1. “Why the Music Industry Hates Guitar Hero” Ryan Veerkamp Sergio Cirinas Neil Potter By Jeff Howe, Wired Magazine Article Link

2. Overview Current State of the Music Industry New Trend: Music Videogames – Threat or Opportunity? Industry’s Reaction and Perspective Positives for the Industry What should Warner Do? Past precedents

3. Current State of the Music Industry Album sales fell by 19 percent this past holiday season ITunes number one music store, recently passing Wal-Mart Industry still plagued by pirating

4. Guitar Hero and Rock Band have made $2.3 billion over the past three years Cultural phenomena: bars, karaoke, etc. Three versions of Guitar Hero released Good thing for the music industry?

5. Whining over licensing fees – Games are entirely dependent on content the record labels own Rock Band boycotting Warner Music/Artists A fight that no one can win

6. Warner Music believes that record labels have been ripped off too many times in the past – MTV sold in 1985 for $690 million on the strength of videos it received for free – Apple denied record labels control over pricing on ITunes

7. New channel for advertising Consumers relate to bands and their music Breathing new life into old bands Aerosmith, has earned more from Guitar Hero: Aerosmith than any single album in the band’s history

8. Both record companies and retailers have seen sales of songs and groups increase 200 to 300% after their inclusion in Guitar Hero 76% of people who play Guitar Hero actually buy music based on their video game play

9. Push for more Warner titles and integrate them into promotional strategies Music videogames could eventually become online music retail channel that could rival ITunes Game for turntable artists, provide songs and let users mix their own versions, while Warner could sell back mixes to customers (Wii-Mix)

10. Music Industry needs to see this increase in popularity of music as an opportunity not a threat Fought pirating vigorously instead of adapting to online outlets Hollywood turned the VCR, a potential threat, into a revenue source, building customer loyalty in the process

11. Whining over licensing fees is a fight that won’t be won Fighting game makers will not solve the industry’s problems Music videogames and their rising popularity should be treated by record labels as an opportunity and not a threat