Thornburg (2008) defines a Red Queen as two technologies competing for the same market share where in the process all other competitors are left behind (p.12).
Two years ago, when I had to review movies for my undergraduate media class, I had to go to a movie rental store, now I just watch the selected movie digitally on my computer using Netflix. In "Tech’s Long Tail," Chris Anderson (2004) notes that new technologies such as Netflix were able to capitalize on the popularity of other technological advances to rise and become popular. Netflix is the Red Queen in the movie rental business, because it used an existing rental market, and was able to understand the when and where the technology was heading. The development of DVDs popularized the home movie theater and because of the DVD size, it was easy to mail, which made Netflix the Red Queen. Currently, many movies can be streamed directly to TVs or computers from Netflix, which will eventually most likely be transferred to an online streaming option which will lessen the cost of mailing. However, this will occur according to what the agreement between Netflix and the move companies will be. Currently, since movies' large profit margin is in DVD sales, Netflix has agreed not to rent new movies for 28 days.
Netflix continues to be the Red Queen in the movie renting business as it surpasses its competitors and adds new features. The latest one is the ability to add, with no additional cost for its members, Netflix' Apps for iPhone and iPod touch which would allow members to stream movies (http://wn.com/News_Update_Netflix's_App_For_iPhone_Now_Allows_Video_To_Stream_To_TV). Netflix is currently partnered with Amazon and both companies have increased their business, by also adding the ability to purchase new releases online, using Amazon's cloud computing (http://www.techflash.com/seattle/2010/05/netflix_on_amazon_cloud.html).
On McLuhan’s tetrad, DVDs are currently on the Enhance tetrad and the video-on-demand option is currently in the Reverses tetrad. However, as Netflix continues to move to other clouds (Amazon, with option to purchase new releases), in the near future, the tetrads will shift and video-on-demand will shift to enhance the tetrad as DVDs will move to Obsolete tetrads and as their will not be a need to leave the house to purchase and view a movie.
Reference:
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
Becker, J. (2010, November 22). The official Netflix blog [Web log message]. Retrieved from http://blog.netflix.com/2010/11/new-plan-for-watching-instantly-plus.html
Becker, J. (2010, November 22). The official Netflix blog [Web log message]. Retrieved from http://blog.netflix.com/2010/11/new-plan-for-watching-instantly-plus.html
Orit,
ReplyDeleteI enjoyed your post!
How do you feel RedBox will affect Netflix marketshare, or DVD sales?
It seems to me that the public may endure a 28-day wait to view a movie, rather than making a purchase of a DVD, even if it's Blu-Ray. Therefore, the new (spring 2010) agreement to delay release of new releases on rental movies will prove to simply set-back audience viewing dates of new movies. This places Netflix on a somewhat even playing field with newer upstarts, such as RedBox. RedBox is affecting movie rentals from smaller independently-owned video rental shops, since they have no overhead, and can now offer films on the same date as they are released elsewhere. Netflix, however, is on the right track as it is prepared for the next wave of streaming entertainment.
Do you think this availability of streaming movies is going to lead to more piracy?
ReplyDeleteHey Orit,
ReplyDeleteGreat thoughts! Who do you think is the primary competitor of Netflix? In the case of Red Queens, two competitors are involved. Is it the dvd itself or another movie distributor?
George
I actually think streaming will lead to less piracy, especially as quality of content increases and if consumers feel they are getting value for their subscription. Physical media is simply too easy to pirate. Piracy will never go away, but I think piracy can help lessen it.
ReplyDeleteHi Erin,
ReplyDeleteI think streaming will lead to less piracy since movies will be available at the user's convenience on demand. What leads to piracy is the desire to see an available movie, and the easy of copying the DVDs with all of the available technology.
Orit
George,
ReplyDeleteThe primary competitors of Netflix currently are Apple, Amazon, and Google. I think the winner of this competition will be the one who can negotiate a better deal with the movie companies.
Orit
Jeff,
ReplyDeleteYou are right. Piracy will never completely disappear, but streaming will lessen its demand.
Orit