Number and characteristics of video hire
businesses of various sizes, 1999/00
Most businesses in the video hire industry
had less than 10 employees, and 95 per cent had less than 20. There
were 10 businesses employing 50 or more people. These 10 large businesses,
some of which were franchisors with many franchisee businesses, accounted
for 21 per cent of employment, 29 per cent of income and 22 per cent
of the operating profit before tax of the industry. Overall 75 per cent
of industry income was sourced from the hire of videos, but this proportion
was 67 per cent for these 10 large businesses, with 6.4 per cent of
their income coming from the sale of videos, compared to the industry
average of 4.8 per cent.
The most profitable businesses in the industry
were those businesses employing 20–49 persons, which recorded
an operating profit margin of 11.2 per cent. In comparison, businesses
employing 50 or more persons recorded an operating profit margin of
5.5 per cent.
The high incidence of casual employees in the
industry was reflected in the average annual labour costs per employee
of $12,500. The average labour cost per employee increased by size of
business with businesses employing 50 or more persons having an average
labour cost per employee of $17,200.
Updates not available
By business size (no. employees)
All businesses
0–4
5–9
10–19
20–49
50+
No. businesses
370
478
260
47
10
1,166
% businesses
31.7%
41.0%
22.3%
4.0%
0.9%
100%
Average labour cost per employee
$13,700
$10,400
$11,400
$11,100
$17,200
$12,500
Operating profit margin
*7.1%
8.2%
6.5%
11.2%
5.5%
7.2%
Video rental as proportion of total income
83.8%
77.6%
76.0%
77.5%
67.0%
74.6%
Video sales as proportion of total income
1.9%
4.1%
4.8%
4.2%
6.4%
4.8%
DVD rental as proportion of total rental income
0.8%
1.8%
1.4%
1.2%
0.4%
1.2%
Video purchase as proportion of total expenses
13.5%
13.9%
17.4%
19.9%
3.1%
12.1%
Source: Australian Bureau of Statistics, Video
Hire Industry (cat. no. 8562.0) May 2001.
Notes:
* Estimate has a relative standard error of between 25% and 50% and
should be used with caution.
