Do video games pay royalties for music?
Most video game developers do not pay music royalties for video game music used in their games. This is because these soundtracks are not considered public performances within the music industry.
In this industry, royalties for music are only paid when it's used in commercials or other promotional materials, highlighting a significant aspect of music rights. For example, if a developer uses a song in a trailer for their game, they would have to pay the songwriter a royalty. However, if the same song is used in the actual game, the developer would not have to pay any royalties.
This is why many video games feature original soundtracks or licensed music from various other sources. By not paying royalties for music, developers save a significant amount of money, which they can then reinvest into creating more elaborate and immersive gameplay experiences.