The combination of the DVD player, the flat plasma screen, and the surround sound has revolutionized watching a movie at home. At the same time, advances in technology in the movie theater have raised the standard that the home entertainment alternative must achieve. Think about the effects of these technological changes on competitive markets for goods and services that are influenced by movie going and home movie watching. Identify the market for one related good or service that will expand and one that will contract. Describe in detail the sequence of events as the two markets you’ve identified respond to the new technologies.
The growth of DVD players' technology, plasma screens and better surround sound quality certainly resulted in a better film watching experience with ease of comfort at our homes. This makes it not only easier to watch movies but also play games and stream HD content experiences.
Theaters are also progressing quickly when it comes to the latest technologies like 3D, 7D etc.
There is a huge amount of demand for Household TV sets on the market for new technologies, because of their continued existence in our homes. It may be an ease of experience that counts.
There are no options to watch a film in the theater while you can enjoy any cinema or stream a certain tv series at residence.
The demand for either will continue, but it will be more consistent than theaters for Household TV Sets and related products only because of the ease of experience.
Conclusion:
| Expansion | Movie at home |
| Contraction | Movie at theatre |
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