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EMI to merge Capitol and Virgin labels.

This is truly a big shakeup in terms of the big labels I suppose.  I personally don’t pay too much attention to the business of music this globally.  The only thing that concerns me are the remasters at this point.  Hopefully the new Capitol Music Group allows The Beatles and Apple to function within some autonomous fashion.  I would tend to think that the Fab Four remasters are anchor releases meant to not only please the hardcore fans, but bolster major sales.  Hopefully this doesn’t effect any digital downloads that may be coming out soon as well. 

I would hate to see the suits stop the release of something this huge when we are so close to getting what we the fans acually want.  We want good sounding Beatle records (digital or CD) that we can finally enjoy the right way.  I know it’s not too much to ask, but I really do hope that the suits don’t slow down the process even more expecially in light of this merger.

Here’s what we’ve read.

Music company EMI Group PLC, home of The Beatles, The Rolling Stones and Coldplay, said it is merging its Capitol and Virgin labels in the United States to form the Capitol Music Group.

The move continues a reorganization at EMI, which earlier this month announced the departure of two top executives and warned investors that full-year sales will be far below expectations.

Jason Flom will lead Capitol Music Group as chairman and chief executive, EMI said in a statement Thursday. Flom joined EMI as chief executive of Virgin Records America in November 2005.

“The music business shows exciting growth potential, but the environment remains extremely challenging,” said EMI Chief Executive Eric Nicoli. “In order to thrive and meet the demands of a rapidly evolving and dynamic music market, we must rethink our operations.”

Andrew Slater, who has been president and chief executive Capitol Records in the U.S. since 2001, has stepped down from his post.

EMI shares fell 0.6 percent to 2.41 pounds ($4.74) on the London Stock Exchange.

The formation of the combined U.S. label group is part of EMI’s recently announced restructuring program, designed to save $217 million a year.

EMI, the world’s third-largest music company, surprised investors earlier this month with the departure of EMI Music Chief Executive Alain Levy and Vice Chairman David Munns following worse than expected Christmas sales.

Analysts have said EMI’s woes were a mixture of its own mistakes, some bad luck with its releases and the twin digital challenges of piracy and legitimate downloading.

Source: CBS News 


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