The world of music has entered a dramatic change in the 21st century. These changes manifest themselves in the way people access and consume music. According to Hull, Hutchison and Strasser (2011) the music business has developed through three phases. Moving on from the agricultural era, in which the music business made money through live performances, troubadours, and patronage, the industrial era introduced new innovations that were assumed to be associated with long-term economic growth. Starting in 1950, sound recordings experienced a dramatic increase in sales, averaging 20% ​​per year (Krasilovsky and Shemel, 2007). While the music industry was dominated by six major record labels (Time Warner, Disney, Vivendi Universal, Viacom, Bertelsmann and News Corp.) (Hull, Hutchison and Strasser, 2011), further growth of the industry was recorded in 70s. , where record sales “rose from less than $2 billion at the start of the decade to over $4 billion in 1978,” which took a sharp turn as it entered the Depression around the mid-20th century (Krasilovsky and Shemel, 2007: 5). With the invention of the Compact Disc (CD) in 1984, the music industry managed to increase its record revenues again to over $4 billion. According to the Recording Industry Association of America (RIAA), profits in 1988 increased to $6.25 billion (Krasilovsky and Shemel, 2007). On the one hand, CDs have proven to be a very successful invention as they have shown that consumers are willing to pay for higher quality goods and services. But on the other hand it had introduced issues related to piracy. Illegal playback of analog phonograph records was a relatively harmless problem at the time, as the sound quality was reduced by a... paper medium... as well as a fictitious time trend, which equates to 1. Theorists have found evidence to support their aforementioned study which stated “structural change in the demand for recorded music” (Stevans and Session, 2004: 316). The time series model shows a decrease from 2.25% to 0.77% in the growth rate of how the buyer consumes recorded music, presumably taking into account the increase in means of distribution and all the other factors. With this model Stevans and Session demonstrated the link between music downloads and the decrease in demand for CD sales after 2000 and also predict that copyright laws potentially have an impact on reducing the price elasticity of demand, forcing digital distributors to lower prices. Consumers would then be able to benefit “not only from price stability, but also from a strengthened market for all music formats” (Stevans and Session, 2004: 322).