Technology is advancing and evolving, but it may be doing so at
such a fast pace that some companies in the
media exchange traded fund (
could get left in the dust if they don't adapt.
Blockbuster has filed for bankruptcy in the United States, but
internationally, it's still holding up. The former video rental
giant says its international shops are still up and running,
writes Stephen Kurczy for The Christian Science
. Netflix has hurt Blockbuster's business at home, but mail-order
rental services aren't as popular overseas - many countries have
higher postage fees and more strict rental laws.
Blockbuster's troubles are a sign of changing times in the
Technology companies are offering online-video services through
their own media avenues,
. Newer TV models allow viewers to stream online videos, bypassing
old-fashioned distributors. And does anyone watch network
For now, big media is safe since efforts to persuade television
and film companies to reduce prices of their products by streaming
online have been mostly rejected.
Currently, people watch online videos for around three hours per
month while viewings on regular TV sets averages around 158 hours.
Forrester Research found that many didn't understand the new
devices and only a few would recommend the product. As things like
on-demand viewing both through television and online catch on,
however, the numbers may do a flip-flop. And as Blockbuster has so
painfully learned, the ability to adapt and to do it quickly will
separate the success stories from the object lessons.
For more information on the media industry, visit our
PowerShares Dynamic Media (NYSEArca: PBS):
Top components include Comcast, Time Warner, Viacom and DirecTV.
PBS is down 8.6% in the last six months.
Max Chen contributed to this article.