Musicians aren't the only members of the entertainment industry that are feeling the effects of the dwindling economy. Now, the Hollywood Reporter indicates that RCA Records has closed the doors on three of its leading subsidiary labels Jive, Arista and J.
RCA Records CEO Peter Edge recently confirmed the dissolution of the three labels earlier today. Edge says that the decision came about after RCA's digital music sales experienced a major growth over the past weeks. He says that now, he's looking to expand RCA's scope of business and revamp its image by cutting ties with its less profitable imprints Jive, Arista and J.
"What we're witnessing - finally, maybe - is the digital turnaround that's long been discussed, where people feel comfortable buying music and building their collections digitally," he explained. "The path we've taken is to refresh RCA, so we're going to retire those brands. There may be a reason down the line to bring them back, but it's a clean slate here...[t]he concept is that there is value in branding RCA and not having it confused or diluted by other labels. RCA is big now. We've doubled our market share, and we're competing with the top label groups in the industry. I was at J when it started, Jive's a wonderful moniker, and Arista speaks for itself. They're all great, historic labels. But our goal is to refresh and rebrand RCA. And the artists have all been supportive. We didn't make this move without consulting our artists, and we haven't had any push-back. Frankly, they're the brand. We're defined by our artists."
He added, "We've learned to work with less and hopefully accomplish the same or more. But by definition, the business has shrunk - the staffing has shrunk, our rosters are smaller. But we're still profitable. Like any other business, you have to make money. But we're an efficient machine."
As of now, all the artists signed to the three labels have signed to RCA. In the 1990's, Jive was home to some Hip Hop's most revered acts, including A Tribe Called Quest, KRS-One, E-40 and more.