A
variety of different sources provide viewer the ability to view movies. In the past one could purchase a DVD containing
specific movie, rent it from store, visit local library or borrow from friends. In the last decade the availability of movies
on demand such as pay per view, and Netflix provided a service for customers to
be able to view desired movies without leaving home resulting in decline and
almost total disappearance of Movie rental stores such as Blockbuster, Rogers
Video and other video rental stores..
Improved Internet bandwidth, lower prices and greater customer
acceptance of high speed internet provided an opportunity for cable companies,
along with Netflix to offer
movies on demand. Cable companies such
as Rogers,
Shaw, Comcast, Bell Media saw an
opportunity to provide access to customers and also other companies such as
Netflix in getting greater returns for their investments by providing video on
demand and abandoning purchasing videos, renting space, hiring people to manage
video stores.
I
was going to check to see if library had the movie NEXT available and if not I was going to check Netflix. . I was able to borrow the movie Next from my
neighbor. At the present time I do not
have access to Netflix and I am not planning to in the near future signup for
their service. Family obligations along
with my studies in Walden’s PhD Educational Technology Program limit my time
and desire to pursue additional time consuming occupations.
Current
competition between DVD’s and video on demand is an example of both, increasing
return made possible by wild card or Red Queen which was development and
adoption of broad band. Thornburg (2008) states that emergent of
wildcard occurred with access and adoption by people of wide broadband. Examples given by Thorn burg in Video Increasing
Returns states that completion between technologies such as DVD’s and video on
demand does not necessarily ensure that best technology wins. In order to view movies on demand one has to
have access to broadband and one has to pay additional costs for signing up
with Netflix. Renting DVD’s or buying
DVD’s for viewing does not require broadband.
Companies providing movies on demand are able to get higher returns not
only providing access to movies but also charging for use of Broadband.
DVDs
rentals have almost totally disappeared and sales of DVD movies are
decreasing. I would put DVDs in the Obsolete
quadrant. Video on demand would be placed
in Reversal quadrant. Abundance of
choices especially on demand lays the foundation for development of newer communication
technologies that will provide services at a lower cost changing the model
movies on demand.
References
Laureate Education Inc. Producer (2009). Increasing
Returns. Baltimore, MD. Author
Laureate Education Inc. Producer (2009). Red
Queens. Baltimore, MD. Author
