cash box/news Accounting Firm Analyzes Major Record Label Sales NEW YORK — Accounting practices Waterhcuse report covered the Industries-EMI receives the largest more than half of the record industry's unique to the record business were problems of inventory valuation, artist percentage of sales from record industry reported sales. analyzed in a special report by Price. compensation, returns, record master operations, 95.8 percent. On the op- Since the figures were compiled from Waterhouse & Company, in a survey of costs, copyrights and contingencies (re- posite end were Walt Disney Produc- public companies only, and there are a 10 major recording companies, based on serves held back from an artist’s gross tions, Transamerica (United Artists number of privately and foreign owned their 1974 sales reports The Price. sales to cover returns). In addition to the Records) and Twentieth Century Fox companies in the record business, the record business, two other segments of Film Corporation, with 3.5 percent, 4.6 total sales picture is not complete. Miss- the entertainment industry — motion pic- percent and 5.7 percent respectively, ing from the top 10 list are Polygram, tures and broadcasting — were analyzed. coming from record industry operations. A&M and Motown, each doing a substan- The report provided a breakdown of Music publishing figures were included tial amount of volume that would place record industry sales (revenues), a com- throughout the survey them on the top ten list. There are also pany's total sales, and the percentage of Based on 1974 sales, then, the CBS many smaller independent companies in record sales to total sales (see chart). So record operations are close to 40 per- the 10-50 million dollar range that while CBS had the largest gross cent larger than the combined Warner similarly would be ranked; their total revenues from records in 1974 ($420 Communications record operations, by sales roughly came to $250 million. million), recordings accounted for only $129 million in sales. And the combined Adding in television packages, record 24 percent of CBS' total sales of $1 75 sales of the CBS and WEA groups, ap- clubs, mail order and other markets, the billion. On the other hand. Warner Com- proximately $712 million, are larger than $2 billion plus figure for the industry munications had total sales of $720 the combined sales of the other com- (from the RIAA) takes on added million, with the various record divisions panies whose sales are given: ABC, dimension and realism. accounting for $291 million, or 40.5 per- Capitol, MCA. UA, 20th Century and Walt 1974 Record cent Columbia Pictures Industries Disney, whose combined sales total (Arista Records) and the RCA Corpora- $539 million. All eight companies on the Industry Sales tion's detailed figures were not provided. list (again, without RCA and Arista) ac- Of the ten companies included, Capitol count for $1.2 billion in sales, slightly Analysis On Pg. 9 Long a figure of major importance, both among her musical peers and a steadily growing audience, Joni Mitchell had Charlie Daniels Clive Davis Addresses already established herself as an influen- tial songwriter when she recorded her Signs To Epic debut album during the late '60s By Wall Street Analysts and performances NEW YORK — Country-rock artist Char- 1970, her solo albums by Gary Cohen had attracted critical praise and a sizable lie Daniels has signed a recording con- tract with Epic Records. The announce- following, yet it was during 1 974 that she NEW YORK — The signing and develop- artists to the label. Presently, he noted, made the dramatic transition from ment was made at the CBS marketing ment of new talent, and the successes of Arista is “very substantially profitable, celebrity to front-rank superstar meeting in San Diego when Daniels three carryover artists from the Bell both domestically and internationally." "Court And Spark," her sixth album made a surprise guest appearance with days, were the chief reasons for the suc- And the licensing fees from EMI, who and second for the Asylum label, cap- Epic artist Michael Murphey. cess of Arista Records in its first year and distribute Arista internationally, “are well tured both AM and FM airwaves with a a half, according to Clive Davis, presi- into seven figures." personal and uncompromising approach dent of Arista Records. Davis made Pointing to Arista's successes with to singing, arranging and writing that these remarks at a meeting of the Enter- new artists, like the Outlaws, Eric culminated in both gold and platinum tainment Analysts Group, comprised of Carmen, the Brecker Brothers and Mon- record awards. During that year, Mitchell 35 Wall Street analysts specializing in ty Python, among others, Davis ex- embarked on two major North American the leisure-time industries, including plained that Arista's success has tours that repeated this broad success; broadcasting, movies, theatre and the re- stemmed from "the signing, nurturing from those performances, the artist cord business. and development of new artists." And it culled "Miles Of Aisles." a two-record set Davis began the meeting, to which he is his feeling that "no company that’s that likewise garnered both gold and was invited as a guest speaker, recount- come into the record business since platinum awards. ing his initial contact and association A&M" has had the initial success that With the release of "The Hissing Of with Columbia Pictures Industries. "I Arista has enjoyed. He also indicated Summer Lawns" late in 1975, Jom DANIELS PACT — Shown at the CBS came in to look for a six month period, on that the future success of the record Mitchell has continued to evolve as a Records' meetings in San Diego with a consultant basis, at the artist roster and business in general is tied to its ability to Epic recording musician and songwriter while further newly-pacted Records the executives at Bell. I had an op- develop new artists. broadening her appeal An ambitious artist Charlie Daniels (seated) are (I to r) portunity to go over the roster of some Davis also made the following points: project marked by striking thematic con- Steve Popovich, vice president of Epic 30 artists, and keep all of them, some or • Arista's return rate so far has been cerns and greater musical eclecticism, a&r; Irwin Segelstein, president of CBS none At the time. Bell Records ten percent, "the lowest in the record in- "The Hissing Of Summer Lawns" defied Records division; Eric Kronfeld, Daniels' domestically was losing a considerable dustry commercial fashion to achieve the most attorney; Ron Alexenburg, vice presi- amount of money ” Davis wound up • "The industry finished an excellent rapid acceptance of any Joni Mitchell dent and general manager of Epic dropping all but three artists, Barry Christmas season 1975 was the largest album to date, earning the artist her sixth Records and CBS custom labels; Walter Manilow, Melissa Manchester and the year in the record industry's history, as gold record award within weeks of its re- Yetnikoff. president of CBS Records Bay City Rollers, and signed many new continued on pg. 40 lease. Group; and Joe Sullivan, Daniels' per- The new year has marked the kickoff sonal manager. of Mitchell's most ambitious live Zimmermann Named Cap. Operating performance schedule to date Currently Chief; Label In Major Realignment on tour in the U.S.. Joni Mitchell is slated NARM Convention to complete a world tour that will take her HOLLYWOOD — Bhaskar Menon, elected executive vice president and to Europe and the Far East as well Programs Detailed chairman, president and chief executive chief operating officer, succeeding by Gary Cohen assis- officer, Capitol Records, Inc , last week Brown Meggs, who is appointed INDEX announced the following appointments tant to the president, Capitol Industries- CHERRY HILL, N J — While the official Album Chart 1 -200 49 and realignments of executive responsi- EMI, Inc. Zimmermann reports directly topic of the 18th annual NARM Conven- Album Reviews 19 bilities, effective immediately: to Menon for the overall supervision of tion is "The $3 Billion Figure, Its Future Behind The Counter 34 Don Zimmermann. formerly senior Capitol s record business. Is Now," a wide variety of other topics Coin Machine News 42 vice president, marketing, has been continued on pg. 12 will be discussed, as over 1400 industry Country Music Section 23 representatives and their wives journey Country Top 1 00 Singles 26 to Ft. Lauderdale. Florida March 19-23. Country Top 50 LPs 24 The convention is now standing room FM Analysis 23 only, according to Jules Malamud, ex- For The Record 29 ecutive director of NARM. who spoke with recently to give back- Int’l Section 46 Cash Box ground information on the convention Looking Ahead 31 continued on 40 New Additions To Playlist 22 pg. Radio Active Chart 31 Radio-TV Report 30 R&B Top 1 00 Singles 38 Photo Coverage R&B Top 50 LPs 39 Of London, CBS Singles Chart Top 1 00 4 Singles Reviews 17 Conventions On Talent On Stage 21 Pages 8, 10 Vital Statistics 31 Zimmermann Meggs February 14. 1976 7.