Chapter 2 Media Article

"Next-gen DVD war could be messy--or not"
http://news.zdnet.com/2100-1040_22-6106111.html

This article is about the competition between HD DVD and Blu-ray. There was an annual DisplaySearch HDTV: The Future of Television conference taken place which included analysts, HD DVD and Blu-ray manufacturers, retailers, studio executives, and software makers. The Blu-ray format, which can have up to 7 hours of video content onto a single-layer disc, has the support of 7 movie studios, 11 consumer electronics companies, four IT companies and leader in the gaming and music industries. A single-layer HD DVD has four hours of playback, which is double the capacity of a standard DVD. The format has support from 5 movie studios. Both sides agree that consumers will want HD content that will make the investment worthwhile because HD TVs have become more popular. The DVD market has been declining and experts believe that a technology transition is ready. Sonic Solutions’ Taylor believes the transition will be smoother since consumers are already familiar with what DVDs can do. Switching to either two will be an easier process. But both groups seem to agree that consumers will choose content over format. They will choose titles over the technology. Tsuyuzaki of Panasonic says, “I have no doubt (the next-generation format) will take off,” “the question really is can we create a healthy market and quickly.”

Relation to Chapter 2 - Elasticity of demand

How does this article relate to chapter 2? Chapter 2 is about the market, demand, supply, elasticity. Everyone has DVDs and DVD players at home. We have been using them for many years. The only format we ever buy now is DVD. DVDs are necessities but it I believe it is an inelastic demand. When the price changes, there doesn’t seem to be much affect on the demand. Most people think DVDs are still expensive as they don’t think they’re worth 25-30 dollars, but some people are still willing to buy it. There are not really any substitutes as downloading them is illegal, TV is different, and the theaters are also different. The DVD market is not doing that good. HD DVD and Blu-ray will be coming into competition. I don’t think the demand for the two new formats will be successful. The next-generation formats have not come out yet but I have predictions. These are luxuries and they have an elastic demand. The price will affect the demand. The prices for these new formats are more expensive than DVDs. DVDs are a better substitute and I think people are still comfortable with that format. Most people who choose what to buy, only care about content or the movie. Most people don’t care if the picture quality is much better and they don’t care much for special features. The new formats can do a lot but most people find it unnecessary. Overall, the new formats will take time to be success or not. For now, we can’t be sure but I wouldn’t buy these unless the price decreases.

Chapter 1 - Media Article

"If cod is so scarce, why can I still buy it?
http://news.bbc.co.uk/1/hi/magazine/6061872.stm

Cod is used to serve with many different kinds of favorite foods. Scientists say that North Sea cod are in danger of running out without complete fishing ban. Campaigners have tried to encourage retailers to sell only cod from sustainable sources. The majority of cod for sale on fish counters and in frozen meals is from sustainable sources such as Iceland or Baltic, where fishing is not a problem. The small amount of cod still being fished in the North Sea goes to a bit of catering, fish and chips shops, frozen food firms, and local fish markets on the North Sea coast. They can all be anonymous about where their fish is from unlike major supermarkets. Greenpeace published a league table of how the UK’s supermarkets fared when it came to selling seafood from sustainable sources and only two of the nine major chains had policies to do so and only sold line-caught cod from Iceland.

Relation to Chapter 1 - Scarcity

This article is related to the discussion of scarcity in chapter 1. Scarcity is a very important concept that is part of the definition of economics. Scarcity is anything that is available only in a limited supply. In this article, it talks about the scarcity of cod. Cod is one of the best examples of scarcity. During history, cod became increasingly scarce because there weren’t enough limitations or restrictions. Cod is used to make many different foods that people like to eat. People say that cod is a really scarce resource but we seem to be continually getting them without much trouble. Even if it’s a scarce resource, supermarkets figured out to get their cod from sustainable sources from other countries. A scarce resource should still be used but people should remain in more control over the limited supply because it can become extinct one day. Even though we are still continually getting scarce resources, it can mean that we’re lucky its only close to being extinct.