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Activision's stance on royalties may have caused The Beatles to go with Harmonix photo

Back in August, Warner Music CEO Edgar Bronfman lashed out at the videogame industry, saying that the royalties being paid to record companies for the use of their music in games like Guitar Hero and Rock Band were “far too small.” Activision CEO Bobby Kotick retaliated in September by claiming just the opposite. His argument was that because these games offer a brand new way for people to experience an artist’s music, if any money is going to change hands, it should be the videogame publishers and developers who get paid.

Now there’s word from Reuters that Activision’s stance may have caused the companies who control The Beatles’ recordings -- Apple Corps, Sony/ATV, and EMI -- to choose Harmonix and MTV to develop the upcoming Beatles-exclusive videogame that was announced last week. The specific terms of the deal (i.e., how much MTV/Harmonix shelled out) haven’t been discussed, but Reuters’ sources “hinted” that Activision’s inflexibility regarding royalties -- namely, that the music industry should be paying them for the right to be included in Guitar Hero -- helped make the decision to go with MTV/Harmonix easier:

“It was presented as if they were doing the music business a favor,” Sony/ATV CEO Martin Bandier said. “It’s true you can choose other types of music, and somewhere along the line someone’s going to do it for free for the exposure ... When it comes to the Beatles, the leverage changes. We’re very happy with the terms of our arrangement with MTV.”

Apple Corps CEO Jeff Jones also noted last week during the conference call announcing the deal that “MTV was clearly the innovator in offering a full-band experience.” Frankly, I was happy to find out that MTV and Harmonix will be the people behind the exclusive Beatles game, but that excitement was tempered by the revelation that the songs may not ever be usable outside of that title (i.e., in Rock Band). Still, it seems to me that Activision should’ve realized they’d have to pay up -- and in a big way -- to score The Beatles’ music for an exclusive game. What say you, Dtoiders?

[Via Reuters by way of Gamasutra -- thanks, Jonathan!]








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Samit Sarkar is a founding Destructoid editor and go-to Sports guy. Samit was the son of the Duke of Knees, rescued from a burning village in the afghan desert by a golden condor. He is an ace Backgammon player and lost both legs in a whaling tour. He lives for free in a nursery in Scotland where he teaches monks how to capture butterflies without hurting them. Likes Confuse Ray, Feel My Blade A Mabari War Hound, Snot, Spiral Arrow, Argo, Dan Smith's critical hit bark, Rolling things up into my life Meet the rest of the team



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23 comments | showing # 1 to 23
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Stahlbrand's Avatar - Comment posted on 11/03/2008 18:31
Stahlbrand
Yeah, I can't imagine that Apple Records would find the "No, you should be paying us" argument very convincing.

A "Beatles RB-like Game" is of such significance than I can overlood the lack of interoperability with RB itself. Outside of the Beatles, I doubt I would extend such leniance to other band/game combos.

Also, there was a rumour, which is stringy and met with a non-denial-denial on the RB forums, that the Beatles game might feature a keyboard input. Rumour city, but it makes more sense than a keyboard would in RB2/3 at least. I think the source was a paper like China Daily, or something. I don't give it much weight myself, but I imagine we'll hear more in the coming months one way or the other.
TheDemon In You's Avatar - Comment posted on 11/03/2008 18:31
TheDemon In You
Pay to play bitches, bottom line

I myself am happy as a clam that its going to be on RB.

WAYYY better then that music game that Activision keeps trying to pass off
Stahlbrand's Avatar - Comment posted on 11/03/2008 18:32
Stahlbrand
Overlook and lenience, I should have spellchecked my comment first...
Citizen Erased's Avatar - Comment posted on 11/03/2008 18:49
Citizen Erased
Why the FUCK can't we just have Beatles songs in a Rock Band game?
That's all I want man!
THAT'S ALL ANYONE WANTS!!!
Sharpless's Avatar - Comment posted on 11/03/2008 18:50
Sharpless
Activision is shit. Really, how arrogant do you have to be to proclaim that companies should come to them and practically beg them to put their music in Guitar Hero? I'm glad the Beatles went with Harmonix. Good for them. Hopefully Activision will feel this one.
Darren Nakamura's Avatar - Comment posted on 11/03/2008 18:57
Darren Nakamura
If I can't play the songs in Rock Band, then I don't particularly care. I still agree more with Kotick in that the the money is going the wrong way. Perhaps artists ought to be paid based on how many downloads a particular title gets.
Aaron Mxy Yost's Avatar - Comment posted on 11/03/2008 19:01
Aaron Mxy Yost
Bobby Kotick should have chose his words more carefully.
cjpkiller's Avatar - Comment posted on 11/03/2008 19:04
cjpkiller
I love me some beatles, and it sounds like theyve got their own game...
win x 10000000000

also activision is kind of a whore.
NightDehumidifier's Avatar - Comment posted on 11/03/2008 19:05
NightDehumidifier
I see your Rutles reference, and say "Can't Buy Me Lunch".
TheCleaningGuy's Avatar - Comment posted on 11/03/2008 19:09
TheCleaningGuy
@NightDehumidifier: I need a yellow submarine sandwich after hearing that!
bart999's Avatar - Comment posted on 11/03/2008 19:21
bart999
imo, artists should be begging to get on RB or GHWT. Talk about new revenue opportunities. Personally I have purchased probably another 5 or 6 albums in the last year alone from playing GH. These are albums of older music I never would have thought to pick up the full album for.
atastysammich's Avatar - Comment posted on 11/03/2008 19:22
atastysammich
Activision may have had a point, although it's far too early in the life of the genre to get away with even suggesting such a thing, especially with the music industry out for the blood nowadays. I won't lie--I've discovered a few awesome artists thanks to the Guitar Hero games (the Harmonix-produced ones, at least), and even gone out and bought some albums; I have them to thank for becoming a shameless Freezepop whore.

At this point in time, though, I might just be the exception for all I know. I can't speak for the other plastic guitarists out there.
John B's Avatar - Comment posted on 11/03/2008 19:27
John B
I have to partially agree with Activision. Both GH3 and Rock Band exposed me to some more-modern music/bands that I now enjoy and helped to remind me of some songs that I used to love. I bought almost all of them from Amazon. From that regard, GH3 and Rock Band also act in the form of advertising for those bands/songs.

But I also see the other side that if it wasn't for some of the classic songs that they have, I probably wouldn't have bothered buying either of them.

So, no, atastysammich, you're definitely not the only exception.
The Grudge's Avatar - Comment posted on 11/03/2008 19:28
The Grudge
It's great to hear that this is coming out and Harmonix is involved. It sucks that it is not compatible with Rock Band.
Stahlbrand's Avatar - Comment posted on 11/03/2008 19:37
Stahlbrand
@ John B, Atasty, et al

As far as HMX's position vs. Activision's; just look at the 20 Free DLC - a bunch of new bands, and PEOPLE WHAAAAA'D about them like children (it is the internet of course).

Free songs, 20 of them, all from new, modern bands that could use the exposure, and on the RB forums and elsewhere, people looked the gift horse in the mouth, turned up their noses, and stomped their feet. I don't think a game like GH or RB could have gotten off the ground without the involvment of bands so huge and classic that asking them to pay-for-inclusion would be laughable on the face of it.

I mean, I've grabbed a few albums because of GH/RB, but outside of the 'never heard of em' bands like The Mother Hips, I can't see many bands accepting the Activision-type offer, and the ones that might are not the type of band to move games.
John B's Avatar - Comment posted on 11/03/2008 20:00
John B
I didn't say that I fully agreed with Activision for the exact reason you specified. In fact, that's exactly why I completely avoided Guitar Hero: Aerosmith. The last thing that I want this franchise to turn into is a portal by which everything is branded. The thought of something like Guitar Hero: The Sony Labels curls my spine.

But you also can't deny that (at least until such time as Harmonix and Activision run them into the ground) these games are one hell of a marketing tool for just about any band that's out there because of the millions of people it will reach, something that most indie bands can only dream of otherwise, which is why I do see the point that Activision is arrogantly trying to make. I'm not saying they're 100% correct, but I see where they're coming from.
Stahlbrand's Avatar - Comment posted on 11/03/2008 20:26
Stahlbrand
Oh, don't misunderstand me John B, I wasn't trying to debate, I was just chiming in with my own phrasing of the same basic idea. There isn't a disagreement here.
Niero's Avatar - Comment posted on 11/03/2008 20:34
Niero
Wasn't all we needed love?

I can tell you how this story ends: People will get sick of paying high royalties sooner or later for music they already own and will favor the games that works with a person's mp3 collection. It started with Audiosurf but that isn't the killer app yet. Its coming.
John B's Avatar - Comment posted on 11/03/2008 20:39
John B
@Stahlbrand: It's all good.
Stahlbrand's Avatar - Comment posted on 11/03/2008 20:49
Stahlbrand
But do you really expect the RIAA, and other such nefarious groups (the labels themselves, A&Rs, etc) will let the 'audiosurf' type game grow to killer app stature without a fight?

And by without a fight, I mean, without strangling it in its crib by suing the pants off anybody who even mentions it, and getting reacharound laws passed through their lobbiest power to make such 'fair use' criminal?

I would love the fantasy game that makes RB-like charts out of any music you throw at it, but I don't see it happening without massive pushback from the people who like to think they own "all music in all forms forever and ever."
John B's Avatar - Comment posted on 11/03/2008 21:29
John B
@MotoRobo:

Thank you so much for your insightful commentary and for adding so much value and knowledge to this thread. Your wisdom is truly beyond the ages. {roll eyes} Sheesh.
Kyousuke Nanbu's Avatar - Comment posted on 11/04/2008 03:12
Kyousuke Nanbu
I swear Activision is turning into the new EA.
daddy gamer's Avatar - Comment posted on 11/04/2008 10:20
daddy gamer
Though I don't fully agree with the Activision president, I can see where he is coming from. For example, there are songs by old groups that I never cared about before until I played Guitar Hero/RB. When I play them in the game, however, I grow an appreciation for them and eventually buy the ones I like.

So these games are a great way for these music companies to a new market of consumer that they were never able to reach before. That's where the value lies that Activision is talking about.
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