The DVD Game and Movie Rental industry is expected to contract at a staggering rate over the five years to 2017. The convenience and instant access of Video on Demand (VOD) and dominance of streaming services has decimated demand for brick-and-mortar services and forced former major players, including former industry giant Blockbuster, into bankruptcy. Furthermore, external competition from streaming services benefit from lower operating costs and are able to competitively price their products, pushing brick-and-mortar operators to lower rental prices, thereby limiting returns. As streaming applications and downloaded media continue to dominate the home entertainment marketplace, IBISWorld forecasts industry revenue to continue its fall as poor profitability and reduced rental revenue forces brick-and-mortar establishments to cut costs.
This industry consists of companies that rent videos and discs that contain movies, shows or games. This industry does not include kiosk-distributed, on-demand and web-streamed rentals.
This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.