Digital music usually refers to music that uses digital technology in the production, dissemination and storage process of music. Based on differences in networks, insiders usually divide digital music into two types: online music (music provided for downloading or playing on computer terminals through the Internet) and wireless music (music provided on mobile phone terminals through mobile communication networks). This article analyzes the current situation and development prospects of online music from the perspective of the industry value chain.

Music is the first creative industry to enter the digital era, and the scale of the global digital music industry has been growing continuously for the past ten years. In 2010, digital channels accounted for 29% of the revenue share of the entire digital music industry. Although the value of the entire music industry has decreased by nearly one-third, digital revenue has increased by more than 1,000 in seven years. In 2010, the global digital music market was estimated to be worth US$4.6 billion, an increase of 6% compared with 2009. The global digital music market totals more than four times the online revenue from books, newspapers and movies. According to a survey by market research firm Gartner, global online music sales are expected to reach US$6.3 billion in 2011, a year-on-year increase of 7%.

Digital online music products have gradually replaced traditional music products and have widely affected people's lives. The new market characteristics of online music products make the real environment faced by relevant enterprises or departments in the value chain of the online music industry even more challenging.