Monday, October 26th 2020
Google Distances Itself From Alex Hutchinson's Game Streaming Royalty Comments
The recent comments from Google Stadia Montreal Creative Director Alex Hutchinson regarding game streaming revenue sharing have generated significant public backlash from consumers and developers alike. The Creative Director suggested that game streamers should have to purchase a commercial license or pay royalties to game developers in return for streaming their games. These comments were quickly associated with Google Stadia by the community which has prompted Google to issue a statement distancing themselves from Alex Hutchinson's comments. Alex Hutchinson's Twitter bio has also been updated to reflect that all opinions are his own.
Sources:
Google, Alex Hutchinson
GoogleThe recent tweets by Alex Hutchinson, creative director at the Montreal Studio of Stadia Games and Entertainment, do not reflect those of Stadia, YouTube or Google.
91 Comments on Google Distances Itself From Alex Hutchinson's Game Streaming Royalty Comments
There are quite a few videos on Youtube showing how to use Photoshop, how to create a table on Excel etc etc. These videos obviously generate a stream of revenue; should the video creators pay additional licencing fees to Adobe, Microsoft and so on? Yes/no, and why?
What is the consumption of a video game? Let's say consumption of music is listening to it (so by listening to a song on radio you effectively consume it, and radio station effectively is a "reseller"). If consumption of a video game is playing the game, wouldn't then watching someone playing it be an equivivalent of watching someone eating a cake?
I would argue that this ultimately means that when it comes to licensing, you can't really argue that game streaming is sufficiently transformative to fulfill fair use requirements, as play is at its very core transformative - the relation between the player, the PC and the game is a transformative relation that creates something that didn't exist previously (only as potential), yet it is also the only way that the game can be realized. To be transformative in the manner that qualifies as fair use in my understanding, this would need to be coupled with an external perspective that is rarely if ever part of play: commmentary, analysis, remixing, creative re-use, etc. Making a spectacle out of the act of play does IMO not rise to this level of transformation. So radio stations that play ads should never have to pay royalties for the music they play? That argument doesn't hold much water, sadly. The playing of the game is what allows them to have ads; without the game there would be no stream, thus no ads, thus no income. I do get what you're trying to say, and I understand where it's coming from. But the problem is that it really isn't a non-existent problem. It's a very real problem where creators of small games - especially short, story-driven ones, but it's definitely not exclusive to them - have the "choice" of either not having an income because nobody knows about them, or not having an income because people watched a streamer finish the game and don't see the value of buying it. This "free advertising" model only really works for companies already big enough to survive on their own. It often has the opposite effect on smaller creators. Of course there are always exceptions - like Fall Guys! - but they are the exception, not the rule. For every Fall Guys, there are hundreds of developers who don't gain any sales from streamers playing them, and thousands who are effectively barred from getting any attention at all. You are arguing for preserving a system that is very much rigged to support those already in power (whether or not it was made consciously or grew organically). Streamers definitely weren't spamming Ubisoft, Valve and Epic with sponsorship demands, but once that precedent was set, the bar for entry for smaller developers got a lot higher, all the while their access to publicity got ever less predictable. This also drives developers towards making "stream-friendly" games, i.e. games that are both fun to watch and play, but most importantly, aren't "done" after a few hours. This has the potentially to significantly limit what kind of games are made, as small developers are typically in very precarious economic positions. I definitely see a reason to push back against a system that risks enforcing conformity and uniformity among the games that are made, regardless if the same system works well for big, wealthy game makers. I know that was meant as a joke, but ... that's mainly because the music industry is messed up enough that the record companies get far more from this than artists do, not because they don't get paid. Also, royalties for public presentation of media aren't typically calculated on a per-play basis AFAIK, and typically the systems are tuned to distribute wealth a little more evenly than the "market" of music playback would otherwise make it, ensuring that small artists get a bit more in a relative sense, while the huge ones get a bit less. IMO this is pretty fair, though of course the part where the record label then takes 70% of the money isn't whatsoever.
Commentary and analysis are almost always part of streaming, so I'd argue that it definitely meets the criteria to be a transformative work. There are lots of streamers who don't do that, and just sit there playing the game quietly... but nobody watches them anyway lol. I guess if it came to that, some individuals would qualify, and others would not, and the individual "works" would have to be examined. That would be hugely inefficient, and a supreme court case would most definitely attempt to address the entire concept of streaming and not an individual. As such, I think it'd be hardly likely for the courts to determine against the streamers because the defendants would definitely bring in the streaming industry at large, and explain how it is normally transformative. After all, you can perfectly legally watch a movie on youtube, and comment on it, because commentary is a transformative work.
One of my favorites - The Stanley Parable. That's a gold standard of how to make a good narrative-driven game. You can't just take a 6-week anime class on udemy, watch five tutorials on Unity and think that you can make a game. It requires talent, creativity, skill and determination.
The only way an indie game can fail from streaming, is by being too short or too... crap. Spoiling a game, regardless of its length, was never an issue. In game reviews those are called "spoilers". I think you are a bit too late to challenge whether it qualifies as fair use or not, cause [spoilers]... it does.
Almost all EULAs allow "fair use" presentation, AKA streaming type scenarios, because yeah free advertising. Pretty much. It's cut and dry down to the point there are specific exemptions for educational settings vs standard users. It's a weird thing but it's certainly defined legally and cut and dry at this point.
As for the games I was talking about, they definitely aren't the dime-a-dozen visual novels you're talking about (thankfully!), nor are they the type of games I would expect to come out of "tak[ing] a 6-week anime class on udemy, watch[ing] five tutorials on Unity and think[ing]that you can make a game." Disregarding how derogatory that assumption is (more towards developers than me), I kind of get why you would assume that, as all game distribution channels have been drowning in these low-quality games for quite a while now, but that isn't the case. What I'm talking about are ... I would call them artistic/personal indie games, games with far more artistic merit than your average visual novel, but often not higher production values; ones that often focus on portraying a personal story or experience, attempting to convey something meaningful and interesting, share a perspective on something, but without the means to make it into a high production value game. Bury me, my love is a great example - though of course that is also what I would call a relatively successful one, all things considered, and one that had production support from multiple sources. (I also think it might be one of the least streaming-friendly games ever, but that's besides the point here.) There is some replayability, but it also loses its emotional impact through successive playthroughs, which is obviously quite detrimental to the experience. I could also mention something like Papers, please (though again, that is a quite successful example). Behind these successful outliers - including the ones you mention - are thousands of brilliant games that are a poor fit for the "streaming as free advertising" model. Of course for many of these games even a few hundred sales from a streamer playing their game would be a major boost to income, but as I've said above, for many games this type of exposure might just as well lead viewers to feel they have experienced enough of the game to not bother buying it no matter how much they liked it. This is entirely impossible to predict, and if we want a healthy industry it stands to reason that there should be systems in place to ensure some sort of reimbursement for developers when their products are used in a for-profit setting.
As for the examples you mention: it is obviously great that some games manage to overcome the massive barrier that is reaching the public and gaining a following. However, you are repeating a fallacy happens in pretty much every discussion that borders on debating competition in a capitalist economy: equating the success of a few actors with the system overall working as it ought to. I mean, this is exactly how capitalism works: it sets up a strict competitive system where there can always be only a handful of winners, and everyone else loses (though to varying degrees), while simultaneously promoting the fallacy that "they made it, so you could too!". It is an indisputable fact that the success stories are few and far between, and also that who gains success has little relation to the actual quality of the game. It's all pretty much down to chance, with merit and game quality only being tangentially related to success. You also bring up the clichéd point that "It requires talent, creativity, skill and determination", implicitly saying that anyone who fails lacks one or more of those - which, put simply, is a lie. You can have all of those in spades and still fail outright, again and again.
But beyond that, the view you're presenting here is really reductive: a lack of significant replay value in a game can't simply be put down to "not being able to add a little gameplay into their game". That is, quite frankly, ridiculous, and an incredibly condescending attitude towards game developers. It's also an attitude that ultimately says only games that have high replay value and are suitable for the streaming as free advertising model have a right to exist, as you are quite explicitly saying that games that don't fit this mould "were supposed to die 15 years ago". Yes, I know that was said about two specific genres (if you could even call them that), but your phrasing leaves no room whatsoever for alternative game forms that don't fit your standard. Do you really want a games industry where the games made all fit within the same mould?
And I'm not talking about freaking spoilers here. Please don't be that daft. I'm talking about games where the impact of the game - narrative, emotional, or otherwise expressive - lends itself poorly to being experienced several times in a short time span. Games like these also typically lose out doubly on being streamed as viewers then get a first impression of the game that is muted and filtered through someone else's gameplay and stream, potentially diluting the expressive content of the game.
I am obviously not arguing for some utopian system where everyone who wants to make a game should be able to make a good living off of it, both due to the impossibility and unfairness of such a proposition (that would take all talent and merit out of the question, after all). What I'm saying is that our current system a) favors those already in privileged positions, and b) leaves everyone else to fight over scraps in what is ultimately an entirely random process of "selection". I am arguing for a system that would allow talented and hard-working small-scale developers to be paid for their work and actually have a semblance of security, while also fairly reimbursing larger actors for large-scale commercial/for-profit use of their products, while at the same time not preventing fans from streaming the games they love (that's why any royalties need to be limited to for-profit, large-scale streamers) or otherwise unduly limiting the freedom of players. And implementing such a system really wouldn't be that difficult, but it would require industry-wide cooperation, which is likely what stops it, and why we are stuck with a system where money is the ultimate determinant of success, save for the occasional out-of-the-blue low-budget success story. As I've gone into at length above, the "free advertising" model only works for a few developers, typically those that are already in privileged positions. (Though of course they are further privileged if/when this morphs into paid advertising - but that's another debate entirely.)
But your initial argument here is ultimately a tautology - "It's okay because the EULA says it's okay". That doesn't touch on whether this is actually how the EULA ought to be, or whether this is the best possible system for making this work. But that's the thing - if for-profit let's play streaming is transformative enough to warrant fair use exemptions from copyright, it's very difficult to argue that the inherently transformative play of a pirated game doesn't reach the same level - or that it isn't more transformative, as it after all is the process that combines a person, a computer and a bunch of illegible data and transforms that into gameplay. This is also an issue of copyright law, that delineating ownership from the right to use a thing is really difficult. You don't own a game you buy - especially not the game data or code that's stored on your computer! - you are buying a license to play the game, for which having said data present is (typically) a requirement. If transformative use is to grant exemptions from the requirement for such a license no matter the level of transformation, then it becomes really difficult to argue that game licenses are enforceable at all. This is especially true given that streaming is a public presentation of the game while playing for yourself is a private one, the latter of which is regarded much more leniently within copyright law (many exemptions for private backups exist, etc.).
Now, I don't actually agree with this line of reasoning - I obviously believe that players should pay for access to the play experience, so that developers can make a living off their work - but by arguing for streaming as transformative use (rather than for example public presentations like in music or film), you are lowering the bar for what counts as transformative to such a degree that it ultimately calls into question even the action of "buying" games.
edit:
You just playing the game does not produce new art and is thus not transformative art.
You recording yourself playing the game is essentially an art performance and thus is transformative art.
You listening to music by yourself does not produce new art and is thus not transformative art.
You recording yourself listening to music is essentially an art performance and thus is transformative art.
For games the above is very cut and dry, and tried in both the states and the EU. For music it has not been tried in court and for example youtube takes the stance that the owning music label wishes on a song-to-song basis.
The problem is, it comes in flights, and you have to wade through the yelling and toxicity that inhabits the rest of the stream to get to his golden nuggets :laugh: It's actually pretty hilarious to watch. One minute he's yelling about these ****ing noobs and their!@#$%^&*()... the next he's waxing philosophical about the effect of this game on the industry, and how it will affect game design and marketing in the future. I will comment on that though: Youtube's music copyright claims are a matter of *policy*, not law. If the system tags your video for a copyright claim, you can claim fair use, and as long as the copyright owner agrees, you can keep the music in your video. But the decision falls to the copyright owner, and not youtube. This is youtube's policy. And as such, even if you took the copyright owner to court, it would not override youtube's policy. If your video is listening to a piece of music and providing basic commentary on it, that would most likely be sufficient to show fair use. But even if you won that court case, YOUTUBE would not allow you to continue using that music in your video. This is not because of the law. It is youtube's creative way of not having to DEAL with the law.
As for piracy, that is not covered under the same use rules. If you pirate a game, you are pirating copyrighted CODE, which has its own rules and regulations separate from copyrighted "works of art." So that entire conversation is irrelevant.
Streaming gameplay is considered transformative art.
Streaming you listening to music is not definitive because no-one has brought it to court yet.
I wasn't making claims beyond that.
[ Wait, there is no case law covering music copyrights? I find that very hard to believe. Besides, case law is intrinsically subject to change unless there's a supreme court decision on the matter - and even those can be challenged. Also, are you actually saying that you don't think YouTube pays royalties for YT Music? Because it should be pretty obvious that they do.
And with that whole article - it's an opinion piece backed only by few words from a short interview of a single indie dev of a now defunct two-dude company (who's last game sold over 500k copies on PC alone, regardless of streaming arguments, btw). Just words, no facts, and very weak on arguments. E.g. who in their sane mind would compare any single-player title that costs any amount of money to the most popular AAA F2P multiplatform multiplayer game and based on this idiocy later suggest that this is an indicator of declining single player experience. And IGN are really confused as to why AAA studios and publishers focus on online games nowadays - it's not because SP is becoming less popular or in-demand, but because they can cling to rolling updates and DLC, and milk more cash off that singular cow. Better RoI, in other words.
I’m saying that youtube is very much willing to drop content without due process from it’s platform to please the companies it has partnered with to create yt music.