Examines the emergence of technology to deliver video content to consumers at home with a direct digital distribution and explores policy options facing the video rental giant Blockbuster Inc., as it tries to respond to new technological substitutes. Examines the influence of personal video recorders (or DVRs) in the market for basic additional Blockbuster products, VCR, DVD-player, and explores how this technology could eventually affect Blockbuster. Address the current and future impact of video-on-demand, the latest incarnation of a long lasting pay-per-view technology as well as an analysis of potential and actual responses to the threat of Blockbuster. 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. "Hide
by Peter J. Coughlan, Jennifer L. Illes Source: Harvard Business School 15 pages. Publication Date: December 19, 2003. Prod. #: 704463-PDF-ENG
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