Activision CEO Suggests Record Labels Should Be Paying To Get In Video Games

from the this-ought-to-be-fun dept

Remember a couple months ago, when Warner Music's Edgar Bronfman complained that the makers of video games like Guitar Hero and Rock Band should be paying more for the music they used? He claimed, incorrectly, that the games were "entirely dependent" on the record labels' content. That was wrong, and totally downplayed the fact that the video games were actually adding value to the music. Now it appears that the maker of Guitar Hero, Activision, is hitting back. The company's CEO is pointing out how much being in those games has helped bands, suggesting that its really the record labels that are getting too good of a deal:
"When you look at the impact [the game] can have on an Aerosmith, Van Halen or Metallica, it's really significant -- so much so that you sort of question whether or not, in the case of those kinds of products, you should be paying any money at all and whether it should be the reverse. The bulk of our consumers will tell you they're not purchasing the products based on the songs that are included, they're purchasing based on how fun the songs are to play when they're playing them."
He's exactly right. The content industry always seem to over estimate how much "value" the content provides and almost totally ignore the value provided by anyone else in the value chain. It's going to be interesting to see what happens over the next few months, but I would bet that the video game companies have the stronger hand here, and despite Bronfman's statements, the record labels really understand that.
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Filed Under: guitar hero, music, rock band, value, video games
Companies: activision, warner music

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  1. identicon
    Sean (in Bali), 1 Oct 2008 @ 2:53pm


    Sounds like Activision need to launch they're own label and start signing their own artists -- if, as Robert Kotick, claims, they can drive sales up a thousand percent, they'd probably have some real guitar heroes standing in line.

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