Artists Fleeing EMI?

OK Go has left EMI Music and longtime EMI acts Pink Floyd and Queen could be on the way out as well.

Guy Hands, whose Terra Firma Capital purchased EMI in 2007, has struggled to shore up funds to keep things afloat, reportedly facing the wrath of numerous top artists and industry executives who accuse the label of being run like a hedge fund.

Should EMI fail to meet its debt covenants, creditor Citigroup could take over and sell the company to Warner Music Group, a former EMI executive told Bloomberg News.

EMI was dealt a further blow March 11 when a judge ruled in favor of Pink Floyd in a suit regarding royalties. The band claims its 10-year deal with EMI bars the label from selling the band’s tracks as individual songs.

The deal was in place before the likes of iTunes, and the label countered that the deal covered only physical copies. However, a High Court judge ruled that the clause was in place to preserve the artistic integrity of the albums and therefore still applied to songs sold online, The Times reported.The label can no longer sell the band’s tracks as digital singles.

Pink Floyd has been with the British label since 1967.