Friday, November 11, 2011

Red Queens and Increasing Returns

When I looked for a video I found out we had the actual video at home. The movie also had recently been on television so I had a good memory of it.  I did not have to rent it which was fortunate for me but I would have used Redbox which is less than five minutes from my house.
I think the current competition is a great example of Red Queens.  I believe that dvd’s and video on demand has taken over so much that it leaves any of the other competition behind.  Studies have shown that the impact of video on demand and dvd rentals have decreased profits at the movies which in turn have increased prices for the consumer.  Consumers would rather stay at home than spend almost sixty dollars for a family of three to go out for the same entertainment.  I am one of those people who have decided that taking everyone out is too expensive since we are a family of five.  It’s cheaper to order pizza and order a movie online than going out.  I can honestly say it’s been at least three years since we have been out as a family to the movies.
I believe the two are on the obsolescence strand of McLuhan’s tetrad. I believe it is making the movie theatre and going to the movies virtually obsolete.   The two of them are strong enough technologies that they can stop the industry from making movies or at least making it so expensive to go out.  With HDTV and HD equipment at home the need for going to the movies is not a big one.