WOW! SHIT IS REALLY BAD OUT HERE, I QUESTION IF IT WILL EVERY FULLY COME BACK LIKE IT WAS?
EMI is close to failing in its bid to license its recorded music catalog in North America to Sony Music, the Wall Street Journal reported Monday evening. EMI owner Terra Firma is attempting to reach a licensing deal because it needs to inject £120 million into the company to meet a debt covenant test related to its Citigroup debt. Sources told the Journal a licensing deal for a smaller territory and worth far less is a remote possibility.
The other two majors are not in talks with EMI. Universal pulled out of licensing discussions last week, according to a report by Bloomberg. On Tuesday, Reuters quoted a Universal spokesman as saying the company is not in talks with EMI. According to the Journal, Warner never entered into such discussions with EMI.
Terra Firma has turned to equity injections in the past to help EMI meet debt covenant tests. Sources told the Wall Street Journal that EMI needs to complete a licensing deal by Wednesday in order to help meet its upcoming test. If Terra Firma does not raise the funds from other sources to meet its covenant, a chain of events could be set in action in which EMI defaults on its debt, Citi takes over the company and competing music companies bid to acquire its divisions.
Nina
I don’t know if the industry will ever be the same, I know one thing people need to realize that we are in a viral world now and every aspect of business has to change, its inevitable, you can’t remain the same in a changing enviornment and be successful!!!
by the by, I’ve been trying to load Dondria’s new video on my site and it’s not working for some reason but I have to say I love it, I knew that song would be a hit. Much success to the both of you!!!
Flawless
Prior planning in most cases will prevent piss poor performance but time always tells!!! Terra firma gotta do some serious grinding to work this one out!!!
VERIFICATIONS10
damn… shit just start gettin’ worst for alot of things in the industry… i don’t think it will be what it once was… the reason i say that is because i feel like the public does not truly love the music they way people did when i was young… what i mean by that… is when i was coming up, people use to put the word out , request on the radio, and really go to the music store and really buy an artist’s music… i think know at days people just down =load stuff for free and don’t give back to the artist that is givin’ to them… love and the love of music…
Akuma
Why should this company still be solvent?
Either sell it as a short sale, or … what?
Seems like this Guy head is on the line for that whole ticket.
KILL RYU
SPOCK
EXACTLY….
It’s time to change the blueprints. It will never be like it was, which means… MORE OPPORTUNITY!!!!
bigwes
everything must change…it’s how people adapt….45 to 78 to 8 track to cassette to cd to (a gang of digital formats{some of which are extinct examples are minidisc and laserdisc})
Licensing can be profitable….just not as much as in years prior
DMCclassic
Times are changing and new business models must be created to keep up and they will. The demand for music is most definitely still there but the approach to generating revenue must change, it is not 1998 any more…you can’t do the same things. There is a lot of money to be made in this industry today and the people who will make that money will be the ones who take risk, create new business models and and embrace change with knowledge and optimism.
smoothiam
I think the industry is going to go back to when selling 500,000 (gold) copies of an album is going to be great not a disappointment like it was in the late 90s and early 2000s. It’s going to be a lot more independent artists and labels.
I don’t think you are going to see any hip hop kats building empires off their music anymore. You will not see another Diddy, Nelly, 50, or Jay-Z. Even Drake will just do moderate numbers compared to the past.