Game Music Royalties Follow-up

The Financial Times speaks with Activision Blizzard CEO Robert Kotick, who responds to Warner Music Chief Executive Edgar Bronfman's recently expressed opinion that music games should be paying a higher royalty rate to music publishers for using "content [they] own and control" (story). Kotick says Bronfman's "one-sided comments" were not "respectful of how much we’ve done to bring new audiences into the market." He goes on to say: "We’re introducing a whole new group of artists to new audiences that is resulting in their iTunes downloads being exponentially higher than they would otherwise be, [as well as] new album sales and new merchandising opportunities." In response F.T. quotes a (presumably different) Warner rep, who says: "We hope that our partners in the gaming space appreciate not only the value of their own contributions but also those of the recording artists, songwriters, record labels and music publishers on which their games are significantly based." Most significant is Kotick's comment that seems to be a warning that they do not foresee bowing to pressure to increase royalties:
“I think his view was ... that [Warner Music] should be compensated the way they might for a performance on iTunes,” said Mr Kotick. “But this is an entirely different business that is very technically complex. We’re going to favour those publishers that recognise and appreciate how much we can add value to their artists.”
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No subject
Aug 15, 2008, 17:21
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No subject Aug 15, 2008, 17:21
Aug 15, 2008, 17:21
 
From what I've read musicians tend to get most of their income from concerts. I could be mistaken here.
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Re: No subject
Aug 15, 2008, 15:57
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Re: No subject Aug 15, 2008, 15:57
Aug 15, 2008, 15:57
 
Thats not the point. In fact, i doubt that Warner gives the revenues from licensing music to games like Rock Star to the artists. I assume, they just keep this money, as they have done it in the past with the revenues from digital downloads.
That's most likely the case. From what I've read, artists generally only get a cut from traditional CD sales. That's just how the contracts have been written. Smarter artists that have enough clout to be able to negotiate might be able to get a cut of online and other sources of profit, but they are probably few and far between.

"The whole problem with the world is that fools and fanatics are always so certain of themselves, but wiser people so full of doubts." -- Bertrand Russell (I think...)
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Re: No subject
Aug 15, 2008, 12:27
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Re: No subject Aug 15, 2008, 12:27
Aug 15, 2008, 12:27
 
Well I did follow through a bit with thinking about record labels and artists, but I still believe the previous comment that the news post refers to, the one about content they own and control, is relevant. It still annoys me that record labels are so blind to both their artist's well being and the market they occupy.

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Re: No subject
Aug 15, 2008, 09:54
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Re: No subject Aug 15, 2008, 09:54
Aug 15, 2008, 09:54
 
Interesting points, and I agree that the artists of the songs included with games that use them should be paid some sort of royalty.

Thats not the point. In fact, i doubt that Warner gives the revenues from licensing music to games like Rock Star to the artists. I assume, they just keep this money, as they have done it in the past with the revenues from digital downloads.

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Bronfman ...
Aug 15, 2008, 09:45
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Bronfman ... Aug 15, 2008, 09:45
Aug 15, 2008, 09:45
 
... is an idiot! Which is no suprise, because he is CEO of Warner Music, one of the fout major lables, who are doing everything they can ...

- to NOT understand the changes, internet and P2P has brought to the media business
- to piss off their once very content customer base
- to piss of EVERY business partner, who gives them a chance to earn additional money

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No subject
Aug 15, 2008, 09:42
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No subject Aug 15, 2008, 09:42
Aug 15, 2008, 09:42
 
Interesting points, and I agree that the artists of the songs included with games that use them should be paid some sort of royalty. I'm not sure how much would be appropriate though, given that the comments seem to indicate that games would be based on the music, rather than the music being part of the game (or an extra feature, whatever).

I think what music publishing companies have to realise is that video games are potentially a vastly lucrative market for their music. All sorts of artists have their music in games that aren't anything like Guitar Hero or Rock Band - Quake and Descent are two that immediately spring to mind (going back a bit there, but still) - and if they can find a way to remain in the market without annoying publishers or developers, it's money in the bank.

That said, there are a lot of independent game music artists that do equally good work - Sonic Mayhem for example - that license their work themselves. Combined with the usually acceptable music created by the development teams themselves, I think record labels need to be lenient in music contracts for games that aren't like GH or RB. It quite literally is free money for them, along with publicity for future works by the same artist.

edit: corrections etc.

This comment was edited on Aug 15, 09:47.
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