Analysis and prediction of the digital music market

This paper analyzes the conditions and functions of the present music market, with the main focus on the distribution of music in digital formats. It discusses fundamental concepts as well as the law framework which is used in the Czech Republic and worldwide. Firstly, the paper discusses technological aspects, including various music formats, the realization of sales via the Internet, and the usage of file sharing networks. Secondly, the paper discusses important services already available on the Internet, which have had a significant impact on the market, and whose influence will continue well into the future. To better understand the present situation, an analysis of piracy phenomena is crucial. This analysis is based on many published studies and has attempted to reflect the attitudes of customers, musicians, and the music industry in general, towards the present state of the market. Finally, various opportunities are discussed for designing potentially usable services, which could possibly create value for consumers and the music industry in the future. These models include protectionist services transformation, supply diversification, subscription approach and streaming. New models are globally compiled together with outlined relations between them