JULY 5, 1997 Music VOLUME 14, ISSUE 27 £3.95 DM11 FFR35 M&M looks at the European US$7 jazz festival scene-and DFL11.50 how labels see their role in it Media® (pages 8-10). SNEP launches European VAT initiative by Emmanuel Legrand "This association rights society Sacem, although artists' and Mini Bouton must unite all players in society Adami seems reluctant so far to themusicfield,from back the project. PARIS - French record industry body record labels and music pub- Rony says he welcomes the declara- SNEP is stepping up its fight for a lishers to artists and recordingtion made on June 21 by the new minis- lower VAT rate on pre-recorded music studios,"explainsHerveRony, terofcultureand communications, by unveiling a long-term, pan-Euro- director general of SNEP. At present, Catherine Trautmann, in favour of a pean action plan. the group is active in France only, but lower VAT rate. "The person we have to The key instrument in SNEP'sgroup together all forces within theplans to open branches in other Euro- convince now is Mario Monti, the Euro- strategy is the European AssociationEuropean music industry interested in pean countries soon. pean Commission member in charge of For Lower VAT On CDs, launched inthe VAT issue and lobby both national In France, SNEP's initiativehas the single market," says Rony. Paris recently. The association aims to and European authorities. received positive feed -back from authors continued on page 20 BMG faces challenge of monetary union by Adam White, nomic and monetary union (EMU). International Editor In Chief Billboard At the company's European conven- At the CRCA Awards in Lon- tion held June 8-12 at the Greek resort don on June 25 (clockwise from CRETE - BMG Entertainment Inter- of Elounda, president/CEO Rudi top left): National Heritage Sec- national is quietly adapting its infra-Gassner told some 200 senior BMG retary Chris Smith MP; Essex structure and operations in readiness staffers that the region's political and FM's Paul Chantler (left), Rob for the introduction of European eco- economic changes will have a profound van Pooss (centre) and Mick impact on their business, and that they Garrett; Beacon FM's Grant must be prepared. "You're going to see a Buckerfield; EMAP Radio's Tim NUMBER ONE lot of changes," he said, and these will Schoonmaker (on right) with affect consumer confidence, corporate Capital Gold's Mike Osman. European Radio Top 50 infrastructure,retailpower,product Photos: C T Bishop HANSON pricing, and profit margins "There is no 11:11.11Rop other way. (Mer cur y ) Europe cannot go back to the U.K. Govt. considering Eurochart Hot 100 Singles Middle Ages." The chal- HANSON lenge posed by single radio regulator AL1L1Leop EMU is made ( Mercury) tougher-this by Mike McGeever ing body to control both the public year at least- and commercial radio sectors. European Top 100 Albums by difficult LONDON - The advance of Digital Addressing the annual Commercial JON BON JOVI trading condi- Audio Broadcasting (DAB) intheRadio Companies Association (CRCA) Destination Altylehere tions in a U.K. and the growth of commercial congress in London on June 25, Secre- Mercury number of key radio could prompt the government to tary of State for Heritage Chris Smith continued on page 20 set up a single regulatory broadcast- continued on page 20 AmericanRadioHistory.Com NEW SENSATION FROMTHE NETHERLANDS! IkZing Dit Lied Voor Jou Alleen Number one entry in the Dutch & Belgium single charts. Currently platinum status. NOW RELEASED IN GERMAN VERSION "Ich Sing Das Lied Fiir Dich Allein" kb Sing Das Lied Fitr Dich Release Campaign Germany: Catalogue number CD -maxi: 574 693-2 Radio date: June 23rd sampling to radio Release date: July 21st TV -promotion:- Introduction ofIch Sing Das Lied Fur Dich Allein V on "Das Grosse Los" on July 24th (ZDF) mercun/ - Other Major TV-shows to be confirmed Additional Support: Music video / stand -ups / displays/ posters a PolyGram company AmericanRadioHistory.Com NEWSM Belgian labels awaitingGerman CD plant closing by Wolfgang Spahr commercial networks German Bureau Chief, Billboard by Marc Maes adopt a specific format," explains Flemish Media Minister Eric van CNR Arcade sales & marketing direc-Rompuy explained the proposed media HAMBURG -Warner Music -owned ANTWERP -Local record labels are tor Jean Bosiers. "We [still] need [...]law changes in an interview with Teldec Press CD plant in eagerly anticipating the likely intro- the smaller, independent private sta-Music & Media earlier this year Nortorf/KreisRendsburg, north duction of a new media law in the tions, because they reach their target (M&M, May 31). He said then: "[...] Germany, is to be closed. BelgianstateofFlandersthisaudience in a very intensive way." there are too many stations for our ter- According to trade union IG Metall, October, which will allow commercial "Private radio breaks the hits,"ritory [and] private radio on a certain 281 jobs are at stake as a result of the networks on air for the first time. adds Independent Promotions MD Jo quality level seems no longer viable." move. Warner Music International's The existing 320 commercial radio Coryn. His company currently plugsHe said he was in main European manufacturing facili- licences in Flanders run out in 1999;some 60 commercialstationsin favour of private ty will remain at Alsdorf in Germany. the proposed frequency plan for theFlanders. Coryn adds that mostnetworks,"to WarnerMusic Manufacturing next licensing period allows for onlyBelgian labels have realised that inde-guarantee the Europe president Friedrich -Carl Coch 172 stations (see Music & Media, Maypendent stations play an instrumentaleconomical says the fact that the CD market is 24). However, the authorities seem role in reaching Belgium's populationviability of unlikely to grow any further has forced willing to give their approval tounder 18 years of age. "These young-private radio." Warners' hand. "Given the internation- national and regional networks, whichsters do not listen to public radio," The Flemish al 'competition amongst producers, are illegal under present media law. claims Coryn. "They prefer the com-parliament is more and more new CD factories are In anticipating this major change mercial stations." expected to vote being constructed which are able to in the Flemish radio landscape, CNR CNR Arcade private radio promo- on the new law produce at lower costs," says Coch. Arcade Music Belgium has appointedtion manager Tinne Marant currentlyafter its "This makes it extremely difficult a promotions manager to deal withdeals with 50 commercial stations.summer recess for us to spread the remaining vol- commercial radio in Flanders. "Once"Radio is [our] premier tool to pro- in October. ume between the two factories in private networks and regional sta- mote new records," says Marant. "We Alsdorf and Nortorf." tions are established, they will eachtake the feedback we get seriously." Jean Bosiers Coch adds that projected digital video disc (DVD) business is not suffi- cient to justify keeping open the Teldec Press plant, as no date has yet been set for the launch of the format Chante France for sale in Europe. Another factor in the clo- sure of the Nortorf plant is the decline by Retni Bouton ers of those RFM could be inin demand for the prerecorded cas- networks jeopardy as it will settes which are produced there. PARIS -Paris -based radio station does not putthegroup Sales of the format in Germany are Chante France is up for grabs and theexceed150 above the"anti - expected to drop to a projected 6 mil- price tag is said to be around FF 30million. concentration" lion in 1998, from 15 million in 1995. million ($5 million). According to ceiling.Industry "The group greatly regrets this The sale could be finalised duringCSA, the sources say that development," says Coch, "as there the summer, according to Pierrecombined the only option left have repeatedly been attempts to Bellanger, founder and co-owner ofreach of to Hachette would restructure and maintain this factory the broadcaster, which dedicates 100HFM's four be to sell one of its in the interests of all parties concerned percent of its programming to Frenchnetworks national networks. since it was first taken over in 1988." language music. tops that "The group will WarnerMusic Manufacturing The sell-off is a direct consequence ceiling, never sell Europe 1 Europe has formed a commission which of the June 18 merger between mediahence the or Europe 2," com- will be negotiating with the works coun- groups Hachette Filipacchi Pressenecessity for mentsasource cil on compensation and lay-off plans (HFP) and Filipacchi Media, which isHachette to close to the case. over the next few days. The company forcing the new group Hachettedisinvest some assets. And as Bellanger claims Skyrock will plans to relocate the Nortorf production Filipacchi Medias (HFM) to sell off The selling of Chante France not be sold, the only option left would volumes to the main facility in Alsdorf. some of its radio properties in order to might not solve all the problemsbe RFM. If that was to happen, it Even so, it will be necessary to cut 200 fall in line with French "anti -concen-linked to the merger. Sources say the would drastically change the balance of jobs at Alsdorf over the next two years, tration" media ownership regulations. recent acquisition of L'Onde Latine by power between France's radio groups. according to Coch. Beforethemerger,Filipacchi M6dia owned 85 percent of CHR net- work Skyrock and an equity share in Chante France, along with Skyrock presidentandfounderPierre Bellanger. HFP ispartof the Lagardere Groupe, which owns radio group Europe 1 Communications, operator of the three national stations Europe 1 (news/talk), Europe 2 (AC) and RFM (gold). The week before the merger, French broadcasting authority CSA met with Hachette's key executives and with Europe 1 Communications president Jacques Lehn.