Every time there is a disruptive technological innovation, there are entrepreneurs that find a way to take advantage of it and invent a new way of doing things
Decommoditizing products is one strategy for doing just that. The encyclopedia business had been re-invented several times. First, people bought the encyclopedias when they were sold for a lot of money, door to door. Then came the CD-ROM, and Microsoft came out with Encarta for $100 - more people bought it for less money. Later there was a website that was cheaper then the CD, and even more people bought it for even less money. Finally we have Wikipedia, which is free, and everyone uses it. In each case, the field was re-invented, and the old dinosaurs died out.
The same happened with music, which ended up being free (though illegal) until apple came up with the IPod, which is the opposite of the last example, since it is more expensive then other MP3 player, just like the IPhone is more expensive then simpler phones (especially if you take into account the fact that you need AT&T to use it, and you pay for apps)
There are different reoccurring strategies that seem to work every time there is a shift in technology, and there are new strategies developed as well (such as blue ocean, judo economics and others)