Warner Music is complaining that it's not getting enough cash from royalties for tracks from its artists that appear in Guitar Hero and Rock Band.

The rant came from Warner Musics' Q3 earnings call:

Games have enormous opportunity, and proves we have future business in non-traditional formats. But we have to be very careful that we do not allow an eco-system to occur where we do not get compensated properly. Like what happened with MTV, and now with Apple. And now [game developers] Activision and Harmonix [owned by Viacom] are in the same place.

Amounts being paid to music industry for downloads, etc. "far too small". Industry needs to participate much more fully. If that does not become the case, "we will not license to those games." Very small license fee per song, plus additional revenue if artist involved. But royalties far below what true value is.

Sounds like a threat to us. You'd think that it'd see these games as a promotional tool for its artists and songs. There's been a number of tunes and bands in Guitar Hero in particular that we'd never heard of if it wasn't for the exposure in the game.

A two-fingered salute would be the right approach from developer's Activision and Harmonix. They don't need the Warner Bros catalogue of artists to make either of these games a success. It's only Warner Music that will be affected by its own greed if its not careful.

Source :: Reuters