The struggle of music licensing in games

September 10, 2024 4 By Best Gamer

Stealing Sound: The Struggle of Music Licensing in Games

In an industry where creativity and innovation reign supreme, the world of video games has long been a contentious issue when it comes to music licensing. Artists often find themselves at odds with game developers over fair compensation for their work. The latest controversy centers around Martyn Ware, a member of the 80s synth-pop band Heaven 17, who refused an offer from Rockstar Games to use his hit song “Temptation” in Grand Theft Auto 6.

The Lowdown

The situation unfolded on social media platform X (formerly Twitter), where Martyn revealed that he was offered $22,500 (£17,200) by Rockstar for the use of his song. This amount would be divided among him and two fellow songwriters, with each receiving $7,500 before subtracting fees. Martyn deemed the offer “pathetic” considering the huge sums made by Grand Theft Auto 5’s prequel. He refused to negotiate a higher amount, citing that he would have accepted $75,000 or a suitable royalty deal.

The System

Music licensing in games is done through agreements known as synchronisation licences (or sync deals). Licensing expert Alex Tarrand notes that the system has been in use for decades and can be “challenging” to navigate due to a lack of transparency. The scale of these deals varies widely, with some indie artists receiving $2,000 while major artists receive millions.

The Debate

Some argue that Martyn’s decision to reject the offer was foolish, given GTA 6’s massive popularity and potential for exposure. However, others see the move as a necessary stand against the low pay offered by companies like Rockstar. Union chief Naomi Pohl points out that streaming doesn’t sustain careers, and artists need to perform live to make money.

The Future

Alex, co-founder of Styngr, a company that simplifies music licensing for games, believes new technologies can provide opportunities but also challenges. He notes that sync deals won’t disappear anytime soon, but there’s an opportunity to expand beyond them and avoid situations like the one with Martyn.

Conclusion

The issue of music licensing in games highlights the complex relationship between artists, game developers, and streaming services. As technology continues to evolve, it will be interesting to see how this dynamic shifts and whether companies like Rockstar will adapt their approach to fairer compensation for artists.