Music and Games Partnership Strategy Beyond the Comfort Zone

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Music companies are flocking to explore partnerships with games companies. Seeking a foothold in a fast-growing market, music companies are often looking for easy wins that fit traditional licensing models that monetise consumption. These however, typically do not align with the games industry’s spend-centric worldview. The traditional licensing approach can deliver, but it is only a fraction of the total games opportunity. Music rights holders need to design proposals that help games companies grow their success, rather than simply seeking a share of it. Music companies need to become ‘business-critical’ partners to the gaming industry, innovating deal structures that help the games industry unlock its most important growth opportunity: in-game spending. In turn, games companies need to look for music partners possessing a suitable combination of: catalogue size, popularity and relevance, along with willingness to align KPIs, and the ability to move fast.
Companies and brands mentioned in this report: Apple, Appstore, Epic Games, Fortnite GTA, League of Legends, Riot Games, Roblox, Rockstar Games, Sony, Spotify, Warner Music Group, YouTube