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ACCA Strategic Professional · Strategic Business Leader · Enabling success: disruptive technologies

A music publisher's board is analysing why streaming platforms displaced its physical media business. The streaming model offered unlimited access for a low monthly fee, changing how value was captured rather than only the product. Which description best captures this aspect of digital disruption?

The streaming shift is a business model change. It altered how value is created, delivered and monetised, replacing unit sales of owned media with low-cost subscription access. It was not simply a manufacturing efficiency, a barrier-raising move, or a change in legal structure.

  1. AA change in business model, altering how value is created, delivered and monetisedCorrect
  2. BA purely operational efficiency gain in the existing manufacturing process
  3. CA defensive move to raise barriers to entry through economies of scale
  4. DA change in legal form from a company to a partnership

Explanation

Digital disruption often succeeds by redefining the business model, here subscription access instead of ownership of units. Efficiency gains in manufacturing would not explain the displacement of physical media.

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