Optical Disc and Hd Dvd

Disruptive and transformational technologies typically appeal to segments of the market that are undeserved, and not to the main stream of the market (Shane, 2009). These technologies have the ability to make traditional tools and processes obsolete virtually overnight. In this paper I use Netflix as an example of a disruptive technology and Toshiba– NEC’s HD-DVD as transformational technology. I begin with a discussion of disruptive technology. Afterwards, I will speak on the success of Netflix; explain the disruptive and shifting technology created once it sustained itself in the market. I then provide a review of transformational technology and explain the transformational change to HD-DVD and the failure to capture and sustain a place in the market. I conclude by comparing and contrasting a successful Netflix and failed HD-DVD format, looking at techniques and key issues that provided success or failure and the lessons learned from them. Disruptive technology is a term coined by Clayton Christensen. Christensen believes that incumbent firms were unable to adopt radical new technologies were often he firms that created them. In order for disruptive technology to be viable for a business, the technology must become sustaining in the market. New startup companies will develop potential disruptive technology because they lack a customer base and cater to the fringe market.
A potential disruptive technology is Netflix. According to their 2011 Annual Report, Netflix Inc. is the world’s leading Internet subscription service for enjoying TV shows and movies where subscribers can instantly watch unlimited TV shows and movies streamed over the Internet to their TVs, computers and mobile devices. In the United States subscribers can receive standard definition DVDs and their high definition successor, Blu-ray discs (collectively referred to as “DVD”), delivered quickly to their homes (Netflix, 2011).
Reed Hastings and Marc Randolph, Netflix Incorporated

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