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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)

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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 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 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. BY PAUL GREIN -area radio and retailing representatives met recently to discuss when two such records made the On March 9, United Cable announced strategies for promoting sales of rew age music. The seminar, called LOS ANGELES Talk about the lit- mark: the Chicago Bears Shufflin' a merger with United Artists Com- "Jazz, New Age, Or What ?" was held at wholesaler Baker & Taylor's tle label that could! Crew's "Super Bowl Shuffle" and munications that is expected to con- Niles, Ill., headquarters. Moira McCormick reports. Page 46 Next Plateau Records, a New Doug E. Fresh & the Get Fresh clude midyear. The combined entity York -based indie label, landed the Crew's "The Show." will be known as United Artists En- Stretching Those Video Dollars industry's first gold single in six After pumping out five singles tertainment Co. months on March 23 with Salt -N -Pe- from the Salt-N -Pepa album, Next Under a franchise agreement, the At the New York Home Video Show March 29 -31, dealers who called for pa's "Push It." The female rap act's Plateau plans a late June release new cable /theater firm will open up more co -op ad money on sell-through titles received creative sugges- album "Hot, Cool & Vicious" went for the follow -up, "A Salt With A to 100 Blockbuster Video units in the tions for stretching available dollars in two separate seminars (page 52). platinum on the same day. Deadly Pepa." next 30 months, principally in medi- Another panel discussed the pros and cons of placing commercials on "Push It," which was the B side The "Dirty Dancing" soundtrack um -size markets in which United Ca- home video releases (page 38). And on page 44, Billboard captures of the fourth single /12 -inch release topped the 6- million- certification ble and United Artists, both Denver from the album, is the first single to plateau in March, one month after it based, operate theater chains and ca- some of the fun from the show floor in photos. be certified gold by the Recording passed both the 4 million and 5 mil- ble systems. Industry Assn. of America since Mi- lion levels. Only three soundtracks United Cable and United Artists FEATUí7ES chael Jackson & Siedah Garrett's "I have topped the 6 million mark in presently run 80 cable systems reach- 64 Album & Singles Reviews 78 Inside Track Just Can't Stop Loving You" in Sep- U.S. sales: "Saturday Night Fever" ing 2.2 million subscribers and 463 29 The Beat 57 Jazz /Blue Notes tember. It's the first gold single on (Continued on page 76) theaters comprising 1,882 screens. 32 Boxscore 60 Latin Notas (Continued on page 70) 6 Chartbeat 73 Lifelines 60 Classical /Keeping Score 33 Nashville Scene 51 Clip List 17, 34 Newsmakers U.S., U.K. Mechanical Units Reach Accords 28 Dance Trax 10 Outa' The Box 4 Executive Turntable 18 Power Playlists Fox, MCPS Ending Double Royalty On Imports 57 Gospel Lectern 46 Retail Track er at MCPS board meetings can be the HFA has dropped its plans to 48 Grass Route 23 The Rhythm & the Blues BY KEN TERRY any NMPA board member or official open an office in London. According 15 Vox Jox NEW YORK European mechanical who is in London at the time. to Murphy, there's no longer any royalty collections on behalf of writ- MCPS and MRS, the other U.K. need for one, since "we feel the bal- SECTIONS ers and publishers of Anglo-Ameri- mechanical society, plan to merge in ance is there [between major and in- 23 Black 56 Pro Audio /Video can repertoire will be strengthened the middle of this year, according to dependent publishers on the MCPS as a result of a accord 62 Canada 10 Radio recent between the NMPA. Following the fusion, one board], and MCPS now has the au- U.S. and U.K. rights societies, accord- additional publisher and one extra thority to deal with the problems that 58 Classified Actionmart 46 Retailing ing to Ed Murphy, CEO of the Harry writer director will be appointed to it is confronted with." 9 Commentary 29 Talent Fox Agency. the MCPS board. Those problems, he says, include 33 Country 73 Update The agreement, which resulted As a result of these developments, (Continued on page 77) 71 Financial 50 Video Music from discussions between the Nation- 38 Home Video 52 Video Retailing al Music Publishers Assn. /HFA and 61 International the U.K.'s Mechanical Copyright Pro- tection Society and Mechanical Right Society, places more representatives MUSIC CHARTS of major music publishers on the Top Hot Singles board of the MCPS and gives the 26 Black 16 Adult Contemporary NMPA observer status at the British 60 Classical 24 Black society's board meetings. Meanwhile, Harry Fox, an NMPA 48 Compact Disks 25 Black Singles Action subsidiary that collects mechanical 35 Country 36 Country royalties for many U.S. publishers, 63 Hits of the World 37 Country Singles Action has made a reciprocal agreement 57 Jazz 16 Crossover 30 with the MCPS to avoid double me- 15 Rock Tracks 27 Dance chanical payments on record imports, 72 Pop 63 Hits of the World and similar pacts are expected with other European rights societies, says 66 Hot 100 Murphy. 68 Hot 100 Singles Action The major Anglo- American pub- lishers have gained more influence on VIDEO CHARTS the MCPS board as a result of the so- 45 Hobbies And Crafts 45 Recreational Sports ciety's recent decision to increase the 53 Kid Video 55 Videocassette Rentals number of its directors from 12 to 16. 38 Music Videocassettes 43 Videocassette Sales The new directors include Ralph Peer, president of Peer Southern;

©Copyright 1988 by Billboard Publications Inc., a subsidiary of Affiliated Publications Inc. BILLBOARD John Brands, managing director of MAGAZINE (ISSN 0006 -2510) is published weektr (except for the first week in January) by Billboard MCA Music Ltd.; and Stuart Hornell, Publications Inc., One Astor Plaza, 1515 Broadway, New York, N.Y. 10036. Subscription rate: annual managing director of Rondor Ltd. rate, Continental U.S. $170.00. Continental Europe £165. Billboard, Quadrant Subscription Service Ltd., Bald To The Bone. Last winter, Chrysalis president Mike Bone publicly Perrymount Road, Haywards Heath, West Sussex, England. Japan Y92,000. Music Labo, Inc., Dempa The board now consists of MCPS announced that if Sinead O'Connor's debut album, "The Lion And The Cobra," Building, 2nd Floor, 11 -2, 1-Chome, Nigashi- Gotar,da, Shinagawa -ku, Tokyo 141, Japan. Second class managing director Bob Montgomery, postage paid at New York, N.Y. and at additional mailing office. Current and back copies of Billboard are sold 50,000 units, he'd let O'Connor shave his head in her own distinctive available on microfilm from Kraus Microform, One "Vater Street, White Plains, N.V. 10601 or Xerox Uni- four writers, and 11 publishers, five style. Guess what? Sales of the album have already exceeded 200,000. Bone, versity Microfilms, 300 North Zeeb Road, Ann Arb r, Mich. 48106. Postmaster, please send changes of whom are affiliated with a major of address to Billboard, P.O. Box 2071, Mahopac, N.Y. 10541 -2071, 914 -628 -7771. being a good sport, split no hairs over the point and kept his promise. label and /or film studio. The observ-

BILLBOARD APRIL 16, 1988 3 www.americanradiohistory.com CEMA, BMG Eyeing Lower Wholesale Prices Polytram Cuts Deal On Pop CDs Henry Droz says another 10 have discount," says Droz. "It allows us BY GEOFF MAYFIELD been added to the line. better product layout, and we find NEW YORK Another wave of Droz also says that WEA is ten- it's very effective." wholesale price cuts on compact dering more CD deals. Whenever Moves on front -line CDs from disks-including front-line titles - the company offers its "impact BMG and CEMA are imminent, say is making its way to the market- deals," which yield a 5% or 7% dis- sources, although details were not place, either through discount pro- count on an $8.98 or $9.98 LP /cas- finalized at press time. grams or the introduction of new sette list title, the distributor offers "We're looking at one or two pos- titles at list prices of less than that title at a CD discount of 10 %. sibilities," says Pete Jones, presi- $15.98. "In effect, we're doubling up the (Continued on page 74) And it appears that even more price cuts are on the way. Among the recent moves: PolyGram put its pop CDs, in- cluding major- artist releases, on a Brit Music Retailers Group; 10 %, one -month deal in April. Is Gold For Gortikov. Jay Berman, left, president of the Recording Industry Assn. the distributor sticking its toe in of America, presents Stanley Gortikov, RIAA board chairman, with a plaque the lower -price waters? "No, we're Smaller Dealers Shut Out commemorating Gortikov's 16 years as president and chairman of the just having a program," says Jim association. Urie, vice president of sales and Price, HMV, Virgin, Tower, and branch distribution. He adds that BY NICK ROBERTSHAW Andy's, as well as leading distrib- the firm has continued its dis- LONDON A retailers' organiza- utors Lightning, Terry Blood, counts on midline CDs; deals on tion modeled on the National Wynd Up, and S. Gold. PolyGram Classics midlines began Assn. of Recording Merchandisers Invitations have also been ex- EXECUTIVE TURNTABLE Jan. 1; pop midline deals started in the U.S. has been established in tended to Boots, which has more i March 1. the U.K., with a membership than 250 record departments na- Both Warner Bros. and Elek- drawn from major retail chains tionwide, and to the Discovery and RECORD COMPANIES. MCA Records in Los Angeles makes the following ap- tra have contributed to WEA's and distributors. Small retailers Rival chains. If these three compa- pointments: Arthur Jaeger, senior vice president, and Lori J. Froeling, pool of new titles at a $13.98 list. have thus far been excluded from nies join, it is estimated that associate director of business and legal affairs. They were, respectively, Three Warners titles are out at the the new organization. BARD would represent more than chief financial officer for Island Entertainment Group and an attorney at lower price, with three more on the The British Assn. of Record 90% of the U.K. record retail busi- Riordan & McKinzie. way. Elektra has one out at that Dealers is chaired by Steve Smith, ness and 90% of the country's in- A &M Records in Los Angeles names Larry Yasgar executive vice pres- mark and another shipping short- director of European operations dependent distribution. ident for Vendetta Records and Mariel Pastor West Coast publicist. They ly. for Tower Records. BARD's mem- Small retailers, whose market were, respectively, vice president of dance promotion and sales for At- Beyond the 92 additional titles bership includes most of the share has contracted dramatically lantic Records and director of publicity for Passport Records. that WEA announced for its Super U.K.'s major retail chains, includ- during the past decade, have not Saver line at the National Assn. of ing Woolworth's /Record Mer- been approached, and there is Recording Merchandisers conven- chandisers, W.H. Smith /Our (Continued on page 74) tion (Billboard, April 9), president

VSDA Nominating Committee Reveals Slate Candidate List Hints At Future Of Trade Group JAEGER YASGAR COHEN HAYNES NEW YORK The Nominating owner of Boulder, Colo., store Video group's Feb. 16-18 Leadership Con- Mark Cohen is promoted to director, national alternative radio, by Committee of the Video Software Grove and president of VSDA's ference in Mount Laurel, N.J., Elektra Records in New York. He was manager, national alternative ra- Dealers Assn. has formally an- Denver chapter; Dick Kerin, vice which brought together all of the dio, for the label. nounced its slate of nominees to fill president of the video club opera- trade group's chapter presidents Virgin Records in New York makes the following appointment and five seats on the retail trade group's tions division for 154 -store, Spring- and five of its board members. promotions: Linda Haynes is appointed publicity director /r &b specialist; board of directors. field, Va. -based Erol's; and Steve Association bylaws allow for ad- Kathy Gillis is promoted to publicist; and Jennifer Jones is promoted to Two of the candidates-Lou Fo- Rosenberg, a partner of three -store, ditional at -large nominations sub- publicist /r &b specialist in Los Angeles. Haynes was producer of the syn- gelman, president of Los Angeles - Marietta, Ga. -based Premier Video mitted from the overall member- dicated radio program "Night Talk "; Gillis was publicity copywriter/co- based Show Industries and 52-store and president of the organization's ship. To be nominated, a member ordinator for the label; and Jones was a publicity assistant for the label. combo chain Music Plus, and Gary Atlanta chapter. must be named on at least 20 peti- Kris Puszkiewicz is named associate director, artist development/vid - Messenger, president of 15 -store VSDA members were informed tions written in letter form on a eo, by Columbia Records in New York. She was associate director of vid- Raleigh, N.C., chain North Ameri- of the slate in a letter dated March member company's stationery. eo at MCA Records. can Video-are incumbents. 30. The committee hammered out Fogelman's showing in the elec- Warner Bros. Records in Los Angeles appoints Carol Fenelon attor- Also nominated are Kelly Grover, the nominations during the trade tion process may offer hints of ney. She was associate director of business affairs for MCA Records. VSDA's future relationship with Total Experience Records in Los Angeles appoints Ronnie Richardson the video group's founding organi- zation, the National Assn. of Re- cording Merchandisers. Fogelman is one of three VSDA board mem- Rare-Coin Dealer Seeking bers who were appointed by NARM-rather than elected by the general membership-as a result of Control Of Schwartz Bros. NARM's joint agreement with the Ryan James has had "preliminary video group. BY BILL HOLLAND discussions" with top executives The contract that binds NARM SCHOENFELD REIMERS D'ONOFRIO KEMPLER WASHINGTON Ryan James James and Stuart Schwartz about and VSDA, which allows the two or- Ltd., a New York rare -coin dealer- the purchase of the brothers' 60% ganizations to share common head- vice president of sales and marketing. He was national sales director for ship, has acquired a 6.5% interest interest in the company. quarters and support staff, expires Beverly Glen Music. in Schwartz Brothers Inc., the 40- The only mention of price is that on July 1, 1989. VSDA constituents year -old record, tape, and video it is to be negotiated. The acquisi- appear to be split over whether that INDUSTRY GROUPS. The Recording Industry Assn. Of America Inc. in Wash- distributor based in Lanham, Md., tion, according to the SEC docu- relationship should continue. ington, D.C., makes the following appointments: Joel M. Schoenfeld, ex- and is seeking to purchase a con- ment, would take place "on deliv- Those who favor a continuation of ecutive vice president, general counsel; Patricia A. Heimers, vice presi- trolling interest in the firm. ery of an employment agreement" that link are hopeful that Fogelman dent, public relations; and Steven J. D'Onofrio, director, antipiracy oper- According to documents filed at between Ryan James and the will be among the five who are ations. All were previously with the association. the Securities and Exchange Com- Schwartzes. elected. mission, Ryan James and its prin- In an enclosed letter from Conti- Regardless, he is in a no-lose situ- PRO AUDIO. Sunkyong Audio Tape Division in Los Angeles names Joseph cipals have bought 104,500 shares nental Bank of Norristown, Pa., ation. If Fogelman is not elected, his Kempler technical director. He was with Capitol Magnetics. of SBI. Between mid -February which would handle the financing, appointment on the video organiza- and mid -March Ryan James a bank official states that in a re- tion's board will continue anyway at RELATED FIELDS. Rogers & Cowan Inc. of New York promotes Cathy Swan bought 68,800 shares; the most re- view of SBI's business, the bank least through the end of the current to account executive. She was formerly tour publicist with the firm. cent purchase was 25,700 shares has determined that a "strong rev- VSDA /NARM agreement. Fogel- Radio City Music Hall Productions names William Michael Maher se- on March 21 at $4.75 a share. enue base and cash flow of the man, who is a past president of nior producer /creative director of the theatrical productions division. He The SEC filing also states that (Continued on page 74) NARM and was VSDA's vice presi- was director of stage operations and theatrical productions. (Continued on page 74) (Continued on page 73)

4 BILLBOARD APRIL 16, 1988 www.americanradiohistory.com A B I L L B O A R D S P O T L I G H T

DON'T LET THE CROWD PASS YOU BY! Advertise in Billboard's CES ISSUE!

Buyers will come to your booth. .when you advertise in Billboard's CES Issue. (Everybody reads Billboard at CES!) Make it easy for them to find ISSUE DATE: JUNE 11 you -include your Booth Number in your ad. AD CLOSING FOR CES SECTION: MAY 17 You can make your presence felt ar the Show, even if you're not there, with your ad message in this issue. Copies reach the Convention Floor prior to AD CLOSING FOR CES (WEEKLY) ISSUE: MAY 27 regular distribution. Use your ac to arnounce your exciting new products and services for the Fall buying season. Long after the Show closes, yoc- message will be read and referred to by BONUS DISTRIBUTION Billboard's worldwide subscribers ..as well as those who pick up their copy of to attendees at '88 International Consumers Electronics Show Billboard at CES. Chicago, June 4 -7, Chicago

FOR AD DETAILS IN THIS ISSUE: CONTACT: NEW YORK LONDON State of the consumer electron cs. industry Gene Smith, Associate Publisher Tony Evans Status of hardware and software retailing (212) 536 -5002 (44) 1- 439 -9411 New "hot" hardware end software products Ron Willman, Director of Sales: The important DAT controversy Video /Sound (212) 536 -5025 AMSTERDAM The emergence ' of the new camL-o" chains Norm Berkowitz (212) 536 -5016 Ron Betist Blank tape updates Ken Karp (212) 536 -5017 Mario Bonomi The latest on CD and VCR te:I nological advancements (31) 20- 62 -84 -83 Hot summer and fall videos LOS ANGELES Current and new accessories Arty Simon ITALY Special charts: Top Videocassette Anne Rehman Sales & Rentals; Lidia Bonguardo Top Non - Theatrical; Top Videcdis