Items of
expenditure for businesses in the video hire industry, 1999/00
Businesses in the video hire industry had total
expenses of $559 million in 1999/00. The four major expense items were
labour costs of $129 million (23 per cent of total expenses), purchase
of goods ($128 million, or 23 per cent of total), depreciation and amortisation
($103 million, or 19 per cent of total) and rent, leasing and hiring
expenses of $94 million (17 per cent of total, mostly for premises).
The different methods of acquiring and accounting
for videos were reflected in the high expenditure on purchases, on depreciation
and amortisation, and on rent, leasing and hiring. Some businesses made
a current purchase of videos, i.e. one of the
major components of purchases was for videos ($68 million), some of
which were for rental and some for resale. On the other hand, many businesses
made a capital purchase of videos, for which the
expense was recorded in terms of depreciation (i.e. part of the depreciation
and amortisation of $103 million); and some businesses rented stock
($16 million) for purposes of on-rental to the public.
Video hire industry expenditure 1999/00
Updates not available
Value ($m)
Proportion of total expenses (%)
Labour costs
128.9
23.1%
Wages and salaries
114.7
20.5%
Other
14.2
2.5%
Rent, leasing and hiring
expenses
93.5
16.7%
Premises
74.3
13.3%
Videos/DVDs
16.2
2.9%
Other rent, leasing and hiring expenses
3.0
0.5%
Purchases
127.8
22.9%
Videos
67.8
12.1%
Other video-related goods
32.1
5.7%
Food and beverages
27.9
5.0%
Other costs
208.3
37.3%
Depreciation and amortisation
103.4
18.5%
Franchise/group fees
10.2
1.8%
Other1
94.7
17.0%
Total
558.7
100.0%
Source: Australian Bureau of Statistics, Video
Hire Industry (cat. no. 8562.0) May 2001.
Notes:
1. Other major expenses included advertising, marketing and promotion
expenses of $17 million, electricity, gas and water charges of $10 million,
interest expenses of $9 million, telecommunication expenses of $6 million
and bad debts of $4 million.
Video hire outlets (historical data):
Expenditure
