The advent of Netflix movie streaming and Redbox kiosks renting DVD and Blu-ray movies have virtually demolished the market for video rentals from brick and mortar stores such as Blockbuster. This is an example of
A)creative destruction.
B)derived demand.
C)capital accumulation.
D)the difference between normal and economic profits.

Question

Quizplus · Accepted Answer

Creative destruction refers to the process by which new innovations lead to the demise of older technologies or business models. In this case, the rise of Netflix and Redbox, with their new ways of delivering movies to consumers, directly led to the decline of traditional video rental stores like Blockbuster.

The Advent of Netflix Movie Streaming and Redbox Kiosks Renting