Digitisation has significantly changed the process for producing and consuming music: from analogue to digital, from albums to songs, from possess to access, from audio to visual, and from end products to promotional products. Hence, in this globalised digital era, actively embracing digitisation would likely help enhance the competitiveness of the music industry. The rise of K-pop and the decline of J-pop clearly demonstrate the different results from whether to embrace or wrestle with digitisation. The Korean music industry recognised changes brought on by digitisation earlier and was more active in responding with better strategies. By contrast, the Japanese music industry did not immediately respond to these changes but stuck to its rent-seeking behaviour in order to take advantage of its larger market size and “sophisticated” copyrights regime. The implications from this paper are that business activities are the core element for creating and enhancing competitiveness, rather than government intervention.