Module 5 Video on Demand vs. DVD Increasing Returns or Red Queens

The competition between DVDs and Video on Demand is one of increasing returns. Arthur (1996) defines increasing returns as the propensity for something that is ahead to continue to progress ahead while the item that is behind loses momentum. Thornburg, D. (2013) describes increasing returns as a set of innovations that may emerge at the same time in which one drives the other to extinction.  As cellphones and portable devices become smaller and more powerful media can be viewed and reviewed anywhere. There is no longer the need to be tied down to a television or other media player. Video on Demand allows for instant gratification and does not require waiting for media to be available. The only wait may be on the media to stream or download in order to be visible. As technological infrastructure becomes more widely available to larger populations of people through high speed internet access, Wi-Fi, satellites and hotspots for example video on demand gains traction and an upward momentum.

This is not to say that DVDs are a lost cause. There are still those who despite our information technology age are without internet access or in some cases computer access. In a US Census Bureau Community survey completed in 2013 83.8 % percent of households reported that they owned a computer  with 73.4% reporting a high speed internet connection and-74.4% reporting an internet subscription of some sort. (File & Camille, 2013) . While progress has been made in making access more affordable those in lower socio-economic status groups tend to be less likely to have computer or internet access. This same study found that those with an income of less than $25,000 only 62.4% owned a computer and 48.4% had internet access. I feel as if these populations will continue to utilize public borrowing institutions such as libraries and RedBox. It is to this end that I am not sure that DVDs will be completely made extinct by Video on DEmand. DVDs also are multi-functional as they allow for data storage although flash memory sticks are smaller, more durable and potentially able to obsolete that benefit.

Science fiction is my least favorite genre so the video for the last module was borrowed from the library. I saw no need to waste money on purchasing, streaming, or renting something that I would never watch or pick up again. Over time I do feel as if my media accessing tendencies have changed. I used to rent VHS movies from places such as Blockbuster. This was due in part to the fact that public libraries didn’t have video collections for lending. Now unless the movie is something that I plan to watch multiple times or is educationally beneficial I borrow media from the library.

References

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

File, T., & Camille, R. (2013). Computer and Internet Use in the United States:. Washington, DC: American Community Survey Reports ACS-28, U.S. Census Bureau.

Laureate Eduation (Producer). (2014). David Thornburg: Increasing returns[Video file]. Baltimore, MD: Author.

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