Music is composed and performed for many purposes, ranging from aesthetic pleasure, religious or ceremonial purposes, or as an entertainment product for the marketplace. Amateur musicians compose and perform music for their own pleasure, and they do not attempt to derive their income from music. Professional musicians are employed by a range of institutions and organizations, including armed forces, churches and synagogues, symphony orchestras, broadcasting or film production companies, and music schools. As well, professional musicians work as freelancers, seeking contracts and engagements in a variety of settings.

Although amateur musicians differ from professional musicians in that amateur musicians have a non-musical source of income, there are often many links between amateur and professional musicians. Beginning amateur musicians take lessons with professional musicians. In community settings, advanced amateur musicians perform with professional musicians in a variety of ensembles and orchestras. In some rare cases, amateur musicians attain a professional level of competence, and they are able to perform in professional performance settings.

A distinction is often made between music performed for the benefit of a live audience and music that is performed for the purpose of being recorded and distributed through the music retail system or the broadcasting system. However, there are also many cases where a live performance in front of an audience is recorded and distributed (or broadcast).