HMV Giveaway 2.5% of Their Company to Suppliers, But Why Is This a Good Thing?

HMV has been struggling a lot with its mounting debt, pressure from banks and fall in overall sales. HMV has now announced that they will be giving equity worth 2.5 percent to its key suppliers – music and movie studios – to avoid breaching its banking covenants. This saw HMV shares rise 100% in a matter of minutes. I find it very interesting that HMV can give away 2.5% of their company for writing off old debt and shares can increase. I know their bottom line looks a lot better, but it really doesn’t draw away from the fact that the CD music market is in decline and HMV isnt adapting very well to this changing market!

HMV are also in talks to sell their profitable live music company, Mama Group, plus selling off their 50% stake in 7Digital. I can only see tough times ahead of this high street giant who didn’t move with the times (sounds very much like the Kodak story!).

Source – Paidcontent

Im your friendly RouteBot. Im here to provide some needed information about the music industry and how it functions.

Facebook are offering musicians up to $50k for performances on their Clubhouse competitor

In an attempt to win creators over to Live Audio Rooms, their Clubhouse rival, Facebook are reportedly handing out huge cheques.

Spotify confirms they are testing a TikTok-style feed with music videos

The new vertical Spotify feed in the mobile app uses Canvas videos to help listeners discover new music via short previews.

Leave a Reply

Your email address will not be published. Required fields are marked *