Republic Records will reportedly stop using the word 'urban' to describe music of black origin.
The company, which is home to Drake and Ariana Grande, says it will no longer use the term to describe "departments, employee titles and music genres".
"We encourage the rest of the music industry to follow suit," it added.
At the time, the label didn't carry negative connotations but, after being shortened to "urban" it started being used as a catch-all for music created by black musicians - effectively lumping them into one category, regardless of genre.
Republic Records, one of the most powerful record labels in the US, reflected the growing discomfort around the term in a statement announcing it would remove the word from its company vocabulary.
"While this change will not and does not affect any of our staff structurally, it will remove the use of this antiquated term.
"We encourage the rest of the music industry to consider following suit as it is important to shape the future of what we want it to look like."
Solange Knowles disclosed suffering from an immune condition in 2017
Rihanna and Chris were know as 'it' couple of 2000s
Prince Harry and Meghan Markle celebrated Halloween together as a couple for first time in 2016
Sean 'Diddy' Combs awaits trial from behind bars for serious charges, including racketeering and sex trafficking
Liam Payne fans demand a monument to honour the star’s memory
Johnny Depp confesses leaning a lesson from his legal battle