MTV Want Its $150 Million Back from Harmonix

[Macgyvercas]

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.

This. I'm still trying to wrap my head around how this makes the slightest bit of sense.

 

[yoyo13rom]

Don't like Harmonix enough to by their products(well it's more because I don't own a 360 or a PS2/3) but this move was really below the belt.

 

[KZoe]

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.

This. I'm still trying to wrap my head around how this makes the slightest bit of sense.

Let me see if I can help you: 'In a research note, media analyst Michael Nathanson of Bernstein Research estimated that the "current trend" of losses for Rock Band has been between $50 million and $100 million per year.'

http://latimesblogs.latimes.com/entertainmentnewsbuzz/2010/02/yeah-yeah-yeah-viacom-wants-back-bonus-paid-to-rock-band-maker.html

The payout was apparently for the former shareholders. Either way, according to the news HMX is losing money for Viacom. Assuming you know the difference between revenue and profit, I don't know how to make it any clearer.

 

[Sixties Spidey]

Uh, yeah MTV and Viacom?

That is all.

 

[CopperBoom]

Very weird stance, their must be more to it all.
I still play RB2 with some regularity so there is something about that, that should be lauded.
Oh well.
DJ Hero was shite.

 

[Russ Pitts]

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

*yawn* Oh hi Russ! Just woke up. So how's your day?

*looks at news*

Wow, I totally didn't see that coming.

In it's heyday, from 2007 - 2008, Rock Band moved millions of copies and was the talk of the town. Fans couldn't get enough. To Harmonix, it seemed the party would never stop. Little did they know they'd signed a contract with the devil. In 2009, sales plummeted and then ... things started to fall apart.

/behindthegame

 

[Cherry Cola]

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

*yawn* Oh hi Russ! Just woke up. So how's your day?

*looks at news*

Wow, I totally didn't see that coming.

In it's heyday, from 2007 - 2008, Rock Band moved millions of copies and was the talk of the town. Fans couldn't get enough. To Harmonix, it seemed the party would never stop. Little did they know they'd signed a contract with the devil. In 2009, sales plummeted and then ... things started to fall apart.

/behindthegame

I can always count on you to fill in the blanks after a good nights sleep.

Now to play some Beatles Rockband!

 

[Steve the Pocket]

And it really doesn't matter what they generated in revenue if they're spending more than they take in. The #1 aim in business is to be profitable. There is nothing cruel or unfair about Viacom expecting Harmonix to honor their agreement.

Considering they've made a billion dollars on the franchise total, I find it hard to believe they made less than $150 of that since 2008. Which is what you're suggesting.

 

[KZoe]

And it really doesn't matter what they generated in revenue if they're spending more than they take in. The #1 aim in business is to be profitable. There is nothing cruel or unfair about Viacom expecting Harmonix to honor their agreement.

Considering they've made a billion dollars on the franchise total, I find it hard to believe they made less than $150 of that since 2008. Which is what you're suggesting.

It seems that you have revenue and profit confused. They have never made Viacom any money according to the recent reports. Never as in, from beginning to now. No profit, just losses.

They could generate a trillion dollars in sales but if their costs are higher than what they 'make' they've still lost money.