RCA has raised the roof to accommodate Arista Records as BMG continues to rearrange labels and executives in the name of profitability.
Arista Records, previously a stand-alone company, will become a separate label under the RCA Music Group umbrella, retaining its artists as well as A&R and marketing staffs.
Some Arista artists will be moved to the RCA Music Group, among them Sarah McLachlan, Dido, Avril Lavigne, Carlos Santana, Whitney Houston, Kenny G and Babyface.
BMG has also created the Zomba Records Group to house LaFace Records, So So Def Records, Jive, Verity, Volcano and Violator, which will remain stand-alone entities.
Zomba Label Group will take on key LaFace and So So Def A&R and marketing personnel to handle a roster than includes OutKast, Usher, Pink, J-Kwon, Jermaine Dupri, Anthony Hamilton, Bone Crusher, Youngbloodz and Kelis.
Barry Weiss assumes the new title of president and CEO, Zomba Label Group, and will report to Clive Davis, chairman, BMG North America.
A number of Arista employees will join the staffs of both the RCA Music Group and the Zomba Label Group. About 100 of Arista's 175 employees will receive pinkslips; the majority of the publicity department was let go Wednesday.
"This new structure underscores our deep commitment to preserving and strengthening our diverse record labels and investing in creativity and artists," Davis said. "BMG (artists) deserve the very best creative homes and the resources necessary to develop careers that endure and music that inspires."
The move will consolidate a number of functions across BMG's U.S. labels.
Under this new structure, BMG's North America operations will include recorded-music companies RCA Music Group (RCA, J and Arista), Zomba Label Group and BMG Canada, as well as BMG Strategic Marketing Group and BMG Distribution.
RLG-Nashville, BMG Music Publishing and BMG Classics are not affected by the realignment.
BMG is awaiting a report from the European Commission on its proposed merger with Sony Music. In February, the EC launched a four-month in-depth probe into the two diskeries.
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