The music industry is a great example of where ‘changing the business model’ – aka ‘strategic innovation’  or transformation – has been essential. So although I have poured cold water on this idea for almost all firms at almost all times, it’s worth looking at this case.

Apple’s development of iTunes of course features strongly in demonstrations of the concept, as in Christensen et al in HBR. Music was going digital, so what a great idea to give ...