Disney to shut Nashville label Lyric Street Records

The Walt Disney Co. says it is closing its Nashville recording label, Lyric Street Records, and will transition country music band Rascal Flatts to another Disney label.

The phased shutdown will result in the layoff of about 20 to 25 employees after they finish promoting existing albums. It comes amid a cost-cutting overhaul at Disney’s studio, which oversees the music group.

Bob Cavallo, chairman of the Disney Music Group, said Wednesday that the company needs to find alternative ways of marketing its artists given the “changing nature of the music business” and streamlining at the studio.

Other Disney music labels, such as Hollywood Records, which promotes the music of stars Miley Cyrus, Jonas Brothers and Demi Lovato, are unaffected by the announcement.

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