The Aftermath of Aftermath: The Impact of Digital Music Distribution on the Recording Industry

[Excerpt] “This article will address the impact the shift from hard-copy recordings to digital music distribution has had on the recording industry. Specifically, it will apply F.B.T. Productions v. Aftermath Records, which correctly held that a label’s relationship with third-party-digital-music-providers is that of licensor-licensee, to the modern music industry. Based on this holding, record labels need to reconsider their relationships with artists, and create new business models that rely on licensing music, rather than the traditional sale-based distribution model. The decision in Aftermath will lead to increased royalties for artists in the Digital Age. This article will analyze the impact of that decision for the modern music industry by advocating for increased artist royalties in this digital music era. By examining other relevant case law, the fundamental purpose of royalty distributions, and the evolution of the recording industry, this article will emphasize the need for the recording industry to adapt to the changing musical landscape and suggest possible business models.