Suppose I'd like to rent a movie? Should I go to a local movie rental store? Or, should I stream a movie digitally to my computer? What factors are going to influence my decision? I will use an example how I decided on the movie rental option for the assignment in Module 4 of this course. I needed to rent a sci-fi movie based on the book by Philip K. Dick. I choose to rent the movie Blade Runner starrig Harrison Ford. I chose to use Netflix to digitally steam the movie to my laptop for viewing. I took advantage of their free trial offer so there was no cost involved. Furthermore, I choose this option because I thought of my inability to drive due to my recent eye surgery and because I needed the movie immediately--didn't have time for a mail-order. So, convenience played an big role in my decision--just as it does for many consumers. The following link gives information on how Netflix works: http://www.netflix.com/HowItWorks.There was a time when renting a movie from a video store was our only option. Now because of the advancement intechnology movies can be delivered immediately to your tv or personal computer. The ability to offer this option has caused great competition between these two sources. But is the competition between DVD's and Video on Demand an example of which one of the forces that drive technolgy: Red Queens or Increasing Returns? As discussed in vodcasts by Dr. David Thornburg within this course, a Red Queen is when "two technologies are in fierce competition with each other to gain an advantage over their competion by meeting new needs and becoming better" (Thornburg, 2008c). Dr. Thornburg cites Arthur (1996) as stating that an Increasing Return is when two technologies enter the market around the same time--one technology will capture the attention of consumers more and then drive the other technology to become obsolete. Furthermore, the one that takes over the market is not necessarily a superior technology.
I consider the driving force between DVD's and Video on Demand competition as a Red Queen. DVD rentals are still prevalent in the marketplace (they are not obsolete)--many rental machines are now found conveniently located outside of or within stores. However, there are fewer actual rental stores as there once were. What happened to them? The desire for convenience and lack of late charges have given video on demand a competitive edge. However, as an effort to compete with this advantage, Blockbuster, who was once a totally movie renting carry-out store, is now offering videos on demand that can be downloaded to certain devices: http://www.blockbuster.com/download/devices. This is an effort to keep them in competition with Netflix.
I would place these two competitors at the Obsolete stage of McLuhans tetrad. Both of these entities are striving to stay on top of the video rental market by offering convenience and easeof use. Eventually, they will obsolete the standard video rental store. Every rental that we desire can be acquired by the touch of a button.
References
Course Vodcasts: Thornburg, D., "Red Queens"
Course Vodcast: Thornburg, D.,"Increasing Returns"
Wendy,
ReplyDeleteI also like using Netflix because I like that the movies come straight to your house or you can stream the movies to you pc or Wii. It is so much easier to do it this way. Plus, late fees are a killer ;). I believe this is why brick and mortar stores like Blockbuster are all going to fade out.
Hi Wendy,
ReplyDeleteAs you stated for yourself, convenience is major factor in why people choose video on demand over going to rent or buy a DVD. However, I do think that there is still a need for both DVD and video on demand, therefore enabling an increasing returns on both, rather than a Red Queen.
Great Post!
LeAnn
Hi Wendy,
ReplyDeleteI agree with both you and LeAnn, convenience is a major factor in the decision people will make about acquiring DVD's. I personally chose YouTube to view my video for that module. A huge amount of the movie was posted there in a combination of clips. There again free, fast and no charge!