The Internet has affected the music industry in profound ways. Prior to the Internet, few performers had the resources to record, master, mass-produce, market, and distribute their works on a wide scale. Record labels selected performers they thought would be popular and signed exclusive contracts to handle getting the music heard on the radio, available in record stores, played in movies or commercials, marketed to the right potential consumers, etc. For this service, the record label received a large fraction of the resulting revenues. If the performer turned out not to be popular, the record label ended up losing money.

Using Porter's Five Forces, describe the changes to the "record label" industry from the introduction of the Internet and digital distribution channels such as iTunes and Spotify. The record labels' suppliers are the performers. The record labels' buyers are individual consumers (for this question ignore the licensing to sports stadiums, TV shows, etc. because those relationships are exceedingly complicated).

Part A: Supplier's Bargaining Power

Part B: Buyer's Bargaining Power

Part C: Threat of Substitutes

Part D: Threat of New Entrants

Part E: Rivalry among Existing Firms