Industry Analysis & Industry Trends
Operators in the Video and Game Rental industry offer media and gaming rental services either through in-store operations or online operations. The industry does not include streaming services through video on demand (VOD) or the provision of downloadable games. The industry is highly fragmented with the prevalence of independent stores but is also dominated by larger operators primarily Blockbuster and LoveFilm. Over the past five years, a number of factors have affected industry operators and forced a high number of independent retailers to exit the market. There has been increased competition from substitutes, which has led consumers to switch to different services, thereby affecting the revenue for retailers... purchase to read more
Industry Report - Starting a New Business Chapter
The Video and Game Rental industry has moderate barriers to entry. The industry's core activity is providing content and therefore, access to this content forms the primary barrier to entry in the business, regardless of the delivery model. Operators need to be able to negotiate agreements with distributors or producers of content to distribute it. This could mean multi-year rights with studios or negotiating rental rights and associated royalties with a distributor for physical DVDs. Larger players have considerably more market power in this process.
There are capital requirements depending on which products or services a company aims to provide... purchase to read more