LONDON — Universal Music Group is set to merge its historic label divisions Island and EMI as part of a sweeping restructuring of the company's UK business that will also see the launch of a new audience and media division to support artists and labels.
The announcement was made on Tuesday (July 9) by David Josephchairman and chief executive of Universal Music UK and Ireland, in an internal memo, which was viewed by Advertising sign.
The reorganization of Universal Music's UK operations follows changes the company made to its US groups earlier this year with the formation of Interscope Capitol Labels Group and Republic Corps.
This structure is now loosely mirrored in the UK with the creation of what Joseph called “two new powerhouse label groups” — Island EMI Label Group, led by Louis Bloom as chairman, and the newly formed Polydor Label Group, headed by Ben Mortimer.
Both label groups will host multiple labels “all with creative autonomy,” Joseph's note said. Each division will also include a team dedicated to supporting artists from the wider UMG family, the Universal UK boss said.
Under the restructuring, which takes effect Oct. 1, Universal is shuffling its executive ranks.
Co-Chairman of EMI Records Joe Charrington has been appointed chairman of a 'reimagined' UK arm of Capitol, which will join the wider Polydor Label Group, as will 0207 Def Jam, led by chairman Alec Boateng. (Advertising sign understands that Boateng's brother and 2017 Def Jam co-chairman Alex Boateng is to remain at Universal and be given a job in an international division).
The other co-chairman of EMI Records, Rebecca Allenwill take on the role of president of Universal's Audience and Media Division (AMD), a newly formed UK-based division dedicated to serving artists and labels that will have a global reach.
Allen's involvement in the audience and media team will be Susie Walby (media), Kate Wyn Jones (Audience and Digital Strategy) and data and strategic industry The Square insight team, led by Jack Fryer.
In his internal staff memo, Joseph said AMD's industry-first team would “revolutionize the way we deliver to our artists” and become Universal UK's largest division.
The memo does not state the scale or number of job losses that will result from the changes, although it does say that a consultation period for staff whose roles may be at risk starts today and will continue until mid-September.
In the UK, it is a legal requirement that companies must follow so-called 'collective consultation' rules if they make 20 or more employees redundant in any 90-day period. Universal UK declined to comment on the redundancies.
They are not affected by the changes Laura Monks and Tom Lewiswho will continue in their current roles as co-presidents of Decca, which will remain an independent label. Hannah Nieves remains the sole chairman of Universal Music Recordings.
“As a company, we must continue to be proactive, innovative and bold. Developing artists now requires more creativity and patience than ever before,” Joseph said in his internal memo.
Joseph went on to say that the restructuring would “enhance our labels' ability to deepen artist and fan relationships.”
“We are committed to being the number one place for artists, fans and talent,” the UK CEO asserted. “I have incredible respect for our team, given what we have accomplished in the past and what I know we will accomplish in the future.”
from our partners at https://www.billboard.com/pro/universal-music-uk-island-emi-polydor-labels-restructuring/
