In the Mid-1990s,in Hopes of Replacing Consumer Videotape Use in the Viewing

question 86

Essay

In the mid-1990s,in hopes of replacing consumer videotape use in the viewing of prerecorded movies,two forms of digital videodisk were introduced,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 view them renewable (including perpetual viewing)for a reasonable charge and a telephone call. Circuit City believed that consumers beginning to buy videodisk 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. However,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.??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:

Heteronormativity

A social construct that promotes heterosexuality as the normal or preferred sexual orientation, often marginalizing other sexual orientations.

Homophobia

Prejudice or discrimination against individuals based on their actual or perceived sexual orientation, particularly toward those who are gay or lesbian.

Biphobia

The denial of bisexuality as a genuine sexual orientation, often reinforced by mainstream media.

Polygamous

The practice or condition of having more than one spouse at the same time, which is legally accepted in some cultures and religious traditions.