New York - Major record label EMI Group said on Thursday that it will merge its Capitol Records and Virgin Records labels to create The Capitol Music Group.

"The music business shows exciting growth potential, but the environment remains extremely challenging," said EMI Group CEO Eric Nicoli. "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."

The company named Virgin Records America chairman and CEO Jason Flom to head Capitol Music Group, while announcing the resignations of Capitol Records president and CEO Andy Slater, and executive vice president and COO Jon Polk.  

Related Links:
http://www.emigroup.com/Press/2007/press5.htm
http://tinyurl.com/23utoo (Reuters)
http://tinyurl.com/yqwsst (New York Times)