qui 08120 NEWSPAPER J 1804 9GREEN LYMONT00 MONTY GREENLY MARS 1 3743 ELM LONG BE ACH CA 9 u807 86th YEAR A Billboard Publication The Radio Programming, Music /Record International Newsweekly Nov. 8, 1980 $3 (U.S.) WCI Cos. Drop Indie Promo Reps Managers Other Majors To Follow? Full- Priced By JEAN WILLIAMS LOS ANGELES -Warner Communications' Warner Bros.. Elektra anc Atlantic labels are the Uniting To first major companies to drop their independent promotion representatives (about 30 persons). cit- Pickwick ing escalating costs as the reason. At the same time. the companies will beef up their local staff promotion representation. Combat Ills The three firms collectively will reportedly realize as much as $3 to $6 million a year in savings Classic Line By ROMAN KOZAK by dropping their outside promotion help. By IS HOROWITZ Warner Commu- NEW YORK -Managers of some oldie big- Industry insiders say CBS and other majors are also considering following the NEW YORK -Pickwick Records will step gest acts in the business have formed the Man- nications labels. up its commitment to classics with the launch agers Roundtable, a new industry group to Although the axe didn't begin to fall until two weeks ago, with the individual labels notifying the of a full -price label in January and a move into combat home taping and other major industry freelance promotion persons, the labels have been discussing this move for more than three months. digital. ills. Warners, Elektra and Atlantic. along with other major labels. basically use the same independ- The carefully crafted plan. as conceived. "We want to be involved in record company ent promotion reps around the country on priority projects. (Continued on page 49) will add substantially to the classical product and publishers' decisions about what to do pool merchandised through independent dis- about blank tape." says David Krebs. "We tributors, an area hit recently by the defection want our input there. It seems logical that art- of London Records, and its absorption into the ists should have representation in all these is- Pickwick Splits Retail & Wholesale PolyGram distribution orbit. sues," continues Krebs, who with partner By JOHN SII'PEL Pickwick's new classical label will be called Steve Leber have been the prime movers in Pro Arte. and together with the firm's mid This is the first of two articles detailing the corporate reorganization of Pickwick International. forming this organization. price Quintessence line, will be administered is separating its retail and wholesale divisions to Leber & Krebs manage Aerosmith, Ted Nu- PHOENIX -Pickwick International completely by International Arts. an umbrella entity set divisions to grow at its fullest potential. gent, AC /DC. Rex Smith. and other acts. provide the autonomy essential for each of the giant up for the purpose. Charter members of the managers' group in- The 473 retail store chain, expected to grow to 500 within six months, and the wholesale wing. Current plans call for an active catalog of as clude Ken Adamanv (managing Cheap which includes independent distribution and rackjobbing. represent the world's largest industry many as 650 titles in the next five years, of Trick), Bill Aucoin (Kiss), John Baruck (REO entities in each of these two classifications. which up to 450 are expected to carry' the Pro Speedwagon), Ray Daniels (Rush), Bill Gra- The cleavage between retail and wholesale is occasioned by the rapid growth of both divisions. Arte logo and list at front line prices, says Don ham (Santana and Eddie Money), Bud Carr explains Jack Eugster, executive vice president and general manager of retail, here during a na- Johnson, vice president and general manager (Continued on page 49) (Continued on page 65) (Continued on page 36) IFPI: Antipiracy's Progress NEW YORK -At least 30 million illicit records and tapes were sold in Eu- rope last year, tallies completed by national chapters of the International Fed- eration of Producers of Phonograms & Videograms indicate. Yet a good part of this industry drain. as a practical matter, is becoming an expected cost of doing business. with antipiracy efforts concentrated on hold- ing down illegal product sales to 5`r or less of total volume. Most of the Common Market countries are currently able to keep the cu- mulative level of counterfeit. bootleg and plain, old -fashioned pirate product within these limits at the cost of constant vigilance and enforcement, says Da- (Continued on page 53) Mexico Plans Sales Chart By MARV FISHER & TONY MORENO MEXICO CITY -Two of the leading associations in the Mexican nw it in- dustry are collaborating in an effort to develop an official industry sales chart. The joint plan is being formulated h\ the local record manufacturers' body, most When you've got it, you play it. The CLIMAX BLUES BAND flaunt their su- AMPROFON. and the music publishers' group. EM MAC. Air Supply's sensational sound has propelled them to the exciting is as never before on their breakthrough of the year. "Every Woman In The World" (AS 0564) the perior firepower and irresistible songwriting Both organizations have recognized a critical need for a new. sophisticated third smash single from the gold -plus album Lost In Love (AL 9530), latest LP, FLYING THE FLAG (BSK 3493). Listen to Climax assert :hem - research system to provide reliable. extensive sales trend data for monitoring selves and you won't be bashful about what you hear. It's hot! FLYING which also features the million -selling hits "Lost In Love" and "All Out the industry's current retail volume of $330 million per year in a still- booming THE FLAG features the single, "Gotta Have More Love" (WBS 4f605). Of Love." Air Supply: The pop sound of 1980. On Arista Records and marketplace. Producedby John Ryan for Chicago Kid Productions. On Warner Bros. Tapes. (Advertisement) (Continued on page 53) records & tapes. (Advertisement) (Advertisement) HIROSH1MA ODORI..:_ THE SECOND ADVENTURE OF THE MOST EXCITING NEW BAND IN AMERICA. " Odori:' It means "dance:' And a lot more. The band that made one of last year most successful and innovative musical debuts is back. and more spellbinding than ever. www.americanradiohistory.com Produced by Jimmie bovine and Mark Knopfler Engineered by Shelly Yakus Damage Management Limited On Warner Bros. Records & Tapes BSK 3480 Booking Agency: ATI By arrangement with Phonogram Ltd. Dire Straits National Tour: Oct. 22 Commodore Ballroom, Vancouver, B.C. Oct. 23 Showbox, Seattle Oct. 24 Portland State University, Oregon Oct. 26 -27 Old Waldorf, San Francisco Oct. 28 -29 Roxy, Los Angeles Nov. 2 Agora, Dallas Nov. 3 Armadillo World Headquarters, Austin Nov. 4 Agora, Houston Nov. 5 Saenger Theatre, New Orleans Nov. 6 Louisiana State University, Baton Rouge Nov. 7 Brother's Music Hall, Birmingham, Alabama Nov. 8 Agora, Atlanta Nov. 9 Exit Inn, Nashville Nov. 11 The Bayou, Washington, D.C. Nov. 12 Emerald City, CFerry Hill, N.J. Nov. 13 Stage West, Hartford, Conn. Nov. 14 Beacon Theatre New York City Nov. 16 Berklee Performance Center, Boston Nov. 18 Agora, Cleveland Nov. 19 Royal Oaks Theatre, Royal Oak, Mich. Nov. 20 -21 Park West, Chicago Nov. 23 Otobetobi, Toronto, Ontario www.americanradiohistory.com General News 3 I Tribunal Hears NMPA's Rebuttal To RIAA WASHINGTON- Recording In- would have to take the old rate even dustry Assn. of America's proposal Economist Sees `Lag' In Rate Proposal though millions of records were for a mechanical royalty rate ac- manufactured and distributed after knowledges the principal of tieing By JEAN CALLAHAN the date of the increase." the rate to inflation but frustrates the the plan might be resolved if the rate The Tribunal has a mandate from Fox Agency president Al Berman Also testifying Monday, composer practice, economist Robert Nathan were raised this year and adjusted Congress to set a mechanical rate by told the Tribunal the RIAA's plan is George Weiss, author of "Wheel Of told the Copyright Royalty Tribunal annually with the Consumer Price the end of this calendar year. faulty because it makes the adjusted Fortune" and "Lullaby Of Bird - Tuesday (28) in rebuttal as the me- Index, "only a percentage mechani- Tribunal Chairman Mary Lou royalty rate applicable only to rec- land" complained that the RIAA's chanical rate -setting proceedings cal royalty will truly solve the prob- Burg asked Nathan whether a 6% or ords released after the date of the proposal would do nothing to help approached completion. lem," Nathan insisted. 8% of list priced mechanical would adjustment. songwriters whose compositions are RIAA's proposa] creates "a persis- RIAA's proposal, introduced Oct. keep up with current double digit in- "This is unfair," Berman said. part of a catalog and would continue tent lag" of mechanical royalties be- 13, suggests that the current rate be flation. Nathan replied that "at bot- "Because of that clause a record re- to be paid royalties at the 23 cents hind record prices, National Music maintained with automatic adjust- tom it will keep up with price in- leased three weeks before the new rate. Publishers Assn. witness Nathan ments based on the list price of rec- creases." rate goes into effect that might ulti- Before adjourning Tuesday, the said. While some of the inequities in ords to be made in 1982 and 1985. Testifying Monday (27), Harry mately sell three million records Tribunal accepted NMPA attorney Morris Abram's request for an ex- tension of time to submit findings of fact and conclusion. The filings are now due Nov. 17. and closing argu- ments will be heard Nov. 19. ()í 1..Ne BuT_ . rs seahlr LASERDISK DROPS PRICE By GEORGE KOPP NEW YORK - U.S. Pioneer, whose Laserdisk optical videodisk player just moved into stores here, will introduce a lower -priced version next year, says executive vice presi- dent Ken Kai.