Red Queens and Increasing Returns

Module 5
Red Queens and
Increasing Returns

When I decided to obtain a DVD for my science fiction assignment in Module 4 based on a Philip K. Dick book, I went to the local BlockBuster Media store in Carson City. Knowing that I would be at the residency in Minneapolis, the week this assignment was due, I decided I needed to purchase a DVD instead of rent one because the 5-day rental fee with extra day charges would be greater than the purchase. This made my choices very limited as to what I could select for this assignment. Each DVD suggestion from Dr. Thornburg for this assignment was available for rental, however, Total Recall was the only DVD available for purchase, so that is why I chose the movie I did.

The current competition between DVDs and video on demand is an example of increasing returns as described by Dr. Thornburg where “two innovations hit the market at about the same time and by chance, one technology gets locked in and drives the other to extinction, in a nonlinear process” (Thornburg, 2009). According to Chris Anderson from Wired Magazine, Reed Hastings the founder of Netflix saw an “inflection point” at the moment when home-theater units started becoming popular with the DVD hitting critical mass and saw an amazing opportunity (Anderson, 2004). At this point in time, neither the DVD nor video on demand has locked in, so let the game continue!

Living in Nevada now for 20 years, I can appreciate “the art of playing the tables in the Casino of Technology… and above all, the rewards go to the players who are first to make sense of the new games looming out of the technological fog and make adaptations to what is coming” (Arthur, 1996). Therefore, as I think about the four criteria of McLuhan’s tetrad, DVDs and video on demand are currently 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 I am not sure what will replace them yet as predicted in the “Reverses” quadrant (McLuhan, 1988).

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.

Red Queens Image. Retrieved from http://www.proteusadvisors.com/uploaded_images/Red-Queen-733517.jpg

Thornburg, D. D. (2009). Increasing returns and red queens. Laureate Education, Inc. Retrieved from http://sylvan.live.ecollege.com/ec/crs/default.learn?CourseID=4199715&Survey=1&47=5797856&ClientNodeID=984645&coursenav=1&bhcp=1