Racks to Apply Pricing Pressure
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_ r. FIDE v MAR84 BB045vkEENLYMONT00 0 3 10 MONTY GREENLY < U10 A 3 74 0 ELM 1 ^"r- PEACH CA 90807 SPECIßT SM 14011 NEWSPAPER REPSIDEIN A Billboard Publication The International Newsweekly Of Music & Home Entertainment April 23, 1983 $3 (U.S.) =`NO LONGER VIABLE' Schwartz Suit Hits Arista, RCA; Pickwick Distrib Dumped Of Distribution Shift By JOHN SIPPEL Seeks Stay MIAMI BEACH -Pickwick distribution topper Jim Moran conceded by Hol- pegged to Arista's defection to the would enjoin RCA from distributing the defection of the This story prepared Bill here last week during the NARM convention that RCA branch distribution network. Arista product in Washington, Chrysalis, Arista and Motown labels from the company's independent land in Washington and Leo Sacks in New York. Pennsylvania, Maryland, Virginia, distribution network has rendered it no longer viable. The statement The complaint by the independ- -Schwartz Bros. North Carolina and South Carolina. followed weeks of intense speculation about Pickwick's distribution in- NEW YORK ent distributor, based in Lanham, which is tentions, after the firm shuttered branches ostensibly for inventory tak- Inc. has slapped Arista Records and Md., is the first to surface since the The 14-page complaint, ing and then announced stringent new credit policies (Billboard, April RCA with a $5 million breach of departure of Arista and Chrysalis to supported by 47 pages of exhibits contract suit, claiming fraudulent that Arista 9, 16). Through this, Pickwick had indicated a "sequential" reopening branch distribution systems (Bill- and documents, contends conduct, unfair competition, con- contracted with Schwartz Bros. for (Continued on page 59) board, April 9). tractual interference and conspiracy, in the aforementioned Schwartz Bros. will continue to distribution in September, 1980. The distribute Arista product until May territories agreement was signed by Jim 2 as part of an understanding Schwartz, president of Schwartz Thursday (14) during a con- reached and Aaron Levy, senior vice Racks To Apply Pricing Pressure Robert Bros., ference call with Judge president of finance for Arista, and Woods of State Circuit Court for for two "automatic" two - MIAMI BEACH -The nation's fined in this manner. count department stores like Target, provided Prince George's County, Md., and unless either party rackjobbers, beset by account losses, This emerged at last week's Gold Circle and Bradley buying di- year extensions attorneys representing the plaintiff the other of a change to the hope to unite with key record /tape NARM convention during a rack - rect. Pickwick's Eric Paulson and notified and Arista. An attorney for RCA retailers in a unified plea to all labels jobber session Tuesday (12) consid- several others pointed up instances contrary. to set price a la CBS Records. The ered one of the hottest in the history of Target, in the strategic first two Records did not participate in the Schwartz Bros. does not specify CBS policy gives accounts whose of the trade group event. The focal weeks of December, advertising all call. Judge Woods set May 2 for a from which defendant it is seeking business is primarily records a lower point was whether racks and retail $8.98s at $5.99. hearing on the plaintiff's application the compensatory damages. The suit price than those customers not de- stores can stay in business with dis- (Continued on page 66) for a preliminary injunction that (Continued on page 59) - Inside Billboard - PROGRAMMING FOR GMs and a fresh approach to station manage- ment were but two of the topics discussed at the NAB conference in Las Vegas last week. Billboard's on- the -spot coverage appears on pages 12, 13, 16 and 23. MERCHANDISING MUSIC was the dominant theme of last week's NARM convention in Miami Beach, although the need for record retailers to broaden their home entertainment base was fully recognized and debated. Special reports appear on pages 3, 4, 58, 59 and 70. PROGRAMMER TOM BIGBY'S exit from KFI Los Angeles has been confirmed. His successor is KOST's Jhani Kay, who becomes PD and oper- ations manager of both Cox facilities. Radio, page 12. ALTERNATIVE MERCHANDISE offers profit potential untapped by many record and tape retailers, according to Larry Schaffer of Vibrations in Florida. His three -store enterprise exemplifies those opportunities seized, he says. Retailing, page 27. CAPITOL BROADCASTING has restructured again. Frank Maruca, who's been overseeing the company's San Antonio properties, is radio group "If Hank Williams and Kitty Wells had married and had a daughter, she manager. Claire Shaffner takes over general management of stations in States- Over the past ten years. RONNIE MILSAP has proved himself to be a leader Harris said, and in the music industry ... continually expanding the sound of music ... would have sounded like Delia Bell." That's what Emmylou ville /Charlotte, Huntington and Richmond. Radio, page 12. she should know -Emmylou just finished producing Delia Bell 1/4- 23838. and he's done it again with his current POP /AC /COUNTRY hit single The album is Delia's first release on Warner Bros. Records and Cassettes, LATIN RETAILERS in the Miami area continue to report sluggish sales, "STRANGER IN MY HOUSE," (Country R&R Breaker 1st Week, Pop R &R and it features the single "Flame In My Heart" 7-29653. (Advertisement) largely attributable to the state of the economy. They also note salsa's dimin- Breaker 4th Week!) from his current LP "KEYED UP." (Advertisement) ishing popularity, overtaken by the romantic ballad genre. Latin, page 54. (Advertisement) T H O M A S D O L B Y DOL Y THE GOLDEN, AGE F WIRELESS Featuring 2271 "SHE BLINDED ME WITH SCIENCE'4_51 04) www OV.LIT ON RECORDS AND HIGH Q LITY XDR CASSETTES www.americanradiohistory.com BRASS CONSTRUCTION BRASS CONSTRUCTION BRASS CONSTRUCTION BRASS CONSTRUCTION BRASS CONSTRUCTION BRASS CONSTRUCTION BRASS CONSTRUCTION CONVERSATIONS CONVERSATIONS CONVERSATIONS CONVERSATIONS CONVERSATIONS CONVERSATIONS CONVERSATIONS(ST-12268) The album that's got everybody talking featuring the single that's got everybody walking "WALKIN' THE LINE" (7 B-5219 12 #8549) ' DUALITY Produced & Arranged by Randy Muller ;P.", 7.; ON RECORDS AND HIGH QUALITY XDR CASSETTES for the Muller Organization www.americanradiohistory.com News 3 TOWER TOPPER KEYNOTES CONVENTION Solomon's Wisdom: Music Is Power By IRV LICHTMAN knoll of the record industry." "We Solomon suggested that the indus- able things that are happening on all know that the music business did try "set some goals" for itself. "Let's MTV." MIAMI BEACH -Even if today's not collapse in 1982 ... is not about get those customers to buy six rec- "Our aim, as record retailers and music retailer considers his oper- to collapse, and never will collapse," ords a year instead of five.... If we manufacturers, is to sell a lot of rec- ation a home entertainment center, he said. just work hard to do that, do you re- ords and tapes. Pay attention to the he'd best continue to put over- In Solomon's view, prerecorded alize that our $3 billion industry ... music business and don't sell whelming emphasis on prerecorded music's hold is strong because it's would become a $4 billion industry? your soul to Atari," Solomon de- music. This was the focus of a key- "the only way people can control And heaven forbid if we dare to try clared in an opening shot at over -di- note address at their music environment" and they to get them to buy a record maybe versification. "Selling other product NARM the NARM con- "have to control their music envi- every 30 days, it could be an eight - lines is fine as long as they are sup- vention here ronment with records and tapes." and -a -half billion dollar industry .. plemental sales, not substitute Report Monday (11) by Noting that people haven't almost triple what it is today." sales." key retailer Russ stopped liking music -"they just Solomon said the industry had a Solomon suggested that store mer- NEXT GENERATION -This is Solomon, who called for strong mer- bought fewer records " -Solomon lot of things going for it, including chandising get the customer to buy the latest Compact Disc player chandising of music to further tap said they would buy more if given radio's venture away from "safe mu- not only the hit but "something else" launched by Sony in Japan, join- the consumer's continuing desire to "what they want to buy at the price sic," thanks largely to the "remark- (Continued on page 60) ing the CDP -101, which came to be entertained by it. they want to pay. That's really what market last October. Known as it's all about. And ... we can do it. the CDP- 701ES, the new ma- Geffen keynoter, page 4 To think there's a limit to the chine will retail at the yen amount of music we can sell to a cus- New Opportunities equivalent of $1,000, compared Solomon's wide-ranging speech tomer is foolish." to the $700 price tag of the ear- was a staunch defense of the music He explained the "incredible po- lier model. Features include ran- industry's power to grow, reaching a tential for growth" by pointing out dom memory music sensor At Sessions point, surprisingly, where he even that "if you, as a retailer, sold some- Stressed which permits selection of eight By EARL PAIGE pooh -poohed the oft -cited dangers one $35 worth of records last year, titles at random, a large multi - you bagged a whopping .00015% of MIAMI BEACH -The nation's An obvious indication from the funtion display, music scan, au- of home taping and rental.