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Flood Ofbelow-$30 Videos SM 14011 MWDADP rt 01066048O248B MAR86 á MONTY GREENLY 03 10 a. 3740 ELM UCY 3 LONG BEACH CA 90807 z 89th YEAR September 29, 1984 S3.50 (U.S.) A Billboard Publication The Internationalu- Newsweekly Of Music & Home Entertainment BUFFALO CASE PARAMOUNT TITLES, `PURPLE RAIN' Local fliers Lose flood OfBelow-$30 Videos are By TONY SEIDEMAN financial resources to the limit as the While sale- oriented retailers Blanket Pacts Para- On two majors' titles plus CBS /Fox Vid- ecstatic about the Warner and By IS HOROWITZ NEW YORK -Paramount Home eo's "The Empire Strikes Back" rush mount moves, many rental- oriented stores see the move as bringing more rights against current license arrangements Video and Warner Home Video gave into a crowded marketplace. NEW YORK -Performing work than profits. victory will be continued "individually and the low -price prerecorded video mar- Reportedly, Paramount's move organizations won a stunning "Smart retailers will react to it as in the marketplace." ket a major boost last week, releasing was as much an attempt to spark a Tuesday (18) when a federal appeals as an industry the greatest shows on and re- releasing a large number of stagnant sale- oriented videocassette probably one of court here upheld the legality of blan- Meanwhile, ASCAP and BMI Kraus of the New major titles at less than $30. market back to life as to make a big earth," says Mark ket licensing for local television chiefs, still riding a euphoric high late -based Video Stop. In Ohio, In its first major pricing promo- splash for the holiday season. The York stations. last week, were looking toward an Messer of the six -store Video tion, Paramount has cut the suggest- wide span of retailer and distributor Jack In overturning a lower court deci- early retrieval of monies placed in es- Center chain predicts 25 it recently reaction reflects the difficulties the Store Record sion that the blanket license violated crow during the pendency of the ac- ed retail on the titles (Bill- may face. (Continued on page 59) antitrust law, the U.S. District Court tion, as well as a substantial fleshing withdrew from the market company to for the Second Circuit set up new out of interim payments frozen at board, Sept. 22) from $39.95 at barriers against attacks on long -es- 1980 levels. In all, it is estimated that $24.95. The titles will be that tablished music licensing practices. these withheld funds could amount price point for a limited time only, re- Lawsuit Challenges MIV Deals The original class action brought by to well over $50 million. shipping at $24.95 on Oct. 31 and to the higher price in the Buffalo Broadcasting Co. et al Some $20 million is in the fund turning By FAYE ZUCKERMAN and KIP KIRBY January. against ASCAP and BMI put at risk in escrow beginning shortly placed LOS ANGELES -MTV's dominance in the cable music field received its in annual At the same time, Warner Home an estimated $80 million after the launch of the antitrust ac- as the fledgling Discovery Music Net- Video has broken a new pricing bar- first legal challenge Wednesday (19) performance revenues from local tv. tion in U.S. District Court here. This the pioneering 24 -hour rier, becoming the first home video work filed suit in U.S. District Court here, charging While litigants on both sides of the was to allow for reimbursement to tv restraint of trade and unfair competi- major to put out a top -line feature music service with antitrust violations, eight -year-old case were still digest- stations for overpayment if their ac- film in first release in all formats for tion, among other counts. ing the full implications of the ap- tion had been successful. secure less than $30. Prince's "Purple Rain" The legal action focuses on MTV's use of exclusivity agreements to peals court opinion, plaintiffs said re- After Buffalo Broadcasting's vic- Amex is scheduled to ship Nov. 19 at music programming. Named along with MTV Networks Inc., Warner maining appeal options would be tory in the district court in late 1982, Cable Communications Inc. and Warner Amex Satellite Entertainment Co. all the way to the U.S. Su- further license payments were locked $29.95. exercised, are record companies that have already signed such arrangements. These la- Court if necessary. If these in at the 1980 rates, some 20% to The Warner and Paramount preme bels, RCA, MCA, CBS, Geffen and Elektra /Asylum, are listed as co- conspira- Les Arries, president of Buf- 25% below what the rates would moves will mean the busiest, most fail, says tors, not defendants, with the complaint charging those firms with contribut- falo Broadcasting and chairman of have been for the last two years, credit- limit- stretching holiday season ing to the "monopolization" of music video programming by MTV. the All- Industry Television Station pending appeal results. The differ - in home video history, with retailers (Continued on page 68) Music License Committee, the fight (Continued on page 59) and distributors likely to strain their - Inside Billboard - RADIO PROGRAMMERS who attended last week's Radio Convention & Programming Conference, the first joint effort of the National Assn. of Broad- casters and the National Radio Broadcasters Assn., tended to be disappointed with the event, saying that it fell short of their expectations. The Los Angeles convention drew more than 5,000 registrants. Page 3. SELECTED PRICE HIKES on albums by established superstars are being greeted with surprisingly philosophical, even upbeat reactions by executives of major record /tape chains. Their consensus is that some higher list product may be inevitable from the vendors' standpoint. Page 3. WARNER POLYGRAM MERGER PLANS appeared in some doubt last week, following a decision by a federal administrative law judge to call a three - week recess in FTC proceedings in Washington. Page 3. CONSULTANT MIKE JOSEPH has linked with Dallas -based TM Com- munications. The agreement calls for Joseph to design and set up his successful "Hot Hits!" format, as well as his newer "Comfy" MOR sound, for TM's client stations. Radio, Page 15. VIDEO CLIP ACCOMPLISHMENTS were recognized at MTV's first annual Music Video Awards presentation in New York. Herbie Hancock's "Rockit" clip, directed by Kevin Godley and Lol Creme, was the big winner. AVAILABLE NEXT MONDAY! The 6 LP /cassette set. With production by Mark Knopfler and songwriting by Roddy Frame, the 4. ELVIS PRESLEY -A GOLDEN CELEBRATION CPM6- roll. Page new Aztec Camera LP is the vanguard of English rock and Knife birth in history may take place in January in 5172. Numbered collectible celebrates 50th anniversary of Elvis' 1/4 -25183 is the title of Aztec Camera's new album. The first single is THE BIGGEST ROCK EVENT 1/8/35 - 85. Includes 76 performances complete '50s network TV ap- Cas- Brazil. If all goes according to projections, the 10 -day "Rock In Rio" festival, All I Need Is Everything" 7- 29153. Knife: now available on Sire than a million fans. Talent, pearances. Sun outtakes. home recordings, music featured on Jan. 5th settes and Records. (Advertisement) featuring top international acts, could attract more HBO Special, unreleased interviews, rare '56 Tupelo concerts. plus page 36. '85 color portrait. The perfect gift from RCA. (Advertisement) (AcMwtremnt) PERSPECTIVE... AMERICA A Whole New Way of nsa,.ew Looking At Music; From AMERICA'S Point of View. Featnnng the single "Special Girl." o ooLC, ti Y +FBa CAPÇ'C4. RECORDS MC www.americanradiohistory.com an Aaron Russo Production THE ORIGINAL SOUNDTRACK FROM THE MOTION PICTURE FEATURES 10 BRAND NEW RECORDINGS AVAILABLE ON RECORDS AND HIGH -QUALITY XDRn CASSETTES FROM CAPITOL .c 1984 United Artists Corporation a4w4,e www.americanradiohistory.com 3 News Friends Of The Family First Joint NAB /NRBA Confab Gets Less Than Rave Reviews By THOMAS K. ARNOLD LOS ANGELES-The consensus KSDO -AM -FM San Diego. "They among the more than 5,000 delegates didn't represent any new ideas, and at the first joint effort of the National very often the people in the audience Assn. of Broadcasters (NAB) and the asked questions that were left National Radio Broadcasters Assn. unanswered." `4y... (NRBA) -the Radio Convention & "The sessions overall were nega- Programming Conference (RCPC), tive," said Hugh Heller about the held here last Sunday through meeting, billed as "Up With Radio." Wednesday (16 -19) -was that the Heller, president of the Heller Corp. t meeting fell short of most radio and television production firm hear about expectations. noted, "There was a lot of complain- Industry stars and executives help Billboard celebrate its 90th anniversary at New York's Studio 54 and Billboard presi- Particularly in light of last spring's ing that things are getting kind of plans for the Nov. 10 "Billboard Charts The Future" issue commemorating the birthday. Joining The Future think tank annual NAB meet in Las Vegas, rough, but let's be honest-when dent and chairman W.D. Littleford for the occasion was Dr. Herbert London, whose Data For issue. Among the which successfully tackled vital is- have things been easy? And there has conducted research on the music and home entertainment areas specifically for the special Richard Dostal, sues, the hopes were high that the were no solutions given for any of the 2,500 luminaries who joined in the Sept. 12 event are, from left, Network Talent International's Havens, RCPC would similarly reach new problems, either." Gaynor (who performed), Billboard executive editorial director Lee Zhito, recording artist Richie Gloria levels of relevancy.
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