Capital/Virgin Deal Createssony Music Sales on Rise `New Force' in U.K
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MAY 17, 1997 Music VOLUME 14, IssuE 20 £2.95 DM8 FFR25 Katrina and the Waves US$5 conquer Eurovision: Media. DFL8.50 story page 8 Capital/Virgin deal createsSony Music sales on rise `new force' in U.K. radio by Emmanuel Legrand by Mike McGeever Spearheaded by Capital managing Virgin will TOKYO - Sony Music Entertainment director Richard Eyre, the acquisition have a 14 per-Richard Eyre posted a substantial growth in sales LONDON - "A new force in British com- was driven by the group's ambition ofcentsharein during the1996/1997fiscalyear, mercial radio" has been created with developing Digital Audio Broadcasting Capital, the despite tough market conditions in the acquisition of U.K national broad- largest single the U.S.A. and poor sales in the com- caster Virgin Radio by rival London - stake in the pany's home country, Japan. based broadcasting giant Capital Radio. CAPITAL RADIO expanded group SME'ssalesincreasedby14 Those were the words used by Vir- with Branson percent to a total of 584.9 billion yen gin owner and founder Richard Bran- joining the Capi- ($4.7 billion) during the 1996/1997 son as the U.K.'s broadcasting industry tal board as a fiscal yearendingMarch 31. consideredtheimplicationsof the (DAB) in the non -executive Altogether, Sony Corporation's £64.7million($106million)deal, independent sec- director. Capital entertainment division, which announced on May 6. torandtogo has the U.K. rights to the Virgin Radio comprises the Music Group and the The deal-hailed head -to -head RADIO brand name for 25 years as part of the Pictures Group, posted sales of $8.4 Richardas the biggest of its against the deal. Under the terms of the deal, Capi- billion, up 24 percent compared to the Bransonkind in the U.K.- BBC's flagship tal will also take on the four year -old previous year, and profits up 20.8 brings national AOR pop network BBC Radio 1 FM. continued on page 20 percent to $534.5 million. outlet Virgin AM and In a statement, the company says London broadcaster operating income increased in the Virgin 105.8 FM entertainmentdivision,thanksto (also AOR) into Capi- Blood eclipsed by HIStory? "strongresults[fromtheMusic tal's stable, making Group] outside Japan." The company itthe largest com-LONDON - With the release of his also points out that "sales in the mercial radio group Blood On The Dance Floor: HIStory In Music Group continued to rise despite in the U.K The Mix album on May 14, the self- theweakretailenvironmentin styled "King of Pop," Michael Jackson, the U.S.A." will test the loyalty of his European Sony Music's sales were fuelled by subjects and the marketing wisdom of the success of acts such as Celine NUMBER ONE his Sony Music courtiers. Dion, whose album Falling Into You The fact that this "king" will move has sold over 21 million units world- European Radio Top 50 among his people is being welcomed by wide since its release in March 1996. MICHAEL JACKSON those who must sell HIStory In The Mix On -going success by Fugees, Mariah Blood On The Dance Floor to them, Europe's music retailers. Jack- Carey and Oasis, as well as new lo=7;7. (Epic) son's 16 -nation European tour kicks off 40M.7211111/ ea" releases from Jamiroquai, Pearl Jam, in Germany on May 31, and five dates .44.4 ma., alikvallr JulioIglesias,Rage Against The Eurochart Hot 100 Singles are already sellouts. MICHAEL JACKSON Machine, Nas, Babyface and Gloria R. KELLY "He's one of those people who can dis- Estefan, "all led fiscal year sales." 1 Believe I Can Fly appear from view, have all this negative sent And Future: Book 1 sold 1.6 million In Japan, Sony Music remains the (Jive) press, and still come back," says Rod copies in the U.K, according to Cather- leading record company but during McLennan, senior product manager at ine Davis, Epic Records marketing direc- the fiscal year, sales fell 10 percent to European Top 100 Albums Virgin Our Price, the major U.K retail- tor there. Europe -wide, the two -CD set $832.6 million and net income was DEPECHE MODE er. He expects HIStory In The Mix to be has been IFPI-certified for sales of 6 mil- down 40.6 percent, to $55.1 million. the chain's top -selling album in its first lion copies. In the U.S., it has sold just "In popular music, there were fewer Ultra week of release. over 2 millioncopiesto consumers, big -selling products [in Japan] than in (Mute) The original 1995 HIStory Past, Pre- continued on page 20 the previous year," the company said. Sinia6O'Connor nie gospel OaK EP 6 New Son98 mis IS n rnotffier You4. 4 (TN Love Z.I Am enou9Y1 cot' nit(Selfs nis IS aRebel Song 3. Petit Poulet6. He move6 tilrou911 Vie fair*dive) Proboce6 bet 7onn ze(incoos except*Pro6uce6 IN Dona) Lorinq CIT:salts. ZeleaSeo 26 MAY 1994 AmericanRadioHistory.Com 21-23 May 1997 Convention & Exhibition Centre Hong Kong Conference Programme Opening Session 20 May pm 2671 PARTICIPANT 1130 COMPANIES 45 COUNTRIES 264 PRE55 1383 PAKTI ANTS FROM TELEVISION 14 PAN -ASIAN COUNTRIES 846SIC MARKET OVER THE LAST FIVE YEARS* 1/4 OF THE GLOBAL MUSIC MARKET' VALUE* fr.! Li LI _111 rj iris_I Statistics from MIDEM ASIA 1996 *IFPI's Recording Industry In Numbers 4996 (1991-1995) REED MIDEM ORGANISATION PARIS FRANCETEL: 33 (0)1 41 90 44 60FA*33 (0)1 41 90 44 50 HEADQUARTERS For further information on MIDEM ASIA, please fax this coupon to your local Tel: 33(0)1 41 90 44 60 Fax: 33(0)1 41 90 44 50 Reed Midem Organisation representative: J UK Tel: 0171 528 0086Fax: 0171 895 0949 TITLE NAME HONG KONG Tel: (852) 2965 1618 or 2824 1069Fax: (852) 2507 5186 POSITION COMPANY JAPAN Tel: 81 (3) 3542 3114Fax: 81 (3) 3542 3115 ADDRESS USA COUNTRY Tel: 1(212) 689 4220Fax: 1 (212) 689 4348 [email protected] GERMANY TELEPHONE FAX Tel: 49 (0) 7631 17680Fax: 49 (0) 7631 176823 AmericanRadioHistory.Com NEWSM Now quota issue hits Austria by Susan L. Schuhmayer recorded music reached OS 4 billionband Bluatschnik (see story, page 10),with pop, rock and dance-still plays ($396 million) in 1996, but the largestis one who has signed the petition. Austrian music that fits its format. VIENNA - Austrian politicians andshare of this money lined the pockets "Very few Austrian musicians wereAmong the most popular domestic musicians are calling for more home- of foreign companies." The MP saysmade famous by 03," says Knittel, artists played are Rainhard Fendrich, grown music on 03, the country's only he would like to see more attention"and I think there should be more."KurtOstbahn,Bluatschinkand nationwide CHR station. paid to domestic talent inlocalKnittel adds that he believes the factAusseer Hardbradler. But he adds 03 is operated by public broadcast- media-especially on state-ownedthat 03 derives income from listeners'that, "The supply of popular Austrian er ORF. The station's programming03-and invited comparison with thelicense fees should allow it to "havemusic that fits our format has dried director Bogdan Roscic has responded 40 percent quota for French -languagemore courage, and not only think with up since the mid -1980s." to the call by saying that there is not songs on radio in France. a commercial perspective in mind." Roscic claims that 03 actively tries a large enough supply of Austrian -pro- According toDerStandard, 03's Roscic admits that the shareto support new local talent. The sta- duced music which fits the station's Krauter's initiative is supported by a of Austrian music played on the sta- tion maintains its own recording stu- format to make such a move practical. number of government members,tion is shrinking. A survey for 1995dio and offers young musicians studio The issue came to the fore at the including cultural spokesman Franzshows that 23.5 percent of the sta- time free of charge. end of April, after an Austrian mem-Morak and the head of the Greention's music, advertisements and jin- Refering to the current fierce com- ber of parliament, Giinter Krauter,party, Christop Chorherr. gleswereproducedinAustria.petition for listeners between radio, launched an initiative to lobby for In the meantime, a petition callingResults for 1996 are due out in latecable and satellite TV and "real-time more Austrian music on 03. for a 25 percent quota for domesticMay, and Roscic says he is sure the radio" on the Internet, Roscic warns: In an interview with Austrianmusic on 03 is being circulatedpercentage has fallen even further. "You cannot spoonfeed people what dailynewspaper DerStandard,among Austrian musicians.Toni He points out that the station-some politician thinks they want Krauter said that, "Sales in pre-Knittel, member of contemporary folk which targets the 14-49 age bracketto hear." Spanish net OCRNorwegian govt. facing break-up?investigates chart by Howell Llewellyn to find a legal way to break a business by Kai Roger Ottesen by GGF, and copyright is held jointly by accord which binds him to OCR until the trade group and VG. It excludes all MADRID - Internal conflicts are threat- January 1999. Uniprex chairmanOno - Norway's Top 40 full -priceproduct with a lower average retail ening to split Spain's third largest pri-Arroyo says, "We are doing every- album chart is under official scrutiny. price than NKR 129 ($18), effectively vate radio network. thing possible for the accord to con- Competition authority Konkurr-removing all Naxos' repertoire. The News/talk formatted Onda Cerotinue and we are sure Herrero will ansetilsynet is investigating a com- store price of full price CDs in Norway Radio (OCR) is facing a potential break- accept our offers." plaint by classical budget label Naxosis between NKR 159 ($22) and NKR away by 60 out of its 180 associated sta- One of the stars Herrero could which argues that the chart is anti- 189 ($27); Naxos' repertoire has retail tions.