Notes on disruption
To Bundle, or Not to Bundle: That Is the Question.
def. bundle, to combine several products or services for sale as one combined offering or service package
def. unbundle, to break up packages once offered by providing particular parts of them at a scale and cost unmatchable in the established order
A central theme of the digital age has been a phase of business model disruption, with established institutions being broken down and reformed anew. The bundle/unbundle cycle has been one recurring thread in this story, and is best illustrated by the music industry. In the 90’s, unbundling saw the smallest unit of sale — the album — broken down into single tracks sold as MP3s. This disaggregation of content, supported by internet-enabled zero-marginal cost distribution, opened the door for new channels and business models.
“There are only two ways to make money in business: one is to bundle; the other is unbundle.” Jim Barksdale, former CEO and President of Netscape
Apple ultimately won this category with iTunes, and owned the distribution of music on the internet for over a decade. In 2002, prior to iTunes launch, singles made up only 1.9% of music transactions; 10 years later they…
