When music became digital, it affected the music industry adversely. Almost to the point of destruction. Music compression led to MP3 in the 1990s. There was file sharing and CD making. In the coming decade starting from 2001, the global revenue of music industry declined from $ 24 billion to $ 15 billion in 2011. The revenue then rose again in 2016, to reach $ 20 billion currently. Music industry has created a new eco-system — there are streaming applications, short-video apps, and social media. It has made monetisation of the IP easier. Thus digitisation is now helping music industry to revive.

Over 2/3rd of the revenues come from streaming music. Short-video apps have created a new revenue stream. There is less music piracy now, as people do not browse on the internet for song but have shifted to the app-based consumption. These apps have introduced transparency and have enhanced monetisability. The value of music libraries have been unlocked. The song gets per play rate, ranging from 4 paise to 10 paise. When the song is played as a part of paid service, the label gets a revenue share. Payments are linked to trackability of a song. Investment has been made on digitising the libraries of music companies.

Artistes and music companies which own the IP are paid by the streaming music companies and short-video apps. Music companies license their collection of songs. Thus there are earnings from existing and new music both for the labels and the individual artistes. IPRS collects royalties on behalf of lyricists and composers. In 2020, IPRS distributed Rs.170 crore.

The changed music industry discovers and promotes new talent.