Disruption, and how Foxtel got caught in it

What is disruption? Why can’t incumbents defend against it? And how do disruptors get so valuable, so quickly? These questions will have been playing on the minds of Foxtel management. It has just announced the closure of its trainee pay TV disruptor Presto, with a new push coming next year. Foxtel’s problem is that the technology has moved on, and what was not possible/expensive ten years ago is easy now. By which I mean app-based tv like Netflix or Stan streamed over the internet through a Chromecast or Apple TV box. Since Foxtel is losing to this model, it must disrupt itself with its own low-cost competitor. It will not have come to this conclusion lightly – a few million households paying $100/month is not a revenue stream to be dismissed easily. But why do businesses – most businesses, not just Foxtel – struggle at disrupting themselves? It isn’t that companies don’t understand the threats. In almost three decades of discussions with boards and senior managements I have rarely found anybody who can't see the problem. Read more here (VIEW LINK)