2. The coin-operated laundromat and dry-cleaning industry, with revenue of $4.2 billion annually, is seen shrinking by 1% per year over the next five years. Competition from consumers' use of household washers and dryers and a decline in the use of drop-off and pick-up laundry and dry-cleaning services has resulted in an industry-wide decline in revenue.
Laundromats and dry cleaners, big users of electricity, are also facing rising utility costs that are hurting profits and squeezing some people out of the business. Big industry-equipment providers that are threatened by this trend include Coinmach and Mac-Gray (TUC).
1. The DVD, game and video-rental industry, which includes subscriptions for mail-distributed and in-store media rentals, is being challenged by streaming media, video on demand and online downloads. Current annual revenue of $6.6 billion is seen declining by 13% annually over the next five years. The industry is also being hurt by reduced consumer spending. In addition, the increase in households with Internet connections will further hurt rentals. The leading industry players include Netflix (NFLX), which began as a mail-order DVD-rental business, but is in the process of shifting more to an online business, and Coinstar (CSTR), which owns the Redbox DVD-rental service.
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