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Big Four label EMI Group is still in the news with their announcement made last week. Capitol Records has crawled into bed with Virgin Records in the first restructuring announcement from the struggling EMI. These two sub-labels persay will form into the one, new Capitol Music Group.

The new, bigger, better, Capitol Music Group will be lead by former Virgin Records CEO Jason Flom. That will leave Capitol’s former CEO in the dust with a large severance package.

Music Execs say that the move will help the groups to “be better equipped than ever to promote and nurture artistic talent blah blah.” But don’t expect to see the disappearance of the Virgin Brand, as the two groups will both continue to put out their own separate albums.

The merger is pretty much a business move to lower costs in the marketing, IT, and finance divisions of the company, since the groups will keep their same ole distinct identities. Capital Music Group will also continue to operate two offices, as Virgin is focused on the East Coast in New York, and Capitol is deeply rooted in the west in Los Angeles.

So what I take from all this mumbo jumbo is that the consumer will not notice any change in the music put out by Virgin and Capitol Records. All this seems to be is a corporate cost cutting scheme that the EMI Group’s bottom line seems to be in dire need of. Don’t expect any Timbaland - Coldplay collaborations developing from this merger…at least I hope not..