Study on Digital Music Industry Operation in China

Abstract

Since the 1980s, the rapid development of computer science and internet technology has brought profound reforms to the world. Digital music industry was born in this background, and it was the product of combination between traditional music industry and the new technology. Digital music has the advantages of low cost, high efficiency and personalized communication; it fits the demand psychology of consumers to cultural content products under the condition of new technology, and complies with the development trend of current cultural content industry; it has become the focus of cultural industry practice at home and abroad because of the rapid development in recent years. Digital music industry has great difference with traditional music industry in terms of business model and industry chain construction. The differences are not only the characteristics of digital music industry, but also reflect the common features of digital content industry with wider ranges, which contains the digital music industry. To study these features, this paper summarizes its inherent laws and finds out its development direction, which would be beneficial to the guidance of current cultural content industry practice. Combining with related concepts of economics, through data analysis and case comparison, the paper focused on the study of the laws of operation for digital music industry, systematically discussed the development of digital music industry, industry characteristics, industry chain structure, the business model, and the development strategy, aimed to find out the technical and social reasons behind the rise of digital music industry, analyzed the relationship of integrant parts of the industry chain, compared the similarities and differences, advantages and disadvantages, and development prospects of the different business model in the industry, pointed out the advantages and disadvantages, opportunities and threats facing in the development of this industry in China, and put forward the corresponding opinions and suggestions to the future development.