V2 in trouble?

Digital Music News today annonced that V2 North America has now undergone a radical restructuring, one that will terminate all new release efforts. Various reports pointed to the changes at the tail end of last week, and V2 has now confirmed the realignment. The label, owned by Sheridan Square Entertainment, will not release any new material, except for some gospel content [ed: WTF????]. Instead, the label will shift its headquarters to Nashville and focus on existing catalog, a move that will involve digital distribution strategies. That effort will be headed by Chief Operating Officer Michael Olsen, though few others will remain on board. About 35 people have now exited, including president Andy Gershon.

The change could be liberating for artists like the Raconteurs, the White Stripes, and Moby, all of whom can now shop new deals - or pursue independent distribution. V2 will retain control over catalog materials, though the heavyweight acts could use the opportunity to alter their business relationships significantly. And according to Pitchfork Media, the White Stripes had already satisfied their V2 commitments anyway. Meanwhile, Sheridan also owns both Artemis and distributor Musicrama, and the V2 shift is part of a larger catalog roll-up that also involves several other labels.