Red Queens & Increasing Returns
The
science fiction video that I viewed for the module four blog assignments was
Total Recall. I actually own two copies
of this movie. When the movie originally came out I purchased it on VHS. I have not watched a movie on VHS in several
years, so I have replaced many of my VHS version movies with DVD’s and Blueray’s
including Total Recall. If I did not
already own the DVD I would have first checked Comcast ONDemand to see if I could
find a digital copy of the movie. If the
movie was not available I would have went out and purchased the video rather than
using Netflix. With three young children
at home and the responsibility of a PhD program, I have never taken the time to
create a Netflix account.
I
believe the current competition between DVD’s and video on demand (VOD) is an
example of increasing returns. Thornburg
(2009) tells us that increasing returns results from two innovations on the
market at the same time naturally competing with the result being one naturally
driving the other to extinction. VOD
will drive DVD rentals into extinction.
For as little as $5.99 viewers can typically download a high definition
movie the day it is released on DVD without leaving the comfort of their homes
(Lawler,
2010). I believe DVD rental and VOD are
between reversal and obsolescence. The
flip is very much on and moving toward VOD however, there remains a small
percentage of individuals that still rent DVDs through Red Box, Blockbuster,
Netflix etc..
References
Lawler, R. (2010). Studios giving up on dvd, pushing vod instead. Retrieved from http://gigaom.com/video/studios-giving-up-on-dvd-pushing-vod-instead/
