EMI Combines Capitol, Priority Record Labels

EMI Group said it combined its Priority Records and Capitol Records music labels in an effort to improve efficiency and cut costs. The British company will cut 100 jobs as part of the move, Reuters reported.

Under the reorganization, Priority will act as the urban music division of Capitol Records, EMI said. The administrative departments of both labels were merged.

Music companies are looking to cut costs as they face increased pressure from the loss of sales both to piracy and to free music sites on the Internet.

Priority Records was established in 1985. Its roster of artists has included Ice Cube, Ice-T, Master P and Snoop Doggy Dog. Capitol Records, formed in 1942, has recorded such artists as the Beatles, Frank Sinatra and the Beach Boys.

EMI’s American depositary receipts closed off 5 cents at $7.50 in over-the-counter trading.