Last year the music industry’s ‘Big Four’, namely record label majors Sony, Warner Music Group, Universal, and EMI, shrank and became the ‘Big Three’ after EMI was merged into Universal as bart of a $1.2 billion acquisition, which saw some significant shifts and changes in the music world.

Particularly here in Australia, where the Universal/EMI merger saw indie reps AIR criticising the ACCC for letting the move go through unimpeded, resulting in job redundancies earlier in the year as EMI Australia shut up shop.

But now following on from Universal selling off legendary UK label, Parlophone, to Warner in a $744 million deal, EMI has found a new lease of life.

As Billboard reports, David Joseph, Chairman and CEO of Universal Music UK, has announced the launch of Virgin EMI as a result of the merging of two of the label’s major subsidies, Mercury Records and Virgin Records, which were acquired as part of the its $1.2 billion takeover of EMI last year.

Virgin EMI will see the executive staff and artists of Mercury Records, which includes the Island Def Jam Music Group, home to the likes of The Killers, Kanye West, and Bon Jovi.

The newly formed label will also amalgamate major pop acts, like Sir Elton John, Rihanna, and Justin Bieber, under the one roof, along with artist like Laura Marling, Frank Ocean, and Australia’s own Empire Of The Sun. Both companies will employ their own A&R teams and marketing departments.

“Virgin EMI… has an exceptionally strong A&R line-up, with sensational domestic and international artists, combined with the ethos which has served the company so well over the past 40 years,” said Universal Music UK chairman & CEO David Joseph in a press statement. “Virgin EMI will be a creative powerhouse for the UK music industry.”“Virgin EMI will be a creative powerhouse for the UK music industry.” – David Joseph, Universal Music UK

Love The Beatles?

Get the latest The Beatles news, features, updates and giveaways straight to your inbox Learn more

Heading up Virgin EMI will be former co-president of Island Records, Ted Cockle, who has been running the Virgin subsidiary since January.

“Having filled the top two positions on the albums chart this month [Emile Sande and Bastille] for the first time since the Spice Girls and The Verve did it in 1998, Virgin is already feeling ready to compete at the very highest level,” said Ted Cockle. “In the label’s 40th year, to have this incredible line-up of British artists and US repertoire of such pedigree it feels like Virgin EMI will have everything in place to help the very best talent flourish fully.”

Virgin EMI now ranks alongside Island, Decca, and Polydor as one of Universal Music UK’s biggest labels, and later this year the major plans to operate a fifth ‘major’ subsidy in launching a UK iteration of US label, Capitol.

Capitol records is already a well-known and established brand in the US, recently celebrating its 70th Anniversary, its history including such illustrious names as The Beatles, Pink Floyd, and Radiohead

In the revamp that paves the way for Virgin EMI, Mercury Records’ managing director Jason Iley is leaving to set up a marketing and management firm after seven years running Mercury, but will “continue to work closely with Universal Music on some projects,” according to a press statement.

“I’ve had an incredible journey at Universal, having worked at Polydor, Island and Mercury, and been privileged to work with some inspiring artists and executives over the past 15 years,” wrote Mr Iley. “I look forward to continuing these relationships in a new capacity and wish Ted [Cockle] all the very best with Virgin EMI.”

However, his departure from the label could put a question mark over one of Mercury Records’ most valuable assets, U2.

As 7 News points out, the world-renowned band quit Island Records in 2006, their label of 26 years, to follow Jason Iley wo was their “closest ally” at Island, “and the band followed him” out of loyalty, according to fansite atU2.com (via The Independent).[Jason Iley’s] departure from the label could put a question mark over one of Mercury Records’ most valuable assets, U2.

The switch from Island to Mercury kept the Irish quartet under the Universal Music banner, but Iley’s departure does place a question mark over the band’s future commitments to Virgin EMI, though their contractual agreements should see them at least release their next album on the newly formed label. And according to bassist Adam Clayton, fans can expect U2’s newest album before the end of the year.

According to an interview in Irish paper Hot Press (via atU2.com), Clayton has revealed that the band “very much want to have a record out by the end of the year, September, October, November. That kind of time.” While also revealing that the band have been working with “smart guy” producer, Danger Mouse, of Gnarls Barkley fame and desk jockey du jour to the likes of The Black Keys, Beck, and The Shins’ James Mercer in Broken Bells.

“He’s on it. He’s excited,” says Clayton. “It’s a great team and feels very liberating at the moment – anything goes. We have an abundance of riches, we could make three or four different records and justify that to ourselves, but to make the best record you can, you have to steer away from the ones you can make easily. We’re really trying to get into territory that we’re not comfortable in. If that makes sense…”

Virgin EMI isn’t the only significant player to emerge out of the record label major shake-up, with BMG (Bertelsmann Music Group, the music division of Germany’s Bertelsmann AG), making a major comeback into the industry last month by purchasing the Sanctuary Records Label from Universal Records to the tune of $62.5 million.

BMG’s acquisition of Sanctuary Records sees them owning some of metal’s biggest and most successful names, including Black Sabbath and Iron Maiden, along with a catalogue containing more than 170,000 recordings, including memorable numbers such as The Kinks’ iconic songs ‘You Really Got Me’ and ‘Waterloo Sunset’ and Motörhead albums Ace of SpadesNo Sleep ’til Hammersmith and Overkill.

Sanctuary was the largest independent record label in the UK until 2007 when it came to an agreement with Universal Records, and was sold for $44.5 million, so BMG’s purchase of it effectively makes them one of the world’s biggest indie labels in one fell swoop.

Get unlimited access to the coverage that shapes our culture.
to Rolling Stone magazine
to Rolling Stone magazine