Post by goldengun on Jan 26, 2007 10:24:08 GMT -5
Well, we all know too well how hard it was for Duran to get a recording contract after reforming early 2001, here's the next move by EMI....
January 26, 2007
Associated Press
LONDON – Music company EMI Group PLC, home of Coldplay, the Beatles and the Rolling Stones, 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. 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 CEO of Capitol Records in the U.S. since 2001, has stepped down from his post.
EMI shares fell 0.6 per cent 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.
