Digital technology and the shift in recorded music

The recorded music industry underwent a profound transformation in the span of a single decade. As Patrik Wikström observed in 2009, the centre of gravity has moved from the physical disc to the virtual cloud. Music is no longer something that mainstream audiences own and collect; now it lives in the cloud, accessible anytime. Digital technology has dramatically reshaped how music is distributed and consumed, and business models built around streaming and downloading have garnered intense attention over the past several years.

Published reports confirm this trend. The International Federation of the Phonographic Industry (IFPI) noted in 2019 that digital revenues accounted for 58.9 percent of the global recorded music market, while streaming revenue alone jumped 34 percent. Physical media, in contrast, made up only about a quarter of sales and saw a 10.1 percent decline in the same period (IFPI 2019a, 2019b). The avenues for marketing music have also shifted dramatically, with advanced technology providing new channels for music distributors and the old retail model becoming less relevant (Ogden, Ogden, & Long 2011).

Note on terminology — Throughout this piece, "the cloud" refers broadly to the internet and the ways music exists in a digital, always-accessible form online.

Two worlds diverging: the Nepal disconnect

The authors who study digital transformation often focus on the markets that have already made the transition. However, the situation looks starkly different in Nepal. While the global music industry regularly adopts new, digitally centred models — from all-you-can-eat subscriptions to ad-supported streaming — Nepal's music business still operates largely on a traditional framework. CDs, cassette tapes, and other physical recordings form the core of the market. Put differently, the move toward the global "cloud" model has yet to take root in Nepal, and there remains a distinct gap between the worldwide trend and the realities of the Nepalese market.

This technological lag might carry significant financial consequences. It could mean lost future revenue streams and a clear inability to reach potential consumers who have grown accustomed to accessing their music instantly rather than needing to visit a physical store.

This article looks into the current circumstances of the Nepalese music industry and examines the impact of digital technology there. The analysis is rooted in eight in-depth, semi-structured interviews conducted between February 2016 and August 2019 with key stakeholders from a range of Nepalese record labels, including major, medium, and independent companies. The interviewees each had more than two decades of experience running music businesses. All interviews were originally transcribed in Nepali and later translated into English for further analysis. The article also probed the structure of two neighbouring music markets and drew on two major theoretical frameworks: W. Brian Arthur's theory of technology, and Joseph A. Schumpeter's theory of economic development. The secondary data used includes government and media sources, local and international industry reports, and existing academic literature.

Debates and strategies on a global scale

Scholars have approached the issue of digital technology and music digitisation from numerous angles, each proposing frameworks, taxonomies, and models. Wikström used the example of Nine Inch Nails' Trent Reznor and the early digital marketing for the project Ghost I-IV to illustrate how a new business model might be built. He outlined three core dynamics reshaping the industry: connectivity versus control, service versus product, and the relationship between amateur and professional musicians. His more specific prescriptions include eight models: the single-song download, limited-download membership, all-you-can-eat subscriptions, ad-based music, value-based pricing, bundling music with other content, mobile inclusion, and the basic "to service or not to service" decision.

Stephen Bradley and his colleagues took a different, evolutionary approach to understanding the market by proposing five distinct evolution strategies for selling digital goods. These included moving from simply streaming direct to operating as a streaming intermediary, building an intermediary from a download-centric base, and hopping from one distribution method to another in careful stages.

Anandhi Bharadwaj and co-authors put forward a concept called "digital business strategy," describing it as the fusion of traditional business strategy and information technology planning — something that is reshaping corporate aims in the digital era. They suggested focusing on four dimensions: scope, scale, speed, and sources of value.

Others have zeroed in on the niche specifics of pricing models. Jens Hougaard and Mich Tvede argued that digitisation and peer-to-peer networks fundamentally alter music's characteristics; they then assessed six potential selling models. The mechanisms ranged from custom "mechanism design" and the Disney-style approach to game-console-like marketing, bundling music with non-private goods, the so-called "eyeball" model, and the open-source approach. The last two were highlighted as best for the current market. Gal Oestreicher-Singer and Lior Zalmanson brought social computing onstage, while others, like Tom Ewing, pointed to online community-driven models such as those seen at ILX, the popular music discussion board.

Adapting elsewhere: case studies and a digital frontrunner

When researchers turned to the developing world for specific adaptations, the differences in digital implementation become apparent. Muhammad Maraghah's investigation of Egypt looked closely at how the local industry might achieve a sustainable income stream through technology. His prescription was to build a digital aggregator called the Digital Arabic Repertoire and Network Aggregator tailored specifically to independent Egyptian and Arabic labels. Dellyana and Simatupang mapped existing Indonesian distribution methods including ring-back tones and mobile music while also exploring licensing and entertainment extensions as fresh sources of income. Further studies speak to independent routes in Canada and examine consumer behaviour in Brazil.

One standout, world-leading case comes from Norway. Daniel Nordgård describes the country's take on subscription-based, on-demand streaming as a "sustaining innovation" rather than a disruptive force, something the Norwegian industry absorbed deliberately. Its transition from a pure physical market gained real speed around the 2010s. In the beginning, only about 9.3 percent of total revenues came through digital. By 2012 that number had jumped to 61.4 percent, and then to 77.6 percent only a year later — meaning digital effectively toppled the physical format's dominance. As streaming claimed 65 percent of national market share, downloads nudged the totals further upward still. IFPI data indicates that the steady rise since has kept Norway atop the global content-consumption rankings.

The critical argument: disruption vs. inevitability

Amid the clearly positive stories, one finds nagging doubt. While some view this transition as the music industry's biggest opportunity in decades, a substantial camp insists that digital technology presents a fundamentally destructive force. François Moreau's 2013 analysis calls digital conversion a sheer "disruption" to recorded music selling. Dagfinn Bach brings environmental risk from data networks up as a crucial qualifier. Other researchers see the whole matter through the metaphor of an "earthquake", with seismic rifts appearing between artists, audiences, and all the intermediaries in between (Jenner & Brown 2006). Privacy concerns, specifically concerning the risk of theft and copyright infringement, also generate concern.

Further proof of danger is drawn from global consumer studies containing tens of thousands of participants. For example, a short summary of O. Bustinza and their European colleagues shows illegal file sharing rates above 28 percent in ten different countries spanning North America, Europe, and East Asia. Karla Borja and colleagues directly tie music streaming — the very "saviour" model promoted elsewhere — to roughly 20 percent upticks in confessed piracy, meaning legal consumption and digital theft are uncomfortably linked. For these researchers, stronger copyright controls become necessary.

The response to the "piracy as existential threat" idea is hardly quiet, even if those voices differ. Some indicate strong resistance against outdated narratives of diminishing revenues — pointing out certain statistical coincidences may blend causes. M. Kretschmer accuses the record industry's defensiveness more broadly as possibly damaging its own future. Meanwhile, businesses seeing success are quick to show it: The Independent Music Companies Association still puts copyright-infringing internet foot traffic at less than half in their consumer-track metrics, and Heath stakes a grounded counterclaim through reference to user acceptance early in marketplace movers like iTunes.

Voices against the tide: seeing growth after adaptation

Some steadfast rebuttals emerge as key, among them the work by Cammaerts and their collaborators that credits revenues that spiked from the adoption of pure subscription media; picking adaptation early scales momentum well out from danger instead. Olufunmilayo Arewa wants policymakers to include the human end — smooth pricing structures, prioritised user comfort — instead of only suing listeners. This joins with Nordgård's stern prescription that a market either embraces or faces irrelevance — technological progression's "drift into adoption logic" probably cannot be staved off."

Ancient roots to infrastructure growth: the story of the Nepalese industry

Nepal's unique starting point makes it distinct. A deeply ancient song tradition persisted inside and only in regional courts until after the Shah monarchs were joined — the new unified Nepal, by Whelpton's synthesis, emerges as such only into large style on very horizontal loops before really large data exchange.

Only by the time Radio Nepal aired signals in the 1950s (per Greene & Henderson), could Nepalese listeners formally hear broadcast audio shared outside extended boundaries rather than gate-crashing ceremonies by private clout. It opened song-making routes deeper: in 1908 those studio recordings traced back across border marks more tightly tied historically to Setu Ram Shrestha, being the first behind controls and microphones. Main take proves one to steer development after extended recording centres sprout — helped strongly by late 1970 sound-in-theatre appearances accompanied inside nation-owned open-medium technologies financed largely by growth from short tape carriers; all moving from strictly wooden furniture displays, sputter production crossing from hand-transferred scripts across analogue gates dropped steps later nearing major infrastructure shows grow music

Ratna Recording Corporation went on to acquire it. Then came the audio cassette format, which pushed vinyl aside and became the backbone of music commerce until the late 2000s. Later, the CD arrived and completely supplanted audio cassettes. Today, CDs remain the main legal music revenue stream in Nepal’s music industry. More than a hundred studios across the country are involved in recording and distribution (Subedi 2019).

Almost every day, new music albums are released on CD. According to Kasajoo, the Nepalese music industry’s annual turnover is estimated to exceed four million US dollars (Kasajoo 2008). The private sector began to expand from 1980 onward, and over the past fifteen years commercial folk music lok dohori has surged in popularity.

The RBT model is emerging as the biggest income generator for Nepal’s music scene. It comes in two subtypes: the personal ring back tone (PRBT) and the caller ring back tone (CRBT). A report from Himalayan Television indicates that this model currently brings in roughly US$410 000 each year for the industry. Former AMIN president Padam Bahadur Buda notes that RBT is a growing revenue stream, one that pulls in income from six or seven Gulf countries (Nepali Banknews 2012). Meanwhile, live music shows both local and international have become vital sources of income as album sales decline and payments from music companies and RBT providers shrink. Concerts in Nepal itself and especially those staged overseas by the Nepalese diaspora now deliver substantial funds to artists and the industry (Image Channel 2013). CDs and VCDs used to be a major money earner; they still matter for artists and labels, but their share has fallen off a cliff in recent years. At their peak, over two hundred thousand units shifted each year; now the figure sits in the hundreds. The CD/VCD trade is a dying business for Nepalese music. YouTube revenue remains invisible on the books, but it is expected to become a substantial contributor soon. Recently, YouTube channels have proliferated in Nepal as promotional and marketing tools (Nepali Banknews 2012).

The current market is split across three genres: commercial folk music (lok geet, dohori geet) commands 50 %; modern songs (adhunik geet) hold 25 %; pop, regional, and other linguistic songs share the remaining quarter (Nepali Banknews 2012). Technological upheaval has driven many established record companies into bankruptcy. Only a few have survived. Among them, Music Nepal is the oldest and largest; founded in 1982, it now controls one third of the market (Music Nepal 2019). Other active and growing labels include Bindabasini Music, Budha Subbha Music, Ranjana Music, SAC Music, Santana Records, and Rebel Entertainment. Before digital technology took over, the Nepalese music industry used to transact millions via cassettes, CDs and VCDs. More than ten thousand people were directly or indirectly employed in the business. But sales of over 200 000 cassettes and 50 000 CDs/VCDs have dwindled to the hundreds and keep falling. Cassette production and sales have all but ceased, while CD sales are battered by duplication and piracy (Nepali Banknews 2012).

4. Situating the Nepalese Music Market within Neighbouring Music Industries: An Analytical Perspective

Nepal lies landlocked in the central Himalayas of South Asia, bordering China to the north and India to the south, east and west. It is often described as a sandwich between two giant neighbours. Socially, culturally and politically, Nepal shares many features with both, though its socio‑cultural system most closely resembles India’s. In music culture — dialects, instruments and repertoire — the north‑eastern part of Nepal, where Sherpa communities live, is heavily shaped by Tibet’s Trans‑Himalayan region (Kaufmann 1962). While mountaineering is the Sherpas’ main livelihood, their recordings have become a notable presence in the recorded‑music market over recent decades. Similarly, groups such as Newar, Gurung, Tamang, Magar and Maithili had their ethnic and regional music introduced in media form only after the 1950s, when Radio Nepal was created under the one‑party Panchayat government to promote musical nationalism. Competitions and festivals boosted this music, but after the Panchayat system was overthrown in 1990, liberalisation and pluralisation opened up media and music, allowing these styles to develop as niche markets (Stirr 2017: 29–51).

Beyond these niche markets, the mainstream Nepalese scene owes a great deal to Indian music culture. Carol Tingey traces Nepalese music history back to Indian connections from the 14th‑15th centuries; ensembles such as nagara bana (kettledrum ensemble), used by King Akbar as a symbol of royal power in the Indian court, were brought in by Rajput settlers from India during that period.

This ensemble has since become indispensable in Nepalese society (Tingey 1990). Indian music culture is even more evident and deeply embedded in everyday life. Janet Sturman writes:

> “The music of Nepal, a nation located in the shadow of the Himalayas, represents Indian, Islamic, Tibetan, and Nepali music traditions […]. Indian classical music and musicians played a role in Nepali courts and among the upper castes” (Sturman 2019: para 3).

Like Sturman, many scholars have noted the influence of Hindustani classical and semi‑classical styles, especially in adhunik geet, which rose to tremendous popularity after electronic media arrived. Before the civil war sparked rural migration and propelled the rural‑originated genre dohori (dialogic, conversational sung poetry) to the top of the market, adhunik geet held more than half the market (Henderson 1996; Green and Henderson 2000; Grandin 2005; Stirr 2017).

Bollywood music is another favourite among Nepalese audiences. Bollywood artists travel to various parts of Nepal — especially Kathmandu — almost every month for live concerts. Between 2015 and 2019, stars such as Sonu Nigam, Sonakshi Sinha, Himesh Reshammiya, Farhan Akhtar, Neha Kakkar, Kailash Kher and Aditya Narayan performed in Nepal. Furthermore, Bollywood films dominate Nepal’s movie market (Global Times 2012; Pathak 2017: 167–177). Aljazeera reports:

> “[…] 80% of Nepal’s film market is dominated by Bollywood, the world’s largest film industry that churns out 1,000 films annually compared to 95‑100 films released domestically” (2014).

Bollywood films are released weekly and occupy the biggest, most popular cinema halls in Kathmandu and other major cities. Indian influence extends far beyond music and film: the entire Indian entertainment sector — TV shows, movies and live concerts — has a heavy presence on both national and private media platforms. Digital technology has certainly helped entrench this hegemony, but open borders and cultural and linguistic similarities are just as important.

The Nepalese music market is much smaller than its Indian and Chinese neighbours. According to the 2019 IFPI report, China’s music market ranked seventh in the world (2019). It jumped from 12th to 7th place in just two years. Streaming dominates the Chinese industry, generating 70% of recorded‑music revenue in 2017 (Soundcharts 2019; Musically 2018). India also shows huge potential; streaming revenue grew 60.8% in 2018, placing it 19th among global markets in 2016 (Music BC 2017). India entered the streaming business only recently, but given its surge in digital growth on both mobile and streaming channels, reports predict it will join the top ten global markets soon (Music Business Worldwide 2019; Livemint 2018). IFPI states:

> “India’s mobile phone market grew hugely in 2006 and has since gained more than half a billion subscribers, taking the total today to 900 million. Music plays a key role in mobile operators’ customer acquisition, branding and engagement strategies, as smartphone adoption rises. Leading operators such as Airtel, Vodafone, Idea and Tata Docomo offer a range of music services including ringtones, ringback tones, downloads and mobile radio streaming services – which are usually bundled into subscription packages” (IFPI 2020).

Similarly, Forbes observes:

> “[India] recently surpassed the U.S. as the world’s second-largest smartphone market, which is estimated to reach 450 million users by 2020. Moreover, 96% of these phones are expected to be manufactured domestically, which has direct ties to music streaming: three of India’s largest streaming services – Jio Music, Wynk Music, and Gaana – are run by local telecom and internet companies (Reliance Jio, Bharti Airtel, and Times Internet, respectively)” (Forbes 2017).

Based on Indian and Chinese digital music data, mobile‑based music is a vital revenue stream in India, while China leans primarily on streaming. After digital technology emerged, all three industries — Indian, Chinese and Nepalese — faced similar problems: illegal file sharing, unauthorised downloads, piracy and a drastic drop in physical sales. Yet India and China embraced digital

technologies and found profitable ways to sell music. The Indian market, for instance, developed local download and streaming apps such as Gaana, Hungama and JioMusic that partnered with telecom services. Saavn, Wynk and others also serve music consumers. Today, 85% of online music in India is consumed on smartphones (Music BC 2017). Despite having many mobile and smartphone users, Nepal’s music industry has not been able to address the needs of the digital music business. Apart from RBT and PRBT, there is no other legitimate digital music model in the Nepalese market, notwithstanding the huge influence of the Indian industry. While its neighbouring music markets race toward becoming global leaders, with impressive development and growth in digital music, the Nepalese industry is struggling to find a replacement for its dying physical‑music business.

5. Digital Music Business: Challenges and Opportunities for the Nepalese Music Industry

During the cassette and CD era, the Nepalese music industry was in decent shape. The emergence of digital technology alone is blamed for its collapse. Thousands lost their jobs, many artists abandoned the field, record companies were forced to shut down, consumers turned into illegal users, music became free on the cloud, and the industry lost its business. RBT and YouTube are the only platforms the industry uses to offer music legally in digital form. RBT services managed to integrate the music industry with telecoms. YouTube has brought in some additional revenue, and labels publish their content as a free service. Music industry executives have eventually accepted that the physical market will not be revived.

In interviews with executives and stakeholders from major, medium and independent labels in Nepal, six of eight strongly recommended an alternative model to digitise Nepalese music and make it available on international platforms as well as locally. Two said they preferred to form an alliance and act as leaders, given their large catalogues and access to global platforms. The other six gave their consent and would welcome an alternative digital aggregator. One said:

> “We are very positive about that [digital music business] opportunity. In fact, we are looking for the kinds of possibilities where some new aggregator arrives and gives us new hope and new possibilities. We are very positive for the new entrants” (Executive III, indie label).

They are very interested in the alternative model and ready to hand over their content for a decent offer. Another executive noted:

> “If anyone can help us to reach these international digital platforms directly and we can provide our music content to them directly, we are always welcome [to] that opportunity” (Executive II, major label).

Their enthusiasm for an alternative model is urgent. They also show willingness to work in an environment where they can pursue new opportunities and expand. One added:

> “Definitely, if there is some convincing opportunity where we can work and grow our business, we are very positive about the alternative. Not only us, [but] many of the stakeholders are looking for such opportunities” (Executive I, indie label).

Most interviewees, especially from small and medium labels, said they feel compelled to stick with traditional models because their labels are unknown and they do not know how to access global markets. One described the situation:

> “We do not have any general idea about how to reach them. If we have any access for that we will consider it as our opportunity and path to introduce Nepalese music in the global music market” (Executive IV, indie label).

For making the digital Nepalese repertoire available locally, most interviewees saw telecoms as the best route. Mobile‑phone usage has grown enormously. Six telecom companies operate in Nepal; mobile accounts for 94% of the market, with fixed‑line services and others taking the rest. The biggest shareholders are private mobile operator Ncell (40.42%) and state‑owned Nepal Doorsanchar Company Limited (57.15%), with the remainder distributed among smaller companies (Nepal Telecommunications Authority 2015). Several respondents noted that collaboration with telecom operators is the best way to offer legitimate digital content locally. One stated:

> “If we collaborate with telecom services and create the

environment to provide customers full songs and videos, [then the] future of Nepalese music business is positive” (Executive III, indie label).

Another added:

> “The potential opportunity regarding the current scenario is integration with telecom services to reach the potential consumers with open access and open competition within the record labels” (Executive I, medium label).

Most interviewees expressed a desire to work with alternative models to reach the global market. They emphasised that access and networks are essential for the digital music industry, both locally and internationally.

With the arrival of new technology, the Nepalese music industry has undergone dramatic change. Investment in records has dwindled. Most reported that the structure is shifting from physical to digital. Throughout all interviews, one concern recurred: the urgent technological needs of the industry. Below, a few executives recount those challenges:

> “Everything has changed with the technology and our traditional knowledge does not work. It is urgent to have knowledge now [of] how new things are going in the music industry; how [the] digital arena works and how to make [the] best use of those available platforms” (Executive I, major label).

> “The major drawback in Nepalese music is that we are behind in employing technology. We only know how to produce an album and that is it. Even 5% of us do not have knowledge of how to make it available on global platforms and how to approach the global digital network. In fact, the Nepalese music market is growing but we are lacking the knowledge and network” (Executive IV, indie label).

> “Lack of technological acceptance and our insufficient marketing strategies are major problem in our music industry. The reason behind our slow progress is technology. We do not have instant and sustainable access to the internet. We couldn’t employ the advantages of technology and we lack knowledge to use these new technologies” (Executive III, indie label).

They describe technology as the main obstacle to industry development. Medium and small labels are especially concerned with technological requirements and expertise. They added that limited access to international platforms, inadequate training and knowledge about digital technologies, and a shortage of human and technical resources are key barriers to legal digitisation of Nepalese music.

Two theoretical frameworks — from W. B. Arthur and Joseph Schumpeter — help frame the impact of digital technology on music distribution in Nepal. Arthur writes:

> “More than anything else technology creates our world. It creates our wealth, our economy, our very way of being” (Arthur 2009: 10).

He views technology as a method, process or device that fulfils a purpose. He defines the economy as “the set of arrangements and activities [with] which a society satisfies its needs” (ibid., 192) and calls technology the skeletal structure of an economy. When technology changes, the economy changes. Broader theory of technological evolution echoes Joseph Schumpeter’s idea of “new combinations of productive means in economic change” (ibid., 15–26). Schumpeter argues that economic development is a phenomenon that alters and displaces the inherited system, where mechanisms of circular flow operate as the

central force preserving equilibrium within the existing economic system. The fundamental engine of transformation in the traditional economy involves executing novel combinations — especially within a competitive environment, where these combinations eliminate the old (Schumpeter, 2012: 67). Schumpeter defines 'new combination' as innovation.

Given these innovation attributes, music digitisation and the associated digital enterprises qualify as new combinations within the music industry. In Schumpeter’s framework, the Nepalese music industry finds itself needing to adopt such new combinations to embrace digital music. Fading revenues and a shrinking physical product market — what Schumpeter would call circular flow — require replacement. This innovational shift could reshape the Nepalese music sector and stimulate its overall economic growth. Likewise, Arthur’s view of technology as a method, process, or device for fulfilling a purpose offers a lens for examining how technology can drive economic progress in the Nepalese music field.

To grasp the challenges and explore a viable legitimate music distribution model for Nepal’s industry, reviewing established models proves useful. Numerous download systems have been developed for digital music sales. Apple’s iTunes launched

legal music provision to consumers in 2003 through the "Single Song Download Model." Amazon followed suit in 2007 with a similar approach. Another variation, used by both iTunes and Amazon, is the 'Membership Download Model,' where the ability to download music corresponds to a subscription (Wikström 2009: 101–103). Music streaming represents the second most effective digital music model, existing in subscription-based and ad-supported forms. Subscription streaming is now a major growth engine for digital music revenue; according to IFPI, it generated over half (58.9%) of global recorded music revenue, with streaming overall rising 34% in 2018 (IFPI, 2019). Research by Ipsos Media CT for IFPI reveals that 74% of consumers use streaming sites, compared to 73% who prefer downloading platforms. Download models hold favour in nations like Germany, Austria, Canada, and the USA, while streaming dominates in Sweden, South Korea, Norway, and Finland (IFPI 2015).

Beyond downloading and streaming, music video and internet radio models have also entered the digital marketplace. VEVO and YouTube, for instance, draw massive global audiences and generate substantial advertising income. The popularity of watching music videos online continues to grow, making the music video model a significant income stream in the digital market. Psy’s 'Gangnam Style' exemplifies this with over one billion views on YouTube. Meanwhile, huge numbers of consumers are embracing internet radio services such as Last.fm, Pandora, and iHeartRadio, which offer customised playlists tailored to specific artists or genres and provide various listener-control options; this model is most prevalent in the USA. Bundling strategies are widespread across business sectors; music too can be sold through such approaches via newspapers, magazines, mobile devices, and other products. Wikström highlights common examples, such as the partnership between the Irish rock band U2 and Apple, alongside Nokia’s expansive 'Comes With Music' bundling program (Wikström 2009). Given that mobile telephony has become essential, collaborations between record labels and mobile phone companies can yield tremendous revenue. In South Korea, for example, SK Telecom — with over twenty million subscribers — integrates with major label JYP Entertainment and distributor Seoul Records. SK Telecom also operates the nation’s largest online music service 'MelOn,' attracting over four million basic subscribers and 600,000 premium subscribers who pay a $5 monthly fee for unlimited music access (Ibid.).

Based on the above analysis of current legitimate digital music business trends and models — innovations made possible by new digital technologies — together with an examination of neighbouring music markets, an overview of popular distribution models, relevant theoretical frameworks, discourse, and interview data, the research findings can be distilled into seven key points:

1. The current market is deeply affected by the severe downturn in physical music sales. The RBT model is failing, and YouTube generates insufficient revenue for medium-sized and independent labels. Other income sources do not adequately support the industry. A legitimate digital music business offers a viable path forward.
2. Insufficient technological resources, knowledge, training, and skills serve as major obstacles to music digitisation. A lack of international contacts, networks, and awareness of how to connect with digital services further blocks a lawful digital music industry in Nepal.
3. Most record companies are willing to shift from existing models to an alternative one and are prepared to supply their content. They aim to make their music available on international digital platforms, yet lack the know-how of what steps to take or whom to approach.
4. Integrating with telecom providers to upgrade and expand RBT services — offering full-song content for both downloading and streaming — presents a possible opportunity for a local digital music business.
5. Online banking could facilitate digital music purchases. The current banking system, which lacks online functionality, prevents this.
6. Stakeholders perceive no profitable environment for further investment in record production, which has suffered from the illegal market. Copyright and intellectual property enforcement are weak, and no monitoring body exists.
7. Stakeholders face exploitation under existing industry mechanisms. They are forced to furnish content to telecom operators, which is then used across multiple digital services without their knowledge, and receive no payment. A severe lack of transparency and an absent monitoring body plague the sector.

Conclusion

Andrew Blum describes the internet as both a culture and a medium (Blum 2012). Today, the world stores data in the cloud. Global music is turning digital, as new technology reshapes the industry into a fast-growing digital marketplace. While the worldwide music sector transitions toward digitisation, Nepal’s music industry has failed to adapt to a digital music business model. This paper investigates the critical barriers to a lawful digital music enterprise in Nepal, along with its prerequisites, challenges, and feasibilities.

The study finds that Nepal’s music industry cannot offer legal digital music services to consumers due to insufficient technological resources that would enable entry into the legitimate digital market. Furthermore, international connections and networks are ineffective. The lack of legal distribution services for legitimate music strengthens the illegal market. Record companies lack the technical capabilities, human resources, skills, and knowledge required to digitise music. The banking system also presents obstacles to digital financial transactions. Additionally, the paper identifies the pressing need for a legitimate digital music business in contemporary Nepal to address the situation. Secondary data supports the major interview findings. Through careful examination of the research problem, a survey of available models, insights from neighbouring music industries, and interviews with executives, establishing the Umbrella Aggregator and Network for Digital Nepalese Repertoire (UANDNR) emerges as a feasible digital business model capable of transforming Nepal’s current music industry into a legitimate digital enterprise.