To understand this diagram better, take a close look at digital photo development. In 1976, the digital photo industry was just at the very beginning of its era and demonstrated a low quality of photos. Nobody actually believed that this would eventually become a "new black". But then digital photos and cameras actually almost entirely replaced physical photos on the market. This was the period of disruption.
In 2012, with the bankruptcy of the Kodak, the digital camera market came to the point of dematerialization and democratization because nowadays every smartphone has a digital camera. Of course, most professionals still use these high end cameras, but they have already become a specialized tool, not for everyone.