Module 5: Increasing Returns and Red Queens

My friend, Cynthia Shelton, rented the movie Blade Runner which is based on Philip K. Dick’s book “Do Androids Dream of Electric Sheep?” and brought to my home on a planned visit the first of October. I do have NetFlix which I am crazy about because I don’t have time to browse shelves for DVDs. The current competition between DVDs and Videos on Demand (VOD) are not an example of Thornburg’s (2009) increasing returns. Thornburg describes increasing returns as “two innovations hit the market at the same time.” DVDs were out before VODs. The founder of NetFlix, Reed Hastings, saw NetFlix’s opportunity when DVDs met critical mass (Anderson, 2004), so I’d see this competition between VODs and DVDs as an example of Red Queens. Blockbusters, one of the largest chains for renting DVDs, are the clearly losing, closing, and declaring bankruptcy.

McLuhan’s tetrad with DVDs and VODs

Enhancement
DVDs for rent take time out of people’s day to go by the stores to rent them.
Netflix, a VOD, enhances watching movies by having the convenience of ordering almost instantaneous viewing of many movies and games. It also has instant replay. It also is compatible with Blue Ray and is cost effective.

Obsolescence
The VODs and DVDs have almost completely replaced the VHS for watching movies. NetFlix also can mail DVDs to your home.

Retrieval
DVDs and VODs bring back the idea of plays, theaters, the drive-in, and the movie theater.

Reversal
DVDs make it possible to pause and view movies at a later time. It has great video quality and sound compared to that of the VHS. NetFlix has these capabilities.


Reference

Anderson, C. (2004). Tech’s long tail [Vodcast]. Retrieved from http://www.ted.com/

Thornburg, D. (2009). Increasing returns and red queens. Laureate Education, Inc. Retrieved from http://sylvan.live.ecollege.com