There is no doubt that the Internet has changed and will change the recording industry for some time to come. It has opened new ways to promote, distribute, and sell recordings and songs-as well as to copy them illegally. It has offered artists fresh opportunities to reach fans and to promote live appearances. It is having a significant impact on all three income streams, publishing, live performance, and recording. There are three dimensions of Internet use to be explored for each income stream: the Internet as a promotional tool for artists, labels, and publishers; as a distribution pipeline for hard and digital copies; and the legal battles being fought over unauthorized distribution and downloading of copies. All of these dimensions offer both good news and bad news for the music industry.