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Since the separation of Island Records, Motown, Mercury Records, and Def Jam Recordings combining the Island Def Jam Music Group, Mercury Records has been placed under Island Records, although its back catalogue is still owned by The Island Def Jam Music Group.
Mercury Record Corporation was formed in the American city of Chicago in 1945 by Irving Green, Berle Adams, Ray Greenberg  and Arthur Talmadge. They were a major force in jazz and blues, classical music, rock and roll, and country music recordings. Early in the label's history, Mercury opened two pressing plants, one in Chicago and the other in St. Louis, Missouri. With the use of automatic presses and providing 24-hour turnaround, they went into direct competition with major recording labels such as Columbia, Decca, Capitol and RCA Victor.
Rather than rely on radio airplay, Mercury initially relied on jukeboxes to promote their music.
In 1946 Mercury hired Eddie Gaedel, an American with dwarfism, most notable for participating in a Major League Baseball game, to portray the "Mercury Man", complete with a winged hat similar to its logo, to promote Mercury recordings. Some early Mercury recordings featured a caricature of him as its logo.
In 1947 Jack Rael, a musician and publicist/manager, persuaded Mercury to let Patti Page (whom he managed) record a song that had been planned to be done by Vic Damone, "Confess". The budget was too small for them to hire a second singer to provide the "answer" parts to Page, so at Rael's suggestion she did both voices. Though "overdubbing" had been used occasionally on 78 discs in the 1930s, for Enrico Caruso and Elisabeth Schumann recordings among others, this became the first documented example of "overdubbing" using tape, and Patti Page, along with rival Capitol Records artists Les Paul & Mary Ford, became one of the artists best known for the use of this technique.
The company released an enormous number of recordings under the Mercury label as well as its subsidiaries (Blue Rock Records, Cumberland Records, EmArcy Records, Fontana Records, Limelight Records, Philips Records, Smash Records and Wing Records). In addition, they leased and purchased material by independent labels and redistributed them.
Under their own label, Mercury released a variety of recording styles from classical music to psychedelic rock. However, its subsidiaries focused on their own specialized categories of music.
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Mercury's jazz division had two distinct and important fathers. John Hammond brought his expertise and connections when Mercury bought Keynote Records in the late 1940s. And Mercury was the issuing company and distributor for Norman Granz's pre-Norgran/Verve recordings. Although both Hammond and Granz had departed Mercury by the mid-1950s, they established the company in the jazz world. Mercury, under its EmArcy label, released LPs by many important post-swing and bebop artists including Clifford Brown and Max Roach, Clark Terry, Dinah Washington, Nat and Cannonball Adderley, Ernestine Anderson, Sarah Vaughan, Maynard Ferguson, Jimmy Cleveland, Herb Geller and others. By the early 1960s, Mercury was releasing jazz under the flagship label and was an early leader in the new stereo sound releases. Highlights of the early and mid-1960s included albums by Quincy Jones, Buddy Rich, Cannonball Adderley, Charles (then called Charlie) Mingus, Dinah Washington, Sarah Vaughan, Max Roach and others.
In the early 1950s, Norman Granz started his own record company, Norgran, which later became Verve. In an ironic twist, both Mercury and Verve are now owned by Universal Music Group and Mercury's jazz library falls under the Verve division. Since the early 1990s, Verve has reissued many Mercury jazz titles on CD, often taking care to use original master tapes and including session material not included on the original LPs. In addition, Mosaic Records in Stamford CT has issued several box sets spotlighting the Mercury and Verve recordings of various artists including Max Roach, Roy Eldridge, Dizzy Gillespie and Buddy Rich.
In 1961, Philips, a Dutch electronics company and owner of Philips Records, which had lost its distribution deal with Columbia Records outside North America, played a key role in Mercury's future by signing an exchange agreement with the American Record Company. A year later, Mercury was sold to Consolidated Electronics Industries Corp. (a.k.a. Conelco) which is an affiliate of Philips under its U.S. Trust division; and in 1963, Mercury switched British distribution from EMI to Philips.
In 1962, Mercury began marketing a line of phonographs made by Philips bearing the Mercury brand name.
In July 1967, Mercury Records became the first U.S. record company to release cassette music tapes (Musicassettes).
In 1969, Mercury changed its corporate name to Mercury Record Productions Inc. while its parent Conelco became North American Philips Corp (N.A.P.C.) after Philips brought control of the company.
Philips and German Electronics giant Siemens reorganized their joint-ventured record operations, Grammophon-Philips Group, home of Deutsche Grammophon, Philips Records and Polydor to become PolyGram in 1972. That year PolyGram brought Mercury from N.A.P.C. Mercury's corporate name was changed to Phonogram Inc. to match a related company in the UK that operated the Mercury label there.
From late 1974 to early 1983, the company's label design featured a painting of three famous Chicago buildings: Marina City, John Hancock Center and One IBM Plaza which was Mercury headquarters during that period, having moved from its long-time address at 35 East Wacker Drive in Chicago.
In 1980, Phonogram moved its headquarters from Chicago to New York City.
Under PolyGram, Mercury absorbed the artists and catalogue of Casablanca Records (also home to the 20th Century Records back catalogue), which consisted of heavy metalers Kiss and disco stars Donna Summer and The Village People, and primarily became a rock/pop label with Kiss, Scorpions, Rush, John Cougar Mellencamp, Kurtis Blow, Tears for Fears, Bon Jovi, Cinderella, Treat, Candy, and Def Leppard.
Mercury, by having Bon Jovi, Cinderella, Def Leppard, Kiss, and Scorpions on their roster, was a premiere label for glam metal. Most of these bands were on Vertigo Records in Europe (that label specialized in progressive rock and hard rock including subgenres like glam metal).
In late 1998, PolyGram was bought by Seagram, which then absorbed the company into its Universal Music Group unit. Under the reorganization, Mercury Records was folded into the newly formed The Island Def Jam Music Group (IDJMG). Mercury's pop roster was predominantly taken over by Island Records, while its hip hop artists found a new home at Def Jam Recordings, and some of Mercury's R&B acts were moved to the newly created Def Soul Records roster. Mercury's former country unit became Mercury Nashville Records. IDJMG revived the Mercury imprint in the US in 2007.
In 1951, under the direction of recording engineer C. Robert (Bob) Fine and recording director David Hall, Mercury Records initiated a recording technique using a single microphone to record symphony orchestras. Fine had for several years used a single microphone for various Mercury small-ensemble classical recordings produced by John Hammond and later Mitch Miller (indeed, Miller, using his full name of Mitchell Miller, made several recordings as a featured oboe player in the late 1940s for Mercury). The first record in this new Mercury Olympian Series was Pictures at an Exhibition performed by Rafael Kubelík and the Chicago Symphony. The group that became the most famous using this technique was the Minneapolis Symphony Orchestra, which, under the leadership of conductor Antal Doráti, made a series of classical albums that were well reviewed and sold briskly, including the first-ever complete recordings of Tchaikovsky's ballets Swan Lake, The Sleeping Beauty, and The Nutcracker. Dorati's 1954 one-mic monaural recording (Mercury MG 50054) and 1958 three-mic stereo rerecording (Mercury MG 50054) of Tchaikovsky's "1812 Overture"  included dramatic overdub recordings of 1812-era artillery and the bells of the Yale University Carillon. A stereo release in 1960 featured new recordings of the cannon shots, and the bells of the Laura Spelman Rockefeller Memorial Carillon at The Riverside Church in Chicago. Besides Mercury's mono and stereo versions of the 1812, only one other classical album rang up Gold Record sales in the 1950s in the U.S. The recording of the 1812 Overture is considered by many to be one of the best performances of that work and is still in reissue in 2011, nearly 60 years after its first release.
The New York Times music critic Howard Taubman described the Mercury sound on Pictures at an Exhibition as "being in the living presence of the orchestra" and Mercury eventually began releasing their classical recordings under the 'Living Presence' series' name. The recordings were produced by Mercury vice president Wilma Cozart, who later married Bob Fine. Cozart took over recording director duties in 1953 and also produced the CD reissues of more than half of the Mercury Living Presence catalog in the 1990s. By the late 1950s, the Mercury Living Presence crew included session musical supervisors Harold Lawrence and Clair van Ausdall and associate engineer Robert Eberenz. When Cozart retired in 1964, Lawrence took over the Mercury classical division and continued producing Mercury Living Presence records into 1967.
Besides the recordings with the Chicago and Minneapolis orchestras, Mercury also recorded Howard Hanson with the Eastman Rochester Orchestra, Frederick Fennell with the Eastman Wind Ensemble, and Paul Paray with the Detroit Symphony Orchestra. Dorati made some recordings in the United Kingdom with the London Symphony Orchestra for Mercury during the 1960s.
In late 1955, Mercury began using 3 omnidirectional microphones to make stereo recordings on 3-track tape. The technique was an expansion on the mono process—center was still paramount. Once the center, single microphone was set, the sides were set to provide the depth and width heard in the stereo recordings. The center mike still fed the mono LP releases, which accompanied stereo LPs into the 1960s. In 1961, Mercury enhanced the three-microphone stereo technique by using 35 mm magnetic film instead of half-inch tape for recording. The greater emulsion thickness, track width and speed (90 feet per min or 18 ips) of 35 mm magnetic film increased prevention of tape layer print-through and pre-echo and gained in addition extended frequency range and transient response. The Mercury 'Living Presence' stereo records were mastered directly from the 3-track tapes or mag film, with a 3-2 mix occurring in the mastering room. The same technique—and restored vintage equipment of the same type—was used during the CD reissues. Specifically, 3-track tapes were recorded on Ampex 300-3 (½" 3-track) machines at 15 IPS. 35 mm magnetic film recordings were made on 3-track Westrex film recorders. The 3-2 mixdown was done on a modified Westrex mixer. For the original LPs, the mixer directly fed the custom cutting chain. At Fine Recording in NY, the Westrex cutter head on a Scully lathe was fed by modified McIntosh 200W tube amplifiers with very little feedback in the system. Older mono records were made with a Miller cutter head. For the CD reissues, the output of the Westrex mixer directly fed a DCS analog-to-digital converter and the CDs were mastered on Sony 1630 tapes. No digital enhancement or noise reduction was used.
The original LP releases of the classical recordings continued through 1968. The Mercury classical music catalogue (including the Living Presence catalogue) is currently managed by Decca Label Group through Philips Records, which reissued the recordings on LP and then CD. In turn, Mercury now manages the pop/rock catalog of Philips Records.
In 2003, Speakers Corner Records began issuing 180-gram audiophile-quality LP reissues. The LPs are mastered from 2-track tapes made at the time of the original LP mastering, thus one generation removed from the edited session master used to produce the original LP master and the CD master.
In 2012, Decca Classics, the current owner of the Mercury Living Presence label, issued a value-priced 51-CD box that included 50 of the 1990s CD titles (remastered by Wilma Cozart Fine) as well as a bonus CD containing an interview with Wilma Cozart Fine, and a deluxe booklet detailing the history of Mercury Living Presence. The CD was issued worldwide and was sold by Amazon and other major retailers. A limited-edition 6-LP box set was also issued. The CD set brings back into print dozens of titles that had not been available as manufactured CD's since the early 2000s. The CD box set sold out within 8 months and the LP box set sold out within 6 months.
In 2013, Decca Classics issued a second, 55-CD box set, along with a second 6-LP box set. The CD box set included two bonus discs: a new reissue of the 1953 monophonic recording of Stravinsky's "Rite of Spring" by Dorati with the Minneapolis Symphony Orchestra, and a first-time-on-CD reissue of the premiere recording of John Corigliano's Piano Concerto, played by Hilde Somer with the San Antonio Symphony Orchestra conducted by Victor Alessandro. Also included on the Corigliano CD was an interview with the composer and the pianist. As in the first CD box set, the 53 titles from the 1990s series were remastered by Wilma Cozart Fine.
On January 4, 2015, Mercury co-founder Irwin Steinberg died at the age of 94.
This division of Mercury handles US distribution of most pre-1998 Polydor Records pop/rock releases currently under UMG control. There are some exceptions, however. Some artists based outside the US did not have their releases on Polydor in North America, signing to various other labels instead. Some of these bands, such as The Who, did sign to a label that also is now part of the UMG family (or later absorbed by such a label), hence those labels control US rights to these works (in the case of the Who, they had been on US Decca Records and MCA Records in the past, their pre-breakup catalogue is now on Geffen Records in North America).
Mercury Classics was relaunched in 2012 as an international classical label by UMGI, appointing musicologist and record executive Dr. Alexander Buhr as Managing Director. The label aims to identify and work with strong creative individuals that bring a distinctive and fresh perspective to classical music.
In its first year, artist signings to the label included Icelandic neo-classical composer Olafur Arnalds, New York-based string quartet Brooklyn Rider, Chinese pianist Yundi and Austrian clarinetist and Berlin Philharmonic soloist Andreas Ottensamer. The label also oversees the recording career of Montenegrin classical guitarist Milos Karadaglic and has an ongoing partnership with Tori Amos, which dates back to her work with Buhr on her classically inspired Night of Hunters album for Deutsche Grammophon in 2011. Following Buhr's longstanding relationship with the Deutsche Grammophon label, some of Mercury Classics' early core classical recordings have been released as co-brands of Mercury Classics and Deutsche Grammophon.
In 2013 Mercury Classics released Olafur Arnalds' label debut For Now I Am Winter, which entered the US Classical Chart at No. 1. It was followed by an EP of Arnalds' soundtrack to the much acclaimed ITV crime series Broadchurch which received a BAFTA Award for best original soundtrack the following year. Yundi's recording of three Beethoven sonatas went platinum in his native China. The label also released Andreas Ottensamer's debut "Portraits", and the much acclaimed label debut of Brooklyn Rider "A Walking Fire". Milos Karadaglic's "Latino Gold" topped the UK classical charts and entered the pop charts. Legendary banjo soloist and 15 time Grammy Award winner Bela Fleck's concerto for banjo and orchestra "The Impostor" was released in the fall.
In 2014 Mercury Classics released "Aranjuez", Milos Karadaglic's recording of iconic guitar concertos by Joaquin Rodrigo, featuring Yannick Nezet-Seguin and the London Philharmonic Orchestra. The album topped the iTunes Classical Charts in more than 10 countries and the classical charts in the US, UK, France, New Zealand and Denmark, where it peaked in the pop charts at No. 17. With the release of Yundi's new album "Emperor/Fantasy", including Beethoven's 5th Piano Concerto with Berlin Philharmonic and Daniel Harding, Mercury Classics held the top two spots on the UK classical chart. In May 2014 the label released Tori Amos' 14th studio album Unrepentant Geraldines. The album entered the US Billboard top 200 at No. 7, charted in UK (No. 13), Netherlands (No. 10) and Germany (No. 15) and hit the iTunes Top 10 in more than 20 countries.
Influential classical music website Alto Riot named Mercury Classics its 'Label of the Year 2013'.
Mercury's Nashville unit dates back to 1957, when Mercury formed a joint venture with Starday Records specifically for releasing artists performing country music. Mercury bought out Starday's half in 1958.
In 1997, PolyGram, looking to cut costs in anticipation of a merger with a competitor, consolidated all of its Nashville operations under the Mercury name. Mercury Nashville took over management of all of PolyGram's country back catalog from sister labels such as Polydor (including releases once issued by MGM Records), A&M, and the small country back catalog of Motown Records (Motown released these albums under subsidiary labels). All country artists under contract to other PolyGram labels either moved to Mercury or were dropped altogether.
Today Mercury Nashville continues to be an active imprint under Universal Music Group Nashville, where it continues to manage the country back catalog that once belonged to PolyGram (MCA Nashville manages what Universal had already owned at the time of the PolyGram merger).
In 1958, Mercury switched its distribution in the UK from Pye to EMI, and in 1964 to Philips.
In 2005 Jason Iley was appointed the new Managing Director of Mercury. He joined the company from Island Records where he was General Manager. In July 2005 ILey appointed Paul Adam to senior A&R director of the label – the two had previously worked together at Island Records.
In October 2006 U2 decided to leave Island Records and moved to Mercury Records, reportedly to rejoin ILey who they had worked with previously at Island Records.
In March 2011, the label announced it was stopping the production of CD and vinyl singles and would only release them physically as "rare exceptions".
In July, Mercury announced that Mike Smith was joining as President, Music.
Launched in 2007 by Universal Music Australia exclusively as a full-service local (Australian) A&R operation. Mercury Records had been used for some Australian artists in the 1980s and 1990s, but was put into hibernation in 1999 in favour of the Universal label until 2007.
In France, Mercury Records operates as a part of the Mercury Music Group, a division of Universal Music Group. Mercury Music Group controls the French operations of UMG labels Mercury, Fontana Records, Verve Records, Decca Records, Blue Note Records, among others.
Various other national Universal Music Group companies are known to actively use the Mercury Records trademark as an imprint for their local artist and repertoire operations, but no other Universal Music Group companies use the label as a key marketing differentiator, nor do they operate frontline divisions based on the Mercury label.
Launched in 1993 as a division of Nippon PolyGram (now Universal Music Japan), it was later relaunched in 2000 as a joint venture with Kitty Films under the name Kitty MME. It was merged into the Universal J label in 2002.