MTV Want Its $150 Million Back from Harmonix

[Greg Tito]

MTV Want Its $150 Million Back from Harmonix

Back in the heyday of music rhythm games, MTV paid Rock Band-makers Harmonix $150 million in performance-based compensation and now it wants that money back.

It was 2007 and it seemed everybody was talking about Rock Band and Guitar Hero. You couldn't walk down a street in Manhattan without seeing kids and adults alike strumming on plastics guitars and banging on fake drums in storefronts and apartments. Rock Band sold over a million units in its first month of release and the franchise has earned over $1 billion overall. But, as we all know, such glory days were meant to fade like the career of an aged rocker. The sales of expensive bundles like The Beatles: Rock Band [http://www.amazon.com/Wii-Beatles-Rock-Band-Software-Nintendo/dp/B001TOQ8LG/ref=sr_1_1?ie=UTF8&s=videogames&qid=1279573041&sr=1-1] have cooled and MTV is trying to collect on some of the cash it gave Harmonix based on how well the first Rock Band sold.

MTV's parent company, Viacom, filed with the SEC the following statement:

In 2008, we paid $150 million, subject to adjustment, under this earn-out agreement related to 2007 performance. At December 31, 2009, we believe that we are entitled to a refund of a substantial portion of amounts previously paid, but the final amount of the earn-out has not yet been determined.

It seems disingenuous to try to take back someone's bonus, but that appears to be exactly what Viacom is doing. Just because the sales of rhythm games has slowed doesn't mean that they didn't move a buttload of units just a few years ago. By all accounts, Viacom still made money on the deal. What gives?

More importantly, does this foretell a bigger shift in the videogame industry? Will we see parent companies reluctant to take risks on new music games? Is this filing by Viacom the first harbinger that the Rock Band is era is over?

Nah, I'm just kidding. But it does seem bleak.

Source: Gamasutra [http://www.gamasutra.com/view/news/27220/Viacom_To_Seek_Substantial_Refund_On_Harmonix_Rock_Band_Bonus_Dollars.php]

Permalink

 

[AboveUp]

Viacom... That does bring me back to the end of another era, the one when YouTube was still fun.

Hopefully this isn't going to be that dramatic a change.

 

[Sir Kemper]

Ah Viacom, is there anything you can't mess up?



Answer: No, they must destroy all sorts of freedom they don't own.

 

[Swaki]

i didn't know you could do that, i think i want a refund on allot of things now that they dont perform as well.

but no, i really dont think you can invest a butload of money in something and if you 3 years later aren't quite satisfied ask for your investment back, if you can i have an idea why the world economy is experience some turbulence.

 

[crystalsnow]

Arghh... Viacom has won another battle...

 

[scnj]

So, hold on? Rock Band sold well, so MTV gave Harmonix a $150 million bonus, and now they want it back because sales aren't as high? That's fucking ridiculous.

 

[purplegothchick]

Ah jeez, not fucking Viacom again...

This sort of thing happened with them a couple of years ago, meaning that it became impossible for me to watch things like Invader Zim on Youtube. Doesn't sound so bad, except that I live in the UK where Zim has had no DVD release and I just really like that show!

I am convinced that that company is evil and absolutely determined to ruin everything that is even remotely fun.

 

[Compatriot Block]

There's no way this will get through court.

 

[SnootyEnglishman]

Viacom you greedy bastards....For this you will be sent to the 4th circle of Hell (that's Greed) where all the stuff you ever coveted for are to be melted into building materials right before your eyes while several minions laugh heartily and whip you

 

[GodKlown]

I suppose the question comes in the form of where the hell did MTV have $150 millie just sitting around collecting dust? Really? And they invested in Rock Band? I could swear a lot of people invested their own money in that setup. Is a bit of a dick move to ask for a bonus back.
Seems fishy they attached a condition to the bonus where it was "subject to adjustment". What does that mean? Apparently that they can just say, "you know what? we gave you too big of a bonus, give some of it back". I say that MTV has done nothing to improve music anyhow, and for them to do this just cements that. Hurray for MTV being jerks!

 

[whycantibelinus]

i didn't know you could do that, i think i want a refund on allot of things now that they dont perform as well.

Yeah, I'd like a complete refund on Mercenaries 2 because it fucking sucked, but apparently customer satisfaction isn't a priority these days.

 

[Julianking93]

Here's a question; Who the fuck cares what MTV wants?

They're responsible for some of the worst shows ever.

 

[Low Key]

Surprise, surprise. $150 mil is a pretty steep bonus, but they should have known the sales numbers weren't going to last forever. You can only release so many games before people get tired of spending $60 for something that could easily be released as DLC for $20-$30.

Here's a question; Who the fuck cares what MTV wants?

They're responsible for some of the worst shows ever.

Yeah, but they are terrible shows that have huge ratings.

 

[chozo_hybrid]

What a load of classification 1 BS.

Of course sales have slowed, it's been ages since it was first released you morons.

 

[Burningsok]

viacom... you decided to put 150 million or so into this, guess what, no take backs.

 

[Simalacrum]

Yikes, thats a rather douchebaggery move by MTV there :S

Alas, it does appear that the music game genre is comming to a rather swift death... at least in the GH vs RB sense, at least. The near-identical competition and over flooding of peripherals has killed both of the franchises.

 

[Outamyhead]

This is as stupid as MTV's own TV channels, since they don't have music on them anymore.

You can only saturate a market so much, I think the population has had enough rhythm games for now, bad enough they made a DJ version.

 

[Russ Pitts]

Wow. Sucks for Harmonix, but seriously, anybody who didn't see this one coming needs to wake up.