ISSUE NUMBER 685 THE INDUSTRY'S NEWSPAPER MAY 8, 1987 Capitol, Isgro Settle S I D E: I N Promotion Suit Capitol Records has reached dined to discuss the issue. How- CASSETTE SINGLE, an out -of -court settlement with ever, when asked whether the IN -STORE TAPING independent promoter Joe Isgro company would reverse its no- in the latter's antitrust lawsuit indies stance of the past 14 ON THE WAY against most major labels and months, he stated, "We have no The WEA and RCA -distributed the RIAA. present intention of changing our position with respect to the Lawrence labels will team up for a July retail For Isgro, attorney use of independent promotion." test of the cassette single with a Papale confirmed Monday (5/4) that agreement had been Isgro filed suit Apri 30, 1986 uniform display fixture. CBS and reached with Capitol. He said a in US District Court in Califor- Capitol decide to go their own protective order barred him nia against Capitol. Arista, way, while MCA is undecided. from discussing further details, A &M, Chrysalis, Geffen, MCA, including the settlement Motown, PolyGram, RCA, War - a solution for Meanwhile, possible RADIO & RECORDS amount. ner /Elektra /Atlantic, and the home taping looms with the bow RIAA. He charged conspiracy Capitol Industries /EMI a new, high -speed in -store and restraint of trade under of President David Berman de- pay federal and state antitrust laws, taping system that will following the labels' termina- royalties to labels, artists, and tion of his indie services. He composers. seeks more than $75 million in Page 3 McKinney Threatens damages. Capitol was the first label last year to cut ties with Isgro, the To Revoke Licenses day after NBC -TV's February 24 broadcast alleging certain Pacifica Sues FCC; Formal Indecency Guidelines Set promoters - including Isgro - WINTER ARBITRONS KEEP had links with organized crime. ON COMING FCC Mass Media chief Jim McKinney: Warnings This was followed by MCA, then other labels through March 5. More Top 50 market station standings, McKinney is warning broad- McKinney's Not Required is Page 20 including results for Atlanta, Buffalo, casters that the Commission Manifesto "I will caution you that the ISGRO /See planning tougher action against Cincinnati, Kansas City, Miami, first actions we took here in fact indecency on the airwaves, in -e First offense we Milwaukee, Minneapolis, Phoenix, were only warnings because eluding license revocations. suspensions/ thought there may not be an un- Morrison Portland, St. Louis, and Seattle. revocations possible derstanding out there as to what Page 29 His comments came at the Programs of literary we intend," McKinney said. PD At KSD may well not National Public Radio Confer- value may still be "The next actions ence last Thursday one day af- be warnings. The next actions ter the FCC released its new of- indecent could be forfeitures first of- ficial policy on obscenity and in- Broadcasts after fense, or revocation if it's decency, and just hours after 10pm no longer safe severe enough. There's nothing WHN: COUNTRY'S the Pacifica Foundation Admits FCC action that requires us to give you a challenged that policy in federal chills speech warning before we take a NEW YORK LEGACY & court. harsher action." FUTURE "Normally, we'll not use a sledgehammer if a tack ham- As WHNINew York prepares to go LEAVES NBC mer will do," he continued. all- Sports, its former PDs look back "But I don't want you to think on its historic Country impact, while that everybody has one free industry experts examine the Donovan Moves pass. Not so. Also, don't forget prospects for a new Country entry the fact that a warning in your on FM. file at renewal time can be ex- Page 52 To WTKS As GM tremely damaging." right. Guess what the The Commission recently is- After five and a half years they're Jim Morrison with NBC, Michael Donovan hole is? Excitement. That's sued warnings to three broad- has left his post as VP /GM at what we plan to do." Donovan casters - WYSP /Philadelphia, Former WQXI-FM /Atlanta WKQX (Q101) /Chicago to sign told R&R that while the station KPFK/Los Angeles, and KCSB/ PD Jim Morrison, who stepped a multiyear deal with Pyramid staff will be individually Santa Barbara - that they down from that post last month Broadcasting as GM for forth- evaluated before any changes were in violation of FCC rules to handle middays, has become GOOD NEWS FOR RADIO coming crosstown acquisition take place, "We'll try to imple- concerning indecency. PD at Gannett's KSD -FM WTKS (formerly WRXR). The ment our plans as quickly as Redeeming Social Value (KS94) /St. Louis. He will re- IN POLL station's GM, Bill Hazen. is possible." place PD Bill Garcia, who re- No Valid A Consumer Network poll in USA Today leaving when Pyramid takes Donovan's background is un- Longer mains with the station as mid- shows radio is the most satisfying over WTKS around June 3. usual in that he has worked for The new FCC policy said in- day personality. Gannett offer- will no longer no regarding OM commercial communications medium for Market speculation is that a for- all three major corporate O&O decent material ed comment be limited to "seven dirty Ron Morgan's situation. the American public, trailing only public mat change from Classic Hits to groups - NBC, CBS, and ABC. Having also served as GSM at words" used by comedian Gannett Radio Exec. VP TV. an Urban -flavored CHR similar flagship WXKS/Boston Q101, he worked over nine years George Carlin, but will be Merrell Hansen said, "Station Page 4 to will occur shortly thereafter. with nearby WLS-AM & FM as broadened to include descrip- Manager Bill Coffey and I are Pyramid CEO Rich Bals- Director /Advertising & Promo- tions of sexual or excretory ac- enthusiastic about Jim joining baugh told R&R, "Michael's a tion and in sales, and earlier tivities or organs. McKinney the station. We talked with lots seasoned broadcaster, and my held positions with crosstown warned that program material of people, and he exhibited good top management group liked WBBM -TV and KMOX-TV /St. that otherwise has serious liter- programming sensitivity as 0 -TUBE TAKES TAMPA BOWS him immediately. We think Louis. ary, artistic, political, or scien- well as the stronger leadership Michael's a real stallion, and we "Pyramid is very attractive tific value might still be consid- skills we need." 0105 /Tampa's Morning Zoo -on- cable -TV hope we'll be able to offer him because it's lean, mean, and ered indecent by the Commis- Morrison, who has spent his concept made its debut last week, and great opportunities to be even there's direct access to the top sion. entire radio career at WQXI, everything in the launch went smoothly. better than he already is." guys," he said. "Entrepreneuri- "Just because indecent words told R&R, "This is an interest- An on- the -spot report on the technical Regarding the new format, al spirit is the buzzword of radio are within the lyrics of a song ing mix of opportunity, people challenges and program content from Balsbaugh added, "Everybody right now, and now I'm working does not make it not indecent. chemistry, and the city. I can Joel Denver. says there are no holes in Chica- for a company that practices It's still indecent. It can be with - grow professionally with Gan- McKINNEY /See Page 22 Page 39 go, and in terms of formatics, it." MORRISON /See Page 20 Newsstand Price S5.00 Radio .Sales Hit $1 Billion Page 10 www.americanradiohistory.com _, www.americanradiohistory.com Six Labels Go With PAGE THREE Cassette Single Fixture MAY 8, 1987 WEA, RCA Groups In July Retail Test; CBS, Capitol Go It Alone URBAN RATINGS WARS: THE The WEA labels and RCA/ - Companies with doubts about the A &M /Arista have committed to cassette single cite its cost. "It's WINTER STORIES the July cassette single test involv- very difficult to make the seven - Dave Wheeler The winter ratings results revealed hot new ing a custom -built retail display inch counterpart work financial- races for Urban Contemporary superiority, piece, distributed to approximately ly," CBS Sr. VP /GM Marketing Wheeler VP/ 1000 stores nationwide. Paul Smith said. "We're going to and the most competitive battles are analyzed CBS and Capitol /EMI will re- be minimally involved, with proba- Sales At RCA this week. lease some cassette singles during bly a couple of releases." Page 46 this period, but will not participate But Smith said CBS is "totally RCA Nashville Director /Market- in the display bin or share its cost. behind" the maxi- cassette counter- ing Dave Wheeler has been upped PolyGram plans no releases in the part to the 12 -inch single. "We're to VP /Sales, and will relocate to format. already releasing some titles, and New York. The 18 -year label vet THE SINGLES OF THE FUTURE MCA had not decided at press - plan more. That'll be ongoing until will be responsible for overseeing Consultant and former ABC programming time whether to sign up for the we find out whether or not the con- sales of all product lines, including merchandising fixture, but has sumer is receptive." contemporary, country, black, and chief Rick Sklar feels radio requires some Page 24 committed to release six cassette CASSETTE SINGLE/See WHEELER/See Page 20 sort of single- record research capability - singles in late June with more to PD WATSON EXITS but he believes the CD single may be the follow.