Recently, when looking for a movie based on a Philip K. Dick book, I chose to watch Minority Report on DVD. Why? Well, I conveniently owned a copy. Had I not had any films by the author I would have done one of two things: 1. checked Netflix online or 2. ordered the DVD online.
In this example, DVDs won, but the reality is the video-on-demand has eclipsed DVD purchasing and rentals. In 2004 Chris Anderson of WIRED reported how “the Netflix model could capitalize on the DVD in a way that video-rental stores couldn’t”. It is important to note how Anderson was referring to how DVDs could be mailed, and now you can still receive them by courier or watch online.
DVDs continue to survive in the shadows of online video streaming growth. Red Queens? Market analysts note that a steady consumer based could be responsible for its longevity, although sales decline point to McLuhan’s concept of reversal and obsolence. “Continued reliance on DVDs by older age groups will cushion further volume decline in the market. ‘This resilience in demand will be partly due to the fact that many consumers have existing DVD libraries.”
More recently, video streaming popularity has Netflix primed to consider separating its DVD rental and online rental businesses that has contributed to investor interest and stock rating appeal.
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.
Anderson, C. (2004). Chris Anderson of Wired on tech’s long tail [Video]. Retrieved from http://www.ted.com/index.php/talks/
chris_anderson_of_wired_on_tech_s_long_tail.html
Thornburg, D. (2008c). Red Queens, butterflies, and strange attractors: Imperfect lenses into emergent technologies. Lake Barrington, IL: Thornburg Center for Space Exploration.
