2013: A Music Industry Odyssey

Wired Magazine had a very interesting article about more bad news for the record companies.  A copyright ticking time bomb is set to explode on them in 2013.

Basically, the 1975 Copyright Act states that all copyrights granted after 1978 revert back to their original owners after 35 years, with some marginal cases excepted.  This means that starting in 2013 bands like the Eagles can own the rights to distribute and sell their songs, keeping all the profits for themselves.  No record companies needed, just go straight to Eaglesband.com.

This must be especially disturbing to the record companies, who tried and failed to get the statute changed back in 1999.  One of their tried and true ways of making money has been to re-issue their catalogs in new formats.  This was, for example, the primary source of the record industry boom in the 1980’s and 1990’s, as everybody bought CDs for the music they already had on tapes and vinyl.  One imagines the record companies would hope to do the same thing again as Rock Band and Guitar Hero continue to expand.  But it looks like they won’t be able to suck on the teats of those same mega-bands again, at least without some serious renegotiations from a very disadvantageous position.

Of course, the record companies may find some way to add value to the process of making and selling music.  Maybe by providing marketing and global reach, covering start-up costs, as well as some kind of central distribution point.  But if you think the music industry has been changing a lot in the last few years, just wait.  In 2013 the odyssey will move to another level.