Running out of lives: The availability of legal streaming services squeezes industry demand

Operators in the Video and Game Rental industry rent out media and games to consumers through in-store operations or online portals. This does not include streaming services through video on demand (VOD) or the provision of downloadable games. The industry is fragmented, with a host of independent stores, but is also dominated by a single major company, namely Amazon Instant Video. The industry has been marred by changes in consumer preferences influenced by the development of convenient online streaming services. This has brought intense competition from external operators like Netflix that have access to exclusive content and allow consumers to stream it easily through portable devices...read more.

Industry Statistics & Market Size
Revenue
£143m
Annual Growth 13-18
-17.6%
Forecast Growth 18-23
Profit
Employment
1,003
Businesses
219
Market Share of Companies

Industry Threats & Opportunities

  • The development and rise of convenient online streaming services has led to industry decline
  • Piracy has been rising in popularity as consumers are less willing to spend on physical media
  • Faster internet means that demand for VOD is expected to continue growing strongly
  • Industry Report - Industry Investment Chapter

    The Video and Game Rental industry has a high level of capital intensity with a capital-to-labour ratio of 1:0.52. This indicates that for every £1.00 invested in capital equipment, 52p is spent on wages. Labour costs are generated from the employment of staff members that are required to attend to customers, perform transactions, maintain customer databases and arrange and stock shelves accordingly. Wages are estimated to account for 8.9% of industry revenue in 2017-18. However, the move by operators towards online operations has decreased the need for employees and increased capital costs. Online retailers aspire to use technology to operate as efficiently as possible (e.g. the automation of customer databases and directories)...purchase to read more.

    Additional Insights for the Video & Game Rental Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Video & Game Rental Industry are

  • Having an exclusive sales contract
  • Having a loyal customer base
  • Proximity to key markets
  • IBISWorld analysts also discuss how external factors such as Demand from television programming and broadcasting and Consumer confidence index in the Video & Game Rental industry impact industry performance..

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    What's in this report

    What is the Video & Game Rental Industry?

    Operators in this industry rent films, TV programmes and games in stores or over the internet. The industry does not include the provision of media through streaming services such as video on demand (VOD) or downloadable games.

    Industry Products
  • In-store video rentals
  • Online DVD subscriptions
  • In-store game rentals
  • Online game rentals
  • Industry Activities
  • Renting films, TV programmes and other media productions in-store
  • Renting films, TV programmes and other media productions online
  • Renting video games
  • 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 television programming and broadcasting
  • Consumer confidence index
  • Average weekly hours of work
  • Percentage of households with internet access

  • Current Performance
  • DVD delivery
  • Piracy pushes

    down demand

  • Disc decline
  • Industry competition
  • Chart: Revenue Growth

  • Industry Outlook
  • Streaming success
  • End game
  • No returns
  • Table: Video & Game Rental Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Video & Game Rental Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Consumers

  • Key Selling Industries
  • Computer & Peripheral Equipment Manufacturing
  • Computer Game Publishing
  • Film, Video & TV Programme Distribution
  • Plastic Packing Goods Manufacturing

  • Products & Services
  • Online DVD subscriptions
  • In-store video rentals
  • Online game rentals
  • In-store game rentals
  • Chart: Video & Game Rental Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • People aged between 35 and 44
  • People aged between 45 and 64
  • People aged between 25 and 34
  • People aged between 18 and 24
  • People aged 65 and over
  • Chart: Major Market Segmentation for the Video & Game Rental Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    Profit PurchasesDepreciationWagesAdvertising and marketingOther costs
  • Chart: Cost Structure Benchmarking – Sector vs Video & Game Rental

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Video & Game Rental Industry

  • Industry Globalization
    Amazon Instant Video Ltd,
  • Table: Amazon Instant Video Ltd - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Video & Game Rental 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 Video & Game Rental Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Blu-Ray Disc
  • An optical disc that can hold a large amount of data and was designed to supersede the DVD format.
  • Bricks-And-Mortar
  • A retail organisation that has a physical presence on the high street.
  • Peer-To-Peer File Sharing
  • The distribution and sharing of media files using peer-to-peer software that connects to other computers on a peer-to-peer network.
  • Smart Tv
  • A television set with the integration of internet features.
  • Steam
  • A digital distribution platform that provides the installation and updating of games on multiple computers.
  • Streaming
  • Data that is transmitted in a continuous stream while earlier parts are still in use.
  • Video On Demand (Vod)
  • When viewers order a film that they can watch at any time. Films may be rented, streamed or bought.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Video & Game Rental market research report is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.

    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 Video & Game Rental:
    • 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 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 Video & Game Rental 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 Video & Game Rental, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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