Riot Games, Epic Games, and Tuned Global on the future of music in gaming

This year’s most-anticipated entertainment release isn’t an album, a movie, or a TV series.  It’s a video game.

Rockstar Games’ Grand Theft Auto VI is projected by DFC Intelligence to generate $1 billion in preorders ahead of its Fall release and over $3 billion in its first year.

After 28 years since the release of the first GTA game, the franchise’s extraordinary commercial success is indicative of gaming’s continued cultural significance and dominant positioning in the wider entertainment business.

As noted in this 2024 report from Dentsu Research, gaming generates more money annually than the film and music industries combined.

The video game industry generated $184 billion in 2023, versus the $33.9 billion in global box office revenues and $28.6 billion (IFPI) generated by the global recorded music industry (2023).

Gaming is BIG business, and, from in-game placements, to scores, official soundtracks, virtual merch, and virtual concerts, it’s a big opportunity for artists, songwriters, and music rightsholders.

But music has, of course, also become a central feature of gameplay, as highlighted by GTA’s in-vehicle radio stations or popular soundtracks associated with everything from the legacy Tony Hawk Pro Skater series to contemporary hits like EA Sports’ FC and NFL Madden franchises.

Experts on the convergence of gaming and music highlighted these opportunities for both sectors during a panel discussion at Music Tectonics in Los Angeles.

Among them were Spiro Arkoudis, Chief Revenue Officer at Tuned Global; Emily Levy, Head of Global Partnerships at Epic Games; Crossborder Works founder Vickie Nauman; and Danny Silverman, Head of Music Legal Affairs at Riot Games.

Nauman pointed out that “there are 3 billion global gamers,” but that the “industry is a little bit similar to the music industry where there’s a handful of huge gaming studios”, and then a “really long tail” of “diverse game developers” focused on various platforms, from mobile to console, VR and more.

This long tail of game makers, with the potential to pay for licenses to feature music in their games, means that “engaging the music industry and the gaming industry can be really challenging,” added Nauman.

Solving licensing issues.

Speaking during the panel discussion, Spiro Arkoudis noted that Tuned Global, which has emerged as a key player at the intersection of the music and gaming worlds, has experienced “more and more gaming companies wanting to engage with commercial music” over the past couple of years.

As a B2B cloud music technology platform, Tuned Global helps game developers integrate fully licensed music and advanced APIs into their platforms.

“We work with gaming to provide infrastructure, enabling music experiences for gaming partners and clients of ours and [facilitate] a relationship with the licensing side,” explained Arkoudis during the panel.

He added that the company works with gaming companies to address how they “can license music, how they get access to millions of assets, but also [to provide] the engine room behind that.”

An example of Tuned Global’s prime positioning in this space was its collaboration with personalized music for games company Reactional Music, which focuses on music personalization and dynamic in-game soundtracks that adapt to gameplay in real-time.

Additionally, via its case study with FanLabel, Tuned Global demonstrated its ability to “reduce backend music technology costs” while enhancing user engagement.

Meanwhile, the company’s recent partnership with music game Realize Music, which signed strategic partnerships with Univeral and Warner Music in December and launched on Meta Quest in North America just last week, highlighted Tuned Global’s deeper expansion into this space via VR headsets.

Tapping into gaming fan communities

Elsewhere on the panel, Danny Silverman of Riot Games explained the difference in significance between a partnership or placement of music in a game versus a big sync in a popular TV show or film.

He noted that, “the big and most popular games are not just a placement [but rather] a culture.”

He added: “It’s a lifestyle for the people that play them. There are hundreds of millions of people playing.”

One of Riot Games’ flagship franchises, League of Legends, counts around 131 million monthly players. “This is more of like a sport,” added Silverman. “There are leagues and professional leagues. So it’s not just a show that you watch one time and then maybe if you’re a super fan, you’ll rewatch it a second time. People interact with their friends socially around these games.”

“So to have a musical association with that game is not just visibility to that artist or to that song, but it’s an association with an IP that is so important to millions of players’ and fans’ lives.”

Riot’s in-house music division Riot Games Music also produces original music, by virtual bands like K/DA, Pentakill, and True Damage. K/DA, unveiled in 2018 to perform within the League of Legends game, features singers Madison Beer and Jairan Burns, along with I-dle members Miyeon and Soeyeon. The group’s debut single Pop/Stars has been streamed over 370 million times on Spotify and has over 600 million YouTube views

Riot also works with superstar artists for its League of Legends World Championship anthems, like K-Pop group NewJeans, Imagine Dragon and Lil Nas.

Off-platform exposure and the ‘ripple effect’ of including music in games

Elsewhere during the panel discussion, the music and gaming execs pointed to the potential off-platform benefit of having music included within a game.

Tuned Global’s Spiro Arkoudis summed it up as “discoverability and the ripple effect” on streaming platforms after music is associated with a game.

“We’re seeing a lot of that,” said Epic Games’ Emily Levy. “Luminate published a stat that when Fortnite put a song into the game as a purchasable track, which we call Jam tracks, and we rotate them in and out of the game on a daily basis, rightsholders were seeing an 8.7% lift in consumption off-platform.

“And that was just simply by putting a song in the game, not through a massive artist partnership or a big concert.”

Levy noted that Epic Games, maker of hit battle royale title Fortnite, now “operate[s] an always-on music business”. Fortnite has hosted several virtual concerts by superstar artists, starting with its first one featuring Marshmello in 2019, which set a precedent for large-scale virtual concerts.

Travis Scott‘s in-game performance took it to another level a year later, attracting 27.7 million viewers across five pre-recorded ‘sets’.

“Music has played a huge role in Fortnite since the game launched [in 2017],” said Levy.

“We’ve always known that music was important for connection and for self-expression and we have experimented in a variety of ways.”

One of Epic‘s music-related properties is Fortnite
Festival, which was developed by Rock Band and Guitar Hero-maker Harmonix, which Epic acquired in 2021.

As a result of the existence of
Fortnite Festival, Fortnite sells Jam tracks in the
game and has partnered with artists from The Weeknd to Lady Gaga, Billie Eilish,
Metallica and Karol G.

“We are thinking about
music differently,” said Levy. “At our core, we believe music
is a part of the social fabric at Fortnite.”

What the future holds for Gaming x Music

The execs closed the panel by commenting on what the future holds for the wider music and gaming market and for their own companies’ work in this space.

Epic Games’ Emily Levy said that she foresees “more artist partnerships
more opportunities to bring music into [Fortnite]
from artists from around the world”.

Added Levy: “What I’m really
excited about is Fortnite’s [evolution] into more of
a platform where there are thousands of creators
around the world making and shipping games [and working out how the company can] support the proliferation
of third-party game experiences, music game experiences, concerts etc.”

Danny Silverman, Head of Music Legal Affairs at Riot Games argued that we’re only now “seeing the tip of the iceberg of ways that music can be experienced in-game.”

He added: “From a Riot perspective, a
lot of the big things we’ve done have been music outside of the game that correlates to the game.

“And some of that
may be a creative decision, but others relate to just the sheer complexity and fragmentation of music licensing in-game. But I do see the active conversations that are happening just based on the
growing mutual interest that are going to simplify that.”

Commenting on the licensing element, Spiro Arkoudis reiterated that Tuned Global is “getting a lot more gaming companies coming to us” and that, what’s giving the company  “a lot of confidence [in the market]” is that “[licensing] deals are actually happening” between rightsholders and games developers.

He added “And once a gaming company has engaged with commercial music and can do that at scale, it sets a precedent. Over time we’re going to see a lot more of these gaming companies and games out there with in-game music experiences. That’s good for the whole ecosystem long term. Everyone wins out of that.”

Tuned Global will also appear at the upcoming GDC (Game Developer Conference) in San Francisco on March 17-21 to discuss the integration of commercial music in games.

We caught up with him ahead of GDC to ask a few more quick questions about how he sees the music x gaming space evolving in the coming years.

This is what he told us:

What are your predictions for the revenue-generating potential of games for music rightsholders in the next couple of years?

The gaming sector presents a substantial and growing revenue opportunity for music rightsholders. As gaming evolves into a mainstream entertainment platform, music integration — whether through in-game soundtracks, virtual concerts, or player-customizable playlists — is becoming a central feature. Industry estimates predict significant revenue growth, driven by the increasing adoption of subscription-based music models in games and in-game microtransactions for exclusive music content.

According to a report by MIDiA Research titled “Music and Gaming: A New Way to Play,” the integration of subscription-based and interactive music experiences within gaming environments has shown a steady upward trend. Similarly, the Goldman Sachs “Music in the Air” report highlights that in-game music monetization is expected to grow exponentially as developers continue to explore innovative revenue models tailored to player preferences.

With the rise of interactive gaming platforms and apps, licensing opportunities for artists and labels are expected to expand dramatically, potentially doubling or tripling the current market value for music in gaming by 2026. These projections are supported by insights from these authoritative sources, which emphasize the growing integration of music within digital and gaming environments as a major driver of this growth.

What are your predictions for the music tech advancements we might see in the gaming sector in the coming years?

The future of music tech in gaming will likely see advancements in adaptive music algorithms, enabling highly personalized and reactive soundscapes that align with individual gameplay. We anticipate significant developments in AI-driven music composition, allowing games to generate unique soundtracks on the fly.

Spatial audio and immersive sound technologies will also gain traction, especially in VR and AR gaming environments, providing players with 360-degree audio experiences. Moreover, blockchain-based solutions for rights management and royalty tracking could streamline licensing, benefiting both developers and music rightsholders. The integration of music into the metaverse and connected environments, including in-car gaming systems, which represent a groundbreaking opportunity for the convergence of music tech and gaming.

As vehicles become increasingly connected and interactive, the integration of gaming systems into cars opens new avenues for immersive entertainment experiences.

This aligns with the growing demand for unique entertainment options during travel, transforming cars into versatile entertainment hubs. The collaboration between music tech and gaming in this context not only enriches user experiences but also creates additional revenue streams for developers and music rightsholders. It will further revolutionize this space.

Could you highlight some of your key tech solutions for the gaming industry?

Tuned Global provides innovative technology solutions that cater to the large-scale music needs of gaming companies. Our platform and robust set of hundreds of Advanced APIs enables the creation of richer in-game cross functional music streaming experiences. Game developers can for example offer gamers access to curated playlists or genre-specific stations, advanced search functions, on-demand streaming services or unified listening sessions directly within their favorite games. These are just some examples.

This offers a seamless and immersive music experience in-game that keeps users engaged. Our platform is designed to handle the complex needs of large-scale music licensing and integration, enabling seamless access to extensive, pre-cleared music catalogs for large audiences.

This empowers developers to build music-rich gaming environments, offering a comprehensive streaming solution tailored to the gaming context, and keeping players engaged without external distractions. Additionally, our scalable cloud infrastructure ensures efficient delivery of music to millions of users, making us a preferred partner for developers aiming to provide immersive and continuous audio experiences in gaming environments.Music Business Worldwide