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EMI says it will merge Capitol and Virgin labels in the U.S.

EMI says it will merge Capitol and Virgin labels in the U.S.

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 parted company with two top executives earlier this month 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 re-think 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 240.75 pence (euro3.65; US$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 US$217 million (euro167.3 million) a year.
EMI, the world's third-largest music company, surprised investors earlier this month by announcing 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.
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On the Net:
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Updated : 2021-05-10 07:53 GMT+08:00