Album sales have increased three percent from last year and digital downloads have increased by 11 percent.
Some say the digitization of music (from legal streaming to piracy) has taken a huge bite out of profits at the legendary record labels, so the business model was bound to change.
Leaner and meaner is the new rule as Tom Corson, president and COO of RCA records, continue to grow profits and protect the brand of RCA.
RCA is the parent label of Jive and ARISTA, and the smaller labels were “diluting” the brand power of RCA.
“The concept is that there is value in branding RCA and not having it confused or diluted by other labels,” Corson told the Hollywood Reporter.
Corson has stated that he is going to “clean the slate,” spend more money on artist development and making good music.
Dozens of label layoffs materialized, and artists from JIVE, ARISTA, and J Records (founded by Clive Davis in 2000) will now belong to RCA’s roster.
Jive Records was once the home to Justin Timberlake and Britney Spears Usher and Pink; ARISTA was once home to Alicia Keys and 112. According to the report, the artists will fold into RCA’s roster.
Corson added that the artists are not up in arms over the changes. “Our goal is to refresh and rebrand RCA. And the artists have all been supportive.”
One artist, American Idol season 9 winner Lee DeWyze, was cut.
Columbia is the oldest record label in the United States. Founded in 1929, RCA is the second-oldest record label, both labels fall under the parent company, Sony Music.
