EMI Merges Capitol, Virgin Record Labels

EMI Group announced

today (Jan. 25) that the company is merging its Capitol and Virgin music labels

to form The Capitol Music Group, a new pop, rock and urban label that will comprise

the Capitol and Virgin Records imprint. The

new label group will also house the Capitol Nashville imprint, Caroline Distribution,

EMI Christian Music Group; EMI Televisa Music; and Mute. The

Capitol Music Group will be headed by Lava Records founder and former Atlantic

executive Jason Flom, who broke such artists as Kid Rock, Twisted Sister, Sugar

Ray, The Coors and others.Flom

joined EMI as Chairman and CEO of Virgin Records America in November 2005 and

will report directly to EMI's chairman, Eric Nicoli. Flom

will oversee the combined Capitol and Virgin rosters in the US, which includes

artists like Chingy, Jazze Pha and Cee Lo Green, Cherish, Bubba Sparxxx, Letoya

Luckett, Korn, Lenny Kravitz, Robbie Williams."The

music business shows exciting growth potential, but the environment remains extremely

challenging," Nicoli said. "In order to thrive and meet the demands

of a rapidly evolving and dynamic music market, we must re-think our operations,

not only to make them efficient, but also more effective and focused on creative

excellence. By bringing Capitol and Virgin into one label group, we will be better

equipped than ever to promote and nurture artistic talent. We remain strongly

committed to developing artists in America in all genres as this is a key repertoire

source for the world, and to that end, we will maintain our A&R focus and

keep a presence in both LA and New York. This structure will also allow us to

further build our digital capability.”Capitol Records' U.S. president/CEO

Andrew Slater will step down from his position, which he has held since 2001.

EMI is in the midst of being restructured, in an attempt to save $217 million.