The Internet, by making free and non-free online distribution of music, has profoundly affected how business is conducted in the record industry in terms of distribution channels, copyright and the economic structure of the major players in the global market. Initially, the Internet was viewed as an opportunity by some of the major players as a new channel of promotion. However, after the existence of Napster and few others, the majority considered it as threat because of the increase in the free file sharing. Consequently, for the Internet to be an opportunity for the major players, they had to adopt new business model in terms of distribution for online customers while keeping their conventional distribution channels. Early response to this threat was searching for technological solution in order to prevent piracy, going to court to sue for copyright infringement, the five major players and others offered their own...