INCREASING RETURNS AND RED QUEENS

I decided to complete my assignment in Module 4 based on a Philip K. Dick book with the film Minority Report because I own it in a movie collection. Since I had Direct TV in my home I never rent a movie I saw in the TV and if I liked it I buy it.

Red Queen is when two competing companies drive other competition out of business by vying with each other for business. The current competition between DVDs and video on demand is an example of Red Queens but this competition just makes possible a shift in the digital entertainment. The consumers demand greater flexibility and convenience in acquiring entertainment content, and this help to change the structure of DVD rent and a fierce battle with VOD that is the real challenge to the DVD rental business.

Here in PR, the current competition between DVDs is between Redbox and Blockbuster. I think that the first one represent a problem to Blockbuster. Redbox locations are everywhere and you can get a movie for a dollar any time or any day. But I think, it is grow of the satellite and cable companies the responsible of the DVD rent decline. Video on demand is available through satellite companies and in PR the two main companies, Dish Network and Direct TV compete with each other to get the market and I think this is another example of the Red Queen.

Thinking about the four criteria of McLuhan’s tetrad, DVDs and video on demand are on the “Enhances” quadrant, because both of these technologies have enhanced the quality of life for many families to allow more time spent together at home and have great availability and is affordable for people. Both have “Obsoletes” the movie theater and are “Rekindle” from the privacy that offered the drive in. In the “Reverses” quadrant I think both will move to a new business model where VOD have more probabilities to survive.

References:

Anderson, C. (2004). Tech’s long tail [Video]. Retrieved from http://www.ted.com/index.php/talks/chris_anderson_of_wired_on_tech_s_long_tail.html 

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

McLuhan, M., & McLuhan, E. (1988). Laws of media: The new science. Toronto: University of Toronto Press.

Thornburg, D. D. (2010). Increasing returns and red queens. Laureate Education, Inc. Retrieved fromhttp://sylvan.live.ecollege.com/ec/crs/default.learn?CourseID=4199715&Survey=1&47=5797856&ClientNodeID=984645&coursenav=1&bhcp=1

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