Response to Questions about Viacom Selling Harmonix

[Catch-22]

for those of you "congratulating" HMX for being on their own again... the only reason they were sold off was because they lost a **** ton of money for viacom... big companies don't sell off smaller parts unless they are losing money. I also can't see how this helps the DLC process, because having the viacom card in your back pocket and being able to cross promote to the masses on MTV was a huge selling point for many artists... if you pine for indie artists... then this is great, if you are like me and prer the established bigger name bands.... not so sure this is the best of news

Because GH1/2 didn't have big bands and you are intimately familiar with the licensing process and what artists care about and want. Or that Rock Band and HMX aren't firmly established within the music business without an association with MTV. AND that MTV and Viacom are respected within the music industry and not a reality TV peddling joke.

[bonethug0108]

It's not an unknown, Harmonix own themselves again, hence the "Independent"

No they don't. They are owned by a company called Columbus Nova.

Hey Everybody,

Thanks for all your awesome support and well wishes. It's an exciting time, for realz.

Quick update: For some reason the title of this thread was edited to be "Response to Questions about Viacom Selling Harmonix back to Harmonix" which was probably an offhand attempt at a joke from one of our delightful moderators, but has led to a little bit of confusion. We (Harmonix Music Systems) have not "bought ourselves back". As announced, we were sold to Columbus Nova, an investment management firm. We're sorry for any confusion caused by that title.

for those of you "congratulating" HMX for being on their own again... the only reason they were sold off was because they lost a **** ton of money for viacom... big companies don't sell off smaller parts unless they are losing money. I also can't see how this helps the DLC process, because having the viacom card in your back pocket and being able to cross promote to the masses on MTV was a huge selling point for many artists... if you pine for indie artists... then this is great, if you are like me and prer the established bigger name bands.... not so sure this is the best of news

Looking at the lawsuit filed by hmxagainst viacom, I think it's safe to say the two reasons it appeared hmx was losing them money was:

1: They owed hmx HUGE amounts in incentives in 2007 and 2008, which are reported as expenses and thus taking away money from viacom, but not hmx. They were still raking in cash. Too much cash for viacom.

2: Viacom manipulating the numbers to make it seem like hmx was bringing in less money than they were so they wouldn't have to pay them all the bonuses they were due.

Read through this thread:

http://www.rockband.com/forums/showthread.php?t=211608

I'll post more later(have to go), but I believe the main reason they wanted to sell hmx is so they wouldn't have to pay the bonuses owed and knew the suit was coming.

Edit:
Also, they told ea to keep a larger distribution fee and to use some of the money for advertising on viacom's networks(thus making viacom get their money right back, and holding profits from the game from hmx, also lowering the bonuses). EA paid for the advertising, not viacom.

[Aut0matic M16]

Just because Viacom sold HMX, does that mean we wont be getting any more Spongebob tracks?

[acdcrock]

Hehe. That's what my last sentence there stated.

:P so it is, sorry didn't see your reply, was just sort of a random thought of mine haha

[tepidshark]

....guys, really: the "Music" in Music Television died out about 15-20 years ago with the first episode of "The Real World." MTV hasn't been about music at all since then. The *only* musical "entree" that Viacom provided for HMX over the past 4 years was shoveling Nicktoons horse**** down their throat at every available opportunity. Good riddance to Viacom!

That is insanely true, but there is perception that MTV had liscensing muscle in music especially when Rock Band 1 was coming out. Can they continue to push forward & get new artists (including near impossible bands like Zeppelin & Pink Floyd)? I think the Rock Band name had enough name recognition to continue to push forward.

By the Way, when I first saw that Columbus Nova could be abbreviated CN, I thought Cartoon Network was buying Harmonix.

[GNFfhqwhgads]

for those of you "congratulating" HMX for being on their own again... the only reason they were sold off was because they lost a **** ton of money for viacom...

Did you read about the lawsuit where Viacom withheld over a quarter of a billion dollars in performance bonuses from Harmonix because they didn't wanna pay them?

I mean, the sale would have NOTHING to do with that, it's probably that the series did poorly, hence the...quarter of a billion...in...performance bonuses...

[HairyMan]

:P so it is, sorry didn't see your reply, was just sort of a random thought of mine haha

Hehe. Not a problem. Just two minds thinking the same thing. The same good thing for Harmonix and the fans of Rock Band.

[cherokeesam]

That is insanely true, but there is perception that MTV had liscensing muscle in music especially when Rock Band 1 was coming out. Can they continue to push forward & get new artists (including near impossible bands like Zeppelin & Pink Floyd)? I think the Rock Band name had enough name recognition to continue to push forward.

By the Way, when I first saw that Columbus Nova could be abbreviated CN, I thought Cartoon Network was buying Harmonix.

Yes, I think the Rock Band (and HMX) has enough name recognition to continue to push forward without Viacom. In fact, I *highly* doubt bands like Zep and Floyd (as you mentioned) would give a crap about the MTV name whatsoever --- what did MTV ever do for them?

For that matter, look at Activision/Neversoft. They've got like zero amount of pull within the music industry and no attachments to it, and yet they've been able to license the biggest names in rock history, same as Viacom/HMX.

The MTV name/icon was *not* helpful in any way in the licensing process for HMX; in fact, it's safe to say that there's such a stigma attached to the schlock celebreality that MTV Networks peddles these days that it actually chased off some bands who'd rather not be associated with the MTV name.

The only thing HMX will miss from Viacom is the free advertising on MTV Networks; but the effectiveness and reach of those semi-weekly DLC ads on the MTV/VH1 nets is highly debatable.

[bonethug0108]

The only thing HMX will miss from Viacom is the free advertising on MTV Networks; but the effectiveness and reach of those semi-weekly DLC ads on the MTV/VH1 nets is highly debatable.

It wasn't free. According to the lawsuit EA paid for it.

[Headcase]

Wow, very exciting news. I wish the best for everyone on the Harmonix staff for 2011 and beyond. Rock Band has been my #1 series for the last 2.5 years so your good news is my good news.

Cheers to Viacom for helping launch all those games, and for what appears to be a mostly amicable sale.

*Hopes for dedicated Music-creation game*