Written By: Leah C. Stevenson, Esq.
While music has been used in video games for years, recently, the integration of popular and trending music in video games has continued to increase. During the Covid-19 pandemic, the music industry shifted towards virtual concerts where Verzuz and Tiny Desk (Home) Concerts thrived by providing viewers with virtual music experiences in the comfort of their homes. The gaming industry was no exception, as video games began to have virtual concerts within their game titles, providing music artists revenue generating streams and new outlets for exposure during the pandemic. The gaming and music industries are two of the biggest industries in the entertainment industry. Currently, the global gaming industry is valued at ~$365 billion and the music industry is valued at ~$92 billion. The intersection of gaming and music will continue to generate more profit in the entertainment industry and music artists and content creators are set to substantially profit and benefit as well.
Importance of Music in Games
With the rapid advancements in technology, video game soundtracks have changed dramatically and music has become an important part of the storytelling process in games. Music is a tool that can draw emotion and can establish the tone of a storyline. In the film industry, soundtracks set the foundation for the scenes and overall plotline development. Similarly in video games, the music selection allows the immersive experience to feel more realistic and authentic to the player.
Music artists are now able to reach new audiences in video games, allowing them to tap into new age groups and demographics and convert these players into true fans. Some game titles have millions of daily players, and the music industry is certainly cognizant of the extreme reach the global video game market can have on music. As the crossover between the two industries continues to strengthen, musicians and music executives alike can truly capitalize on the market. Some video games like Call of Duty have features where players can select the music they would like to hear on the radio, including new music from top artists or exclusive releases that fit the feel of the game. Other games such as Fortnite produce virtual music concerts for players to attend where the music artists can sell digital music and merchandise. But let’s not forget the benefits exist for both the video game industry and the music industry alike. Video game developers generally consult well experienced music supervisors who not only select suitable music for the game, but they also ensure all the music licensing is properly cleared to ensure the developers do not infringe on any music copyrights.
Music Licensing in Games
Music licensing in video games is quite complex as video game developers must work with music publishers, record labels, music artists, songwriters, and producers to secure all rights to each song they use. In some cases, video game developers also commission composers and songwriters to create original music for the video game as this is generally more cost effective than licensing popular music. More importantly, specially commissioned music generally ensures “exclusivity” in the market as well. If a video game developer desires to use pre-existing music in a video game, they not only have to acquire the licenses for the musical composition, but the sound recording as well.
In the music industry, every song you hear is comprised of two copyrights. The first copyright is for the musical composition (the “song”) which consists of the music and lyrics. The copyright for a musical composition is usually owned by the songwriters and composers who contributed substantively to the overall creation of the musical composition. However, if a copyright owner assigns their portion of the copyright to a music publisher, the publisher will usually have the right to license, promote, and advertise the song to collect and distribute royalties to their client. The second copyright is for the studio recorded track (the “recording”) that we hear on the radio, Apple music, and our favorite Spotify playlists. The copyright for a sound recording is usually owned by the music artist who recorded the song or a record label. Whether it’s the artist or the label, the owner of the sound recording also has the right to exploit, promote, and advertise the recording to collect and distribute royalties as well.
Licenses for musical compositions and sound recordings can warrant hefty license fees. If a video game developer uses a multitude of songs in the game, the music licensing budget can easily be exceeded and the process for acquiring such rights can be tedious and exhaustive as well.
Recommendations for the future
As the intersection between music and gaming continues to strengthen, game developers and music execs should aim to make the process for music licensing and the use of artist publicity rights a bit more seamless. A more automated and frictionless system would provide benefits for both industries, potentially leading to more opportunities for cobranding, crossovers, merchandising, and live in-game events. As these two industries continue to grow exponentially in size and revenue, hopefully new steps can be taken to not only increase the value add of music in gaming, but also provide new revenue generating streams for music artists as well.
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