Computer:
Whether for softwares, for video games, or in general for anything that sells computers, developers make available a smaller version of the product, usually free or extremely cheap in order that consumers can test the product before purchasing the full version more expensive.
This is about marketing the product to a larger number of potential consumers because it's free or it's reduced price.
Music :
The demo of a musician or group is a low budget recording, often of bad quality, recorded more as a reference rather than for release.
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