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Increasing Returns or Red Queens?

I rented Minority Report from my cable company’s on demand service. This was actually my last resort. I tried Netflix’s Streaming service and then Redbox but neither had any of the movies. What’s interesting is I remember being younger and needing a movie going to the neighborhood video rental store. It was a small business operation that had many of the older movies. Blockbuster came along and brought video rental to the mass market. Then Netflix and on demand services came and put Blockbuster out of business. Renting a movie was once a family weekend night activity. However, this has changed with streaming services and families can use their phones or tablets to entertain younger children when in public. The video rental industry has

 

I believe that the competitions between DVD and Video on demand services are examples of Red Queens. These two competitors will not drive each other to extinction but they have put store video rentals out of business. As people rely more on internet services or simply do not feel like leaving their house, these two options are becoming more popular.

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