Tuesday, October 12, 2010

Red Queens and Increasing Returns

This summer I invested in a Netflix account. We have Dish Network because nothing else is available at our house in the country. I streamed Minority Report to my TV via the Wii and the internet.

I think the competition between video rental places is an example of Red Queens. Thornburg explains that Red Queens occurs when two competitors move ahead of the others because of the competition between them. Netflix and Blockbuster are prime examples of this. Netflix has not late fees and depending on which package you decide to purchase determines how many movies you have at one time. Also, movies can be transmitted through the computer or a Wii. It is a great source in the classroom when trying to find movies that relate to content you are teaching or a current book you read. To compete with Netflix, Blockbuster had to revamp their rental system. Now similar to Netflix, blockbuster has a movie in the mail program that is also free of late fees. Netflix and Blockbuster are the leading movie rental stores in my area.

I think DVD’s and videos on demand fall in the emerging category of the Tetrad. They are by no means obsolete. I don’t really think they have rekindled much that I can think of. I feel that there will be more changes with the availability as they progress. I cannot tell what changes will occur, but I am certain that the DVD’s and on demand will continue to evolve.

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