Major Labels

Two Become One As Sony and RCA Merge In Nashvile

Billboard.biz is reporting that RCA Label Group in Nashville (which includes the country divisions of Arista, RCA and BNA) and Sony Nashville will be merged into one company with Joe Galante as head.

Sonybmg_26A memo obtained by Billboard and written by new Sony BMG head Rolf Schmidt-Holtz says that the company is "combining the resources of its two Nashville operations in order to create a single powerhouse entity, which will be known as SONY BMG Nashville. With this move we will be better positioned to intensify our efforts in the areas of A&R and artist development, and to meet the challenges of a constantly evolving and highly competitive marketplace".

Galante, who previously served as the chairman of RCA Label Group, will head the combined group as chairman, and Sony Music Nashville president John Grady will exit April 21. Key artists effected include Kenny Chesney, Alan Jackson, Brooks & Dunn, Martina McBride, Brad Paisley, Carrie Underwood and Sara Evans from the RLG side. Sony Music Nashville acts include Gretchen Wilson, Bertelsmann_logo_01_3Montgomery Gentry, and Van Zant.

How a combined label group might complicate the rumored sale of the Bertelsmann’s music assets to  an outside party is unclear.

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