CASH BOX NEWS MCA Purchasing ABC Label; Future Of ABC Staff Unclear by Joey Berlin back its operation, including the sale of all but three of its distribution centers last LOS ANGELES - The long -rumored sale of ABC Records was made official Jan. 30 summer. The fate of the remaining with the announcement that MCA, Inc. had branches, in New York, Los Angeles and In- is purchased the label. A joint statement by dianapolis, yet to be determined. Sid Sheinberg, president and chief operat- The status of ABC Records within the ing officer of MCA, Inc., and Elton Rule, MCA structure is also unclear. Most ob- president and chief operating officer of servers expect the ABC name to be ABC, Inc., predicted that "the acquisition dropped, but whether the ABC roster will intact a new will be consummated in early March after remain under name or join compliance with certain regulatory waiting MCA Records or MCA's Infinity Records or MERCURY, RIVA PRINCIPALS SET PACT Phonogram/Mercury Records has signed - periods." be divided in some other way remains to be an agreement to distribute Riva Records in the United States. The first product, an album seen. by Johnny Cougar, is set for release in April. Pictured above celebrating the agreement are MCA will immediately take over the Irony (l -r): Irwin Steinberg, chairman of the board and chief executive officer of pressing and distribution of ABC Records. Phonogram/Mercury; Robert Sherwood, president and chief operating officer of The future status of the ABC Records staff An ironic part of the MCA -ABC story is Phonogram/Mercury; Mike Gill, chairman of Riva Records: and David Werchen, director is unclear, but Jim Foglesong, ABC's head the current success ABC Records is enjoy- of law for Phonogram/Mercury. of Nashville operations, is expected to be in ing on the charts. The label is now showing charge of the merged MCA -ABC Nashville signs of breaking out of a long slump with a operation. MCA's Nashville office has number of bulleting records on the pop, Promo Denies CBS Charges, undergone major changes in executive R&B, country and jazz charts. personnel recently, but the combined For example, Poco's "Crazy Love" single Sues Ardens And Yetnikoff MCA -ABC Nashville roster will make MCA is currently #37 bullet on the Cash Box Top the largest company in country music. by Ken Terry specifically excluded from the inventory Icont,nued on pape 44) purportedly purchased from United Artists Steve Diener, president of ABC Records, NEW YORK - Promo Records, Inc. and its Co. by CBS. Furthermore. Promo denied issued a statement Jan. 31 reassuring re- that, "The ABC -MCA will MCA Distributing president, Morris Levy, recently filed that a substantial percentage of the ELO tailers agreement not affect ABC Records' customers' ability answers and counterclaims to the suit filed albums in question are defective, as Ready For ABC, against them last fall by CBS, Inc. and Jet claimed by CBS and Jet. to return ABC product. Proper returns of Records (Cash Box, October 28). In addi- Revised History ABC product will continue to be honored by Says Al Bergamo tion, in its deposition with the State Promo's eleven counterclaims and the ABC Records." Superior Court in Trenton, N.J., Promo and third -party suit, which together ask for hun- ABC's Demise by Alan Sutton Levy filed a separate suit against these dreds of millions of dollars in damages, ABC Records had a $29.8 million operat- third -party defendants: Don Arden, Dave contain assertions about the disputed ELO ing loss in 1977, the last full year that totals LOS ANGELES - Since taking over as new distribution arm sever- Arden, Sharon Arden, Walter Yetnikoff, the albums that throw their history into a con- have been released. Losses decreased in head of MCA's Fireman's Insurance Company of Newark, siderably different light than that outlined in 1978, according to ABC, but not as much as al months ago. Al Bergamo, president of N.J., and Billboard Publications Inc. The the CBS/Jet suit. For one thing, it is claimed the company had hoped. ABC had tried to MCA Distributing Corp., has completely re- Ardens are affiliated with Jet Records, and (continued on page 44) turn its record division around by cutting vamped the way the company gets its rec- Yetnikoff is president of the CBS Records ords to market. This was done, he says, in Group. anticipation of a deal the size of the recent CBS and Jet had earlier attempted to ob- Disco Formats Spread Across ABC acquisition. tain a court injunction that would have "Since last October, we've been making prevented Promo from selling whatever changes that would enable us to handle in remained in its possession of the 1.2 million Nation To 100 Plus Stations excess of $200 million worth of volume, al- ELO "Out Of The Blue" albums that the by Peter Hartz 40 to 24 -hour disco on Jan. 25. A leading though we didn't have it, anticipating the cutout distributor had purchased from the Top 40 in Detroit for many years, LOS ANGELES In the midst of an the sta- fact that things like this would happen," UA Music and Record Group (UAMRC). - tion is among the most recent additions to explosive period of expansion, disco for- says Bergamo. Although CBS and Jet did secure a tem- the disco consultancy of Burkhart/Abrams mats continue to sweep the country with a Among the changes instituted by porary injunction in October, this was lifted which radio growing number of AOR, Black and Top 40 caught the attention of the Bergamo: expanding the number of region- two days later in New Jersey State Superior with WKTU in stations switching to full or part-time disco community the success of al sales offices to five from the previous Court. with WKTU programming. In the last six months, disco New York. Beginning last four; relocating 16 of the existing MCA One of the key points in Promo's an- August, Burkhart/Abrams' radio has expanded from a handful of disco con- branches to larger facilities; and opening a swers to the CBS/Jet suit is that "all'Out Of under the major market stations to morethan 100 sta- sultancy programming direction new sales office in Dallas, with another The Blue' albums ever in the possession of Wanda Ramos has nine tions across the nation. of added stations to branch slated to open shortly in Charlotte, Promo were rightfully its by reason of the WXKS-AM in Medford, Mass. and In January, the following are some of the date. N.C. UAMRG/Promo contract." In addition, KRLY-FM in Houston most stations which switched formats to disco: being the Promo notes, all of the ELO records sold to Executive Turnover WUNW-FM in Milwaukee, WZZD-AM in recent. Promo were credited to UAMRG subse- In to to all - the Philadelphia, WRPL in Charlotte, North addition stations switching Besides the physical restructuring of quent to March 31, 1978, and therefore the Carolina, KLAZ-AM in Little Rock, KEYN- disco, many other stations are testing operation, Bergamo also made some disco waters by adding or block AM in Wichita, KDUK, KPIG, and KIKI in expanding sweeping policy changes. He says a top programming of music. KCBS-FM in Honolulu, CHIC -AM in Toronto, Canada, disco priority was establishing a pay program Columbia Signs San Francisco an 8 p.m. -2 KKSS in St. Louis, KJLA in Kansas City, incorporated that was comparable to the rest of the in- a.m. its format on Jan. 11. KITT in San Diego, KTFM in San Antonio, disco shift into dustry at a time when MCA executives were Paul McCartney its WOKU in Pittsburgh, W000 -FM in States- With revised Adult Contemporary/Dis- (continued on page 25) NEW YORK Paul McCartney and Wings co format, the "97K Monster FM" launched - ville, N.C., WXKS in Boston, and WHSB in have signed a recording contract with Alpen, Michigan. an aggressive, one-year $500,000 cam- Columbia Records, capping months of in- Burkhart/Abrams paign to introduce the new format. Many EMI Purchase Of tensive negotiations industry other throughout the country are and specula- WDRQ-FM in Detroit switched from Top stations tion. also partially programming disco, includ- United Artists Although specific terms of the reported ing KRLA in Los Angeles, WICC in Bridge- multi -million dollar deal were not revealed, port, WLOF in Orlando and WWMM-FM In Label Expected the contract is believed to be one of the Chicago. Recent conversions to disco LOS A NGELES Negotiations are un- largest ever signed by a recording artist. block programming came from WNIA in - derway between EMI, Ltd. and United Lee Eastman, in WAPE in an attorney who repre- Buffalo, WABB Mobile, Artists Records for the purchase of UA sents McCartney, stated that the contract Jacksonville, KROK in Shreveport, KFOM from co-chairmen Arthur Mogull and includes the of McCartney's in Oklahoma City and WBT in Charlotte, transfer Jerold Rubinstein, it was learned. Capitol Records catalog to Columbia N.C. Records in staggered stages, "when the Chuck Dunaway of the Radio Music Although UA had no comment on the distribution rights for the albums run out. Report in Marietta, Ga. says that the sheet reported sale, it was understood that an The first catalog albums are set to be lists 105 disco stations with 75 full-time official announcement would be transferred to Columbia by the end of disco outlets. forthcoming this week. 1979," Eastmas said. "Six months ago, it seems you could Acquired In 1978 the on one Eastman also confirmed that the Colum- DISCO COVERS THE GLOBE - count stations playing disco Mogull and Rubinstein acquired UA bia contract covered recording and dis- Casablanca recording artists Donna Sum- hand," says Jane Brinton, vice president of last April from its former parent com- Tom Hayden & Assoc., tribution rights for McCartney product in mer and Giorgio Moroder recently received an independent dis- pany, Transamerica Corp., and set up the United States and Canada only. EMI will a Golden Globe Award for "Last Dance" as co promotion firm. "There were stations worldwide distribution agreements like WCAU in Philadelphia, WBOS in Bos - retain worldwide rights for future albums by best original song in a motion picture. Pic- through EMI and Capitol Records. McCartney and Wings. tured (l -r) are: Summer and Moroder. (continued on page 16)

Cash Box/February 10, 1979 7

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