DVD, Game & Video Rental in the US - Market Research Report (2014-2029)
New York, United States
Last Updated: April 2024
NAICS 53223Revenue
$1.0bn
Past 5-Year Growth
Profit
$XX.Xbn
Employees
4,355
Businesses
587
Wages
$XXX.Xm
DVD, Game & Video Rental in the US industry analysis
The DVD, Game and Video Rental industry includes brick-and-mortar operators that primarily engage in renting DVDs, videos and video games. Through the end of 2023, demand for DVD, video and gaming rental services plummeted, as consumers have pivoted to video on demand (VOD) and streaming services, continuing a decade-long trend in this direction. While COVID-19 stay-at-home mandates led to a temporary spike in demand for home entertainment, revenue was still negatively affected because of contamination concerns, social-distancing measures and Hollywood slowing down, which limited the number of new titles that rental servicers could provide. These trends resulted in revenue plummeting 29.4% in 2020 alone. IBISWorld estimates that revenue is expected to collapse at a CAGR of 13.9% to an estimated $1.1 billion through the end of 2023, with a 7.2% plunge expected in 2023.Profit, measured as earnings before interest and taxes, is expected to tumble through the end of 2023, accounting for an estimated 3.7% of revenue in 2023. As online streaming services can competitively price their products, they have forced video rental services to accept lower rental prices, affecting profitability. Core rental services, such as Redbox Automated Retail LLC, have countered only by relying on late-fee revenue to keep profit afloat. The accelerated adoption of online streaming services dampened core revenue streams for rental services, as exemplified by a large spike in demand from video streaming services among consumers.In recent years, cable networks have expanded into streaming services to capture the growing preference of consumers. This trend is expected to continue through the end of 2028 as consumer lifestyles and preferences continue to become more digitally reliant following the pandemic, posing another threat to video rental services. The success of services like HBO Max and Disney Plus has further contributed to the mounting competition that video rental servicers endure, with more traditional TV networks set to follow suit. The projected boom of streaming services through the end of 2028 will result in a continued trend of long-term revenue collapse during the same period. IBISWorld anticipates that revenue will falter at a CAGR of 4.3% to an estimated $848.8 million through the end of 2028.
Trends and Insights
- Accelerated adoption of online streaming services damages core revenue streams. Since video rental servicers operate as traditional entities, growth in video streaming demand harmed consumers' propensity to rent physical DVDs and movies.
- Economic conditions influence rate of subscription among customers. As economic conditions improve, consumers have higher amounts of disposable income, making subscription services appealing.
- High population density benefits establishments’ presence. Regions with larger populations have a wider customer base accessible for video rental servicers, boosting growth in those areas.
- Meeting demand for a diverse customer base enhances internal competition. Video rental servicers that maintain a diverse library of DVDs, games and videos will have a competitive edge and can capture a larger swath of customers.
Industry Overview
Market size and recent performance (2014-2029)
Industry revenue has declined at a CAGR of 11.0 % over the past five years, to reach an estimated $1.0bn in 2024.
Trends and Insights
Damaging effects of COVID-19 considerably impact consumer behavior
- Since DVD, game and video rental services operate as brick-and-mortar services, the pandemic's effects on consumer activity dampened demand for video rental services and shifted consumer habits.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to decline over the next five years.
Trends and Insights
Continued adoption of video streaming services from consumers poised to damage long-term prospects
- As consumers continue to favor video streaming services due to their ease of access and lower costs, traditional DVD, Game and Video rental services are poised to take a continued revenue hit.
Biggest companies in the DVD, Game & Video Rental in the US
| Company | Market Share (%)
2024 | Revenue ($m)
2024 | Profit ($m)
2024 | Profit Margin (%)
2024 |
|---|---|---|---|---|
Redbox Automated Retail, Llc | 597.8 | 86.9 | 14.5 | |
Netflix, Inc. | 181.5 | 28.4 | 15.6 |
To view the market share and analysis for all 2 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 Non-subscription rental, Subscription rental and Other. Non-subscription rental is the largest segment of the DVD, Game & Video Rental in the US.
Trends and Insights
Shaky consumer confidence dampens appeal of non-subscription rental services
- This product segment generates revenue from the rental of tapes, discs, video games and prerecorded cassettes without a subscription.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- Consumer Electronics Stores in the US
- Record Stores in the US
Complementors
- Movie & Video Distribution in the US
- Consumer Electronics & Appliances Rental in the US
International industries
- DVD, Game & Video Rental in Canada
- Video & Game Rental in the UK
Table of Contents
About this industry
Industry definition
Video rental servicers rent videos and discs containing movies, shows or games. On-demand and internet-streamed rentals are not included.
What's included in this industry?
Non-subscription rental of prerecorded cassettes, tapes, discs or video gamesSubscription rental of prerecorded cassettes, tapes, discs or video games DVD, game and video salesCompanies
Redbox Automated Retail, LlcNetflix, Inc.Purchase this report to view all 2 major companies in this industry.
Related Terms
BLU-RAYVHSSET-TOP BOXDIGITAL VIDEO RECORDER (DVR)VIDEO ON DEMAND (VOD)ULTRAVIOLET (UV)BRICK-AND-MORTARIndustry Code
NAICS 532282 - DVD, Game & Video Rental in the US
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
Accelerated adoption of online streaming services damages core revenue streams. Since video rental servicers operate as traditional entities, growth in video streaming demand...
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 (2014-2023) and forecast (2024-2029)
- Employees, including historical (2014-2023) and forecast (2024-2029)
- Businesses, including historical (2014-2023) and forecast (2024-2029)
- Profit, including historical (2014-2024)
- 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
Economic conditions influence rate of subscription among customers. As economic conditions improve, consumers have higher amounts of disposable income, making subscription se...
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2024
- Product innovation level
Charts
- Products & services segmentation in 2024
- Major market segmentation in 2024
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
High population density benefits establishments’ presence. Regions with larger populations have a wider customer base accessible for video rental servicers, boosting growth i...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each state
- Share of population compared to establishments in each region in 2024
Tables
- Number and share of establishments in each state in 2024
- Number and share of revenue each state accounts for in 2024
- Number and share of wages each state accounts for in 2024
- Number and share of employees in each state in 2024
Detailed analysis
- Geographic spread of the industry across North America, 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
Meeting demand for a diverse customer base enhances internal competition. Video rental servicers that maintain a diverse library of DVDs, games and videos will have a competi...
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 2019-2024
- 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
Two companies own more than a 5.0% share of the market. For Redbox and Netflix, having strong balance sheets and steady capital maintenance strengthens their hold on the mark...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2020 through 2024
- Major companies in the industry, including market share, revenue, profit and profit margin in 2024
- Overview of Redbox Automated Retail, Llc's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Netflix, Inc.'s performance by revenue, market share and profit margin from 2018 through 2024
Detailed analysis
- Description and key data for Redbox Automated Retail, Llc, and factors influencing its performance in the industry
- Description and key data for Netflix, Inc., 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
Consistent growth of demand from streaming services harms growth potential. As more consumers switch to online streaming, traditional video rental servicers will suffer from ...
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 (2014-2029)
- Assistance historical data and forecast (2014-2029)
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
High rate of adoption of streaming services dampens profitability. As more customers continue to make the digital switch, demand is harmed for video rental servicers.
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 2024
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Investment vs. share of economy
Data tables
- Industry Multiples (2017-2022)
- Industry Tax Structure (2017-2022)
- Income Statement (2017-2022)
- Balance Sheet (2017-2022)
- Liquidity Ratios (2017-2022)
- Coverage Ratios (2017-2022)
- Leverage Ratios (2017-2022)
- Operating Ratios (2017-2022)
- Cash Flow & Debt Service Ratios (2014-2029)
- Revenue per Employee (2014-2029)
- Revenue per Enterprise (2014-2029)
- Employees per Establishment (2014-2029)
- Employees per Enterprise (2014-2029)
- Average Wage (2014-2029)
- Wages/Revenue (2014-2029)
- Establishments per Enterprise (2014-2029)
- IVA/Revenue (2014-2029)
- Imports/Demand (2014-2029)
- Exports/Revenue (2014-2029)
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 (2014-2029)
- IVA (2014-2029)
- Establishments (2014-2029)
- Enterprises (2014-2029)
- Employment (2014-2029)
- Exports (2014-2029)
- Imports (2014-2029)
- Wages (2014-2029)
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 the US include:
- US Census Bureau
- US Bureau of Labor Statistics
- US International Trade 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 DVD, Game & Video Rental in the US industry in United States in 2024?
The market size of the DVD, Game & Video Rental in the US industry in United States is $1.0bn in 2024.
How many businesses are there in the DVD, Game & Video Rental in the US industry in 2024?
There are 587 businesses in the DVD, Game & Video Rental in the US industry in United States, which has declined at a CAGR of 14.5 % between 2019 and 2024.
Has the DVD, Game & Video Rental in the US industry in United States grown or declined over the past 5 years?
The market size of the DVD, Game & Video Rental in the US industry in United States has been declining at a CAGR of 11.0 % between 2019 and 2024.
What is the forecast growth of the DVD, Game & Video Rental in the US industry in United States over the next 5 years?
Over the next five years, the DVD, Game & Video Rental in the US industry in United States is expected to decline.
What are the biggest companies in the DVD, Game & Video Rental in the US market in United States?
The biggest companies operating in the DVD, Game & Video Rental market in United States are Redbox Automated Retail, Llc and Netflix, Inc.
What does the DVD, Game & Video Rental in the US in United States include?
Non-subscription rental of prerecorded cassettes, tapes, discs or video games and Subscription rental of prerecorded cassettes, tapes, discs or video games are part of the DVD, Game & Video Rental in the US industry.
Which companies have the highest market share in the DVD, Game & Video Rental in the US in United States?
The company holding the most market share in United States is Redbox Automated Retail, Llc.
How competitive is the DVD, Game & Video Rental in the US industry in United States?
The level of competition is high and increasing in the DVD, Game & Video Rental in the US industry in United States.
