Product and Service
Companies included in video& music store sector in video &audio goods and service industry primarily operate specialty stores and websites of eCommerce selling entertainment products, including trend, video, music, electronics and related products in the United States.
Demand for Product and Service
As indicated by the typical company data, the demand for physical media of video and music content has been weak and declining due probably to changes in consumers’ way to access them.
Sector’s Current, Trend, Causes behind trend, and Future
Current and Trend
Generally, the demand for physical media of video &music content has been very weak and continuously declining since 2016.
The decreased demand results in largely declining merchandise margin because of markdown of price of products.
Companies have been widely closing stores of poor performance in order to lower operating expenses.
Causes behind the trend
Changes (from physical media to digital) in consumers’ way to gain and access content of video and music behind the increasing accessibility to internet may be the major reason for changes in video and music retail industry.
The slowing down traffic of mall may contribute the situation due to declining random purchasing.
As downward trend in this industry continues, we may see continuing decrease in profits of stores and in number of stores closed.