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The new technological developments and business strategies hold considerable promise to eradicate market inefficiencies and unravel a new era of digital commerce. Micro-commoditization and micro-consumption are the two new economic forces in motion, in the world of e-Business. With the advent of electronic commerce there is a shift from the traditional Pay First-Consume Next model (PFCN) and Consume-First-Pay Next model (CFPN) to a Pay-As-You-Consume model (PAYC) configuration. Among the various genre of microproducts, digital microproducts, such as music, movies, news, information items, and video games have a huge industry. The present work incorporates the concepts of microconsumption, micro-commoditization and the PAYC model in a web-application named On-Demand-Music. The PAYC model enables automatic reduction of balance from the customer’s bank account, making the payment process fast and easy. The application enables users to consume digital microproducts (here music) in small granules rather than buying huge bulk of music (e.g. buying an entire CD containing only one or few favorite song(s)). The Software Development Life Cycle (SDLC) approach has been used to analyze, design, code and test the webapplication. Developed using technologies such as Java Server Pages TM (JSP), MySql and various Java plug-ins, the application enables users to listen to their favorite song(s) or parts of chosen song directly from the server. The usefulness of present work is that it makes the mode of payment easier and brings out the essence of microconsumption, micro-commoditization and the PAYC model in music as an example of digital entertainment microproducts.