinema owners. In terms of DVD and Blu-ray Disc rental and retail sales, the eight largest companies are estimated to control about two-thirds of total wholesale market sales.

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

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 distributes video products via digital media.

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

IBISWorld industry Report Key Topics

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.

Gavin Smith, IBISWorld, http://www.ibisworld.com, +61 396553838, [email protected]

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