The paper addresses a case study of the evolution of the music distribution system in Sweden from distribution of physical records, primarily retailed in specialist record stores, racks and department stores, to digital steaming on-demand via services such as Spotify and Youtube. The case study covers three distinct eras over thirty years, 1983-2013. The paper contributes to the discussion of whether evolution is a slow and gradual process of equal speed or a process where equilibrium-like situations are punctuated with sudden “shocks” of greater amplitude leading systems to exhibit more dramatically net evolutionary change in limited time frames. Being true to a Darwinian perspective, this study applies a multi-level systems view, and shows how “evolution of variation, selection, retention” can be complemented with a punctuated equilibrium model.