When music is recorded digitally, it can be perfectly reproduced, and playback quality is high. Efficient compression techniques such as MP3, high-speed broadband networks, and cheap data storage make it feasible to store music files on Internet servers, from which they can easily be downloaded to listeners’ storage and playback devices. The Internet thus becomes the “content and the conduit,” that is, a source as well as a distributor for digital music. This article examines the threats to the music industry posed by these technologies, and suggests ways in which the key players could protect their markets.

The key players are identified as artists, record labels and retailers. The authors give an interesting analysis of the concerns of each industry section, and suggest new business models for the participants to consider. For example, rather than forcing consumers to purchase pre-recorded CDs, retailers could provide in-store facilities for individuals to burn personalized CDs. But what about piracy and copyright concerns? The authors favor a three-pronged approach. This would involve the use of technology (such as digital watermarking), legislation (such as DMCA) and education to prevent copyright abuse. While this is a step in the right direction, it should be noted that legislation has already proven problematic. The DMCA is controversial and some of its provisions are widely opposed. Besides, legislation would have a hard time keeping up with the rapid pace of technological developments. Now may be the time to consider a radical overhaul of the Intellectual Property laws.