Managing Music Licensing for Indie Games: Formats and Prospects

Music has always been important for creating atmosphere and player immersion. As licensing becomes easier, new horizons open for both developers and musicians.

From AAA to Indie

Music has always been a cornerstone of iconic AAA games. Tom Petty’s ‘Love Is a Long Road’ saw a resurgence on streaming platforms following the release of the Grand Theft Auto VI trailer, and Metallica headlined a festival concert in Fortnite, joining the ranks of virtual performances by stars like Lady Gaga, Billie Eilish, and The Weeknd.

Indie projects are also finding innovative ways to integrate music. In "Metal Hellsinger," tracks from System of a Down and Trivium create an intense atmosphere, while the DLC features compositions from Gorillaz, Muse, Disturbed, and Depeche Mode. This proves that even with smaller budgets, indie developers can attract well-known artists.

However, it's not always necessary to turn to big-name stars. Games can be an excellent platform for emerging artists. In "Heretic's Fork," a simulator set in the depths of hell, the music player features tracks from indie artists like Occams Laser and Sakis Tolis (Rotting Christ). "Loop Hero" showcases the compositions of Blinch, while "Hi-Fi Rush" includes music from bands like REO and Kobo.

“I’m thrilled by the positive response to our music collaborations for Heretic’s Fork. We've managed to get more than 2,000 positive reviews on Steam with at least half of them indicating a great music choice”. — Mike Pyslar, Community Director at Ravenage

From a project management perspective, collaborating with indie musicians is a mutually beneficial arrangement. Developers get high-quality music, while musicians gain exposure and experience in the rapidly growing and capitalizing gaming industry. This synergy allows both sides to achieve their goals, fostering a vibrant and innovative gaming ecosystem.

As noted by Imad Halil, publishing producer from Ravenage, "We wanted to include Iron Maiden's music in the game, which is an incredible achievement for an indie project, but due to licensing complexities, we couldn't make it in time for the release. However, the process was much quicker with other artists: thanks to the publisher's experience, we were able to license Rotting Christ's music in record time."

Anton Emelianov

Overcoming Licensing Challenges

Securing licenses for high-quality music used to be a significant hurdle for indie developers. Complicated contracts and high costs made the process overwhelming for many. Today, indie developers offer various models of collaboration with musicians, each with its own benefits and nuances.

1. Selling DLC with Game Soundtracks

One popular model is selling DLC (downloadable content) featuring the game's soundtrack. In this arrangement, developers and musicians agree that all or most of the revenue from soundtrack sales goes to the musicians. This model provides musicians with a stable income while allowing developers to offer high-quality additional content to their users.

2. Fixed Payment for Music Creation

Another option is a fixed payment for composing original music or using existing tracks in the game. This allows developers to acquire exclusive tracks that enhance the game's atmosphere and style, while musicians receive a guaranteed fee.

3. Revenue Sharing

Revenue sharing from game sales is becoming increasingly common. In this model, musicians earn a percentage of each game sale that includes their music. This approach incentivizes both parties to actively promote the project.

“I’ve seen how flexible licensing transforms indie gaming, extending well beyond just music. For example, through our collaboration with Mondo, we created a brand-new episode of Happy Tree Friends to celebrate the release of our upcoming DLC. This strategic use of licensing and DLC led to several million views, demonstrating the powerful impact of creative licensing approaches on audience engagement and game promotion” — Anton Bondarev, CMO at Ravenage.

From a management perspective, all these processes require careful coordination: negotiating contract terms, developing marketing strategies to promote either the DLC or the soundtrack (by both parties involved), and integrating content into the game considering copyright and negotiated licensing clauses. 

Developers have adapted and found a solution to manage copyright limitations painlessly though that is increasingly used in games. Many create special "streamer modes" to avoid potential problems when publishing content on YouTube and other platforms. These modes allow streamers to use game materials without the risk of violations, promoting both the games and the music. Licenses that permit music use only within the game are cheaper and allow the inclusion of well-known artists.

Financial Opportunities in the Gaming Industry

The gaming industry continues to thrive, generating substantial revenue. According to Konvoy’s Q2 2024 Gaming Industry Report, the market is set to reach $189.3 billion in 2024. With over 50,000 games on Steam, indie projects make up a significant portion of the platform. Games like Roblox and Fortnite captivate not just gamers but also musicians, with Roblox boasting over 71.5 million daily active users and Fortnite exceeding 500 million registered accounts.

 

For emerging musicians, games offer a fresh stage to showcase their talent. Research from Music Business Worldwide reveals that over 80% of new musicians struggle to stand out in the content flood. Games present an opportunity for artists to gain visibility and reach new audiences. The gaming industry offers innovative ways for musicians to diversify their income, with a lower entry barrier and enhanced chances of success.

 

The musical revolution in indie games is gaining momentum. Simplified music licensing is unlocking new possibilities for both developers and artists. By collaborating, indie developers and musicians can create unique projects and promote music through gaming platforms. This intersection of gaming and music promises exciting new opportunities for all involved.

Elena Morina


About the authors:

 

Elena Morina, Ravenage, Founder & CEO

With years of experience both on the production and marketing sides of the game industry, Elena excels in every field related to game development and marketing. But it’s not only a business: Elena is also a passionate gamer so she builds Ravenage with one purpose: to find the best indie games out there and make sure those get a top-notch publishing service while learning about the ways to market their games. Spends real-time years playing survival sandboxes.

 

Anton Emelianov,  Ravenage, Publishing Producer & Licensing Manager

Dynamic professional with 3 years of gaming industry expertise and over 8 years in international communications, project management and licensing. Responsible for licensing of characters and music for Heretic’s Fork and host of Bullet Heaven Festival.

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