Digital Music: Economic Perspectives.

Summary The music industry is facing the development of online P2P networks, direct download services and other forms of digital piracy, while at the same time the format and promotion of pre-recorded music are undergoing major transformations with the advent of MP3 and new forms of collective promotion, particularly through online communities and social networks. The chapter is organized as follows. First, I analyze how digital piracy and digital music distribution are changing the demand for pre-recorded music. Next, I review new business models and give perspectives on how cloud services will challenge existing offers. I conclude the chapter and discusses the policy implications of digital music distribution.