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Music companies want higher fees

by on08 August 2008

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Current fee scale too low for video game use

It seems that the music companies never learn. According to various reports, many of the music companies are unhappy with the current fee scale for the use of licensed music in video games.

While the music companies should be celebrating the fact that they have been able to build a new solid revenue stream, they are instead whining that the licensing fees that they are charging are too low, and that they are not being fairly compensated for use in video games like Guitar Hero and Rock Band.

The main argument from the music labels is that titles like Guitar Hero and Rock Band are designed in such a way that they are basically totally dependent on the music content to make the game work; and the slice of the pie that the record companies are getting is much too small.

Of course, it has to be pointed out that the music industry has been in somewhat of a downturn since the digital music revolution. Music companies have been slow to respond to the digital music revolution and in rebuilding their models to be able to generate revenue in the digital landscape.

The truth is that the licensing in video games has been a new welcomed revenue stream that the record labels should be embracing, rather than complaining that they are not getting a big enough slice of the pie.

Last modified on 08 August 2008
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