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7 Disruptive Innovations That Turned Their Markets Upside Down

Disruptive Companies INNOVATION ABOUNDS Tech: Web: Telecom: APPLE GOOGLE SKYPE What Are Disruptive Jnnovations? Disruption is their game D Entertainment/ Retail isruptive companies create innovations that Games: Manufacturing: Web/Music: invade the market, force change, and create ZYNGA TATA NETFLIX PANDORA new sectors of the industry. Here we examine a list of disruptive companies, and the industry effects of their innovation. TECH DISRUPTOR: PRICING: TABLET SALES ARE PROJECTED TO RISE: IPAD $499-$829 2008 45% 45% 9% Desktop sales 2009 38% 44% 18% DISRUPTION: 2010 32% 44% 18% 6% Netbook/ By challenging the idea of the portable computer, Apple is pushing the 2011 17% 13% mini PC sales 27% 44% tablet industry and has become the leader in tablet technology. 2012 23% 43% 17% 18% Notebook/ laptop sales 2013 20% 42% 17% 21% 2014 19% 42% 17% 23% Although it's more expensive than competitors, the iPad is leading the tablet pack. Market Share: Tablet sales 68.3 PERCENT 2015 18% 42% 17% 23% of tablet market Replacing Replacing laptops by: Replacing e-readers by: A MEDIAPOST BOTTOM LINE: entertainment devices by: SURVEY INDI- CATED THE IPAD IS: The Apple iPad is carving out a niche for the tablet industry. 19% 13% 10% WEB DISRUPTOR: PRICING: BUSINESS USE: GOOGLE APPS FRE Personal 8% Google Apps is just at users: Microsoft Office of market still rules the 80% share. roost at DISRUPTION: The program is challenging conventional word processing, calendaring, Google Apps is growing: and spreadsheet programs. Simply and effectively, it's changing the industry through the use of on online integrated document sharing. In its first 19 months it accrued 10 MILLION USERS. A 2011 GLOBAL DESKTOP INNOVATION ONLINE SURVEY ASKED: It still continues to gain users. "Which of the following best describes your organization's current state regarding your deployment and usage of alternative productivity tool suites [such as Google Apps]?" 3% I Implementing or implemented BOTTOM LINE: 10% Piloting/experimenting Actively looking 15% It's pushing the industry toward Cloud-based information sharing in the office world. 44% Somewhat interested 27% Not interested TELECOMMUNICATION DISRUPTOR: PRICING: THE THREAT TO WIRELESS OPERATORS: SKYPE Skype- to-Skype: Most of their money comes from voice and text, which Skype provides for low or no cost. FREE SKYPE IS CONSISTENTLY GROWING: DISRUPTION: This low-cost telecomunication service allows customers to call and message on the same interface more conveniently and fraction of the price of traditional telecommunication services. a Registered free users (in millions) 2007 217 Many companies are trying to emulate this technology by offering 2008 325 integrated technology and lower prices. 2009 474 THE THREAT TO WIRELESS OPERATORS: 2010 663 700 MILLION Skype-to-Skype calls a day 30 MILLION minutes each day Skype mobile-to-mobile BOTTOM LINE: 2 BILLION: Number of times Skype has been downloaded Skype is changing how people think of telecommunication and what they are willing to pay. It's pushing the industry toward more Internet-sourced technology. TECH AND GAME DISRUPTOR: PRICING: EA has attempted to tap into this market. They hold a 6.5% ZYNGA FREE MARKET SHARE. EFFECTS ON THE MARKET: DISRUPTION: Gaming console pricing is going down, and companies are finding ways to tap into this market. This integrated social media gaming platform doesn't require a console, challenging the use or need for gaming consoles. DAU (daily active users) of Zynga games 2009 03 24,309,425 ZYNGA MARKET: 56,757,183 232 MILLION 39.1%h sas 2009 04 2010 Q1 66,082,862 OF SOCIAL NET- WORKING GAMING 2010 02 58,012,018 active monthly players MARKET SHARE 2010 03 48,975,539 2010 Q4 47,631,850 2011 Q1 59,082,981 ZYNGA CONTINUES TO GROW. (Gross Revenue by Quarter) 2011 Q2 52,447,745 Q3 2009 - $31,311,000 $31,311,000 Q4 2009 - $55,721,000 $55,721,000 BOTTOM LINE: Q1 2010 - $100,927,000 $100,927,000 Q2 2010 - $130,099,000 $130,099,000 Zynga is changing the gaming industry. It is yet to be seen how disruptive this innovation will be, but it is definitely on the radar. Q3 2010 - $170,674,000 $170,674,000 Q4 2010 - $195,759,000 Q1 2011 - $235,421,000 $195,759,000 $235,421,000 MANUFACTURING DISRUPTOR: PRICING: NANO GROWTH: TATA NANO $2,000 UNIT SALES 10,012 8.262 8,707 6,703 5,784 DISRUPTION: 509 This manufacturer creates affordable cars, including bare car essentials for emerging countries. November December 2010 January 2011 February 2011 March 2011 April 2011 2010 THE TATA NANO HOLDS 17 PERCENT BOTTOM LINE: Tata offers blowout prices with bare automotive essentials. It hasn't MARKET SHARE completely disrupted the market yet, but it is gaining attention. ENTERTAINMENT/RETAIL DISRUPTOR: PRICING: DISRUPTED IN-STORE Netflix Blockbuster ENTERTAINMENT NETFLIX Streaming/DVD Rentals $15.98.. 2002 288 million market cap 1.62 billion market cap a month DISRUPTION: 2010 Netflix offers technologically integrated access to all types of video entertainment. It is forcing change within the world of entertain- ment rentals, and pushing a need for convenience. 9.18 billion market cap 35.1 million market cap BLOCKBUSTER, ONE OF THE MOST DISRUPTED COMPANIES IN THE INDUSTRY, FILED FOR BANKCRUPTCY IN SEPTEMBER 2010. SUBSCRIPTION FOR NETFLIX'S DISRUPTIVE INNOVATION HAS BEEN CONSISTENT. Netflix introduced a new (Number of subscribers in millions) 15.9 pricing strategy that THEY ARE DOWN TO DISENFRANCHISED CUSTOMERS IN 2011. 24 MILLION 12.268 from 25.6 MILLION 9.390 7.479 SUBSCRIBERS in June 2011. 6.316 4.179 2.61 BOTTOM LINE: 2004 2005 2006 2007 2008 2009 2010 Netflix is changing the landscape of entertainment retail and its technology integration. WEB/MUSIC DISRUPTOR: PRICING: MARKET: Early 2011: PANDORA FREE 100 MILLION $51 MILLIUN in revenue with registered users commercials Claims valuation: 36 MILLION $13 BILLION DISRUPTION: monthly active users Pandora aims to provide each user with a personalized radio experience. TOTAL RADIO ONLINE REVENUE: Pandora only runs Regular unpersonalized radio runs 80 SECONDS (Since 2000, the year Pandora was founded) 10 TO 14 2003 I $28 of advertising 2004 I $59 an hour. MINUTES AN HOUR. 2005 $249.8 2006 $278.4 2007 $328.4 2008 $394.1 RADIO USE SEEMS TO HAVE CAPPED AND STAYS CONSISTENT, 2009 $441.4 BUT INTERNET RADIO CONTINUES TO GROW. 2010 $529.6 % of U.S. Population Radio Internet Radio 2011 $619.9 2012 $724 93% 92.7% 92.3% 92.7% 93.1% 93.5% 93.8% 2013 $827 *Numbers in millions. 52.2% 43.5% воттом LINE: 36.2% Pandora is redefining the format of radio and pushing the industry toward personalization. 18.1% 7% 9% 2006 2007 2008 2009 2010 2011 2012 DISRUPTIVE INNOVATIONS DON'T HAVE TO RULE THE MARKET, THEY JUST HAVE TO CHANGE THE MARKET AND FORCE OTHERS FOLLOW SUIT. THE GOAL OF DISRUPTIVE COMPANIES IS TO CHALLENGE THE CONVENTIONAL MARKET AND CREATE A NEW ONE. SOURCES: HARVARD BUSINESsS REVIEW | CNET | CNBC | FORBES | MEDIAPOST I WSJ | MEDIALAB | IDC | MACWORLD | FT.COM I BLOOMBERG | SKYPEJOURNAL.COM | PCWORLD| APPLE | LOOKSCLOUDY.COM | MASHABLE.COM I IHS | THE-INNOVATION- MACHINE.COM | GOOGLESPOTBLOG | VENTUREBEAT.COM | FASTCOMPANY.COM | AGILEIT.COM | PANDORA | THEREGISTER.CO.UK | FORRESTER RESEARCH | QUANCAST I CNN MONEY I SNL KAGAN | BRIDGE RATINGS LLC | BUSINESS INSIDER | EDGAR- ONLINE.COM| NETFLIX | GLOBAL DESKTOP INNOVATION FOCUS Disruptive Companies INNOVATION ABOUNDS Tech: Web: Telecom: APPLE GOOGLE SKYPE What Are Disruptive Jnnovations? Disruption is their game D Entertainment/ Retail isruptive companies create innovations that Games: Manufacturing: Web/Music: invade the market, force change, and create ZYNGA TATA NETFLIX PANDORA new sectors of the industry. Here we examine a list of disruptive companies, and the industry effects of their innovation. TECH DISRUPTOR: PRICING: TABLET SALES ARE PROJECTED TO RISE: IPAD $499-$829 2008 45% 45% 9% Desktop sales 2009 38% 44% 18% DISRUPTION: 2010 32% 44% 18% 6% Netbook/ By challenging the idea of the portable computer, Apple is pushing the 2011 17% 13% mini PC sales 27% 44% tablet industry and has become the leader in tablet technology. 2012 23% 43% 17% 18% Notebook/ laptop sales 2013 20% 42% 17% 21% 2014 19% 42% 17% 23% Although it's more expensive than competitors, the iPad is leading the tablet pack. Market Share: Tablet sales 68.3 PERCENT 2015 18% 42% 17% 23% of tablet market Replacing Replacing laptops by: Replacing e-readers by: A MEDIAPOST BOTTOM LINE: entertainment devices by: SURVEY INDI- CATED THE IPAD IS: The Apple iPad is carving out a niche for the tablet industry. 19% 13% 10% WEB DISRUPTOR: PRICING: BUSINESS USE: GOOGLE APPS FRE Personal 8% Google Apps is just at users: Microsoft Office of market still rules the 80% share. roost at DISRUPTION: The program is challenging conventional word processing, calendaring, Google Apps is growing: and spreadsheet programs. Simply and effectively, it's changing the industry through the use of on online integrated document sharing. In its first 19 months it accrued 10 MILLION USERS. A 2011 GLOBAL DESKTOP INNOVATION ONLINE SURVEY ASKED: It still continues to gain users. "Which of the following best describes your organization's current state regarding your deployment and usage of alternative productivity tool suites [such as Google Apps]?" 3% I Implementing or implemented BOTTOM LINE: 10% Piloting/experimenting Actively looking 15% It's pushing the industry toward Cloud-based information sharing in the office world. 44% Somewhat interested 27% Not interested TELECOMMUNICATION DISRUPTOR: PRICING: THE THREAT TO WIRELESS OPERATORS: SKYPE Skype- to-Skype: Most of their money comes from voice and text, which Skype provides for low or no cost. FREE SKYPE IS CONSISTENTLY GROWING: DISRUPTION: This low-cost telecomunication service allows customers to call and message on the same interface more conveniently and fraction of the price of traditional telecommunication services. a Registered free users (in millions) 2007 217 Many companies are trying to emulate this technology by offering 2008 325 integrated technology and lower prices. 2009 474 THE THREAT TO WIRELESS OPERATORS: 2010 663 700 MILLION Skype-to-Skype calls a day 30 MILLION minutes each day Skype mobile-to-mobile BOTTOM LINE: 2 BILLION: Number of times Skype has been downloaded Skype is changing how people think of telecommunication and what they are willing to pay. It's pushing the industry toward more Internet-sourced technology. TECH AND GAME DISRUPTOR: PRICING: EA has attempted to tap into this market. They hold a 6.5% ZYNGA FREE MARKET SHARE. EFFECTS ON THE MARKET: DISRUPTION: Gaming console pricing is going down, and companies are finding ways to tap into this market. This integrated social media gaming platform doesn't require a console, challenging the use or need for gaming consoles. DAU (daily active users) of Zynga games 2009 03 24,309,425 ZYNGA MARKET: 56,757,183 232 MILLION 39.1%h sas 2009 04 2010 Q1 66,082,862 OF SOCIAL NET- WORKING GAMING 2010 02 58,012,018 active monthly players MARKET SHARE 2010 03 48,975,539 2010 Q4 47,631,850 2011 Q1 59,082,981 ZYNGA CONTINUES TO GROW. (Gross Revenue by Quarter) 2011 Q2 52,447,745 Q3 2009 - $31,311,000 $31,311,000 Q4 2009 - $55,721,000 $55,721,000 BOTTOM LINE: Q1 2010 - $100,927,000 $100,927,000 Q2 2010 - $130,099,000 $130,099,000 Zynga is changing the gaming industry. It is yet to be seen how disruptive this innovation will be, but it is definitely on the radar. Q3 2010 - $170,674,000 $170,674,000 Q4 2010 - $195,759,000 Q1 2011 - $235,421,000 $195,759,000 $235,421,000 MANUFACTURING DISRUPTOR: PRICING: NANO GROWTH: TATA NANO $2,000 UNIT SALES 10,012 8.262 8,707 6,703 5,784 DISRUPTION: 509 This manufacturer creates affordable cars, including bare car essentials for emerging countries. November December 2010 January 2011 February 2011 March 2011 April 2011 2010 THE TATA NANO HOLDS 17 PERCENT BOTTOM LINE: Tata offers blowout prices with bare automotive essentials. It hasn't MARKET SHARE completely disrupted the market yet, but it is gaining attention. ENTERTAINMENT/RETAIL DISRUPTOR: PRICING: DISRUPTED IN-STORE Netflix Blockbuster ENTERTAINMENT NETFLIX Streaming/DVD Rentals $15.98.. 2002 288 million market cap 1.62 billion market cap a month DISRUPTION: 2010 Netflix offers technologically integrated access to all types of video entertainment. It is forcing change within the world of entertain- ment rentals, and pushing a need for convenience. 9.18 billion market cap 35.1 million market cap BLOCKBUSTER, ONE OF THE MOST DISRUPTED COMPANIES IN THE INDUSTRY, FILED FOR BANKCRUPTCY IN SEPTEMBER 2010. SUBSCRIPTION FOR NETFLIX'S DISRUPTIVE INNOVATION HAS BEEN CONSISTENT. Netflix introduced a new (Number of subscribers in millions) 15.9 pricing strategy that THEY ARE DOWN TO DISENFRANCHISED CUSTOMERS IN 2011. 24 MILLION 12.268 from 25.6 MILLION 9.390 7.479 SUBSCRIBERS in June 2011. 6.316 4.179 2.61 BOTTOM LINE: 2004 2005 2006 2007 2008 2009 2010 Netflix is changing the landscape of entertainment retail and its technology integration. WEB/MUSIC DISRUPTOR: PRICING: MARKET: Early 2011: PANDORA FREE 100 MILLION $51 MILLIUN in revenue with registered users commercials Claims valuation: 36 MILLION $13 BILLION DISRUPTION: monthly active users Pandora aims to provide each user with a personalized radio experience. TOTAL RADIO ONLINE REVENUE: Pandora only runs Regular unpersonalized radio runs 80 SECONDS (Since 2000, the year Pandora was founded) 10 TO 14 2003 I $28 of advertising 2004 I $59 an hour. MINUTES AN HOUR. 2005 $249.8 2006 $278.4 2007 $328.4 2008 $394.1 RADIO USE SEEMS TO HAVE CAPPED AND STAYS CONSISTENT, 2009 $441.4 BUT INTERNET RADIO CONTINUES TO GROW. 2010 $529.6 % of U.S. Population Radio Internet Radio 2011 $619.9 2012 $724 93% 92.7% 92.3% 92.7% 93.1% 93.5% 93.8% 2013 $827 *Numbers in millions. 52.2% 43.5% воттом LINE: 36.2% Pandora is redefining the format of radio and pushing the industry toward personalization. 18.1% 7% 9% 2006 2007 2008 2009 2010 2011 2012 DISRUPTIVE INNOVATIONS DON'T HAVE TO RULE THE MARKET, THEY JUST HAVE TO CHANGE THE MARKET AND FORCE OTHERS FOLLOW SUIT. THE GOAL OF DISRUPTIVE COMPANIES IS TO CHALLENGE THE CONVENTIONAL MARKET AND CREATE A NEW ONE. SOURCES: HARVARD BUSINESsS REVIEW | CNET | CNBC | FORBES | MEDIAPOST I WSJ | MEDIALAB | IDC | MACWORLD | FT.COM I BLOOMBERG | SKYPEJOURNAL.COM | PCWORLD| APPLE | LOOKSCLOUDY.COM | MASHABLE.COM I IHS | THE-INNOVATION- MACHINE.COM | GOOGLESPOTBLOG | VENTUREBEAT.COM | FASTCOMPANY.COM | AGILEIT.COM | PANDORA | THEREGISTER.CO.UK | FORRESTER RESEARCH | QUANCAST I CNN MONEY I SNL KAGAN | BRIDGE RATINGS LLC | BUSINESS INSIDER | EDGAR- ONLINE.COM| NETFLIX | GLOBAL DESKTOP INNOVATION FOCUS Disruptive Companies INNOVATION ABOUNDS Tech: Web: Telecom: APPLE GOOGLE SKYPE What Are Disruptive Jnnovations? Disruption is their game D Entertainment/ Retail isruptive companies create innovations that Games: Manufacturing: Web/Music: invade the market, force change, and create ZYNGA TATA NETFLIX PANDORA new sectors of the industry. Here we examine a list of disruptive companies, and the industry effects of their innovation. TECH DISRUPTOR: PRICING: TABLET SALES ARE PROJECTED TO RISE: IPAD $499-$829 2008 45% 45% 9% Desktop sales 2009 38% 44% 18% DISRUPTION: 2010 32% 44% 18% 6% Netbook/ By challenging the idea of the portable computer, Apple is pushing the 2011 17% 13% mini PC sales 27% 44% tablet industry and has become the leader in tablet technology. 2012 23% 43% 17% 18% Notebook/ laptop sales 2013 20% 42% 17% 21% 2014 19% 42% 17% 23% Although it's more expensive than competitors, the iPad is leading the tablet pack. Market Share: Tablet sales 68.3 PERCENT 2015 18% 42% 17% 23% of tablet market Replacing Replacing laptops by: Replacing e-readers by: A MEDIAPOST BOTTOM LINE: entertainment devices by: SURVEY INDI- CATED THE IPAD IS: The Apple iPad is carving out a niche for the tablet industry. 19% 13% 10% WEB DISRUPTOR: PRICING: BUSINESS USE: GOOGLE APPS FRE Personal 8% Google Apps is just at users: Microsoft Office of market still rules the 80% share. roost at DISRUPTION: The program is challenging conventional word processing, calendaring, Google Apps is growing: and spreadsheet programs. Simply and effectively, it's changing the industry through the use of on online integrated document sharing. In its first 19 months it accrued 10 MILLION USERS. A 2011 GLOBAL DESKTOP INNOVATION ONLINE SURVEY ASKED: It still continues to gain users. "Which of the following best describes your organization's current state regarding your deployment and usage of alternative productivity tool suites [such as Google Apps]?" 3% I Implementing or implemented BOTTOM LINE: 10% Piloting/experimenting Actively looking 15% It's pushing the industry toward Cloud-based information sharing in the office world. 44% Somewhat interested 27% Not interested TELECOMMUNICATION DISRUPTOR: PRICING: THE THREAT TO WIRELESS OPERATORS: SKYPE Skype- to-Skype: Most of their money comes from voice and text, which Skype provides for low or no cost. FREE SKYPE IS CONSISTENTLY GROWING: DISRUPTION: This low-cost telecomunication service allows customers to call and message on the same interface more conveniently and fraction of the price of traditional telecommunication services. a Registered free users (in millions) 2007 217 Many companies are trying to emulate this technology by offering 2008 325 integrated technology and lower prices. 2009 474 THE THREAT TO WIRELESS OPERATORS: 2010 663 700 MILLION Skype-to-Skype calls a day 30 MILLION minutes each day Skype mobile-to-mobile BOTTOM LINE: 2 BILLION: Number of times Skype has been downloaded Skype is changing how people think of telecommunication and what they are willing to pay. It's pushing the industry toward more Internet-sourced technology. TECH AND GAME DISRUPTOR: PRICING: EA has attempted to tap into this market. They hold a 6.5% ZYNGA FREE MARKET SHARE. EFFECTS ON THE MARKET: DISRUPTION: Gaming console pricing is going down, and companies are finding ways to tap into this market. This integrated social media gaming platform doesn't require a console, challenging the use or need for gaming consoles. DAU (daily active users) of Zynga games 2009 03 24,309,425 ZYNGA MARKET: 56,757,183 232 MILLION 39.1%h sas 2009 04 2010 Q1 66,082,862 OF SOCIAL NET- WORKING GAMING 2010 02 58,012,018 active monthly players MARKET SHARE 2010 03 48,975,539 2010 Q4 47,631,850 2011 Q1 59,082,981 ZYNGA CONTINUES TO GROW. (Gross Revenue by Quarter) 2011 Q2 52,447,745 Q3 2009 - $31,311,000 $31,311,000 Q4 2009 - $55,721,000 $55,721,000 BOTTOM LINE: Q1 2010 - $100,927,000 $100,927,000 Q2 2010 - $130,099,000 $130,099,000 Zynga is changing the gaming industry. It is yet to be seen how disruptive this innovation will be, but it is definitely on the radar. Q3 2010 - $170,674,000 $170,674,000 Q4 2010 - $195,759,000 Q1 2011 - $235,421,000 $195,759,000 $235,421,000 MANUFACTURING DISRUPTOR: PRICING: NANO GROWTH: TATA NANO $2,000 UNIT SALES 10,012 8.262 8,707 6,703 5,784 DISRUPTION: 509 This manufacturer creates affordable cars, including bare car essentials for emerging countries. November December 2010 January 2011 February 2011 March 2011 April 2011 2010 THE TATA NANO HOLDS 17 PERCENT BOTTOM LINE: Tata offers blowout prices with bare automotive essentials. It hasn't MARKET SHARE completely disrupted the market yet, but it is gaining attention. ENTERTAINMENT/RETAIL DISRUPTOR: PRICING: DISRUPTED IN-STORE Netflix Blockbuster ENTERTAINMENT NETFLIX Streaming/DVD Rentals $15.98.. 2002 288 million market cap 1.62 billion market cap a month DISRUPTION: 2010 Netflix offers technologically integrated access to all types of video entertainment. It is forcing change within the world of entertain- ment rentals, and pushing a need for convenience. 9.18 billion market cap 35.1 million market cap BLOCKBUSTER, ONE OF THE MOST DISRUPTED COMPANIES IN THE INDUSTRY, FILED FOR BANKCRUPTCY IN SEPTEMBER 2010. SUBSCRIPTION FOR NETFLIX'S DISRUPTIVE INNOVATION HAS BEEN CONSISTENT. Netflix introduced a new (Number of subscribers in millions) 15.9 pricing strategy that THEY ARE DOWN TO DISENFRANCHISED CUSTOMERS IN 2011. 24 MILLION 12.268 from 25.6 MILLION 9.390 7.479 SUBSCRIBERS in June 2011. 6.316 4.179 2.61 BOTTOM LINE: 2004 2005 2006 2007 2008 2009 2010 Netflix is changing the landscape of entertainment retail and its technology integration. WEB/MUSIC DISRUPTOR: PRICING: MARKET: Early 2011: PANDORA FREE 100 MILLION $51 MILLIUN in revenue with registered users commercials Claims valuation: 36 MILLION $13 BILLION DISRUPTION: monthly active users Pandora aims to provide each user with a personalized radio experience. TOTAL RADIO ONLINE REVENUE: Pandora only runs Regular unpersonalized radio runs 80 SECONDS (Since 2000, the year Pandora was founded) 10 TO 14 2003 I $28 of advertising 2004 I $59 an hour. MINUTES AN HOUR. 2005 $249.8 2006 $278.4 2007 $328.4 2008 $394.1 RADIO USE SEEMS TO HAVE CAPPED AND STAYS CONSISTENT, 2009 $441.4 BUT INTERNET RADIO CONTINUES TO GROW. 2010 $529.6 % of U.S. Population Radio Internet Radio 2011 $619.9 2012 $724 93% 92.7% 92.3% 92.7% 93.1% 93.5% 93.8% 2013 $827 *Numbers in millions. 52.2% 43.5% воттом LINE: 36.2% Pandora is redefining the format of radio and pushing the industry toward personalization. 18.1% 7% 9% 2006 2007 2008 2009 2010 2011 2012 DISRUPTIVE INNOVATIONS DON'T HAVE TO RULE THE MARKET, THEY JUST HAVE TO CHANGE THE MARKET AND FORCE OTHERS FOLLOW SUIT. THE GOAL OF DISRUPTIVE COMPANIES IS TO CHALLENGE THE CONVENTIONAL MARKET AND CREATE A NEW ONE. SOURCES: HARVARD BUSINESsS REVIEW | CNET | CNBC | FORBES | MEDIAPOST I WSJ | MEDIALAB | IDC | MACWORLD | FT.COM I BLOOMBERG | SKYPEJOURNAL.COM | PCWORLD| APPLE | LOOKSCLOUDY.COM | MASHABLE.COM I IHS | THE-INNOVATION- MACHINE.COM | GOOGLESPOTBLOG | VENTUREBEAT.COM | FASTCOMPANY.COM | AGILEIT.COM | PANDORA | THEREGISTER.CO.UK | FORRESTER RESEARCH | QUANCAST I CNN MONEY I SNL KAGAN | BRIDGE RATINGS LLC | BUSINESS INSIDER | EDGAR- ONLINE.COM| NETFLIX | GLOBAL DESKTOP INNOVATION FOCUS Disruptive Companies INNOVATION ABOUNDS Tech: Web: Telecom: APPLE GOOGLE SKYPE What Are Disruptive Jnnovations? Disruption is their game D Entertainment/ Retail isruptive companies create innovations that Games: Manufacturing: Web/Music: invade the market, force change, and create ZYNGA TATA NETFLIX PANDORA new sectors of the industry. Here we examine a list of disruptive companies, and the industry effects of their innovation. TECH DISRUPTOR: PRICING: TABLET SALES ARE PROJECTED TO RISE: IPAD $499-$829 2008 45% 45% 9% Desktop sales 2009 38% 44% 18% DISRUPTION: 2010 32% 44% 18% 6% Netbook/ By challenging the idea of the portable computer, Apple is pushing the 2011 17% 13% mini PC sales 27% 44% tablet industry and has become the leader in tablet technology. 2012 23% 43% 17% 18% Notebook/ laptop sales 2013 20% 42% 17% 21% 2014 19% 42% 17% 23% Although it's more expensive than competitors, the iPad is leading the tablet pack. Market Share: Tablet sales 68.3 PERCENT 2015 18% 42% 17% 23% of tablet market Replacing Replacing laptops by: Replacing e-readers by: A MEDIAPOST BOTTOM LINE: entertainment devices by: SURVEY INDI- CATED THE IPAD IS: The Apple iPad is carving out a niche for the tablet industry. 19% 13% 10% WEB DISRUPTOR: PRICING: BUSINESS USE: GOOGLE APPS FRE Personal 8% Google Apps is just at users: Microsoft Office of market still rules the 80% share. roost at DISRUPTION: The program is challenging conventional word processing, calendaring, Google Apps is growing: and spreadsheet programs. Simply and effectively, it's changing the industry through the use of on online integrated document sharing. In its first 19 months it accrued 10 MILLION USERS. A 2011 GLOBAL DESKTOP INNOVATION ONLINE SURVEY ASKED: It still continues to gain users. "Which of the following best describes your organization's current state regarding your deployment and usage of alternative productivity tool suites [such as Google Apps]?" 3% I Implementing or implemented BOTTOM LINE: 10% Piloting/experimenting Actively looking 15% It's pushing the industry toward Cloud-based information sharing in the office world. 44% Somewhat interested 27% Not interested TELECOMMUNICATION DISRUPTOR: PRICING: THE THREAT TO WIRELESS OPERATORS: SKYPE Skype- to-Skype: Most of their money comes from voice and text, which Skype provides for low or no cost. FREE SKYPE IS CONSISTENTLY GROWING: DISRUPTION: This low-cost telecomunication service allows customers to call and message on the same interface more conveniently and fraction of the price of traditional telecommunication services. a Registered free users (in millions) 2007 217 Many companies are trying to emulate this technology by offering 2008 325 integrated technology and lower prices. 2009 474 THE THREAT TO WIRELESS OPERATORS: 2010 663 700 MILLION Skype-to-Skype calls a day 30 MILLION minutes each day Skype mobile-to-mobile BOTTOM LINE: 2 BILLION: Number of times Skype has been downloaded Skype is changing how people think of telecommunication and what they are willing to pay. It's pushing the industry toward more Internet-sourced technology. TECH AND GAME DISRUPTOR: PRICING: EA has attempted to tap into this market. They hold a 6.5% ZYNGA FREE MARKET SHARE. EFFECTS ON THE MARKET: DISRUPTION: Gaming console pricing is going down, and companies are finding ways to tap into this market. This integrated social media gaming platform doesn't require a console, challenging the use or need for gaming consoles. DAU (daily active users) of Zynga games 2009 03 24,309,425 ZYNGA MARKET: 56,757,183 232 MILLION 39.1%h sas 2009 04 2010 Q1 66,082,862 OF SOCIAL NET- WORKING GAMING 2010 02 58,012,018 active monthly players MARKET SHARE 2010 03 48,975,539 2010 Q4 47,631,850 2011 Q1 59,082,981 ZYNGA CONTINUES TO GROW. (Gross Revenue by Quarter) 2011 Q2 52,447,745 Q3 2009 - $31,311,000 $31,311,000 Q4 2009 - $55,721,000 $55,721,000 BOTTOM LINE: Q1 2010 - $100,927,000 $100,927,000 Q2 2010 - $130,099,000 $130,099,000 Zynga is changing the gaming industry. It is yet to be seen how disruptive this innovation will be, but it is definitely on the radar. Q3 2010 - $170,674,000 $170,674,000 Q4 2010 - $195,759,000 Q1 2011 - $235,421,000 $195,759,000 $235,421,000 MANUFACTURING DISRUPTOR: PRICING: NANO GROWTH: TATA NANO $2,000 UNIT SALES 10,012 8.262 8,707 6,703 5,784 DISRUPTION: 509 This manufacturer creates affordable cars, including bare car essentials for emerging countries. November December 2010 January 2011 February 2011 March 2011 April 2011 2010 THE TATA NANO HOLDS 17 PERCENT BOTTOM LINE: Tata offers blowout prices with bare automotive essentials. It hasn't MARKET SHARE completely disrupted the market yet, but it is gaining attention. ENTERTAINMENT/RETAIL DISRUPTOR: PRICING: DISRUPTED IN-STORE Netflix Blockbuster ENTERTAINMENT NETFLIX Streaming/DVD Rentals $15.98.. 2002 288 million market cap 1.62 billion market cap a month DISRUPTION: 2010 Netflix offers technologically integrated access to all types of video entertainment. It is forcing change within the world of entertain- ment rentals, and pushing a need for convenience. 9.18 billion market cap 35.1 million market cap BLOCKBUSTER, ONE OF THE MOST DISRUPTED COMPANIES IN THE INDUSTRY, FILED FOR BANKCRUPTCY IN SEPTEMBER 2010. SUBSCRIPTION FOR NETFLIX'S DISRUPTIVE INNOVATION HAS BEEN CONSISTENT. Netflix introduced a new (Number of subscribers in millions) 15.9 pricing strategy that THEY ARE DOWN TO DISENFRANCHISED CUSTOMERS IN 2011. 24 MILLION 12.268 from 25.6 MILLION 9.390 7.479 SUBSCRIBERS in June 2011. 6.316 4.179 2.61 BOTTOM LINE: 2004 2005 2006 2007 2008 2009 2010 Netflix is changing the landscape of entertainment retail and its technology integration. WEB/MUSIC DISRUPTOR: PRICING: MARKET: Early 2011: PANDORA FREE 100 MILLION $51 MILLIUN in revenue with registered users commercials Claims valuation: 36 MILLION $13 BILLION DISRUPTION: monthly active users Pandora aims to provide each user with a personalized radio experience. TOTAL RADIO ONLINE REVENUE: Pandora only runs Regular unpersonalized radio runs 80 SECONDS (Since 2000, the year Pandora was founded) 10 TO 14 2003 I $28 of advertising 2004 I $59 an hour. MINUTES AN HOUR. 2005 $249.8 2006 $278.4 2007 $328.4 2008 $394.1 RADIO USE SEEMS TO HAVE CAPPED AND STAYS CONSISTENT, 2009 $441.4 BUT INTERNET RADIO CONTINUES TO GROW. 2010 $529.6 % of U.S. Population Radio Internet Radio 2011 $619.9 2012 $724 93% 92.7% 92.3% 92.7% 93.1% 93.5% 93.8% 2013 $827 *Numbers in millions. 52.2% 43.5% воттом LINE: 36.2% Pandora is redefining the format of radio and pushing the industry toward personalization. 18.1% 7% 9% 2006 2007 2008 2009 2010 2011 2012 DISRUPTIVE INNOVATIONS DON'T HAVE TO RULE THE MARKET, THEY JUST HAVE TO CHANGE THE MARKET AND FORCE OTHERS FOLLOW SUIT. THE GOAL OF DISRUPTIVE COMPANIES IS TO CHALLENGE THE CONVENTIONAL MARKET AND CREATE A NEW ONE. SOURCES: HARVARD BUSINESsS REVIEW | CNET | CNBC | FORBES | MEDIAPOST I WSJ | MEDIALAB | IDC | MACWORLD | FT.COM I BLOOMBERG | SKYPEJOURNAL.COM | PCWORLD| APPLE | LOOKSCLOUDY.COM | MASHABLE.COM I IHS | THE-INNOVATION- MACHINE.COM | GOOGLESPOTBLOG | VENTUREBEAT.COM | FASTCOMPANY.COM | AGILEIT.COM | PANDORA | THEREGISTER.CO.UK | FORRESTER RESEARCH | QUANCAST I CNN MONEY I SNL KAGAN | BRIDGE RATINGS LLC | BUSINESS INSIDER | EDGAR- ONLINE.COM| NETFLIX | GLOBAL DESKTOP INNOVATION FOCUS Disruptive Companies INNOVATION ABOUNDS Tech: Web: Telecom: APPLE GOOGLE SKYPE What Are Disruptive Jnnovations? Disruption is their game D Entertainment/ Retail isruptive companies create innovations that Games: Manufacturing: Web/Music: invade the market, force change, and create ZYNGA TATA NETFLIX PANDORA new sectors of the industry. Here we examine a list of disruptive companies, and the industry effects of their innovation. TECH DISRUPTOR: PRICING: TABLET SALES ARE PROJECTED TO RISE: IPAD $499-$829 2008 45% 45% 9% Desktop sales 2009 38% 44% 18% DISRUPTION: 2010 32% 44% 18% 6% Netbook/ By challenging the idea of the portable computer, Apple is pushing the 2011 17% 13% mini PC sales 27% 44% tablet industry and has become the leader in tablet technology. 2012 23% 43% 17% 18% Notebook/ laptop sales 2013 20% 42% 17% 21% 2014 19% 42% 17% 23% Although it's more expensive than competitors, the iPad is leading the tablet pack. Market Share: Tablet sales 68.3 PERCENT 2015 18% 42% 17% 23% of tablet market Replacing Replacing laptops by: Replacing e-readers by: A MEDIAPOST BOTTOM LINE: entertainment devices by: SURVEY INDI- CATED THE IPAD IS: The Apple iPad is carving out a niche for the tablet industry. 19% 13% 10% WEB DISRUPTOR: PRICING: BUSINESS USE: GOOGLE APPS FRE Personal 8% Google Apps is just at users: Microsoft Office of market still rules the 80% share. roost at DISRUPTION: The program is challenging conventional word processing, calendaring, Google Apps is growing: and spreadsheet programs. Simply and effectively, it's changing the industry through the use of on online integrated document sharing. In its first 19 months it accrued 10 MILLION USERS. A 2011 GLOBAL DESKTOP INNOVATION ONLINE SURVEY ASKED: It still continues to gain users. "Which of the following best describes your organization's current state regarding your deployment and usage of alternative productivity tool suites [such as Google Apps]?" 3% I Implementing or implemented BOTTOM LINE: 10% Piloting/experimenting Actively looking 15% It's pushing the industry toward Cloud-based information sharing in the office world. 44% Somewhat interested 27% Not interested TELECOMMUNICATION DISRUPTOR: PRICING: THE THREAT TO WIRELESS OPERATORS: SKYPE Skype- to-Skype: Most of their money comes from voice and text, which Skype provides for low or no cost. FREE SKYPE IS CONSISTENTLY GROWING: DISRUPTION: This low-cost telecomunication service allows customers to call and message on the same interface more conveniently and fraction of the price of traditional telecommunication services. a Registered free users (in millions) 2007 217 Many companies are trying to emulate this technology by offering 2008 325 integrated technology and lower prices. 2009 474 THE THREAT TO WIRELESS OPERATORS: 2010 663 700 MILLION Skype-to-Skype calls a day 30 MILLION minutes each day Skype mobile-to-mobile BOTTOM LINE: 2 BILLION: Number of times Skype has been downloaded Skype is changing how people think of telecommunication and what they are willing to pay. It's pushing the industry toward more Internet-sourced technology. TECH AND GAME DISRUPTOR: PRICING: EA has attempted to tap into this market. They hold a 6.5% ZYNGA FREE MARKET SHARE. EFFECTS ON THE MARKET: DISRUPTION: Gaming console pricing is going down, and companies are finding ways to tap into this market. This integrated social media gaming platform doesn't require a console, challenging the use or need for gaming consoles. DAU (daily active users) of Zynga games 2009 03 24,309,425 ZYNGA MARKET: 56,757,183 232 MILLION 39.1%h sas 2009 04 2010 Q1 66,082,862 OF SOCIAL NET- WORKING GAMING 2010 02 58,012,018 active monthly players MARKET SHARE 2010 03 48,975,539 2010 Q4 47,631,850 2011 Q1 59,082,981 ZYNGA CONTINUES TO GROW. (Gross Revenue by Quarter) 2011 Q2 52,447,745 Q3 2009 - $31,311,000 $31,311,000 Q4 2009 - $55,721,000 $55,721,000 BOTTOM LINE: Q1 2010 - $100,927,000 $100,927,000 Q2 2010 - $130,099,000 $130,099,000 Zynga is changing the gaming industry. It is yet to be seen how disruptive this innovation will be, but it is definitely on the radar. Q3 2010 - $170,674,000 $170,674,000 Q4 2010 - $195,759,000 Q1 2011 - $235,421,000 $195,759,000 $235,421,000 MANUFACTURING DISRUPTOR: PRICING: NANO GROWTH: TATA NANO $2,000 UNIT SALES 10,012 8.262 8,707 6,703 5,784 DISRUPTION: 509 This manufacturer creates affordable cars, including bare car essentials for emerging countries. November December 2010 January 2011 February 2011 March 2011 April 2011 2010 THE TATA NANO HOLDS 17 PERCENT BOTTOM LINE: Tata offers blowout prices with bare automotive essentials. It hasn't MARKET SHARE completely disrupted the market yet, but it is gaining attention. ENTERTAINMENT/RETAIL DISRUPTOR: PRICING: DISRUPTED IN-STORE Netflix Blockbuster ENTERTAINMENT NETFLIX Streaming/DVD Rentals $15.98.. 2002 288 million market cap 1.62 billion market cap a month DISRUPTION: 2010 Netflix offers technologically integrated access to all types of video entertainment. It is forcing change within the world of entertain- ment rentals, and pushing a need for convenience. 9.18 billion market cap 35.1 million market cap BLOCKBUSTER, ONE OF THE MOST DISRUPTED COMPANIES IN THE INDUSTRY, FILED FOR BANKCRUPTCY IN SEPTEMBER 2010. SUBSCRIPTION FOR NETFLIX'S DISRUPTIVE INNOVATION HAS BEEN CONSISTENT. Netflix introduced a new (Number of subscribers in millions) 15.9 pricing strategy that THEY ARE DOWN TO DISENFRANCHISED CUSTOMERS IN 2011. 24 MILLION 12.268 from 25.6 MILLION 9.390 7.479 SUBSCRIBERS in June 2011. 6.316 4.179 2.61 BOTTOM LINE: 2004 2005 2006 2007 2008 2009 2010 Netflix is changing the landscape of entertainment retail and its technology integration. WEB/MUSIC DISRUPTOR: PRICING: MARKET: Early 2011: PANDORA FREE 100 MILLION $51 MILLIUN in revenue with registered users commercials Claims valuation: 36 MILLION $13 BILLION DISRUPTION: monthly active users Pandora aims to provide each user with a personalized radio experience. TOTAL RADIO ONLINE REVENUE: Pandora only runs Regular unpersonalized radio runs 80 SECONDS (Since 2000, the year Pandora was founded) 10 TO 14 2003 I $28 of advertising 2004 I $59 an hour. MINUTES AN HOUR. 2005 $249.8 2006 $278.4 2007 $328.4 2008 $394.1 RADIO USE SEEMS TO HAVE CAPPED AND STAYS CONSISTENT, 2009 $441.4 BUT INTERNET RADIO CONTINUES TO GROW. 2010 $529.6 % of U.S. Population Radio Internet Radio 2011 $619.9 2012 $724 93% 92.7% 92.3% 92.7% 93.1% 93.5% 93.8% 2013 $827 *Numbers in millions. 52.2% 43.5% воттом LINE: 36.2% Pandora is redefining the format of radio and pushing the industry toward personalization. 18.1% 7% 9% 2006 2007 2008 2009 2010 2011 2012 DISRUPTIVE INNOVATIONS DON'T HAVE TO RULE THE MARKET, THEY JUST HAVE TO CHANGE THE MARKET AND FORCE OTHERS FOLLOW SUIT. THE GOAL OF DISRUPTIVE COMPANIES IS TO CHALLENGE THE CONVENTIONAL MARKET AND CREATE A NEW ONE. SOURCES: HARVARD BUSINESsS REVIEW | CNET | CNBC | FORBES | MEDIAPOST I WSJ | MEDIALAB | IDC | MACWORLD | FT.COM I BLOOMBERG | SKYPEJOURNAL.COM | PCWORLD| APPLE | LOOKSCLOUDY.COM | MASHABLE.COM I IHS | THE-INNOVATION- MACHINE.COM | GOOGLESPOTBLOG | VENTUREBEAT.COM | FASTCOMPANY.COM | AGILEIT.COM | PANDORA | THEREGISTER.CO.UK | FORRESTER RESEARCH | QUANCAST I CNN MONEY I SNL KAGAN | BRIDGE RATINGS LLC | BUSINESS INSIDER | EDGAR- ONLINE.COM| NETFLIX | GLOBAL DESKTOP INNOVATION FOCUS Disruptive Companies INNOVATION ABOUNDS Tech: Web: Telecom: APPLE GOOGLE SKYPE What Are Disruptive Jnnovations? Disruption is their game D Entertainment/ Retail isruptive companies create innovations that Games: Manufacturing: Web/Music: invade the market, force change, and create ZYNGA TATA NETFLIX PANDORA new sectors of the industry. Here we examine a list of disruptive companies, and the industry effects of their innovation. TECH DISRUPTOR: PRICING: TABLET SALES ARE PROJECTED TO RISE: IPAD $499-$829 2008 45% 45% 9% Desktop sales 2009 38% 44% 18% DISRUPTION: 2010 32% 44% 18% 6% Netbook/ By challenging the idea of the portable computer, Apple is pushing the 2011 17% 13% mini PC sales 27% 44% tablet industry and has become the leader in tablet technology. 2012 23% 43% 17% 18% Notebook/ laptop sales 2013 20% 42% 17% 21% 2014 19% 42% 17% 23% Although it's more expensive than competitors, the iPad is leading the tablet pack. Market Share: Tablet sales 68.3 PERCENT 2015 18% 42% 17% 23% of tablet market Replacing Replacing laptops by: Replacing e-readers by: A MEDIAPOST BOTTOM LINE: entertainment devices by: SURVEY INDI- CATED THE IPAD IS: The Apple iPad is carving out a niche for the tablet industry. 19% 13% 10% WEB DISRUPTOR: PRICING: BUSINESS USE: GOOGLE APPS FRE Personal 8% Google Apps is just at users: Microsoft Office of market still rules the 80% share. roost at DISRUPTION: The program is challenging conventional word processing, calendaring, Google Apps is growing: and spreadsheet programs. Simply and effectively, it's changing the industry through the use of on online integrated document sharing. In its first 19 months it accrued 10 MILLION USERS. A 2011 GLOBAL DESKTOP INNOVATION ONLINE SURVEY ASKED: It still continues to gain users. "Which of the following best describes your organization's current state regarding your deployment and usage of alternative productivity tool suites [such as Google Apps]?" 3% I Implementing or implemented BOTTOM LINE: 10% Piloting/experimenting Actively looking 15% It's pushing the industry toward Cloud-based information sharing in the office world. 44% Somewhat interested 27% Not interested TELECOMMUNICATION DISRUPTOR: PRICING: THE THREAT TO WIRELESS OPERATORS: SKYPE Skype- to-Skype: Most of their money comes from voice and text, which Skype provides for low or no cost. FREE SKYPE IS CONSISTENTLY GROWING: DISRUPTION: This low-cost telecomunication service allows customers to call and message on the same interface more conveniently and fraction of the price of traditional telecommunication services. a Registered free users (in millions) 2007 217 Many companies are trying to emulate this technology by offering 2008 325 integrated technology and lower prices. 2009 474 THE THREAT TO WIRELESS OPERATORS: 2010 663 700 MILLION Skype-to-Skype calls a day 30 MILLION minutes each day Skype mobile-to-mobile BOTTOM LINE: 2 BILLION: Number of times Skype has been downloaded Skype is changing how people think of telecommunication and what they are willing to pay. It's pushing the industry toward more Internet-sourced technology. TECH AND GAME DISRUPTOR: PRICING: EA has attempted to tap into this market. They hold a 6.5% ZYNGA FREE MARKET SHARE. EFFECTS ON THE MARKET: DISRUPTION: Gaming console pricing is going down, and companies are finding ways to tap into this market. This integrated social media gaming platform doesn't require a console, challenging the use or need for gaming consoles. DAU (daily active users) of Zynga games 2009 03 24,309,425 ZYNGA MARKET: 56,757,183 232 MILLION 39.1%h sas 2009 04 2010 Q1 66,082,862 OF SOCIAL NET- WORKING GAMING 2010 02 58,012,018 active monthly players MARKET SHARE 2010 03 48,975,539 2010 Q4 47,631,850 2011 Q1 59,082,981 ZYNGA CONTINUES TO GROW. (Gross Revenue by Quarter) 2011 Q2 52,447,745 Q3 2009 - $31,311,000 $31,311,000 Q4 2009 - $55,721,000 $55,721,000 BOTTOM LINE: Q1 2010 - $100,927,000 $100,927,000 Q2 2010 - $130,099,000 $130,099,000 Zynga is changing the gaming industry. It is yet to be seen how disruptive this innovation will be, but it is definitely on the radar. Q3 2010 - $170,674,000 $170,674,000 Q4 2010 - $195,759,000 Q1 2011 - $235,421,000 $195,759,000 $235,421,000 MANUFACTURING DISRUPTOR: PRICING: NANO GROWTH: TATA NANO $2,000 UNIT SALES 10,012 8.262 8,707 6,703 5,784 DISRUPTION: 509 This manufacturer creates affordable cars, including bare car essentials for emerging countries. November December 2010 January 2011 February 2011 March 2011 April 2011 2010 THE TATA NANO HOLDS 17 PERCENT BOTTOM LINE: Tata offers blowout prices with bare automotive essentials. It hasn't MARKET SHARE completely disrupted the market yet, but it is gaining attention. ENTERTAINMENT/RETAIL DISRUPTOR: PRICING: DISRUPTED IN-STORE Netflix Blockbuster ENTERTAINMENT NETFLIX Streaming/DVD Rentals $15.98.. 2002 288 million market cap 1.62 billion market cap a month DISRUPTION: 2010 Netflix offers technologically integrated access to all types of video entertainment. It is forcing change within the world of entertain- ment rentals, and pushing a need for convenience. 9.18 billion market cap 35.1 million market cap BLOCKBUSTER, ONE OF THE MOST DISRUPTED COMPANIES IN THE INDUSTRY, FILED FOR BANKCRUPTCY IN SEPTEMBER 2010. SUBSCRIPTION FOR NETFLIX'S DISRUPTIVE INNOVATION HAS BEEN CONSISTENT. Netflix introduced a new (Number of subscribers in millions) 15.9 pricing strategy that THEY ARE DOWN TO DISENFRANCHISED CUSTOMERS IN 2011. 24 MILLION 12.268 from 25.6 MILLION 9.390 7.479 SUBSCRIBERS in June 2011. 6.316 4.179 2.61 BOTTOM LINE: 2004 2005 2006 2007 2008 2009 2010 Netflix is changing the landscape of entertainment retail and its technology integration. WEB/MUSIC DISRUPTOR: PRICING: MARKET: Early 2011: PANDORA FREE 100 MILLION $51 MILLIUN in revenue with registered users commercials Claims valuation: 36 MILLION $13 BILLION DISRUPTION: monthly active users Pandora aims to provide each user with a personalized radio experience. TOTAL RADIO ONLINE REVENUE: Pandora only runs Regular unpersonalized radio runs 80 SECONDS (Since 2000, the year Pandora was founded) 10 TO 14 2003 I $28 of advertising 2004 I $59 an hour. MINUTES AN HOUR. 2005 $249.8 2006 $278.4 2007 $328.4 2008 $394.1 RADIO USE SEEMS TO HAVE CAPPED AND STAYS CONSISTENT, 2009 $441.4 BUT INTERNET RADIO CONTINUES TO GROW. 2010 $529.6 % of U.S. Population Radio Internet Radio 2011 $619.9 2012 $724 93% 92.7% 92.3% 92.7% 93.1% 93.5% 93.8% 2013 $827 *Numbers in millions. 52.2% 43.5% воттом LINE: 36.2% Pandora is redefining the format of radio and pushing the industry toward personalization. 18.1% 7% 9% 2006 2007 2008 2009 2010 2011 2012 DISRUPTIVE INNOVATIONS DON'T HAVE TO RULE THE MARKET, THEY JUST HAVE TO CHANGE THE MARKET AND FORCE OTHERS FOLLOW SUIT. THE GOAL OF DISRUPTIVE COMPANIES IS TO CHALLENGE THE CONVENTIONAL MARKET AND CREATE A NEW ONE. SOURCES: HARVARD BUSINESsS REVIEW | CNET | CNBC | FORBES | MEDIAPOST I WSJ | MEDIALAB | IDC | MACWORLD | FT.COM I BLOOMBERG | SKYPEJOURNAL.COM | PCWORLD| APPLE | LOOKSCLOUDY.COM | MASHABLE.COM I IHS | THE-INNOVATION- MACHINE.COM | GOOGLESPOTBLOG | VENTUREBEAT.COM | FASTCOMPANY.COM | AGILEIT.COM | PANDORA | THEREGISTER.CO.UK | FORRESTER RESEARCH | QUANCAST I CNN MONEY I SNL KAGAN | BRIDGE RATINGS LLC | BUSINESS INSIDER | EDGAR- ONLINE.COM| NETFLIX | GLOBAL DESKTOP INNOVATION FOCUS

7 Disruptive Innovations That Turned Their Markets Upside Down

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Who are the movers, the shakers, the companies that affect profound change? And what products do they bring to market that disrupt all others, making other companies completely re-think their strategi...

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