i am writing this later than 3:30 AM, take for it what you will
i was thinking about the video game market and noticing how the music game segment seems to be in decline or flagging. i was wondering if it could be reversed. i also was wondering about what kind of business plan i would like to see. i do not know current operating margins and the like or all of the hoops companies have to jump through to license a game. Anyway, here is what i came up with (i'm sure others have similar ideas) for my super mega awesome karaoke style game (Lips Infinity) ....
* "label" refers to who the songs must be licensed from, wheter that is the songwriter/artist/record label, etc
1) Music game as a digital download only - works much better as a first party option. The core music game would be downloadable for free or $5.00 maximum with no songs. i don't know if they could do this without a cloud component. Use existing microphones, etc.
2) Initial batch of songs released as launch DLC 100-120 games at $1.00 each (depends if all 4 big music players are on board/ 30-34 from each label). If less labels on-board adjust accordingly.
3) DLC songs priced at $2.00 each with the label taking half of the proceeds. Slightly discounted packs allowed, price depending on number of songs in pack. Can take up to $.50 off per additional song
- Release the equivalent of 7 songs a week from each label for approximately 2.75 years
3) License 1,000 songs per label (including 30-34 in initial launch)
- Guaranteed revenue at the end of year three of at least a minimum specified amount (works better if it is the actual record label). Actually, maybe make the label do that grunt work if you can (and offer them low 7 figures).
4) Profit?
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