Heaven 17 v Rockstar- are games being fair to music artists-

Martyn Ware, a key member of the band Heaven 17, recently voiced his disappointment regarding the licensing fee offered for their iconic track “Temptation” in the highly anticipated Grand Theft Auto VI. Released in 1983, “Temptation” is considered a synth-pop classic, with its popularity only shadowed at the time by Spandau Ballet’s “True.” So, what constitutes a fair price for a song in the modern gaming industry? Ware took to Twitter to reveal that Rockstar Games proposed a fee of $7,500 (about £5,600) for a buyout of future royalties. He responded with sarcasm, stating, “Grand Theft Auto 6 grossed… $8.6 BILLION. Ah, but think of the exposure… Go fuck yourself.”

His tweet quickly gained traction, inciting a wave of reactions from fans and industry professionals alike. Ware later clarified that this offer represented his portion of a larger fee of $22,500 for the whole band, which does not account for compensation to the record label. This suggests that the total could approach $45,000—a pointed issue given that “Temptation” may merely appear on in-game radio stations, which already feature a wide range of music; for example, “GTA V” initially came with 240 tracks and has since expanded to over 400.

“Pop music plays a crucial role in setting a game’s atmosphere,” noted an industry expert, highlighting the memorable “Vice City” commercial that included Flock of Seagulls’ track “I Ran.” In this context, a $22,500 payment for a defining song of the 1980s seems insufficient.

The landscape of music licensing in video games significantly changed in the 1990s with the advent of CD-ROM technology, enabling developers to incorporate full tracks and engage with contemporary pop culture. Over the years, licensed music has become vital to game design, influencing iconic franchises like “Tony Hawk’s Pro Skater,” “Guitar Hero,” and “Grand Theft Auto.” In the past, artists could negotiate arrangements that included a share of game profits, with some earning six figures for their contributions to titles like “Gran Turismo.”

Today, however, many publishers have moved towards one-time payment models for music licenses, known as buy-outs. Yet, the music licensing process for games remains complicated. To use a track, companies must negotiate both publishing and recording rights, often involving multiple stakeholders, from record labels to songwriters. These negotiations can become especially intricate if a game undergoes updates or re-releases, necessitating rights to be renegotiated.

In response to Ware’s critique, some argued that the proposed fee was reasonable, particularly if it was intended solely for radio inclusion. However, Ware pointed out, “I’ve read the agreement—it didn’t specify whether it was for a radio station or not. It also includes all forms of advertising related to the game, such as TV and cinema ads, without any additional payments. Typically, sync licensing is for specific uses, requiring further negotiations for each purpose. Rockstar could use it indefinitely without further compensation, and that’s just wrong.”

Simultaneously, the soaring development costs of AAA games in the 2020s complicate licensing decisions. An anonymous industry veteran remarked, “Licensing can be tricky, especially when game sales don’t cover developer salaries. When layoffs happen, will you prioritize music licensing, or settle for library music?”

The music industry is aware of the financial pressures faced by game developers. Tim Miles, SVP of Global Sync at Warner Music Group, commented, “Making games is costly. A single song might just be part of a larger experience; it doesn’t carry the same weight as it does in films during a pivotal moment.”

Does incorporating a song into a game still hold significance? Even if players enjoy the track, they often turn to streaming platforms like Spotify, where artists frequently see little financial return. Ware stated, “Some told us to be thankful for being part of such a major game. But as a band that’s been around since 1981, and with ‘Temptation’ being our most recognized song, we believe it deserves proper respect.”

For emerging artists, games can provide a valuable opportunity for exposure. Miles pointed out, “The music landscape is crowded; a game soundtrack can really spotlight a track.”

This sentiment echoes among music supervisors within the gaming realm. Steve Schnur, president of music for Electronic Arts, emphasized, “Video games have become a primary platform for discovering new artists and songs, reminiscent of what radio and MTV used to be.” His team meticulously curates soundtracks for popular franchises like FIFA, understanding the global impact they can create.

As the digital music landscape continues to evolve, collaboration is becoming increasingly crucial. “Gaming presents a remarkable chance for artists to connect with their audience,” Schnur remarked. Platforms like Catalog are striving to simplify the licensing process, offering pre-cleared tracks for various media, thus enhancing access for games and films.

The growing partnerships between musicians and game developers, as seen in the soundtracks for titles like “No Man’s Sky,” signify the potential for innovation in this space. Miles stressed the need for improved communication between the music and gaming industries, emphasizing that both sectors have to align their priorities better.

Ultimately, the gaming industry should honor the contributions of artists, as licensed music adds meaningful cultural significance and nostalgia to gaming experiences. In turn, record labels ought to streamline the licensing process and ensure their artists are approachable. With younger artists seeing games as a canvas for creative expression rather than just a venue for sync deals, the future holds exciting possibilities.

Martyn Ware stands firm on his stance regarding the Rockstar offer while also recognizing the thrilling potential of music in gaming. “I used to play video games with my kids, and they discovered so many music styles through them,” he reflected. “Music in games has this unique cool factor that transcends time. If someone approached us for an original soundtrack, we’d be more than happy to participate.”

Additionally, Ware’s immersive audio art exhibit, “It’s Always Ourselves We Find In The Sea,” will be featured at the Focus Art Fair in London from October 10-13.