Ringtone Disruptor
People talk about free 411 as being a disruptive market - one that shrinks the size of the total market while creating a great business for the firm that does so. Craigslist would be another great example.
There is a lot of money in Ringtones. Alot of it by convincing unsuspecting teens to pay $10 a month. But now a company called Phonezoo is aiming to create a free ringtone mixer and creator for people to change their phone ring. For free. Copyright material too, if the person uploads a copy of the song to the server, ostensibly proving they own the music (or have committed the act of stealing elsewhere at the very least). I love it. Matt Marshall has a fantastic review of the company over at VentureBeat. Fascinating stuff.
