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The case discusses the digital music revolution and the implications this has on the global music industry. It focuses on Napster, Inc, being primarily responsible for these sweeping changes. As background, it provides an overview of the present global music industry, showing financials, revenue streams, growth rates, market shares, et al. It also outlines a basic overview of the music industry''s present supply chain. It then provides a fundamental explanation of digital music distribution and how it is different from traditional distribution. After this, it goes through the young history of Napster, Inc., narrating: (1) why and how its technology was developed; (2) its progression into a formal organisation; and (3) the issues surrounding the present state of litigation against the company. Finally, it presents the wide-ranging impact the firm has had not only on the music industry, but also on other forms of media and their respective industries. This case contains colour exhibits.