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MCA Vi Deo Cutback Cuts Deep (Billboard Aprilp 9)

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MCA Vi Deo Cutback Cuts Deep (Billboard Aprilp 9) * * * * * * * * * * * * *3-DIGIT 908 4401 8815 MAR9OUHZ u 300817973 z MONTY GREENLY APT A 3740 ELM LGNG BEACH CA 90807 VOLUME 100 NO. 16 THE INTERNATIONAL NEWSWEEKLY OF MUSIC AND HOME ENTERTAINMENT April 16, 1988/$3.95 (U.S.), $5 (CAN.) Pisello's Tax-Evasion Trial Fallout From Distrib Paring Debated Tells of Dealings With MCA MCA Vi deo Cutback Cuts Deep (Billboard Aprilp 9). BY CHRIS MORRIS ) McGill, who testified April 1 and MCA's scaled -down distributor begin to cut their distributors," LOS ANGELES The first week of April 5 before U.S. District Judge BY AL STEWART lineup takes on added significance says the supplier. reputed mobster Salvatore Pisello's William J. Rea in the bench trial, NEW YORK With one fell swoop, since it involves some heavyweights Video distributors -even those income-tax -evasion trial here saw said that MCA paid a total of MCA Home Video has radically al- in the industry, including Ingram still in the MCA fold -say they prosecution witnesses from the rec- $180,000 to Pisello in 1984 and 1985 tered the distributor landscape and Video, East Texas, Metro Video, were sent reeling by the the compa- ord industry testify about Pisello's without drawing up contracts or in- has thrown into question the often- and H.W. Daily. ny's cutback of its wholesaler ros- tangled music business dealings. ternal memoranda concerning the fragile alliance between major sup- "MCA is a very strong- willed ter. While Vestron Video gave nine The week was capped by in -depth money. pliers and their wholesalers, indus- company," says the top executive at of its distributors the heave -ho ear - questioning of MCA Records vice The federal indictment charges try sources say. a competing major supplier. "I'm lier this year, MCA is the first major president of finance Dan McGill, Pisello with concealing $86,000 of A source with close ties to MCA not surprised that they dropped studio to do likewise. who acknowledged under cross -ex he money he made from MCA dur- says the company's decision to ax 11 some of their distributors. I think None of the distributors contact- amination by defense attorney Da- ng that period. distributors [Billboard, April 9] was you're going to see other suppliers ed by Billboard would comment for vid Hinden that he was testifying In other testimony, former Santa mandated by MCA's top manage- do the same thing. The way some of attribution. The companies still under a grant of immunity from the Monica, Calif. -based cutout dealer ment after an exhaustive study of these distributors are located, dealing with MCA said they are government. Ranji Bedi said he paid Pisello the video division's inner workings. they're right on top of each other, fearful of reprisals, while the com- Pisello is charged with evading $46,000 in cash in three separate He attributes the surprise move to a competing for the same accounts. panies no longer handling MCA taxes on close to $600,000 in con- transactions during 1984 and 1985 variety of causes, including overlap- "Every other supplier in the in- product said they don't want to cealed or unreported income -most and that the payments were made in ping distributor territories and dustry is going to take a hard look burn their bridges with the compa- of it made from music industry busi- Pisello's Cadillac El Dorado in the what MCA saw as the distributors' at the MCA move. If they can hit the ny. ness- during the years 1983 -85 parking lot of a Santa Monica bank. "lack of respect" for all but the big- same numbers with less distribu- (Continued on page 76) (Continued on page 70) gest hit titles. tors, you'll see a lot of companies Filmtrax Buys ADVERTISEMENTS AFI, Billboard Columbia, Mogul] Plan Second AVC Pub Companies Nov. 9 -11 In L.A. LOS ANGELES The second annu- BY NIGEL HUNTER al American Video Conference, LONDON Britain's Filmtrax has which incorporates Billboard's 10th agreed to acquire U.S. -based Co- annual Video Music Conference, is lumbia Pictures Music Group and set to take place here Nov. 9 -11 at has acquired Ivan Mogul] Music in the Hollywood Roosevelt Hotel. deals said to exceed $70 million. A highlight of this year's event, The Columbia Pictures Music co-sponsored by Billboard and the buy, which includes the Belwin/ American Film Institute, is the op- Mills and Al Gallico Music catalogs, portunity for award -winning spe- was clinched in the face of formida- cial- interest videos to receive a ble competition from SBK Songs, packaging emblem noting content EMI Music Publishing, MCA Music, and production excellence. and a consortium headed by Carlin The insignia, which can also be Music Corp. chief Freddy Bien - See iow hilarious homicide can be when Danny DeVito and Music to level any barrier. utilized in catalog listing and pro- stock. Estimates are that Filmtrax Billy Crystal star in this off- the -wall comedy hit featuring THEN JERICO motional material, is believed to be paid about $65 million for the Co- Ame icá s newest cult hero: Momma. Order Cut Off: May 5. FIRST (THE SOUND OF MUSIC) MCA -42117. the first such award to recognize lumbia catalogs alone. Street Date: May 26. Rated PG -13. ORION HOME VIDEO. Breaking down the walls with the power of rock. excellence in videos that typically Not included in the sale by Colum- "Let Her Fal " MCA -53326. receive little exposure prior to retail The first rel ®se and video. (Continued on page 77) (Continued on page 76) ALL SONGS PRODUCED FEATURING AND MIXED BY : SIMPLE FOR MANTRONIK INC., EXCEPT FOR SIMON \ GANGSTER BOOGIE WHICH IS 00 PRODUCED EY ., (YOU GOTTA REGARD) N ANID MIXED BY THE ul lrl MANTRONIX ARMY. O SINGSING 00 A SON r (BREAK IT DOWN)] jiantroni ON HIGR (DUALITY XDR o CASSETTES, RECORDS AND COMPACT DISCS. 0,11.10511.7, RECORDS me ADVERTISEMENT www.americanradiohistory.com A New Star Is Rising ,ntI!rllWet A le FATA f.4 AVALYWAv /Vie& v iff4 & ,Y On the Dallas Horizon! STARPLEX, The Amphitheatre at Fair Park. The brightest and newest star on the Dallas /Fort Worth horizon. Opening in July 1988, this exceptional, multi -million dollar, outdoor performing arts theatre, will shine with the brightest names in live entertainment - Contemporary, Rhythm & Blues, MOR, Rock, Classical, Country and Jazz, as well as other special events. Situated in the heart of the Dallas' historic Fair Park, STAR - Fitzhugh Ave. PLEX can accommodate up to 20,000 people. Featuring a covered performance pavilion, STARPLEX will provide 1. STAGE 10. ADMINISTRATIVE OFFICES for as well as an attractively land- 2. COVERED SEATING Il. COMMISSARY reserved seating 7,500, 3. DRESSING ROOMS 12. HOSPITALITY ROOM scaped grassy slope with lawn seating for an additional 4. FOOD & DRINK STANDS 13. CATERING 12,500. Permanent restrooms, food concessions, and fully - 5. RESTROOMS 14. CHAIR RENTAL SHOPS 15. LOADING DOCK dressing and staging facilities distinguish STAR - 6. MERCHANDISE furnished 7. FIRST AID & SECURITY 16. BACKSTAGE PARKING PLEX Amphitheatre as one of the premier open -air perfor- 8. ENTRY GATE 17. STORAGE mance venues in the country. 9. BOX OFFICE 18. EMPLOYEE DRESSING ROOMS For booking information, contact: For more information, contact: Louis Messina (713) 621 -8600. Kirk Feldmann (214) 421 -1111. PACE Concerts STARPLEX Amphitheatre P.O. Box 26512 4543 Post Oak Place Drive The Amphitheatre At Fair Park Houston, Texas 77027 Dallas, Texas 75226 An MCA /PACE Amphitheatres Group, L.P. www.americanradiohistory.com - ----- -- - --- -_ -- --- --- - --- - - Blockbuster, United Cable TV Set Service Deal _- - --mu _ - N.-- & --- --__ _ _-_________ __-____ _ _ __ _ _ _ 1st Video/Film/Cable Web Formed ________ _________ This story was prepared by Mark with theatrical exhibitor United Art- delivery systems. Mehler and Earl Paige. ists. In fact, Blockbuster's move has In contrast to the antipay-per -view partial precedents on the supply side: VOLUME 100 NO. 16 April 16, 1988 LOS ANGELES The first U.S. en- philosophy espoused by the Video The combine of Carolco Pictures, In- tertainment- delivery web linking vid- Software Dealer's Assn., the new ternational Video Entertainment, Lie- OCEAN'S NEW WAVE eo stores, movie theaters, and cable thrust of Fort Lauderdale, Fla. -based berman Enterprises, and the Fliks re- "Tear Down These Walls," the latest album from British crooner Billy television systems will result from a Blockbuster is more in line with mov- tail operation represents substantial Ocean, is poised to reach a wider audience as his single "Get Outta My recent deal between Blockbuster En- ie- studio reasoning- envisioning vertical home-entertainment integra- tertainment and United Cable Televi- symbiotic, not competitive, relation- Dreams, Get Into My Car" climbs en five charts. Reporter Bruce Haring tion; Vestron Video has just pur- sion Corp., which is slated to merge ships among various entertainment- chased its second video retail chain; talks with the twice- platinum artist,. Page 29 and both Paramount Pictures and Co- lumbia Pictures have licensed their Shutters Click At ACM Awards logos to Musicland for mall sell - The Academy of Country Music hcnored the best artists of 1988 at its through stores. awards ceremony, held March 21 Et Knott's Berry Farm, Calif. Top win- SaR -N -Pepa bold Single In a deal announced April 4, Block- ners the Judds, Reba McEntire, and Hank Williams Jr. were just some of buster sold 700,000 newly issued com- mon shares for $12.25 million, or a 5% the celebs snapped for Billboard's Newsmakers photo page. Page 34 Spices March RIM Certs stake in the company, to United Ca- A ble Television Corp., the nation's NEW AGE FOR RADIO, RETAIL? an indie label since February 1986, third- largest cable system operator.
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