We all figured that the rights holders of the Beatles’ songs were set to receive a massive payout for Beatles Rock Band, but we didn’t have a number until a story on Monday by the Los Angeles Times‘ Ben Fritz.
According to three different sources, Viacom is paying a whopping $10 million for the rights to the music before the game even sells a single copy, and if it sells as expected, that number will go higher than $40 million. That’s not the game’s development cost. That’s just for licensing the music .
Update: Since the publication of this story, Wired.com has spoken to a source close to the deal who, although unable to speak to the actual dollar amount of the advance on royalties, pointed out that the licensing fees are not simply for the music: They are for a wide suite of rights that have never been pursued for a Rock Band game before, including rights to the names, likenesses, life stories, etc. of the band. Our source also pointed out that should the royalty rates escalate to $40 million, this would also mean a big payday for Viacom, as the game’s sales would have to be quite high to reach that level.
Sony music publishing chairman Martin Bandier called the royalty rates “not even comparable to anything that has been done before.”
Another interesting note from the story: Seems as if Viacom is moving away from the plastic-instruments business. “The marketing material for the Beatles: Rock Band urges consumers to use Guitar Hero controllers, enabling Viacom to piggyback on its more successful rival,” writes Fritz.
“Let [Activision] take on the burden of getting those super-tight margin instruments out there,” said MTV Games senior VP Paul DeGooyer.
Viacom hopes the Beatles: Rock Band game sets stage for rebound [LA Times]
