REPORT: TERRA FIRMA OKs FUTURE FUNDS
-- A report says Terra Firma has approved a resolution on June 10 that would allow it to inject another £500 million ($759 million) into EMI Music. That resolution gives EMI parent company Maltby Capital the right to issue shares up to £500 million until 2015. As the report notes, additional shares could dilute the investments of existing investors. But a source told This Is London that Terra Firma has “no plans” to issue more shares and Terra Firma passed the resolution in case such a tactic would be necessary in the future.
Last month Terra Firma injected another £105 million ($159 million) from existing investors after EMI breached covenants in its debt with Citigroup. The debt-heavy company is expected to breach covenants again next year and will require more equity to keep its debt in good standing. EMI’s debt is called “covenant lite” because the company can use equity cures when it is not in compliance with the covenants. For example, a debt covenant may call for the debtor to maintain a certain debt-to-EBITA ratio. If that ratio is not met, a company with covenant lite debt is granted extra time to add cash to its EBITA in order to become compliant. (This Is London)
SKYLINE LAUNCHES LABEL
-- The country music veterans behind Skyline Music Publishing have launched a new record label, Skyline Records. Paul Worley, Wally Wilson and Glen Morgan will release their first release, by new group Stealing Angels, next week. (Country Standard Time)
COURT FINES BITTORRENT ADMINISTERS
-- The Finnish Supreme Court has fined seven BitTorrent administers for assisting in copyright infringement. The site was raided in 2004 and its computers were seized. The defendants, administers of the Finnish BitTorrent site Finreactor, were ordered to pay a total of 680,000 euros ($854,000), far higher than the 420,000 euros ($526,000) set earlier by an appeals court. The fines will be paid to Teosto, the Finnish composers' copyright society, and other groups. (Helsinki Times, TorrentFreak)
MYSPACE LEFT BEHIND?
-- Is MySpace getting left behind in artists’ social media campaigns? Yes, says a study of social network messages from June 1 to 28 carried out by SandBox, Music Ally’s music marketing division. The once-dominant social networking site is getting less attention – at least by the most popular artists. This comes as no surprise. While just about every artist has a MySpace page, it’s often nothing more than a place to offer free audio streams and upcoming tour dates.
On average, the 20 top artists on Famecount’s rankings posted (or had posted for them) an average of 25.5 Facebook status updates in the first 28 days of June, 81.9 tweets, and a woeful 3.4 MySpace blog posts.Indeed, many of their MySpace blogs are wastelands. Katy Perry and John Mayer’s haven’t been updated since mid-November last year, while Britney Spears’ MySpace profile boasts a single blog post from 2010 so far. Other MySpace blogs gathering tumbleweed in June include those of Ashley Tisdale, Coldplay, 50 Cent and Justin Timberlake.
SandBox noted some of these popular artists haven’t been very active during the time span of the study. Britney Spears’ Facebook page, for example, had only nine updates while Coldplay had seven. Less popular artists, the ones that can attribute some of their success to social media and not traditional mass media channels, were not covered by this study. “The artists in Famecount’s chart could learn from them, rather than the other way around,” concluded SandBox. (SandBox, via Music Ally)
A2IM'S BENGLOFF CRITICIZE'S VIACOM DECISION
-- In an op-ed at the Los Angeles Times, A2IM’s Rich Bengloff criticizes last week’s Viacom v. YouTube decision. “The Times' editorial board, like many who support technology at the expense of creators, points broadly to the fact that many "entertainment companies" are striking deals with YouTube and generating revenue from material posted online as a sign of cooperation and more productive than litigation. Is it really cooperation when the creator must choose between futile take-down efforts and whatever terms YouTube will offer, even though it offers virtually no revenue?” (Los Angeles Times)
-- Finland is the first country to make access to the Internet a legal right. (All Headline News)
-- The Pitchfork Guide to Upcoming Releases: Summer 2010. (Pitchfork)
-- PayPal launches Mobile Express Checkout to enable one-click buying on smartphones. ( TechCrunch)