Shiny or bandwidth

EDUC 7108 – Module 5

During module 4 I had to obtain a video and my original thought was to go to Blockbuster. However, since it is an early 80’s movie I thought they might not have it at all stores and I would have to call and/or drive around to find the movie. Before I called Blockbuster I asked some friends and was going to post a question on my Facebook page to see if anyone owned the video. Luckily a friend had a copy of the Minority Report and it worked just fine considering there were a few scratches on the DVD.

The current competition between DVDs and video on demand I believe is more of an example of a red queen than increasing returns. The idea behind the red queen is two competitors basically destroy the rest of the competition and drive other companies out of that business. However, with DVDs and videos I believe there are 3 companies that are in competition with each other. These companies include Blockbuster, Netflix, and On Demand. Each company occupies a specific niche in this world of DVDs and videos. Blockbuster has been around forever and their slogan “Make it a Blockbuster night” rings in all our ears since we were able to rent VHS or DVDs. I know if I want the latest release I need to get to Blockbuster early on Tuesday before all their copies are gone. There is something to say about something that is tangible. Netflix is also great and can be a bit cheaper per video - $8.99/month (How much, 2010) compared to $4.99 per video at Blockbuster. Also with Netflix if you have an internet connection along with a Netflix ready device you can watch DVDs online instantly and as often as you like (How much, 2010). On Demand is similar to Netflix, but most expensive and costs between $2.99 to $4.99 per movie and can be viewed for 24 hours via your cable box.

I believe DVDs and videos on demand are in the closure/obsolescence stage in McLuhan’s Laws of Media (Thornburg, 2008) because I do believe DVDs are starting to become obsolete while videos on demand are increasing in sensibility and number of users. Humans and especially Americans are trying to downsize and what a way to start that with small packages containing disks of information that can be stored and sent via a wireless connection. The cost associated with companies like Blockbuster to just be a hold center for all these DVDs must cost them a small fortune which in turn is passed onto the consumer. We have seen the number of stores of Blockbuster dwindle in the past couple of years due to the increase in competition from places like Netflix and On Demand. I still think we are seeing the disappearance of the DVD and trading it for increase in bandwidth.

Links of interest:
1. Netflix vs. U-Verse & Cable. Interesting thoughts concerning how to rent movies and also watch TV shows. http://ezinearticles.com/?Netflix-Vs-U-Verse-and-Cable&id=3825162
2. DVD verse On Demand. The initial thought spurred many interesting comments about price per gigabyte and storage capacity. http://www.hackingnetflix.com/2005/05/dvd_vs_videoond.html

References:

Thornburg, D. D. (2008). Emerging technologies and McLuhan's Laws of Media. Lake Barrington, IL: Thornburg Center for Space Exploration.

How much does it cost? (2010). Retrieved August 10, 2010, from http://www.netflix.com/HowItWorks.