EDUC 7108 Final Video Submission

Increasing Returns: Video Stores Still Exist

When I read the prompt for this blog I initially thought I would be writing an obituary for the dead video store.  However, after thinking long and hard about the situation I discovered that the video store is not dead, simply working part time and staying away from Facebook.  Of course I am personifying the video industry, but when one looks closely at the progression of the video store, there is evidence that it is still a viable option when searching for movies to watch.  I must admit that my family no longer looks to movie stores as a means of watching movies, but there are those families that do.

In the last module we had to acquire a movie to be able to meet the requirements of an assignment.  Without hesitation I fired up the Apple TV and went to searching the Netflix app to find the movie.  Using this technology has become such second nature, I did not give any thought to finding the movie any other way.  It’s a good thing for me because the town I live in lost its Movie Gallery about three years ago.  The only option to rent in this town is to visit the movie renting machines at the grocery store.

When trying to decide if this was a situation of increasing returns or a situation that exemplifies the Red Queen hypothesis, I decided that this was a situation in which the video on demand companies and digital media companies were increasing returns.  Sure, one could make the case that video stores did not adapt and change, thus falling by the way side, but there are examples of video stores that did make changes and have become ultra-successful in face of the digital age. (Read this article: http://www.huffingtonpost.com/2013/11/08/blockbuster-die_n_4235344.html).  This is a demonstration of how some companies did adapt.

The digital movie companies and the video on demand features of cable providers meet the needs of a certain niche.  Those with access to the Internet and wireless functions have the ability to meet their needs using Netflix or Hulu.  However, there are still those people that rely on videos without the use of computers.  While it may be due to financial means or lack of technology, they do exist and still find a way to access the media they desire.  Again, it would be easy to say that the situation of the video store is that of a victim of the Red Queen, but in fact that is simply not the case.