Disney releasing movies directly to streaming via Disney+ instead of releasing them in movie theatres is an example of _____________________.Question 8AnswerSelect one:a.Disruptive Innovationb.Digitizationc.Digitalizationd.Sustaining Innovation
Question
Disney releasing movies directly to streaming via Disney+ instead of releasing them in movie theatres is an example of _____________________.Question 8AnswerSelect one:a.Disruptive Innovationb.Digitizationc.Digitalizationd.Sustaining Innovation
Solution
The answer is:
c. Digitalization
Explanation:
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Digitalization refers to the use of digital technologies to change a business model and provide new revenue and value-producing opportunities. It is the process of moving to a digital business.
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In this case, Disney releasing movies directly to streaming via Disney+ instead of releasing them in movie theatres is an example of digitalization. They are changing their business model from a traditional physical distribution (movie theatres) to a digital distribution (streaming service).
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Disruptive Innovation refers to an innovation that creates a new market and value network and eventually disrupts an existing market and value network, displacing established market-leading firms, products, and alliances. While Disney's move could be seen as disruptive to the movie theatre industry, it's more accurately described as digitalization.
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Digitization is the process of converting information into a digital format. In this context, Disney's movies were likely already digitized.
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Sustaining Innovation refers to an innovation that does not create new markets or value networks but rather evolves existing ones with better value, allowing the firms within to compete against each other's sustaining improvements. Disney's move is more than just an improvement—it's a change in business model.
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