Music Industry Continues Consolidation

BMG North America cut over 150 jobs yesterday

in an attempt to increase profitability and reduce redundancies within its U.S.


Under the new structure, LaFace Records and So

So Def Records will be relocated within the newly formed Zomba Label Group,

Clive Davis announced yesterday.

"This new structure underscores our deep

commitment to preserving and strengthening our diverse record labels and investing

in creativity and artists," said Davis. "BMG has a peerless roster

of superstar and developing artists who deserve the very best creative homes

and the resources necessary to develop careers that endure and music that inspires."

Arista, the label Davis founded, has gone from

a stand-alone label to an imprint under the RCA Music Group. Under the new structure

Laface and So So Def will remain stand-alone record labels, their artists and

distribution will be handled by the Zomba Label Group

Artists effected by the broad changes include

Outkast, Bone Crusher, Anthony Hamilton, J-Kwon, Pink, Usher, Youngbloodz, Clipse,

Kelis and others.

BMG's North American operations now include RCA

Music Group (RCA, J, Arista), Zomba Label Group, BMG Canada, BMG Strategic Marketing

Group and BMG Distribution. RLG - Nashville.