Video Game, DVD and Recorded Music Retailing in Australia - Market Research Report (2013-2028)
Melbourne, Australia
Last Updated: August 2023
ANZSIC G4242Revenue
$1.0bn
Past 5-Year Growth
Profit
$XX.Xm
Employees
3,313
Businesses
592
Wages
$XXX.Xm
Video Game, DVD and Recorded Music Retailing in Australia industry analysis
The Video Game, DVD and Recorded Music Retailing industry have faced difficult trading conditions over the past decade. Intensifying external competition from streaming platforms and online-only retailers diverted demand away from traditional retailers, contributing to a steady erosion in industry-wide turnover. These trends have shifted the structure of the industry, as many large-scale retailers that traditionally dominated the industry have either exited the industry or rationalised their physical store presence. The COVID-19 outbreak accelerated a consumer shift to digital channels, further threatening the viability of traditional retailers. JB Hi-Fi has responded to these trends by reducing its involvement in the industry, focusing on retailing products that are less threatened by online substitutes. These trends were partially offset by a temporary jump in video game demand in 2020-21 and a steady rise in the popularity of vinyl records. Overall, industry revenue is expected to decrease at an annualised 4.3% over the five years through 2023-24, to total $1.0 billion. This includes an anticipated decline of 5.9% in 2023-24, as consumers continue their decade-long shift to online substitutes.The industry's largest product segment is video games. Consumer uptake of video games has been strong over the past decade, while the threat of online alternatives has trailed music and movies. On the one hand, consumers have increasingly purchased computer games online through platforms like Steam, as online-only stores have become more sophisticated and faster and cheaper. Console gaming has been slower to shift to online alternatives, as console manufacturers have resisted the shift to downloadable content. Yet, recent releases from Microsoft and Sony have shifted this dynamic, accelerating a consumer shift online in 2022-23 and 2023-24.Retailers will face further difficulties over the coming years, as competition from streaming platforms intensifies. Price competition is projected to increase significantly over the period, as online-only operators attract a growing market share. Retailers will need to drop their prices to sustain demand, causing a steady decline in profitability. As profit margins decline, more retailers will either leave the industry, or rationalise their store presence. Industry revenue is forecast to decline at an annualised 3.4% over the five years through 2027-28, to total $851.1 million.
Trends and Insights
- The industry is declining and consumers are shifting to online substitutes. The growing popularity of streaming platforms, like Netflix or Spotify, has threatened the viability of many retailers’ business model.
- Video game retailing has managed to stave off online subscription services for longer than movies and music. Retailers of video games retailers have more effectively transitioned to digital games than CD or DVD retailers.
- Distribution of establishments has broadly followed population spreads. The eastern states have the largest populations, which means they also have the highest concentration of stores.
- The rise of online competitors has fragmented the industry. Large-scale national retailers, like Sanity, have closed all their physical locations and exited the industry.
Industry Overview
Market size and recent performance (2013-2028)
Industry revenue has declined at a CAGR of 4.4 % over the past five years, to reach an estimated $1.0bn in 2023.
Trends and Insights
Changing consumption patterns have engineered a terminal decline in turnover from physical entertainment products
- Over the past decade, retailers have struggled with a seismic change in consumption patterns. The traditional model of Video Game, DVD and Recorded Music Retailing is under threat, primarily because online substitutes outside the industry are surging in popularity.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to decline over the next five years.
Trends and Insights
Retailers will struggle to sustain physical retail operations, as demand shifts to online competitors
- A decades long decline in downstream demand is set to continue over the coming years. Online substitutes pose an ongoing threat to physical retail, as consumption patterns continue to benefit online-only retailers and streaming services.
Biggest companies in the Video Game, DVD and Recorded Music Retailing in Australia
| Company | Market Share (%)
2024 | Revenue ($m)
2024 |
|---|---|---|
EB Games | 290.7 | |
JB Hi-Fi | 272.5 | |
Sanity Entertainment | N/A |
To view the market share and analysis for all 3 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Recorded music CDs, DVDs and Blu-ray discs and Video games. Recorded music CDs is the largest segment of the Video Game, DVD and Recorded Music Retailing in Australia.
Trends and Insights
The decline of physical media has entrenched video games as the dominant industry product
- The video games segment is divided into two subsections: console games and computer games. These two subsections are converging as both segments move towards digital sales. Computer games are more vulnerable to substitute services, like Steam.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- Department Stores in Australia
- Antique and Used Goods Retailing in Australia
Complementors
- Computer and Software Retailing in Australia
- Domestic Appliance Retailing in Australia
International industries
- Record Stores in the US
- Computer & Gaming Product Retailers in the UK
Table of Contents
About this industry
Industry definition
Industry firms primarily sell video games, DVDs and recorded music. Digital downloads from industry retailers with bricks-and-mortar stores are also included. Businesses that only operate online are excluded from the industry.
What's included in this industry?
CD retailingDVD retailingComputer game retailingVideo game retailingCompanies
EB GamesJB Hi-FiSanity EntertainmentPurchase this report to view all 3 major companies in this industry.
Related Terms
POINT OF SALE SYSTEMSDIGITAL DOWNLOADSNBNIndustry Code
ANZSIC 4242 - Video Game, DVD and Recorded Music Retailing in Australia
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
The industry is declining and consumers are shifting to online substitutes. The growing popularity of streaming platforms, like Netflix or Spotify, has threatened the viabili...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2013-2022) and forecast (2023-2028)
- Employees, including historical (2013-2022) and forecast (2023-2028)
- Businesses, including historical (2013-2022) and forecast (2023-2028)
- Profit, including historical (2013-2023)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
Video game retailing has managed to stave off online subscription services for longer than movies and music. Retailers of video games retailers have more effectively transiti...
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2023
- Product innovation level
Charts
- Products & services segmentation in 2023
- Major market segmentation in 2023
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
Distribution of establishments has broadly followed population spreads. The eastern states have the largest populations, which means they also have the highest concentration ...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each region
- Share of population compared to establishments in each region in 2023
Tables
- Number and share of establishments in each region in 2023
- Number and share of revenue each region accounts for in 2023
- Number and share of wages each region accounts for in 2023
- Number and share of employees in each region in 2023
Detailed analysis
- Geographic spread of the industry across Asia Pacific, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
The rise of online competitors has fragmented the industry. Large-scale national retailers, like Sanity, have closed all their physical locations and exited the industry.
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2018-2023
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
Sanity has left the industry. As consumers shifted to online streaming services, like Spotify, the business model became unviable. Sanity closed its remaining stores in 2023.
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2019 through 2023
- Major companies in the industry, including market share, revenue, profit and profit margin in 2023
- Overview of EB Games's performance by revenue, market share and profit margin from 2017 through 2023
- Overview of JB Hi-Fi's performance by revenue, market share and profit margin from 2017 through 2023
- Overview of Sanity Entertainment's performance by revenue, market share and profit margin from 2017 through 2023
Detailed analysis
- Description and key data for EB Games, and factors influencing its performance in the industry
- Description and key data for JB Hi-Fi, and factors influencing its performance in the industry
- Description and key data for Sanity Entertainment, and factors influencing its performance in the industry
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
Falling real household discretionary income has weighed on the performance of many retailers in the industry. In 2023-24, real household discretionary income is on track to m...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2013-2028)
- Assistance historical data and forecast (2013-2028)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
The threat of online has transformed the cost structure of the industry. As the number of stores has declined, reliance on customer service staff has also fallen, reducing th...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2023
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2023
- Investment vs. share of economy
Data tables
- Cash Flow & Debt Service Ratios (2013-2028)
- Revenue per Employee (2013-2028)
- Revenue per Enterprise (2013-2028)
- Employees per Establishment (2013-2028)
- Employees per Enterprise (2013-2028)
- Average Wage (2013-2028)
- Wages/Revenue (2013-2028)
- Establishments per Enterprise (2013-2028)
- IVA/Revenue (2013-2028)
- Imports/Demand (2013-2028)
- Exports/Revenue (2013-2028)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2013-2028)
- IVA (2013-2028)
- Establishments (2013-2028)
- Enterprises (2013-2028)
- Employment (2013-2028)
- Exports (2013-2028)
- Imports (2013-2028)
- Wages (2013-2028)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in Australia include:
- Australian Bureau of Statistics
- Australian Taxation Office
- Australian Securities & Investments Commission
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Video Game, DVD and Recorded Music Retailing industry in Australia in 2024?
The market size of the Video Game, DVD and Recorded Music Retailing industry in Australia is $1.0bn in 2024.
How many businesses are there in the Video Game, DVD and Recorded Music Retailing in Australia industry in 2023?
There are 592 businesses in the Video Game, DVD and Recorded Music Retailing industry in Australia, which has declined at a CAGR of 0.8 % between 2018 and 2023.
Has the Video Game, DVD and Recorded Music Retailing industry in Australia grown or declined over the past 5 years?
The market size of the Video Game, DVD and Recorded Music Retailing industry in Australia has been declining at a CAGR of 4.4 % between 2018 and 2023.
What is the forecast growth of the Video Game, DVD and Recorded Music Retailing industry in Australia over the next 5 years?
Over the next five years, the Video Game, DVD and Recorded Music Retailing industry in Australia is expected to decline.
What are the biggest companies in the Video Game, DVD and Recorded Music Retailing market in Australia?
The biggest companies operating in the Video Game, DVD and Recorded Music Retailing market in Australia are EB Games, JB Hi-Fi and Sanity Entertainment
What does the Video Game, DVD and Recorded Music Retailing in Australia include?
CD retailing and DVD retailing are part of the Video Game, DVD and Recorded Music Retailing industry.
Which companies have the highest market share in the Video Game, DVD and Recorded Music Retailing in Australia?
The company holding the most market share in Australia is EB Games.
How competitive is the Video Game, DVD and Recorded Music Retailing industry in Australia?
The level of competition is high and increasing in the Video Game, DVD and Recorded Music Retailing industry in Australia.
