BMGT 110 Lecture Notes - Lecture 10: Spotify, Itunes, Recode
3 Apr 2018
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Be prepared to review with your team and then defend to the class. Disruption is when a smaller company with fewer resources successfully challenges an established, incumbent business. How is spotify disruptive: sony"s early transistor radios sacrificed sound fidelity, but created a new market for portable radios (2). Likewise, spotify allowed for music streaming (anytime and anywhere), but offered a limited library. As new technology was introduces and firm"s entered the market, there was a decline in sales for older technology. Likewise, since the rise of spotify, cd sales have continued their downward trajectory. Now, spotify has a net value of 5. 8billion and is worth more than the entire. This follows the norm of disruptive innovations due. Their hesitance was due to the revenue model, costs to enter the market/develop the platform, and ability to handle costs. For example, the streaming industry, while the preferred way to listen to music, does not profit as much per song.
