Warner Music is doing poorly financially; the company reported that their losses were $9 million in the three months ending in June. No surprise--it's just too easy to get music for free these days--but what is surprising is one of the causes Warner cited. They say music games like Rock Band and Guitar Hero just aren't paying them enough.
"There is what I would call a very paltry licensing fee per song," said Edgar Bronfman Jr., the chairman and chief executive who owns a 6.5 percent stake in Warner Music. "I think the industry as a whole needs to take a very different look at this business and participate more fully and in a much more partnership way," he said. "And if that does not become the case, as far as Warner Music is concerned, we will not license to those games."
Woah... a shot across the bow! But if I were a game maker, I'd respond with: "Look, bucko, there wasn't any licensing fees for music games a few years ago, so you should be happy with what you get!"
Okay, I probably wouldn't say "bucko."
Forbes: Warner Music narrows loss in 3Q