Perhaps they should’ve asked for a sliver of a percentage rather than a large amount upfront, but based on their counter-offer they weren’t interested in percentual royalties.
Until the game is launched, Rockstar is operating on investment money and every component of the game is expressed in cost. Spending 1/85th of 11 years of revenue (or about a third on top of development cost) on songs upfront is hard to sell to executives. Especially when the rate is set by a small band like this.
Asking Beatles money for a Heaven 17 song was worth a try, but I don’t think they get to feel incredulous after their counter-offer was refused. Don’t high-ball offers you can’t afford to lose!
I think it’s really clear that Rockstar is trying to avoid a repeat of past soundtracks and licensing issues and they want these up-front with no royalty payments to make in the future, so they don’t have to keep re-negotiating licensing (and having to remove/replace songs in old games).
I still think this guy was being smart for asking more, even if he asked too much. You’re right, he shouldn’t have high-balled, but he was smart enough to understand getting a percentage or royalties was probably almost assuredly out of the question.
I’m glad Rockstar is taking the route of trying to only get songs that they won’t have to remove down the line. Should be the move forward for all games. Wish same would happen for racing games too. Would rather have knock off brands over delistings.
Perhaps they should’ve asked for a sliver of a percentage rather than a large amount upfront, but based on their counter-offer they weren’t interested in percentual royalties.
Until the game is launched, Rockstar is operating on investment money and every component of the game is expressed in cost. Spending 1/85th of 11 years of revenue (or about a third on top of development cost) on songs upfront is hard to sell to executives. Especially when the rate is set by a small band like this.
Asking Beatles money for a Heaven 17 song was worth a try, but I don’t think they get to feel incredulous after their counter-offer was refused. Don’t high-ball offers you can’t afford to lose!
I think it’s really clear that Rockstar is trying to avoid a repeat of past soundtracks and licensing issues and they want these up-front with no royalty payments to make in the future, so they don’t have to keep re-negotiating licensing (and having to remove/replace songs in old games).
I still think this guy was being smart for asking more, even if he asked too much. You’re right, he shouldn’t have high-balled, but he was smart enough to understand getting a percentage or royalties was probably almost assuredly out of the question.
I’m glad Rockstar is taking the route of trying to only get songs that they won’t have to remove down the line. Should be the move forward for all games. Wish same would happen for racing games too. Would rather have knock off brands over delistings.