The Format War Between HD-DVD and Blu Ray Was Preceded

question 50

Essay

The format war between HD-DVD and Blu Ray was preceded by a nearly identical competition between DVD and DIVX. While DVD technology was used by a variety of manufacturers (including Sony and RCA), DIVX was a proprietary format developed by Circuit City. Both formats could play DVD movies, which cost about $30 each. However, DIVX movies (which could be played only on a DIVX player and not on a DVD player) could be purchased for $5 and viewed for 24 hours, with the ability to renew (including perpetual viewing) for a reasonable charge and a telephone call. Circuit City believed that consumers beginning to buy video disk players and disks would prefer its format, since the disks were less expensive and offered the convenience similar to a rental with the option of a purchase (conveniently by telephone from home) at a later date. But the DIVX format never took off, and in mid-1999, Circuit City announced that it was being discontinued. This left DVD as the dominant format for videodisks. By late 2008 Circuit City stores were in bankruptcy and closed. Relate this example to the model of the innovation stream and corporate attempts to gain competitive advantage through technological innovation. Explain how this competition in formats between DVD and DIVX fits the model of the innovation stream.

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Definitions:

Aptitude Test

A standardized assessment designed to measure an individual's potential to acquire skills and knowledge.

Prior Academic Achievement

The academic successes or accomplishments a student has achieved in their past educational endeavors.

Achievement Test

An achievement test is designed to assess a person's level of skill or knowledge in a specific area, typically used in educational settings.

Least Restrictive Environment

A principle in special education that requires students with disabilities to be educated in the setting that is as similar as possible to the one in which non-disabled students are educated.