iTunes and Low End Disruption

Incremental Low-End originated Disruption (Wikipedia)

Facebook integration. Tweeting my music interests. AppleTV. Full-screen album extras. App management. An entire online store. Smart playlists. CD burning. Ringtone creation. Tips the scales at 88MB. All this in what is essentially the only music player on OS X. At some point enough is enough, and for me it was enough years ago. For god’s sake, Apple, all I want to do is play my music.

For years Apple has been adding to iTunes, and while some improvements have been welcome, many have simply added to the bloat. It’s time — way past time, really — for Apple to put out something lightweight and basic. I understand that iTunes is a wedge (and weapon) for Apple, and I don’t propose gutting it, but considering there are no credible alternatives to the program, it’s at the point where I feel Apple has stopped simply adding to the feature buffet, and has started force-feeding users.

"Low-end disruption" occurs when the rate at which products improve exceeds the rate at which customers can adopt the new performance. Therefore, at some point the performance of the product overshoots the needs of certain customer segments. At this point, a disruptive technology may enter the market and provide a product which has lower performance than the incumbent but which exceeds the requirements of certain segments, thereby gaining a foothold in the market.

In low-end disruption, the disruptor is focused initially on serving the least profitable customer, who is happy with a good enough product. This type of customer is not willing to pay premium for enhancements in product functionality. Once the disruptor has gained foot hold in this customer segment, it seeks to improve its profit margin. To get higher profit margins, the disruptor needs to enter the segment where the customer is willing to pay a little more for higher quality. To ensure this quality in its product, the disruptor needs to innovate. The incumbent will not do much to retain its share in a not so profitable segment, and will move up-market and focus on its more attractive customers. After a number of such encounters, the incumbent is squeezed into smaller markets than it was previously serving. And then finally the disruptive technology meets the demands of the most profitable segment and drives the established company out of the market (see above chart).

- via Wikipedia