031ÿJÚcö7lliloi335U7d SPOTLIG B DALY 50 GRE.SG>=NT T HARTFJKJ CT UolOo 08120 NEWSPAPER i $1.95 A Billboard Publication The International Music -Record -Tape Newsweekly May 27, 1978 (U.S.) Japanese Production Tax Credit 13 N.Y. DEALERS HIT On Returns Fania In Court i In Strong Comeback 3y HARUHIKO FUKUHARA Stretched? TOKYO -March figures for By MILDRED HALL To Fight Piracy record and tape production in Japan WASHINGTON -The House NBC Opting underscore an accelerating pace of Ways and Means Committee has re- By AGUSTIN GURZA industry recovery after last year's ported out a bill to permit a record LOS ANGELES -In one of the die appointing results. manufacturer to exclude from tax- `AUDIO VIDISK' most militant actions taken by a Disks scored a 16% increase in able gross income the amount at- For TRAC 7 record label against the sale of pi- quantity and a 20% increase in value tributable to record returns made NOW EMERGES By DOUG HALL rated product at the retail level, over last year's March figures. And within 41/2 months after the close of By STEPHEN TRAIMAN Fania Records filed suit Wednesday NEW YORK -What has been tales exceeded those figures with a his taxable year. NEW YORK -Long anticipated, (17) in New York State Supreme held to be the radio industry's main 5S% quantity increase and a 39% Under present law, sellers of cer- is the the "audio videodisk" at point Court against 13 New York area re- hope against total dominance of rat- value increase, reports the Japan tain merchandise -recordings, pa- of test marketing. This is an LP that tailers charging them with allegedly ing reports by Arbitron, Audits & Phonograph Record Assn. perback books and periodicals-who uses digital technology to produce a manufacturing and selling pirated Surveys' TRAC 7 has gained a sub- The March figures brought the use an accrual method, must include super fidelity recording. Fania product. stantial boost from NBC. emulative disk quantity and value total shipments in the annual tax Even before their incompatible The label, which is asking $2 mil- NBC has turned a hope into a increases for the first three months base. They can reduce income only videodisk systems enter the con- lion in compensatory and punitive reality by signing contracts with Au- of the year to 6% and 9% over last in the year the unsold returns are ac- sumer market, both RCA and Phil - damages from the retailers collec- dits & Surveys for the new service to year's period. Tapes showed in- tually sent back to the manufacturer. (Continued on page 61) (Continued on page 69) (Continued on page 32) (Continued on page 65) (Continued cm page 16) U.S. Dealers Move To Extend Vidcassette Use By JOHN SIPPEL LOS ANGELES -U.S. retail Sanyo units playing through record /tape stores hope to in- large screen television in all the duce customers to extra album stores. We expect our first big purchases through prerecorded screen projector in late summer." videocassette playback units by Equally enthralled with the the 1978 holiday season. store merchandising potential of The foundation's been laid by the concept is Bob Tolifson, who Oz, Tape City USA, Disc Rec- has 1,000 -A Advent projectors ords, Record Rendevous, Sie- with seven -foot screens in six of - bert's and Record Factory, among the Record Factory stores others. through central Northern Cali- It's a natural for the six Tape fornia. City USA stores in the greater Tolifson, a pioneer in bringing me- New Orleans area, Mike Towsen, the a/v point -of- purchase May is Abba month! The sound of Abba is the sound of the largest selling Andy Gibb's stunning new album "SHADOW DANCING" on RSO Records general manager, points out. dium to retail, is talking with Ad- group in the history of recorded music. You'll find it on their brilliant new (RS- 1.3034) will further affirm Andy's position as one if the fastest rising "We sell both the hardware vent about a rear -view projector, album, "The Album." And on their next #1 single, "Take a Chance On stars on the horizon. This brilliant new work by 1977's top male vocalist and software, so it works in both which he has been told will pro - Me." Taking a chance on Abba is no chance at all. In every country, in includes the smash hit single "Shadow Dancing,' anc nine more incred- for us. Right now we have (Continued on page 22) every language, Abba is the most successful group of all time. On Atlantic ible hits. (Advertisement) areas Records & Tapes. (Advertisement) (Advertisement) THE PAIEI' BROTHERS ;. www.americanradiohistory.com Polics Story Has A New Boat... "A Chance To dive" A two hour Police Story Special featuring new music written and sung by Brooklyn Dreams Main theme "Street Man" being rush released. Also contributing to the musical score are The Pips, Stallion, The GoUz and Morris Jefferson. l't1%%%111 `',it Sunday, May 28 on NBC A David Gerber Production in association with Columbia Pictures Television. ealrE Rbi00gilaMn 121E11, n12DD g www.americanradiohistory.com General News 3 RACKJOBBERS BYPASSED Exhibitors Price Revamp Flocking To At WB Music Disco Forum NEW YORK -More than 60 Boosting Sales leading disco sound, lighting and ac- cessory companies have reserved ex- By PAUL GREIN hibit space for Billboard's Disco Fo- LOS ANGELES -Print rack - Silver admits this restructuring rum IV scheduled for June 22 -25 at jobbers have been predictably caused "turmoil." "The jobbers the New York Hilton Hotel here. unhappy with Warner Bros. Mu- called me and screamed, Why In the vanguard of the first wave sic's recent abolition of its multi - are you selling to the stores at of exhibitors are Altec Lansing, Au- tiered discount structure on pop 40% off? Now they can buy from dio Speaker Techniques, Brenner sheet music and folios. you at the same price we buy Associates, Varaxon, Rosner Cus- But Ed Silvers, the firm's presi- from you. How do we live ?' tom Creative Audio & Light- Sound, dent, reports that sales have been "But to the extent jobbers are ing, Crown Industries, Electra Dis- exceeding last year's weekly now buying from us," he says, play, Swivilier, Discotronics, Music Billboard photo by Richard Aaron marks, in part because retailers "they're readjusting their dis- In The Air, GLI, Blackstone Produc- Masekela do TEAM WORK -Herb Alpert and new trumpet teammate Hugh are buying direct, bypassing the counts to retailers. They're buy- tions, Laser Presentations, Control The A &M artists were in the autograph bit at Korvettes in Manhattan. two jobbers. ing from us at 40% off and short - Lyte Systems, Disconet, Disco Bible, New York for a Bottom Line engagement. discounting to retailers at 15 %- Until the price restructuring Lights Work Division of Light & 25% off, allowing the stores a took effect April 3, Warner Bros. Sound Specialties, Inc.; Diver- much smaller profitability. But Music offered jobbers the indus- sitronics, Beautemp, American the stores know they can buy try's standard 55% discount off Lighting & Manufacturing, Record from us direct." NARAS Mulls New the retail selling price, with job- Pool International /Linear Sound Just because stores can buy di- bers in turn selling to retailers at Lab /Creative Distributors: AAL rect doesn't mean jobbers will be 40% off. Now the publisher sells Speaker Systems; 2001 Clubs of put out of business, according to Rock Grammy Class to all customers at a 40% discount America; Rosco; MGM Stage Silvers. "Most of the dealers who Litelab; rate. Equipment; Roctronics; LOS ANGELES -After years of The committee was formed at the buy from jobbers are small mom Times Square Theatrical and Elec- An exception to the new policy insistent criticism for generally ig- annual meeting of NARAS' Board and pop retailers who want the is that two stock orders a year tronic Designers. noring rock music, the National of Trustees held at the Baltimore service of a one -stop. They want 200 booths are avail- (summer and winter) can be More than Academy of Recording Arts and Sci- Hotel here Friday- Sunday (12 -14). to make one phone call a week, able to exhibitors desiring to display placed at 50% off. ences has established a special com- At their meeting, the trustees get one shipment a week and pay The hotel's entire their products. mittee to study the possibility of voted to add a new Grammy cate- These rates deal only with pop one bill a month." (Continued on page 49) forming an entirely separate series gory for best repackaging album, sheet music and folios, which The jobbers were particularly of rock categories, including one for and agreed to award certificates to constituted 65% of the firm's $8.5 enraged because they were not jazz /rock, in its Grammy Awards. musicians and background singers million print gross last year, ac- consulted before the move. "We RCA Beefing Up who perform on the record of the cording to Silvers. The remaining couldn't take them into counsel year. 35% was in educational mer- in front," explains Silvers., "That The committee for category re- chandise, which has a more might have been construed as Nashville Office `THE STUD' view will be co- chaired by Bill Ivey lenient year -round discount rate price fixing." (Continued on page 18) By GERRY WOOD and Dan Morgenstern, and will in- of 50% off the retail selling price. NASHVILLE -Major changes BREAKS OUT clude Bill Denny, who was reelected for his second term as NARAS na- are slated to be instituted immedi- By NICK ROBERTSHAW tional president at the three -day ately at RCA Nashville, increasing London British disco movie autonomy, strengthening sales and - confab.