Digital disruption has radically transformed music from a product to a service, and the evolution of that industry offers guidance for every category. The digital disruption of the music industry has been widely touted as the toppling of major labels by digital insurgents, yet major labels remain at the center of the industry. In all industries, digital technologies are enabling challengers to contest incumbents with new business models that bypass the centrality of a product in creating value and growth. From its earliest days, the recorded music industry revolved around a product: sheet music and cylinders, then records, then CDs and eventually downloads. Napster dealt the first digital blow; file sharing meant consumers no longer had to buy or own a music product to listen. Major labels took legal action, but the impact could not be outlawed. U.S. recorded music revenues peaked in 1999, the year Napster launched. Les mer