The purpose of this dissertation is to examine how the impact of music downloading has on music industries. The investigation for this dissertation was carried out with a broad research on significant literature and of primary research completed by a focus group which led to the research findings. The key findings pointed towards how the music industry has changed due to the process of online music down loading from the internet. It examines the nature of music buyer behaviour when consumers purchase music online or retail purchase. Next it explores the direct link with legal matters when downloading music from illegal websites. The data analysis was implemented by a focus group where questions were posed to a target audience and their views were applied to conduct primary research. The recommendations made for this project suggest that there is a substantial amount of illegal downloading being performed by consumers. The respondent's views are that there is not enough regulation being carried in this industry. Retail stores will have to enforce new marketing strategies to maintain their stores. Going forward, the traditional methods of selling music will have to incorporate more comprehensive and innovative techniques of providing music to remain a going concern.