Not content with totally mishandling the music industry’s disastrous “transition” into the iPod age, Warner Music CEO, Edgar Bronfman Jr., has started down the path of bungling yet another potential revenue stream. With the recent explosion in popularity (and sales) of Guitar Hero and Rock Band, it was only a matter of time before someone had to open their big mouth. The churlish executive told Reuters:
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.
Now, to be fair, no specifics were given as to how much the record labels are actually getting paid for the use of their music recordings in the games. It’s certainly possible that the game industry is not paying enough. Let’s forget for a minute all the other components that make Guitar Hero/Rock Band successful (development costs, peripheral manufacturing, distribution, marketing, etc.) and play Ed’s game. If I had to guess, I’d posit that the current cut for music in rhythm games is close, if not the same, as a digital download on iTunes. Our pal Eddie must have seen this, and thought, “Hay! Activision is charging double the price of iTunes, but we’re only getting the same as El Jobso. Let me talk to the press, they will surely be on our side!”
Sarcasm aside, Eduardo and the rest of the music industry really need to think before they speak. Even if they are getting the shaft, it would be much more productive to solve the issue behind closed doors. Coming out and complaining to the press in a haughty tone is not going to help their situation any. To the contrary, it’ll just serve as blogger and message board fodder to further drag the music industry through the mud.
Not that the record labels really need any more help with that.