Virgin Records

Branson and Powell had initially run a small record shop called Virgin Records and Tapes on Notting Hill Gate, London, specializing in krautrock imports, and offering bean bags and free vegetarian food for the benefit of customers listening to the music on offer. The first real store was above a shoe shop at the Tottenham Court Road end of Oxford Street. The name Virgin, according to Branson (in his autobiography), arose from Tessa Watts, a colleague of his, when they were brainstorming business ideas. She suggested Virgin – as they were all new to business – like "virgins".

After making the shop into a success, they turned their business into a fully fledged record label. The original Virgin logo (known to fans as the "Gemini" or "Twins" logo) was designed by English artist and illustrator Roger Dean: a young naked woman in mirror image with a large long-tailed lizard and the word "Virgin" in Dean's familiar script. A variation on the logo was used for the spin-off Caroline Records label.

The first release on the label was the progressive rock album Tubular Bells by multi-instrumentalist Mike Oldfield, who was discovered by Tom Newman and brought to Simon Draper – who eventually persuaded Richard and Nik to present it as their first release

in 1973, produced by Tom Newman, for which the fledgling label garnered unprecedented acclaim. This was soon followed by some notable krautrock releases, including electronic breakthrough album Phaedra by Tangerine Dream (which went Top 20), and The Faust Tapes and Faust IV by Faust. The Faust Tapes album retailed for 49p (the price of a 7" single) and as a result allowed this relatively unknown band a massive audience as the album sold over 60,000 copies and also reached number 12 in the charts, though it was later redacted its spot on the grounds of the cover price. Other early albums include Gong's Flying Teapot (Radio Gnome Invisible, Pt. 1), which Daevid Allen has been quoted as having never been paid for.

The first single release for the label was Kevin Coyne's "Marlene" (b/w "Everybody Says"), taken from his album Marjory Razorblade and released in August 1973. Coyne was the second artist signed to the label after Oldfield.

Rebranding

Although Virgin was initially one of the key labels of English and European progressive rock, the 1977 signing of the Sex Pistols (who had already been signed and then dropped by both EMI and A&M) reinvented the label PM in a new-wave outpost, a move that plunged the record company into the mainstream of the punk rock era. Under the guidance of Tessa Watts, Virgin's Head of Publicity (and later, also Director of Production), the Pistols rocketed the label to success. Shortly afterwards, police raided the Nottingham record shop for having a window display of the Sex Pistols' album Never Mind the Bollocks, Here's the Sex Pistols in the window. Afterwards the label signed other new wave groups: Public Image Ltd, Boxer, Culture Club, Fingerprintz, Gillan, Holly and the Italians, The Human League (whose "Don't You Want Me" was the label's first chart-topping single, in 1981), Magazine, Skids, the Motors, Penetration, the Ruts, Shooting Star, Simple Minds, and XTC.

After modified versions of the twins label came the red, white and blue design introduced in 1975, which coincided with the height of punk and new wave. The current Virgin logo (known informally as "the scrawl") was created in 1978, commissioned by Simon Draper, then managing director of Virgin Records Limited. Brian Cooke of Cooke Key Associates commissioned a graphic designer to produce a stylised signature. The logo was first used on Mike Oldfield's Incantations album in 1978 and by the Virgin Records label exclusively until gradually other parts of the Virgin Group adopted it, including Virgin Atlantic, Virgin Mobile and Virgin Money.

Purchase by Thorn EMI

Virgin Records was sold by Branson to Thorn EMI in June 1992 for a reported US$1 billion (around £560 million) (equivalent to $2.294285037×109 in 2025), with a special non-competition clause that would prevent Branson from founding another recording company during the five years following the agreement (see the final paragraph in EU Merger Decision IV/M202 of 27 April 1992). It now faces competition from Branson's new label: V2 Records. Branson sold Virgin Records to fund Virgin Atlantic, which at that time was coming under intense anti-competitive pressure from British Airways. In 1993, BA settled a libel action brought by Branson over BA's "dirty tricks" campaign, giving him £500,000 and a further £110,000 to his airline.

In 1983 Virgin purchased Charisma Records, renaming it Charisma/Virgin, then later Virgin/Charisma, before folding the label in 1986 and transferring its remaining artists to Virgin. In the process it acquired Genesis and comedy group Monty Python. The Charisma label was reactivated in the US in 1990 and enjoyed success with signings such as Maxi Priest, 38 Special and Enigma. When this Charisma label was retired in 1992, most of its artists were, as before, transferred to Virgin.

E.G. Records, an artist management company and independent record label, mostly active during the 1970s and 1980s, was acquired by Virgin in the late-80s after its owners' failed investments left the company in financial problems. Virgin renamed the label as Virgin EG Records for a brief time until its dissolving after EMI's acquisition. Robert Fripp and his band King Crimson had an extensive legal battle with EG that ended with Fripp taking both band and solo catalogues with him to form his own company Discipline Global Mobile, whose releases, mostly catalogue reissues, were licensed to Virgin until going full independent.

In 1987, Venture Records was created for new age and modern classical artists including Klaus Schulze, who had been associated with Virgin since the early 1970s. (Virgin had distributed UK editions of his German albums since 1974, and he had almost been signed as a Virgin artist in 1976, but the deal was cancelled after a conflict between Virgin and his German label.)

10 Records was sometimes branded as Ten, and was part of AVL (Associated Virgin Labels Limited – a marketing company owned by Virgin Records Ltd).