A digital content distribution and subscription system for digital data files provides subscribers with music or video from streaming digital data or locally-stored digital files on demand for a fee. After registration onto the system, a subscriber may select from a relatively wide variety of available digital content from the streaming digital data or the locally-stored digital files. The subscriber may then select songs from various playlists which causes encrypted digital audio files for the selected music to be downloaded to the subscriber's personal computer (pc). A license key is downloaded to the subscriber's pc to unlock the selected songs to enable them to be decoded and played on the subscriber's pc or remote audio equipment for a predetermined period of time. At the expiration of the predetermined time period, the license key expires, thereby preventing further playback of the encrypted audio data files. The selections of each subscriber are tabulated for the purpose of royalty tracking and payment of an appropriate license fee to the holders of copyright rights for the selections. The digital content distribution and subscription system includes a digital content management system, a system for taken-based authentication allowing secure data retrieval and a royalty administration system.