The Disruptor’s Dilemma: TiVo and the U.S. Television Ecosystem

Firms introducing disruptive innovations into multisided ecosystems may confront the disruptor’s dilemma – they must gain the support of the very incumbents they disrupt. We examine how these firms may address this dilemma through a longitudinal study of TiVo, a company that pioneered the Digital Video Recorder. Our analysis reveals how TiVo navigated coopetitive tensions by continually adjusting its strategy, its technology platform, and its relational positioning within the evolving U.S. television industry ecosystem. We theorize how (a) disruption may affect not just specific incumbents, but also the entire ecosystem, (b) co-opetition is not just dyadic, but also multilateral and intertemporal, and (c) strategy is both a deliberative and emergent process involving continual adjustments, as the disruptor attempts to balance coopetitive tensions over time.

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