Sony Music Finalizes
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M&M Presents GSA Today. Also, The Monthly Classical Page. J/ See Pages 8, 9 & 12. Europe's Music Radio Newsweekly.Volume 9. Issue 38 . September 19, 1992. £ 3, US$ 5, ECU 4 Sony Music Finalizes European Set -Up more a function of internal capa- of circumstances-a peaking of by Machgiel Bakker bility than market momentum." CD growth and the sleek econo- It has been a long haul, but the He continues, "This, more than my-that makes the environment reorganization of the European the general softness of the econo- seem harsh." operations of Sony Music Inter- my, is at the root of the slowing Growth figures for SMI over national (SMI) has come to an of the dynamic experience of the 1992 are 13% with sales reaching end. What started with the sudden last six years. It's the convergence (continues on page 25) COME TOGETHER - DuringtheElectrolaEuro-Festivalatthe resignation of SMI Europe presi- Popkomm fair, some of the label's largest artists got together to pose for dent Jorgen Larsen in June of a photoshot. Pictured above are members of the Love Kings, Clouseau, last year culminated last month Fischer -Z, Heroes Del Silencio, Brings, and singer Angelo Branduardi. into a complete regrouping of the Recession Hits Dutch company's international market- ing activities. Now withallinternational Market; Down 17% NRJ Muscles In marketing managers under one dropped by 11% to Dfl201.1 mil- bj, Miranda Watson roof-that of SMI Europe's Lon- lion for the same period this year. don -based address, Red With soundcarrier sales declining The Dutch sales figures depict On RFM Network Place-SMIpresidentRobert across Europe this year, the reces- a very gloomy market picture Summer is ready to talk. sion has hit hardest in Holland indeed, with single and album agreed to sell its 49% stake in the by Emmanuel Legrand Addressing some 200 SMI where thefirst half figures of formats suffering alike and the French RFM network to NRJ for executivesatthecompany's soundcarrierunitsshippedby only format showing any growth NRJis increasing its grip on the anundisclosedamount.This senior management meeting in Dutch IFPI body NVPI member at all being the cassette single. French radio scene as the finan- move could be followed by addi- Lausanne, Switzerland (Septem- companies show a dramatic 17% Total single sales fell 21% from cially troubled UK group Crown tional developments such as NRJ ber 1-5), Summer dppicted the slump on the same period last 3.2 million units (worth Dfl15.7 Communications has reportedly collaborating with Crown in the current business environment as year to 14.2 million units. The million)to2.5millionunits UK or even becoming a partner in having returned to "equilibrium value of the music industry, worth (worth Dfl13.8 million). Crown. or normalcy where growth, analo- Dfl226.4 million (app. US$144 As in the rest of Europe, the Senardi Joins The deal was negotiated and gous to success,is once again million) for the first half of 1991 (continues on page 25) inkedbythelateNathalie PolyGram Italy Briant, GM of NRJ. It was final- ized on July 31 and presented to No. 1 in EUROPE Former MD of Warner Italy the broadcasting authority CSA at M & M Revamps European Hit Radio label CGD, Stefano Senardi, has the end of August for approval. MADONNA been appointed president of Poly - On September 4, CSA issued a New Features New Charts This Used To Be My Playground Gram Italy. statementsayingthat"ithad This week, Music & Media In a major expansion of Music (Sire) He takes over decided not to give a positive fol- introduces several new features & Media'sairplayresearch from Gian- low-up to the group Crown's pro- and columns, including department, this week's issue Eurochart Hot 100 franco Rebut - posal to give up its shares in the Europe At A Glance, a gene- introduces the Regional EHR SNAP la who became companyPerformancesS.A., ral overview of the main news Top 20 airplay charts as well as Rhythm Is A Dancer DGG president thatbroadcasttheprogramme events, Profile,interviewing the Adult Contemporary (Logic) earlier this year RFM." In other words, the CSA themainradioandmusic Europe Top 25. It marks the (M&MApril was saying no to the selling, or at industry executives and News- firsttimeforbothairplay European Top 100 Albums 18). least to the way it was presented. makers, highlighting the charts to have been developed MICHAEL JACKSON Stefano Senardi In his new Insiders believe that CSA saw people on the move. For full for Europe. For full details see Dangerous role, Senardi Crown's move to sell its share in details see page 6. page 6. (Epic) (continues on page 25) (continues on page 25) Icity 7 dais to thenew release...TUE FLIE.S... .47 AmericanRadioHistory.Com When you were younger, no one was brave enough to program The Smiths Now's the time to get your revenge! A Number 1 Album in the UK and now charting in HOLLAND, SWEDEN, IRELAND, BELGIUM, NORWAY, DENMARK and PORTUGAL Featuring the hit singles THIS CHARMING MAN Highest ever position in the UK at No. 8 HOW SOON IS NOW? Wei3 Out Now AmericanRadioHistory.Com News Star*Sat In Financial TroubleEUROPE A T A GLANCE those workers who lost their jobs Star*Sat coming. "A station that by Miranda Watson complained to the workers union doesn't run commercials is bound FRANCE: Mute Goes To Vogue Munich -based IG that they have been 'unfairly to run into problems. You can't GERMANY UK indie label Mute is back with its former distributor Vogue, the cable/satellite dismissed and the union is now just pay out money, you have to ,companyitleftsix years ago for Virgin. The deal,effective privatestationStar*Satisin looking into the matter. earnittoo.I think the backer September 7, is the first "coup" by Fabrice Nataf since he moved financial difficulty and is now on With the reallocation of radio must have decided 'enoughis from Virgin to Vogue, bringing a potential of some Ffr50 million thehuntforanewbacker. licenses in Munich at the end of enough.' You can't keep putting (approx. US$10 million) in new business per year. Star*Sat's main backer Florian the year, Star*Sat's future. looks money into something that's con- Emmanuel Legrand Piech (of the Audi and Porsche very doubtful, unless a new back- tinually loosing money. I think families)isrumouredtobe er can be found and quickly. In the format of the station was OK, HOLLAND: Mojo To Build New Venue pulling out of the station altogeth- the event of Star*Sat closing, its but as a business it is just a finan- Dutch concert promotor Mojo Concerts plans to build a big venue in erattheendofthemonth. share of the 89 FM frequency cial liability. I have heard that the Amsterdam that should house 5.000 visitors. With costs estimated Star*Sat,owned by MD Jo band will be shared between 89 station will continue to broadcast between Dfl12-14 million (app. US$), Mojo MD Leon Ramakers 'Alders, sacked 20 members of Hit FM and Radio 2Day which local programming until the end intends to organize some 40-50 concerts a year, although the hall can staff earlier this month and the currentlysharethefrequency of the year and then its frequency also be used for sport galas and theatre shows. MB Munich radio world is now spec- withStar*Sat.Availablevia will be reallocated." ulating its days are numbered. Astra IA and via cable through- MD of EHR-formatted private UK: Row Over DCC Thegoldenoldiesstation, out Germany and Europe, 89 Hit FM/Munich and ex -man- Tensions are rising in the UK over the BPI's proposed reduction in launchedfour -and -a -halfyears Star*Sat reaches a potential11 ager of Star*Sat, Peter Pelunka mechanical royalties for Phillips DCC and Sony'sMinidisc. Dire ago, is said to owe millions of million cable German households says he is glad he left the station Straits manager Ed Bicknell has threatened to the group's record DM and to have been permanent- and an approximate five million when he did in 1990. "The prob- company Phonogram that the band will pull out of the launch of the lyin debt throughout itsexis- satellite dish households (includ- lem with the stationisthatit new formats unless the issue is resolved. This move is being supported tence. One reason for the station's ing the former East Germany). doesn't have a niche format and is by other major groups including Genesis, U2 and Simply Red who all financial downturn, so say insid- Head of radio at BLM Stefan too broad -based. Many more sta- oppose the reduced rates. The BPI is seeking to reduce the mechanical ers, is not using automated meth- Sutor comments, "The problem tionshavesprungupsince royalty rate for the new formats with a sliding scale of discounts ods of programming such as a with stations like Star*Sat is that Star*Sat began and Liiders should dependent on their market penetration. MW Selector,preferringtouse the cable and satellite technology is have opened his eyes to the com- more expensive option of person- veryexpensive.InGermany, petition he was facing. The other UK: Primal Scream Wins Mercury Prize nel.Under increasing pressure cable radio doesn't have many lis- thing is that you have to know UK dance/rave band Primal Scream has won the first Mercury from the station's backer, Liiders teners and Star*Sat is only avail- how to sell a station, not just how Music Prize award, the record industry's equivalent to the Booker fired 20 members of staff last able terrestrially in Munich." to programme it.Liiders knew Prize.