Tuesday, 6 November 2012

EDUC 8848 Module 5 - Increasing returns and red queens


The first step in finding a movie based on a Philip K. Dick book was to search for it online. It was available at Amazon instant video for a token fee of $2.99. Unfortunately, I could not watch it because there was a restriction for people based outside US. The next step was to order for the DVD version from Amazon. However, my online search did not stop, and I later found a site for free download of maximum of 2GB. This was the source I used for watching the “Paycheck” movie.
 
According to Arthur (1996), increasing returns are the tendency for the technology, which is leading to get further ahead, and that which loses advantage to lose further advantage. While Thornburg (2008c) stated "Red queens" are two technologies in fierce competition with each other, and outdo each other by improved services and meeting needs of users. The competition between DVDs and video-on-demand (VOD) as both technologies are on high demand by users can be classified as red queens. Video-on-demand is moving further ahead with an exponential increase in usage. It is becoming better as people within the comfort of their homes can have immediate access to any movie without waiting for the timeline of delivery of DVDs. It is of a lesser cost compared to the cost of DVDs. The movies are stored in various formats to reduce the size, and watched digitally with ease of download. However, video-on-demand might not easily outdated DVDs, especially in developing countries where the internet bandwidth is slow. It would take few years before DVDs can totally lose advantage.
 
DVDs and video-on-demand both enhance watching of movies at user’s comfort. There is a likelihood of VOD driving DVDs to extinction in the next few years. Currently both DVDs and VOD obsolete the use of VHS. However, the VOD will rekindle a technology that would allow people access to movies without the use of the internet.


References

Arthur, W. B. (1996). Increasing returns and the new world of business. Harvard Business Review, 74(4), 100−109. Retrieved from the Business Source Complete database.

 Thornburg, D. (2008c). Red Queens, butterflies, and strange attractors: Imperfect lenses into emergent technologies. Lake Barrington, IL: Thornburg Center for Space Exploration

5 comments:

  1. There are so many restrictions on movie downloaded outside the U.S. It is hard for us to realize the differences just a few miles can make. My daughter spent a year in a remote area of Peru. She had so much trouble downloading that we mailed her DVDs so she could watch movies in English. It would have been so much easier to download them since she had a great Internet connection. Unfortunately, many of the sites did not allow that.

    Jeri

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    Replies
    1. Interestingly, the challenges of watching movies differ at a global level. I am of the opinion that DVD and VOD will be stay competitive in the market for more years. For Peru, DVD is at an advantage over VOD.

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    2. Aderonke,
      I am happy that you were finally able to download the movie and complete your assignment. However, like Robert I am wondering if you broke any copyright laws, or if there were any viruses or trackware embedded in the download. Why I ask is because when my kids were younger they used to download all sorts of stuff, apparently as long as it was free, they downloaded it. Needless to say I had a couple of computers which crashed, and received a letter from the Internet provider that illegal downloads were being traced back to my connection, and I could be subject to prosecution if it happened again.
      That was enough to scare my kids into quitting.
      Jennifer

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  2. Aderonke, That is interesting that you used a free download too. Fortunately, I chose a favorite movie (Blade Runner) that I had already watched several times previously, but yes, whenever free downloads are available then that is preferable, and this dynamic makes lower-cost VOD so attractive. $3 to watch a video at home is actually cheaper than the original Blockbuster video-cassette rentals, especially when adjusted for inflation. However, how might intellectual property be safe-guarded in a less-regulated internet market? For example, posting through Google, You-Tube, etc. seems to be well-regulated due to Google's own corporate policies. How might these policies be maintained and expanded?

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  3. Robert,
    I am not sure if it is indeed cheaper to rent the movie, at least not from my cable provider. Some of us have to pay a monthly fee in order to have access to the VOD feature on the cable box.
    Jennifer

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