Q 2) Describe the impact of disruptive technology on the companies discussed in

this case?
 
The case provided here discusses the impact of disruptive technologies on the
companies. Today sales of the CD’s and DVD’s are lowering down in market compare
to the older times because of the maximum use of Internet in all age groups. Not only
the business people but the students are dependent on Internet. Due to high speed
Internet access, powerful PC’s, Laptops, DVD readers and writers, I phones, Portable
video devices services has made the Internet downloading the File and folder and
Music videos and mp3 songs very easy and often very fast. It utilizes the time of the
customers together shows great impact of disruption on the companies.
Millions of people worldwide are downloading the songs illegally because its free and
easily available with saving one’s account and time. Also there are schemes provided
that on downloading the free and illegal video leads to outpacing paid for video
downloads by four to one making the companies on loss base. Therefore, the sales of
the songs downloading through the Internet medium to IPods, I phones and other
Portable music players are climbing the sky high.
Also the main disruptive technology which is famous today on worldwide online
marketing is the YouTube. Today YouTube is the main platform for provided millions of
people all around the world the online music and movie industries. The no. of viewers is
increasing day by day because of the free material and music provided them. It is most
visited website. Thereby the illegal posted copyrighted materials causes a high impact
on companies which spends lots of money on making the music and making original
CD’s and DVD’s . Viacom sues YouTube and claimed it for the unauthorized clips of the
copyrighted TV show which has been posted on the website. Also the studios like the
Time Warner, News Corporation’s Twentieth Century and NBC Universal are
participation to establish the licensing agreements with YouTube.  
Neither the Movielink nor CinemaNow offered a movie format which makes the DVD
easy burned which is easily accessible on the regular DVD Player and because of this it
was difficult to the customers for transporting the downloaded movies from the
computer to the TV screens due to this complicated procedure. Hence this leads the
Major studios to go along for partnership with such movie sites for selling their products
online to confront the Piracy Issue. The major movie studios such as Warner Brothers
and others to confront the piracy issues in attempt did partnership with websites like Bit
Torrent, Guba.com to sell their movies via Internet downloading. Thus, Piracy market is
also one of the major drawbacks to the companies. The unemployed people prefer the
pirated CD’s because it is available at low cost in market and releases before the
original movie release.
In the 1990s, the music industry phased out the single. This left consumers with no
means to purchase individual songs. This market was filled by peer to peer file sharing
technologies, which were initially free but later on the online retailers such as the iTunes
music store and Amazon.com was available. Therefore this low end disruption
eventually undermined the sales of physically high cost CDs. Another technology are
minicomputers which were originally presented as an inexpensive alternative to
mainframe manufacturers, they did not consider them a serious threat in the market but
the market for main frames and mini computers were seriously disrupted by personal
computers.
Hence Disruptive technology is one of the new technology that has a serious impact on
the status quo and changes the way people have been dealing something, perhaps for
decades. Music CDs all but wiped out the phonograph industry within a few years and
digital cameras are destined to eliminate the film industry. The most disruptive
technologies in history have been the telephone, the computer and the Internet.
Therefore, The distributing movies online offers the movie studios decreasing the cost
profits. It’s true that technology is going to advance but it’s a negative side when this
technology harms the business. Today the main medium is based on Internet online
communications. But the advance in technology leads to hampering the companies,
markets and Industries by benefiting the online music and video sites and other
entertainments which are available free online.