'Guitar Hero' firm critical of Warner Music

THE CHIEF executive of the company behind the Guitar Hero video game franchise has hit out at Warner Music after the label said…

THE CHIEF executive of the company behind the Guitar Hero video game franchise has hit out at Warner Music after the label said higher royalties should be paid for use of its songs.

In a sign of increasing tensions between the two companies, Robert Kotick, chief executive of Activision Blizzard, said Warner Music had failed to acknowledge the benefits to music sales from Guitar Hero. The game has sold close to 20 million units, generated $1 billion in revenues and has boosted sales of featured artists.

Mr Kotick said that Edgar Bronfman, Warner Music’s chief executive, had made “one-sided comments” that were not “respectful of how much we’ve done to bring new audiences into the market”.

Mr Bronfman said last week that the amount being paid to the music industry from music-based games was “far too small”.

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“I think his view was . . . that [Warner Music] should be compensated the way they might for a performance on iTunes,” said Mr Kotick. “But this is an entirely different business that is very . . . complex. We’re going to favour those publishers that appreciate how much we can add value to their artists.” – (Financial Times service)