Artists on Warner Music labels beware because Edgar Bronfman, Jr. is cutting off your feet at the ankles.
As reported over on Reuters, the Chairman and CEO feels that:
"The amount being paid to the music industry, even though their games are entirely dependent on the content we own and control, is far too small"
Would anybody who thinks back to 2005 ever think that the market for rhythm-based instrument games would have grown to the beast it is today? I certainly would not have. So it's not surprising that the record labels would have dismissed this as a passing fad as well, and therefore not aggressively developed the contracts in place for favorable pricing and licensing agreements. It's not even surprising that they are all a little put off today, with the explosion of Rock Band and the millions of songs downloaded by gamers worldwide.
What is surprising is the lack of understanding and value placed upon the marketing power these games provide. These micro transactions, while significant when taken over the course of thousands of downloads, still pale in comparison to the value a band receives from this type of exposure to such a wide and diverse fan base. I wouldn't have a clue who The Outlaws or Dragonforce were if these games did not exist. Now songs from these bands grace my iPod.
When I drive home from work, what music do you think I hear on the largest rock radio station in Philadelphia? The vast majority of songs played are right off of the Rock Band soundtrack. Coincidence? I think not. The radio stations are in tune to the idea that these games drive the tastes of their listeners, and are catering to them. To quote the Guinness commercial - "BRILLIANT!"
However, now we have a record label that is planning to alienate these fans by charging a premium over other labels. Great going Mr. Bronfman - I hope you enjoy your premium Marketplace costs and the dramatically reduced downloads they'll earn you. To the bands of Warner Music labels...I wish I got to know you.
