Online Streaming and how it has achieved “Creative Destruction”
- Created on 08 February 2017
In the past few years online streaming has become a major trend and many tech and media companies are taking advantage of this opportunity. Netflix was one of the first companies to achieve global success by delivering a television and movie streaming service.
Music streaming has also become increasingly popular, and one company that has successfully utilized music streaming is Spotify. Like Netflix, Spotify was also one of the first companies to achieve global success by delivering a streaming service. Both these companies have utilized online streaming in order to achieved what is called “creative destruction”. This term is the process of industrial mutation that revolutionizes the economic structure from within, by destroying the old one and creating a new one. Essentially creating an entirely new industry. Netflix was so disruptive to existing industries that’s its impact is now being referred to as “The Netflix Effect”.
In order to demonstrate the impact of “The Netflix Effect”, below are a list of industries that have been compromised due to the creation of Netflix.
- Video Tape, DVD, and Disc rental industry
- Traditional media companies including cable networks, traditional network TV channels, and pay-TV services.
- Wall Street Journal: Stocks of media firms with cable channels were hit badly on subscriber losses
The following diagram demonstrates the key elements to disruptive innovation
Online streaming will continue to revolutionize many industries and will most likely dominate internet traffic in the future.
Our related references:
Docler Holding: Docler is one of ITware’s largest customers, the company has created and developed a large number of highly diversified global services in the fields of entertainment, technology, personal development, and luxury lifestyle. ITware provides Docler with service development and on-going support for their online products and solutions.