This study analyses recent development of digital contents industry. The purpose of this study is to show how the convergence phenomenon is occurring in the digital contents industry. Furthermore, this study examines the influence of digital convergence on the digital contents industry. The characteristics of the digital contents industry falls roughly into three features. To begin with, technical aspect of the industrial feature is that digitalized contents can be used in various digital devices, namely OSMU(One Source Multi Use). The second feature is related to protection of copyright against illegal file sharing and downloading. One final point is that platform for distribution channels has been universal by digital convergence. To sum up, the notable feature of digital contents industry is high value-added. Also, digital contents industry is composed of users, digital device, network, and universal contents. Users are the key component of digital contents industry, who is distinguished from consumers. Digital devices such as mobile phone, PDA can play all kinds of digital contents and make users communicate in two-ways. Portable devices also allow the users to consume digital contents at any place. Digital contents can be distributed by both wire and wireless networks. And most of transactions can be made through networks. There are three key issues about digital convergence. Entry barriers for market become lowered; the age of contents users is changed from old generation to young generation. And the form of contents devices is changing rapidly. Traditional contents field such as movie, music, broadcasting, publishing, animations are combined into one digital contents territory. As a result, this paper suggests that digital convergence phenomenon will be accelerating for the future. According to the result of this study, the advent of digital convergence and e-Commerce will have significant influence on trade of digital contents.