Paid download

A music download is the digital transfer of music via the Internet into a device capable of decoding and playing it, such as a home computer, MP3 player or smartphone. This term encompasses both legal downloads and downloads of copyrighted material without permission or legal payment. According to a Nielsen report, downloadable music accounted for 55.9% of all music sales in the US in 2012. As of January 2011, Apple's iTunes Store alone made $1.1 billion of revenue in the first quarter of its fiscal year.

Popular online music stores that sell downloadable singles and albums include the iTunes Store, Amazon MP3, fairsharemusic, eMusic, Google Play, CD Universe, Nokia Music Store, TuneTribe, Xbox Music and MyMusic.com.ng. Paid downloads are sometimes encoded with Digital Rights Management that restricts copying the music or playing purchased songs on certain digital audio players. They are almost always compressed using a lossy codec (usually MPEG-1 Layer 3, Windows Media, or AAC), which reduces file size and bandwidth requirements. These music resources have been created as a response to expanding technology and needs of customers that wanted easy, quick access to music. Their business models respond to the "download revolution" by making legal services attractive for users.

Even legal music downloads have faced a number of challenges from artists, record labels and the Recording Industry Association of America. In July 2007, the Universal Music Group decided not to renew their long-term contracts with iTunes. This decision was primarily based upon the issue of pricing of songs, as Universal wanted to be able to charge more or less depending on the artist, a shift away from iTunes' standard—at the time—99 cents per song pricing. Many industry leaders feel that this is only the first of many show-downs between Apple Inc. and the various record labels.

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