EMI Music has announced that it is consolidating its Capitol and Virgin labels in the United States. The announcement was made on Thursday, stating that the labels will exist under the newly-created Capitol Music Group umbrella, which is a leaner entity designed to eliminate redundancies. Heading the group as chairman and chief executive will be Jason Flom, previously head of Virgin. Flom will report to Eric Nicoli, chief executive of EMI Group.
“By bringing Capitol and Virgin into one label group, we will be better equipped than ever to promote and nurture artistic talent,” said Nicoli. He added that EMI remains strongly committed to developing artists in America in all genres as this is a key repertoire source for the world. To that end, the company will maintain its A&R focus and keep a presence in both Los Angeles and New York.
As part of the changes, president and chief executive of Capitol Records Andy Slater has stepped down. The move is the latest shuffle by Nicoli, a survivor of a recent housecleaning at the label. Most see Nicoli operating from a very hot seat, and making moves to keep the label – and his position – alive. Meanwhile, multiple sources to Digital Music News – including a pair of major label executives – have pointed to heavy layoffs ahead. “It will be a bloodbath,” one source grimly predicted.
The consolidation of the Capitol and Virgin labels is seen as a way to cut costs. EMI is aiming to reduce expenses by £110 million ($217 million) annually. The company has been struggling with declining sales, piracy, and competition from digital music services. EMI is not alone in its struggles, as the music industry as a whole has been facing challenges due to the shift to digital and streaming services.
Despite the challenges, EMI remains optimistic about the future. The company believes that the consolidation of the labels will help it better compete and promote its artists. EMI is known for its impressive roster of musicians, including Katy Perry, Radiohead, and Coldplay, among others. The company has a long history in the music industry and is committed to continuing its legacy of discovering and promoting new talent.
The consolidation of the labels is just one of many changes that EMI has undergone in recent years. The company has been working to adapt to the changing landscape of the music industry. EMI has embraced digital music and streaming services, and has been working to find new ways to monetize its content. The company has also been investing in new technologies, such as artificial intelligence and machine learning, to help it better understand its audience and promote its artists.
The music industry is a challenging and dynamic industry, but EMI has shown that it is willing to adapt and change to stay competitive. The consolidation of the Capitol and Virgin labels is just one example of the company’s willingness to make bold moves to stay ahead of the curve. With a strong commitment to developing new talent and promoting its artists, EMI is poised to continue its success in the years to come.