MusicDish e-Journal - April 23, 2014
MusicDish Advertising Network
» HOME » INSIDER SCOOP » CAREER TIPS » MUSIC SPOTLIGHT » MUSICDISH*CHINA
» INDUSTRY INTERVIEWS » NEWS BEAT » DIGITAL SKOOL » OPEN REVIEW » MUSICDISH EDELWEISS
Search MusicDish e-Journal (Advanced)
Subscribe To MusicDish e-Journal
About | Contact | Advertise | RSS | Submit Article | Submit News | Artist Development | Premium PR Distribution
Mi2N | MusicDish*China | MusicDish Network | MusicDishTV | Urban Music News Network

One Down, Three To Go: The Music Biz Shrinks Yet Again, as Courts Close EMI
EMI has lost in court and it's now only a matter of time before its assets are chopped up
By Moses Avalon
(more articles from this author)
2010-11-13
Comment | Email | Print | RSS

It's official, EMI has lost in court and it's now only a matter of time before its assets are chopped up, dispersed and the famous Capital Records building in Hollywood goes condo. After EMI is dismantled there will remain only WMG, UNI and Sony as the remaining "Big Three" labels in the US and the UK.

The Silicon Valley giants are probably very excited today, since this means that there are only three major record distributors left to destroy before they can finally buy up their catalogs and not have to deal with the RIAA or their stupid one-sided interpretation of the Copyright Act.

Yes, this is great day indeed for those who think music should be free. Because the Beatles recordings along with Led Zeppelin, Rolling Stones, and many others will probably soon be the property of an ISP giant, or computer company who will use them as loss leader to attract subscribers.

If you need to catch up go here, but basically what has happened is that Terra Firma, who bought EMI in 2007, it seems paid a bit too much for the company and can not pay CitiBank, the financier of the deal, under the terms of their loan agreement.

Rather than pay back the loan, or ask for a refinanced one, Terra Firm sued their bankers by asserting that CitiBank basically "tricked" them into borrowing $4 Billion from them to buy the faltering record company. The trick manifested, according to EMI lawyers, by CitiBank not disclosing that nobody else was interested in buying EMI at that price. Apparently Terra Firma never heard of a little thing called due diligence.

Sounds like a law suit that only a music lawyer could come up with: you owe me because I didn't do my homework and spent too much.

Ironically, a CitiBank executive said under oath that the record company made a bad deal and now they just don't want to live with it; a cruel twist because usually it's the record company telling the artist that very same thing. I wonder how they feel being at the other end of that pitch?

A jury took less than five hours to agree that the suit was dumb and now EMI will very likely be foreclosed upon. Rumors that Terra Firma's owner, Guy Hands, had raised some private money to help maintain the loans have turned out to be little more than wishful thinking.

Who are the likely buyers for EMI vestiges? My number one draft pick is, do-no-evil tech giant, Google. They have made substantial investment in their soon-to-be music subscription service. And while Warner and UNI will have their checkbooks out, financially, none of them can out bid Google, with their seemingly bottomless pit of cash, which, when pitted against WMG's debt and UNI's massive overhead, will be no contest.

And while it might seem that one of the remaining Big Three would desperately want the vintage catalog, it's Google that has the stronger motivation to over pay. With their music store just months away, what better way to say "See, we're better than iTunes," than to offer the one thing that iTunes has none of– the Beatles original recordings.

Can't you just already see the TV adds; "Its a Google Revolution."

Gag.

Mo out


Home » Insider Scoop » One Down, Three To Go: The Music Biz Shrinks Yet Again, as Courts Close EMI
Permalink:http://www.musicdish.com/mag/?id=12797
Email |Print |Comment |RSS

back | top


MusicDish Advertising Network

Insider Scoop

» Artists Get Cheat Sheet on Website Development Tools

» Streaming And Access Services Scoop A Quarter Of The Entertainment Market

» The Insights Evolution: Why Only Obsessing About Sales Is Holding You Back

» Rock Turns The Table On Pop

» Music Label, Publisher and Production Company Lang Van Files Copyright Infringement Lawsuit Against VNG and IDG

Insider Scoop Directory



» [2014-04-20] Tortoise China Tour - Beijing; Tortoise China Tour - Beijing

» [2014-04-20] Taiwan Rock Band Io Homecoming Concert At Canadian Music Festival; Taiwan Rock Band Io, Originally Formed In Vancouver By Three Canadian-Taiwanese, Will Be Returning To Their Roots When They Perform Canadian Music Fest

» [2014-04-19] Wooozy Offline #2: Bok Bok; Wooozy Offline #2: Bok Bok

» [2014-04-16] The Philadelphia Orchestra In Shanghai - A Live Concert Streamed Globally; The Philadelphia Orchestra Held A Press Conference In Shanghai Announcing Their 2014 China Tour And May 25th Concert At The Shanghai Grand Theatre

» [2014-04-16] Taiwan Bands Join Canadian Music Festival (Chinese Version); Taiwan Bands Join Canadian Music Festival (Chinese Version)

» [2014-04-16] MusicDish & Indiloop Present: The "Meet Taiwan" Remix Contest; Remix Some Of Taiwan's Leading Acts For A Chance To Win Free Flight To Toronto To Attend Canadian Music Fest

» [2014-04-16] Pairs (Shanghai) New Album 'Brief Lesbian'; Free Download Collaborative Album Between Pairs & Reykjavictim

» [2014-04-15] Beijing Solo Acts GUIGUISUISUI And Thruoutin To Tour Taiwan; Two Beijing Based One Man Bands Will Be Hopping Over To Taiwan For A Three City Tour This May

» [2014-04-14] A Festival Giving Back To The Men And Women Who Gave To Us; Operation Rock Fest - 21 Band Salute To The Troops

» [2014-04-14] Executive Wach: Berklee College Of Music, BMG, SOCAN, SESAC, Riptide Music Group, CISAC; Berklee's Presidential Advisory Council; BMG Promotes Patrick Jöst; SOCAN Chief Québec Affairs Officer; SESAC Promotes Scott Jungmichel; Riptide VP Of Creative; JASRAC Chairman; Chairperson Of CISAC Board Of Directors

» [2014-04-10] Taiwan Announces First Ever Export Mission To Canada For Canadian Music Week 2014; Award Winning Taiwanese Artists Matzka, Io, And RED To Showcase In Toronto; Press Event To Take Place At The Marriot During CMW - May 7 AT 1PM EST

» [2014-03-31] Interview With C-pop Industry Veteran Billy Koh; Founder & Former CEO Of Ocean Butterflies Sets Up Amusic Rights Management Company In China
MusicDish Advertising Network

follow MusicDish on
Follow MusicDish on Twitter

Mi2N Music PR

Matzka Delivers Aboriginal Taiwanese Reggae Grooves At Canadian Music Week

The Philadelphia Orchestra In Shanghai - A Live Concert Streamed Globally

Taiwan Rock Band Io Homecoming Concert At Canadian Music Festival

A Festival Giving Back To The Men And Women Who Gave To Us

Rapper NazB Brings Greater Awareness Through His Lyrics On "Rape (Shame)"

Taiwan Announces First Ever Export Mission To Canada For Canadian Music Week 2014

Al Ca$ino, Too $hort, And Clyde Carson Drop Remixes For Hit Single, "Only For Tonight"

Dongless Eventide H3000 Factory And Blackhole Update Posted



Websites: Mi2N | MusicDish*China | MusicDish Network | MusicDishTV | Urban Music News Network
Services: Submit Article | Submit News | Submit Video | Artist Development | Premium PR Distribution

Copyright © 1997-2014 MusicDish LLC., all rights reserved.
About MusicDish e-Journal | Contact Us | Advertise | RSS | Internships