Suggestion For Warner Music: Maybe Look At How Much You're Paying Your Execs

from the might-save-some-money dept

It's no secret that Warner Music has been struggling -- employing a highly questionable strategy of shutting down or suing all sorts of useful services that make its music more valuable, and then demanding ridiculous payment terms or equity in any company that might help them survive... all while the company slowly goes bankrupt. Following what can only be called a disastrous 2008, the company has shown a minor improvement in 2009, but it has all the indications of a dead cat bounce. The company was in desperate need of cash, and was able to get a loan of $1.1 billion last week to ease some of those concerns... but at a staggering 9.5% interest. Meanwhile, the guys over at Hypebot are wondering why WMG's top two executives were given $6.25 million in bonuses last year as the company was collapsing. And with some back of the envelope calculations, they note that the company could save hundreds of millions of dollars by dropping the bonuses and using the money to pay back the debt earlier, saving on some of the massive interest payments that are on the way.

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Warner Music Complains That Rock Band And Guitar Hero Need To Pay More For Music

from the are-they-serious? dept

And here they go again. Despite the fact that the games Guitar Hero and Rock Band have breathed new life into various musical acts and helped pump up sales of certain artists, the recording industry is starting to complain. It seems unable to recognize how something that promotes its music or makes that music more valuable is beneficial -- instead freaking out that it's somehow being ripped off. Proving, once again, that they overvalue content and undervalue the service that makes that content valuable, Warner Music's Edgar Bronfman is bitching and complaining that Rock Band and Guitar Hero aren't paying enough for music:

"The amount being paid to the music industry, even though their games are entirely dependent on the content we own and control, is far too small."

Fine. This is the point at which both of those video games should stop using any Warner Music content, and see how Bronfman feels when everyone else is jamming to content from his competitors, increasing the attention and sales that they get -- while Warner musicians are left out in the cold. Once again, we're seeing how Edgar Bronfman Jr.'s supposed epiphany about the digital age of music was no such thing.

The industry simply assumes that, if something makes use of their content, all of the value is in the content. That's incorrect. Yes, the content is a part of the value, but it's the game that's making that content valuable. This is the same thing that's been true of so many other services that the industry has freaked out about -- from Napster to YouTube to Seeqpod and many others. Until the recording industry recognizes that this isn't a zero sum game, and someone out there promoting your content is helping to make it more valuable, the industry is never going to figure out how to really adapt.

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