Introduction

In recent years, technology, innovation, competition, corporate policies, and government regulation have caused dramatic changes in the music industry. These changes have resulted in new global music business models. In particular, digital technology reshaped the way music is created, licensed, distributed, sold, and consumed. Music consumption is the many ways that people “experience” music by listening, watching, streaming, and downloading of musical compositions. Digital technologies have made the worldwide distribution of music, books, film, newspapers, and magazines much easier and cheaper, while significantly lowering the operating costs in those industries. The music industry has been the fastest to adopt and monetize digital formats. As Table 1.1 shows, close to 60 % of recorded music revenue—when revenue from some performing rights organizations, touring and merchandising are excluded—is now derived from digitally distributed formats—such as downloads, streaming and ringtones—while it is less than 25 % in films, books, newspapers, and magazines, but growing year over year. The music industry is now adjusting to these changes in digital technology by focusing on maximizing copyright revenue from existing music content (music publisher catalogs) and future content creation using a more efficient distribution system or supply chain. digital technology streaming business model