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Rock Band, Dance Central DLC 'ongoing work' not affected by Viacom sale
After seeing this morning's news of Viacom selling developer Harmonix, many of you were concerned about the company's persistent work in supporting its products with downloadable content. Harmonix has responded to our inquiry, stating, "This morning's announcement does not affect the ongoing work at the studio as we continue to support our existing franchises, Rock Band and Dance Central. As stated earlier, Viacom is in discussions with several potential buyers and will continue to fully support the business until a sale is completed." The developer plans to continue answering outstanding questions on its forum on this thread. We also contacted Viacom and MTV Games regarding the status of the licenses for the music store and whether they'll transfer with Harmonix once the company is sold. A Viacom spokesperson informed Joystiq, "All we can say at this point is that Rock Band and Dance Central DLC will continue as planned and we will continue to fully support their releases." Update: Added Viacom quote.
Rock Band developer Harmonix to be sold by Viacom
Viacom has announced that it plans to sell Harmonix, developer of the Rock Band series and Dance Central. The mega-corp has reclassified the Boston-based company as a "discontinued operation" in its third-quarter financial and has already changed all future earnings to reflect the sale. The company recorded a $299 million loss in discontinued operations to reflect the change. We followed up with Wedbush Morgan analyst Michael Pachter to help explain the "discontinued operations" situation. The analyst told Joystiq, "I am sure that the purchase price of $175 million is in there -- it would have been carried on Viacom's balance sheet as goodwill. The rest could be other operations (non-gaming), some portion of the earn out that they paid a couple of years ago, which should have been expensed, but you never know, or some portion of the development costs for games not yet released." Update: Added quote from EEDAR analyst Jesse Divnich after the break. [Thanks, Andrew B.]
Rock Band lawsuit settled; Konami and Harmonix dismiss 'all claims and counterclaims'
Konami and Harmonix have settled their dispute originating in a 2008 lawsuit launched by Konami, reports Bloomberg. According to a filing in federal court in Texas this week, the two parties agreed to dismiss "all claims and counterclaims" in the suit, which alleged that Harmonix's Rock Band infringed upon patents owned by Konami. Additionally, a 2009 countersuit by parent company Viacom on behalf of Harmonix was dropped yesterday in a filing in federal court in Boston. The terms of the agreement between Konami and Harmonix were not disclosed -- but we do so badly hope they involved a rooftop, two ninjas and a mean jam session.
Viacom loses less on Rock Band year-over-year
It seems Viacom's striking fewer sour notes this year, with operating profits up $789 million -- good for 14 percent -- in its Media Networks division (the umbrella its video game business is under). According to the mega-corp, gains are due in part to lower losses from the Rock Band franchise. You know, we dinged Green Day: Rock Band for being a less lavish production than its Beatles-based predecessor, but it seems that (from a big picture perspective at least) the scaled-back approach and getting out of the instrument biz is paying off.
RCN picks up seven of Viacom's HD channels
RCN's hardly the first to go for Viacom's 7-pack of HD channels, but we're sure fans of Ultimate Warrior, The Hills, The Daily Show, iCarly and other programs will be glad to have them. Comedy Central, CMT, MTV, Nickelodeon, Spike, VH1 and BET go live today, with HD video on-demand offerings hitting servers July 1. RCN's claiming 100 HD VOD viewing choices, just a few thousand or so behind Comcast at this point, but we figure an upgrade is an upgrade, and at least on RCN you can watch them on a TiVo Premiere, so there's that right?
Hulu reportedly talking to CBS, Viacom about inclusion in Plus subscriber package
It's Wednesday so that must mean... yes, it's time for another Hulu premium service "leak" to appear in MSM. The most recent rumor, reported by BusinessWeek, indicates the streaming video site is talking to CBS and Viacom about getting their properties on what will be called "Hulu Plus" and cost $9.95 a month and potentially offer subscribers more shows and more older episodes. Traffic dipped significantly after Viacom yanked The Daily Show and The Colbert Report from Hulu in April, we'll see if a share of that premium money is enough to lure them back, and if the long rumored service ever actually launches.
Google wins YouTube copyright case against Viacom
The Viacom copyright infringement case against Google and YouTube has been a long strange journey since it started, but it looks like the first major chapter is over: the federal court today ruled that Google falls under the "safe harbor" provision of the DMCA which protects service providers from liability for user content. Roughly, that means Google isn't liable for copyright infringement on YouTube in general: it can only be liable for infringing specific copyrighted works, and since YouTube pulls videos as soon as anyone complains, it can't get in trouble. Of course, Viacom isn't too happy about this decision and has vowed to appeal, but we think it makes sense -- otherwise Viacom could sue and win for things Google didn't even know about, like, say, the music videos Viacom employees covertly uploaded themselves and then demanded be removed. We'll see what happens -- in the meantime, we'll be celebrating by watching as much YouTube as possible.
Gibson's Rock Band lawsuit ends in settlement, one way or another
Back in 2008, Gibson Guitar hoped to cash in on the Rock Band craze with a slate of patent infringement lawsuits of dubious quality, and though the firm lost to Activision a year later, its suits against Harmonix, Electronic Arts, Viacom, and six major retailers stirred something in Nashville's rock gods. Though exact terms weren't disclosed, the parties reached a settlement in a Tennessee federal court this week, and plan to bring the lawsuit to an end by June 14th. Meanwhile, we hear Harmonix v. Konami is meeting a similar end; retailers should be able to sell cheap plastic guitars with a infinitesimally cleaner conscience in a little over three months.
SpongeBob. SquarePants. MMO.
Who lives in a pineapple under the sea? EVERYONE. MTV Asia and GigaMedia are co-developing and publishing an MMO based on cultural icon SpongeBob SquarePants. The massively multiplayer oceanic online game launches in 2011 for the markets of China, Korea, Japan, Taiwan, Southeast Asia and India. It is the first Viacom (MTV's parent company) MMO to be developed outside the US. The free-to-play title will naturally have an online store for virtual citizens of Bikini Bottom to purchase items ... like, bikini bottoms? More details on the game will be announced closer to launch. Meanwhile, we expect to see at least ten online petitions demanding this game to be brought to the rest of the world.
Gibson and Viacom settle guitar patent lawsuit
The patent suit filed by the Gibson guitar company against Harmonix, Viacom and EA over the Rock Band guitar has come to an end. Rather than the clear victory Harmonix seemed to expect, the parties have agreed to settle. According to Business Week, Gibson and Viacom asked a federal court to dismiss the case by June 14, stating that they "had reached a full settlement." Finally, we can all rock out without being racked by guilt over using a potentially infringing device. Gibson originally claimed that the Rock Band guitar violated a 1999 patent for "a system for electronically simulating participation by a user in a pre-recorded musical performance." Gibson lost a similar case against its old Guitar Hero peripheral partner, Activision, in 2009. [Via Edge]
Showtime getting ready to go online?
What's a "premium" movie service these days without access on additional screens? Not much, which is probably why rumors indicate Showtime is about to follow EPIX HD and ESPN 3(no 60) by creating an online service for subscribers to view on their PCs and mobile devices. Don't expect to watch Weeds, Dexter and The Real L Word on your iPad just yet (except for what's already available on Netflix) as a spokeswoman had only a standard "nothing to announce to" offer Bloomberg Businessweek, but their sources indicate it will resemble the HBO GO service we tested out recently when it went live for Verizon FiOS TV customers. Heading online seems like a good followup to turning on interactive HDTV features, but we'll see if that's enough to keep viewers signing up for its service when there are so many alternatives available.
Dell Streak / Mini 5 makes a cameo appearance at MTV
It's been a while since we've heard much about the Dell Streak / Mini 5, but it seems like the plus-size phone (or mini-size tablet, whichever you prefer) went on a bit of an undercover media promotion tour last week: Viacom MTV exec Greg Clayman tweeted that it's "amazing," while Rob Enderle brought one to the set of John C. Dvorak's Cranky Geeks and said it would launch for around $300 on contract. What does it all mean? We're assuming it's being shown off in an effort to drum up some content partnerships: we've already heard about tie-ins with Amazon's MP3, video, and Kindle stores, and we'd bet that Dell's also going after newspapers, magazines, and video sites hard in an effort to push back at the iPad -- especially since the company is planning to bring out an entire "family of tablets" in the future. Or... it's nothing at all, and AT&T is going to completely wreck this thing before it launches, like it did with the Aero. Dreams or nightmares, the choice is yours.
YouTube: Viacom would demand removal of videos it covertly uploaded itself
As you may have heard, Viacom and YouTube have been having a little tift lately, in the form of a major lawsuit by the former over copyrighted material posted on the video portal. It's a lawsuit that, according to YouTube, will cause such video sites to "cease to exist in the current form" -- but more importantly, it's a lawsuit that leads to some rather hilarious behind-the-scenes details. Here's a really juicy one that the official YT blog published today by Chief Counsel Zahavah Levine. Word has it that Viacom had hired over the years at least 18 different marketing firms to inconspicuously upload content. We can't really say it better than the posting: "[Viacom] deliberately "roughed up" the videos to make them look stolen or leaked. It opened YouTube accounts using phony email addresses. It even sent employees to Kinko's to upload clips from computers that couldn't be traced to Viacom." Wait, it gets better. According to Levine, Viacom's tactics were so good that the company itself didn't even know which videos it had uploaded, prompting multiple occasions where it would demand a clip removed, only to later ask for its reinstatement. "In fact," she claims, "some of the very clips that Viacom is suing us over were actually uploaded by Viacom itself." Hit up the source link for all the details. Honestly, we can't wait to see what else is dug up in these proceedings. Update: Of course, that's not the whole story. Also revealed in court documents today was discussions by Viacom to -- get this -- purchase YouTube before News Corp.'s Rupert Murdoch got the chance to do it himself. Let's be thankful for that judge's decision to unseal all court documents, shall we?
RealNetworks to spin off Rhapsody, give up control
Seems like times are tough in the streaming music game -- Warner is making noise about dropping free streaming rights to its catalog, and now RealNetworks and Viacom have announced plans to spin off the Rhapsody subscription service. The new company will obviously be known as Rhapsody, and both Real and Viacom will hold a sub-50 percent stake in the outfit and remain on the board of directors. Real's also contributing $18m in cash to the cause, while Viacom's committed to providing $33m in advertising -- we'll see if Rhapsody can make it on its own once that all runs out.
EA: Rock Band deal with Viacom only through March 2010
If you're wondering where Rock Band 3 is, a year and a half after Rock Band 2 and five months after the launch of The Beatles: Rock Band, it seems EA isn't sure it's going to get to publish it. During an investor conference call, EA execs revealed that the publisher's deal with Viacom (the company that owns MTV, Harmonix, Rock Band and maybe you as well) is only active through fiscal year 2010 (which ends March 31). Presumably the deal somehow includes the yet-to-be-released Green Day: Rock Band -- but EA's unlikely to announce any more Rock Band games until it knows it has the license locked down for another year. [Update: An MTV/Harmonix spokesperson has told us "The previously announced Green Day: Rock Band will be published by MTV Games and distributed by EA. Stay tuned for news of MTV Games' other titles soon."]
Viacom: The Beatles: Rock Band sales strong, overall RB growth slow
Even though John, Paul, George and Ringo have been rocking the disc tray of your favorite console with The Beatles: Rock Band, its expectation-exceeding sales haven't helped boost overall Rock Band sales. Viacom CEO Philippe Dauman told USA Today the "economics of our Rock Band franchise are improving, though not as quickly as we'd like." There's still hope that Rock Band could at least break even or show a small profit, though Viacom CFO Tom Dooley said that will depend entirely on the franchise's performance this holiday season.Despite tanking sales, the music genre still remains one of the best in the industry and The Beatles: Rock Band shows us that the right approach could still determine financial success in the space. Its September debut was very fortuitous and it even managed to best Guitar Hero 5 in the US -- which not only came with a free game, but is also one of the most recognizable brands to the mainstream. Source - USA Today Source - Viacom earnings report
Beatles: Rock Band sales exceeding expectations, Viacom says
When Viacom's CEO, Philippe Dauman, says that The Beatles: Rock Band sales have "exceeded internal expectations," we have to imagine that he doesn't have his top expectations men on the job. If we had been asked for our expectations of a game featuring the most popular band of all time, we would have simply pointed toward www.mythirdyacht.com and been on our way. What's actually a surprise from an IndustryGamers report on the matter is that even in our crummy economy, it's the $250 version of the game -- bundled with all the instruments -- that's performing so well that Dauman says he expects a sellout by November.
MTV spent big for The Beatles, slowly backing away from peripheral business
It appears that Viacom, parent company of MTV Games and Harmonix, guaranteed a minimum of $10 million, along with another potential $40 million in royalties, to its respective estates for the use of The Beatles in the upcoming Rock Band game. Sources familiar with the deal tell The LA Times that the "royalty rates on [the deal] are not even comparable to anything that has been done before." All this cash is being thrown around in the midst of a revenue decline in the rhythm genre.MTV Games is seemingly taking even more steps away from producing and distributing peripherals. Paul DeGooyer, senior vice president at the company, explains that its "core competency is media" -- he'd rather let Activision "take on the burden of getting those super-tight margin instruments out there."
Rock Band slump leads to lower Viacom profits
Remember how Rock Band sales declined 67 percent since last year? It looks like the sales slump has taken its toll on Viacom's Media Networks division, which houses MTV Games. According to Gamasutra, the division reported revenues of $1.97 billion in its fiscal quarter ending June 30, an 8 percent drop, dubbed the result of "a 41 percent decline in ancillary revenues driven by lower sales of the music video game Rock Band." The Media Networks division also reported profits of $671 million, down 12 percent, which was again attributed to the performance of Rock Band at retail.Overall, Viacom reported a 14 percent drop in revenues to $3.3 billion and a 26 percent drop in profits to $586 million, though executive chairman Sumner Redstone says that Viacom has "the right portfolio of assets and the right vision to manage through this challenging climate."Will The Beatles: Rock Band get economically strapped, music-loving gamers back in stores? We'll find out in September.
Verizon to offer Epix movie channel / streaming service on FiOS, VCast
TV channel / online service combo Epix has finally locked up its first distribution partner, Verizon's FiOS TV. Not a lot of details are available yet, but Viacom CEO Phillippe Dauman says it can offer the service a la carte, in bundles with broadband, and even plans a mobile VCast offering. We've already had a peek at the in-beta HD streams and saw a lot to like, with planned access on three screens and flicks from MGM, Lionsgate and Paramount locked up for years to come Epix is shaping up as a very formidable offering prior to its planned October launch.Update: Epix hit us off with the official PR (posted after the break) but here's the most important details - in the coming weeks, Verizon customers will be able to access a preview of the network, either through their VOD menu on the FiOS set-top box, or by visiting EpixHD.com and entering their account info.
