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Technology Effect

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Abstract
This document will present a technology that has changed the way society sees the movie and TV industry. This paper will present details of how this technology impacted its industry, how it is used, how people, and competitors reacted. Examples will be provided of similar scenarios and what new opportunities this technology has presented to its market, plus how the government and legislation reacted toward this new technology advancement.

Technology Effects
Technology is a powerful tool that over the years it has evolved continuously providing the human with new options to be more precise in every aspect. Technology not only provides us with new emerging advancements, but they also can make a whole industry change with one revolutionary creation.

An excellent example that can be provided of how technology can change an industry very fast is the online movie streaming sites and the self serve renting movie machines. These two different technology creations has come to make an impressive change on how the movie and TV industry currently operates compared to a few years ago. Many years ago the movie and TV industry was strictly dedicated to watching TV shows in the big old box we call a Television, and we could only watched movies at a movie theater or in the television. People would visit different store locations to rent their movies and watch them at home but things have changed drastically since then. These new technology advancements have changed how everything works, looks, and feels forever.

Before this new technology advancements were made, the consumers were happy with what they had because they did not knew anything else, but as the years past by and new technology innovations were created, it became a different ball game. Consumers have become amazingly aware of the changes that technology innovations have brought to them and how it has changed many industries in a positive way, and this makes them want to stay always up-to-date with the current emerging technologies.

The online streaming service has been already in the market for a couple of years, but it was never used for watching moves, gaming, and uploading videos as well. The online streaming services has changed how the users watch movies with new services like Netflix, Crackle, YouTube, and other applications that let the user watch TV shows, movies, and personal videos uploaded by individual users. This service alone has provided new options for the users because they do not need a Television to watch TV shows or movies, they can use a computer, IPods, or Smart Phone devices.

Although this may be something positive for the users, it is not always positive for the TV and movie industry because they lose customers every day. Over time their industry decided to join the movement, and many of these organizations have developed their own online applications to gain and retain the consumers.

In the case II-7 Digital Creation and Distribution of Music from the Strategic Management of Technology and Innovation (2005), the writer explains how the music industry was changed with new online technology programs that helped the user to create a faster, easier, and better quality product. The example presented above regarding the music industry was a game changer because it provided more functionality and opportunities for users who did not had thousands of dollars to spend in expensive equipment. This case is very similar to the one presented on this paper regarding the movie industry because the users are trying to find better and cheaper options to save money.

Another of the technologies that made the move and TV industry change along with the previous one mentioned, is the self-serve movie renting machines. The name of these self-serve movie renting machines is Red box; this is the technology and idea that changed everything for movie rental stores. As well as the online movie streaming, this technology development made and amazing impact in its industry because it made one of the biggest contenders go bankruptcy, this contender was Blockbuster video. Their company was in the market for more than 20 years, and someone with the right tools, and the right vision made their empire come down. This is the clearest example why organizations need to stay always current and innovating the way they provide service because if they become too comfortable, someone can find a better way to do it and bring your hard work down. The way that technology was used on this scenario provided was by creating a box with a screen and a system in which the user can select his or her movie choice, the system will recognize that selection, and dispense the DVD movie the user wanted. This new strategy help the creator to save thousands of dollars on employees, benefits, store locations, utilities, security, and many others. This is why their company strategy was incredibly effective and not only made them a leader, but also a standard on how people rent their movies today.

Both of these technologies mentioned on this paper had a long way before they became leaders in their industry. After long research trying to find the most accurate history information about Netflix and Red box to see if these companies had any inconvenient in their formation process or how the big companies or the consumers reacted, I did not find very much. According to www.fundinguniverse.com the writer explains how Netflix was founded, but they never mentioned anything about their company obtaining any legal or business issues with other organizations. Even though nothing was mentioned about it, a company like Blockbuster Video recognized the pressure of the competition as well as when Red box was released.

These two different technology ideas helped literally to destroy their biggest competitor because the consumers had a very positive reaction to their services because it was a new fresh option that provided commodity and savings. The two technologies selected for this paper had a very similar response toward the consumers, other organizations, and bothare very unique technologies that impressed the consumers.

Initially consumers were a little bit skeptical about ordering DVDs by mail because it was a new service never provided, but still within three years after the company was founded they had more than one million customers. On the other hand the case for Red box was a little bit different because consumers liked the idea, they were just not sure if it were real because the prices were very low, and no one had provided a similar service, either. The interesting part about these two technologies is that both were accepted by the consumers, and it also became a standard of how people see movies or TV.

As mentioned before, these two new technologies definitely change the movie and TV industry by providing faster, economic, and more reliable options to the user to obtain what he or she want. The user don’t need to leave their house to receive the entertainment that they want, but in case they decide they want to take a drive to rent a movie, they can find more Red box machines closer to them. The process of renting a movie on this machine is very quick, they just select what they want, pay, and leave. These two options provide to the consumer convenience, plus many options to decide, and everything was created by using the right tools and strategy on time.

With the creation of these new technologies, it also helped to create new services and products. An excellent example is that Netflix started as a DVD Rental by mail Company, and later on they incorporated the streaming services as well, and the users can stream as well as order movies by mail. Incorporating the streaming services opened more opportunities because consumers could use the streaming services from their computers, tablets, and Smart phones, attracting a new consumer section.

The new technology provided by Red box also helped to developed new option like videogames being also rented in their machines, but now there are a couple of new competitors trying to gain their market back like Blockbuster, but their far behind.

During the research process for this paper, I could not find clear information or examples of how the government responded or if any new legislation were created because of these new technologies presented by Netflix and Red box. The information obtained was from their website where it presents the user terms and agreements (2011) their website explains all the requirements that the user needs to follow. Their website states that their service will be based on the laws of the area of where the service is provided, and both services need to abide by the same laws from the movie industry which are used by other companies currently. In the case of Netflix, the only response received was that consumers were suing the company because they did not have enough streaming movies and DVD with the hearing impaired service. The hearing impaired subtitles feature is a requirement by the American with Disabilities Act, but the lawsuit is still in the works.

Two excellent technologies were able to bring something new to the table and the consumers loved it because it gave them another alternative on what they had at the moment. It is evident that if technology it is implemented correctly, it can make impressive changes, and make almost any organization 100 times better than what they were.

Conclusion
This investigation paper has serve as proof of how technology can change an industry overnight and make every organizations of that industry to update or stay behind. This document also helped me personally to appreciate how important technology can be for an organization in today’s business market because it defines what your organization is, and can do. The reason I say technology is this important is that it can help any organization to have a better performance but also to save their legacy because when a company stays behind with their innovations, and new opportunities of performing faster, and more accurate, they can lose everything. Technology can help an organization to be more solid but also to renew the structure and strategies of an outdated company and make it a leader in their industry.

References
Strategic of technology and Innovation. (n. d.). Electronic references. Retrieved October 8,2011 from https://ecampus.phoenix.edu/content/eBookLibrary2/content/eReader.aspx
Blockbuster Company History. (n. d.). Electronic references. Retrieved October 8, 2011 from http://www.fundinguniverse.com/company-histories/Blockbuster-Inc-Company-History.html

Netflix Company History. (n. d.). Electronic references. Retrieved October 8, 2011 from http://www.fundinguniverse.com/company-histories/Netflix-Inc-company-History.html Netflix sued by deaf group over lack of subtitles. (n. d.). Electronic references. Retrieved October 8, 2011 from http://news.cnet.com/8301-13578_3-20072619-38/netflix-sued-by-deaf-group-over-lack-of-subtitles/

Red box Terms and Agreements. (n. d.). Electronic references. Retrieved October 8, 2011 from http://www.redbox.com/terms

Netlfix Terms and Agreements. (n. d.). Electronic references. Retrieved October 8, 2011 from http://developer.netflix.com/page/Api_terms_of_use

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