Capitol Records released its first record on July 1, 1942 and has been in business ever since. It was the first major West Coast label and competed with RCA-Victor, Columbia and Decca, labels that were all based on the East Coast in New York. By 1946, Capitol had sold 42 million records and was established as one of the "Big Six" record labels.
In 1955, British record company EMI acquired 96% of Capitol Records and built a new studio at Hollywood and Vine to match its state-of-the-art Abbey Road Studios in London. In 1959, with the advent of stereo, Capitol changed its label design from a large "dome logo" with a gray background to a smaller "dome logo" in a silver oval with a black background and a colorband around the edge. At first, the oval was on the left side of the label, with a tapering vertical line extending from the top and bottom. In the early 1960s the oval was moved to the top of the label, while the colorband was slightly narrower.
One of the first groups to sign with Capitol Records in the early 1960s was The Beach Boys. As an EMI label Capitol had first rights of refusal on EMI artists. After initial resistance to issuing records by The Beatles who were signed to sister EMI label Parlophone, Capitol exercised its option in November 1963. Capitol's producers significantly altered the content of the Beatles albums and, believing the Beatles' recordings were unsuited to the US market, modified them. They added equalization to brighten the sound and piped the recordings through an echo chamber located underneath the parking lots outside the Tower.
In the summer of 1969, Capitol modernized its logo and replaced its "dome logo" with what became known as the "target" labels. Those were replaced in November 1972 by a usually orange label with the word "Capitol" printed at the bottom. And in 1978 the "dome logo" returned, usually with purple backgrounds for rock and pop releases and red backgrounds for soul and disco.
By 1976, EMI had purchased the remaining Capitol shares, and in 1979, Capitol was merged into the newly formed EMI Music Worldwide division. After a series of reorganizations and restructurings in the early 2000s, EMI sold its recorded music business in 2013 and Capitol Records is now part of Universal Music Group.