The corporate restructure at EMI Music, which began earlier this month with the previously reported axing of its two most senior execs, Alain Levy and David Munns, continued yesterday with changes in the major's US operations.
The Group's two main US recorded music divisions, Capitol and Virgin, will merge to form the Capitol Music Group. Although Capitol and Virgin will continue to operate as separate entities within that division, the merger will mean some job losses at the senior level. The combined division will be run by Jason Flom, currently boss of Virgin Records America. Current Capitol chief Andrew Slater will leave the company.
Announcing the change, EMI Group CEO Eric Nicoli told reporters: "The music business shows exciting growth potential, but the environment remains extremely challenging. In order to thrive and meet the demands of a rapidly evolving and dynamic music market, we must re-think our operations, not only to make them efficient, but also more effective and focused on creative excellence. By bringing Capitol and Virgin into one label group, we will be better equipped than ever to promote and nurture artistic talent. We remain strongly committed to developing artists in America in all genres as this is a key repertoire source for the world, and to that end, we will maintain our A&R focus and keep a presence in both LA and New York. This structure will also allow us to further build our digital capability".
Flom will report directly to Nicoli in his new post. Elsewhere in the major's US hierarchy, Bruce Lundvall of the Group's more jazz based Blue Note division (home to the bankable Norah Jones) will continue to report directly to Nicoli, as will the COO and CFO of EMI Music North America, Ivan Gavin and Colin Finkelstein respectively. The bosses of EMI's other recorded music divisions, including Capitol Nashville and EMI Christian Music Group, will report to Gavin.
Of course the UK division of EMI is also structured around separate 'Capitol' and 'Virgin' divisions (the former in turn structured around 'EMI' and 'Parlophone'). It will be interesting to see whether a similar amalgamation strategy will be employed over here too. It's probably less likely, though not out of the question.