How is the Music Industry Making Money?

SOURCE: Spotify.com

KEY ECONOMIC PRINCIPLE(S) I’M ADDRESSING:

Institutions are the “rules of the game” that influence choices

OVERALL RESEARCH QUESTION:

What changes will the music industry try to make now that there is almost always a

free alternative for getting music?

SUB QUESTIONS TO HELP ANSWER OVERALL RESEARCH QUESTION:

How do free music apps like Spotify make money?
How much money is the music industry losing from songs being pirated or obtained by other means?
How can consumers be persuaded to buy their music rather than finding a free alternative?
How does this affect music producers and the bands that create the songs?

RESOURCES FOR RESEARCH: The New Economy, Investopedia, Forbes