The rumors that Capitol and Virgin were about to merge into a single unit were true…Here it is folks…………….

EMI is merging its North American pop, rock and urban operations. The company today announced plans to combine its Capitol and Virgin labels into a single unit called The Capitol Music Group. Jason Flom who joined EMI as chairman/CEO of Virgin in November 2005–is named chairman/CEO of the new organization. He reports directly to EMI Group CEO Eric Nicoli and will now oversee the combined Capitol and Virgin rosters in the US.

Capitol president/CEO Andrew Slater is stepping down from his post of six years.

The shakeup is part of EMI Group’s recently announced effort to deliver $217 million in annual savings across its business.

• Producer Jermaine Dupri is in negotiations with Universal Music Group about joining its Island Def Jam label, according to the NY POST. A deal with Island would again reunite CEO L.A. Reid with Dupri, who is seen as a double threat – functioning both as a producer and as a special guest rapper on albums from heavyweights as Jay-Z. Dupri resigned from Virgin in October after disappointing sales from Janet Jackson.
• Warner and Sony Invest in Mobile Technology Company
  Warner Music Group, Sony BMG, and Access China Media Solutions are working together to develop and distribute solutions for delivering mobile music and multimedia entertainment to wireless customers throughout China and other Asia Pacific marketplaces.
• Rick Rubin rarely recieves negative press. But Velvet Revolver became “uninspired” working with Rick Rubin, accusing him of not giving the band enough attention in the studio. Scott Weiland explains, “If you’re gonna work with a producer, unless you’re gonna produce something yourselves, if you’re gonna pay a producer, get in the trenches with us and work with us.
• Check out this article ‘The Industry’s Reframing Of Music’s Role In Society’. It talks about the changing musical landscape and how consumers percieve music today. Welcome to the future.
• The former treasurer of NBC Universal was charged with stealing $813,000 from the company to finance private jet trips to the Caribbean, a summer home in the Hamptons and catered meals featuring Veuve Cliquot champagne.

Virgin has signed Australian alternative act Sick Puppies. The video
‘All the Same’ created a viral buzz that resulted in 9 Million+ views to date and a record deal. Is the concept of the video a smash? or is the song a smash? Check them out on myspace, the rest of the material is pretty good, especially My World. If you want to be rock band, you need to write songs like My World.

In other news…….

Spiral Frog an ad-supported music service that caused a media frenzy may be falling apart. The CEO along with 6 other employees were fired. Sprial Frog was backed by Universal. According to the Times ‘A lack of deals with other major record labels, as well as a shortage of cash, may have been reasons why Mr Kent, the former chief executive of Universal McGann, the advertising agency, had been asked to leave.

• Apple CEO Steve Jobs was recently questioned by U.S. authorities
• Google will run video ads from Sony BMG and Warner Music Group over its AdSense online ad system to Web site publishers in a four-week test now underway.
• Independent labels have recently signed a Myspace deal. Merlin, the new agency representing the independent music labels, has agreed a deal with digital music company Snocap which will allow its labels’ music to be sold from Web sites such as MySpace.
• EMI has filed a $100 million lawsuit against InfoSpace, one of the world’s biggest ringtone providers. EMI alleges that InfoSpace and its subsidiaries Moviso and Premium Wireless Services have been underpaying royalties and selling ringtones.
• Yeah Yeah Yeahs split with manager Asif Ahmed
• Several rock acts including 10 Years have guest spots on Terror Normal a paranormal series.

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