Examines how the growth of digital video formats videotape technology threatens to make obsolete, as technological substitution may change the economics and structure of the video rental and retail trade, and as Blockbuster Inc, the industry leader, has to respond to new technologies. Explores the response to the new Blockbuster DVD and DIVX formats of digital discs and the impact of these technologies on the traditional business model of Blockbuster's website. Also emphasizes that the changes in the industry has created a DVD, including an increase in direct sales through video video rental. At the time of technological change, firms constantly face decisions about the extent to which they should cover the technologically advanced to replace the possible expense of their existing products and services. Guide the reader through making Blockbuster and its result answers. "Hide
by Peter J. Coughlan, Jennifer L. Illes Source: Harvard Business School 12 pages. Publication Date: December 18, 2003. Prod. #: 704407-PDF-ENG
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