EDUC 8342- DVDs vs VOD: Red Queens and Increasing Returns

Go to the library or log-in to iTunes: that was the choice I recently had for carrying out the requirements for a technology class I am taking. My assignment was to examine the technology used in a science fiction movie. There are several options for viewing movies these days- one can either get a DVD or pursue a video-on-demand (VOD) option.  DVDs can be rented through sources such as Red Box or for free, the library. VOD options include renting through iTunes or using a streaming service, such as Hulu or Netflix.

What is the significance of choosing to rent a DVD versus utilizing VOD? It illustrates the forces driving emerging technology. The development of emerging technology can be described by Red Queens and Increasing Returns. Based on a character from Through the Looking Glass (Carroll, 1946), the term Red Queens describes the competitive relationship between different technologies that is the inspiration for their fast development (Thornburg, 2014). The term increasing returns describes how one force that is ahead of others will stay further ahead, and the force that lost its competitive edge will likely remain behind (Arthur, 1996).

To which category does the competition between DVDs and video in demand fall? This is an example of increasing returns because DVD sales are declining and VOD is on the rise. 2015 saw revenues from streaming services surpassed revenues for DVD sales for the first time (Pullen, 2015). In discussing increasing returns, Arthur (1996) noted how when one operating system gets ahead of others, it attracts software developers who will focus on it. In other words, a technology that is ahead will attract associated technologies. A similar situation has developed with VOD as options for streaming have increased. It is likely that VOD will continue its popularity as it is a convenient way to watch a movie or show since the consumer doesn’t have to go anywhere to get a physical copy.

In discussing technology, McLuhan (Thornburg, 2013a) described it in terms of a tetrad: what is new about the technology, what is replaces, what it rekindles from the past, and what will replace it in the future. When they first arrived on the consumer scene, DVDs provided a compact format for viewing movies.  DVDs replaced videotapes because they were more durable and easier to use. However, access to DVDs was reminiscent of the same methods used for videotapes; they could be rented from the library or store. They are being replaced by VOD. VOD is convenient; the user doesn’t have to go anywhere to gain access. VOD is replacing DVDs because, in addition to being convenient, VOD doesn’t have to be stored; physical clutter can occur with a pile of DVDs. VOD is reminiscent of both videos and DVDs; we can watch what we want without having to adhere to a TV schedule. At some point in the future, VOD will likely lose its popularity; perhaps it will be replaced by a technology that offers virtual or augmented reality.

As far as carrying out my assignment was concerned, I almost went to the library to get a DVD of the science fiction movie I needed to watch. I like going to the library, and it would have been a free rental.  However, I remembered that I had an iTunes gift card, and the thought of driving to the library to get the DVD, and then the need to drive back to return it, helped me to make the decision to access the movie from my laptop.

References

Apple. (2016). iTunes. Retrieved from http://www.apple.com/itunes/

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

Carroll, L. (1946). Through the Looking-Glass and What Alice Found There. New York: Random house.

Hulu. (2016). Retrieved from http://www.hulu.com/

Netflix. (2016). Retrieved from https://www.netflix.com/

Nielsen. (2016). On-demand demographics: VOD viewing across generations. Retrieved from http://www.nielsen.com/us/en/insights/news/2016/on-demand-demographics-vod-viewing-across-generations.html

Pullen, J. (2015). 5 Reasons Streaming is making DVDs extinct. Time. Retrieved from http://time.com/3921019/streaming-dvds/

Red Box. (2016). Retrieved from http://www.redbox.com/

Stelter, B. & Chozick, A. (2013). Viewers start to embrace television on demand. New York Times. Retrieved from http://www.nytimes.com/2013/05/21/business/media/video-on-demand-viewing-is-gaining-popularity.html?_r=0

Thornburg, D. (2013a). Emerging technologies and McLuhan’s laws of media. Lake Barrington, IL. Thornburg Center for Space Exploration.

Thornburg, D. (2013b). Red Queens, butterflies, and strange attractors: Imperfect lenses into emergent technologies. Lake Barrington, IL. Thornburg Center for Space Exploration.