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MCA Layoffs Cut Broad Swath

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*************3- DIGIT 9C8 000817973 44,71 8848 MAR9CCHZ MONTY GREENLY APT A 3740 ELM LONG BEACH R1 VOLUME 100 NO. 49 THE INTERNATIONAL NEWSWEEKLY OF MUSIC AND HOME ENTERTAINMENT December 3, 1988/$3.95 (U.S.), $5 (CAN.) Industry Oversupply Puts Label Plans To Revamp Marketing Staff Squeeze On CD Pressers MCA layoffs Cut Broad Swath and marketing for Disctronics, which BY KEN TERRY operates a CD plant in Huntsville, ments, its jazz and classical divisions, been fired, many were middle -man- NEW YORK The long -expected Ala., similarly observes, "A good BY CHRIS MORRIS Unicity Music, a music publishing af- agement personnel; at least three shakeout in CD manufacturing has number of people in the business LOS ANGELES In a move signal- filiate, and Uni Records, a subsidiary were at the level of VP or above. begun and will continue through next won't be in business next year. Some ing major restructuring and cost cut- label, all suffered deep cuts. One MCA executive, who could of- year, according to several industry marginal manufacturers aren't going ting at MCA Records, the label fired Sources at the company believe the fer no hard figures on the number of observers. The Chapter 11 bankrupt- to make it. They don't have sufficient at least 30 staffers in Los Angeles, toll on what many are calling Black pink -slipped employees, says the cies of Discovery Systems and Shape continuing volume to stay in busi- New York, and Nashville on Nov. 18. Friday may run between 40 and 60 body count is "nowhere near the 50 Inc., they say, are only the precur- (Continued on page 70) MCA's A &R and sales depart- employees. Of those known to have that people say it is." sors of things to come as the CD Some still on board at MCA are manufacturing business struggles to voicing fears that the dismissals, balance overabundant supply with which followed the appointment of growing but still inadequate demand. Radio Takes Haul Look At Easy format new label president Al Teller by only "I think we're going to see quite a three months, may be just the open- few replicators go out [of business?," ing some that were in their market's Paul; New Orleans; Dallas; and, most ing salvo in the biggest label layoff in predicts Jack Kiernan, senior VP of BY SEAN ROSS top five, say they were having prob- recently, Buffalo, N.Y. (see Vox Jox, recent years. Philips and Du Pont Optical. "They NEW YORK Despite a proliferation lems selling their older demographics page 10). That's different from the On Nov. 21, in the wake of the fir- won't be able to stand the downward of statistics on the "graying of Amer- to clients -and could not wait around first format exodus, in the mid -'80s, ings, the label announced what it pressure on price and the upward ica," radio's easy listening format for things to improve. which involved primarily markets' called a "newly restructured central pressure on cost." has been hit by a series of major de- Since June, the following markets second- or third -ranked easy listening marketing department." Geoff Cal Roberts, executive VP of sales fections in the last five months. Own- have lost their only easy listening outlets. (Continued on page 73) ers of the departing stations, includ- FM: Tampa, Fla.; Minneapolis /St. (Continued on page 72) Canada Elections ADVERTISEMENTS SBK Bid By EMI Assure Passage Is Pub $ Record BY IRV LICHTMAN Of Trade Bill NEW YORK The biggest music publishing deal yet, admittedly in an BY KIRK LaPOINTE era when the latest record -setting OTTAWA The Conservatives, led price is quickly surpassed, is mov- by Brian Mulroney, were re- elect- ing forward. ed here with a majority govern- Sources close to the talks be- ment Nov. 21, thus assuring pas- tween Thorn -EMI representatives sage of the Canada -U.S. free -trade and owners of SBK Entertainment treaty. The treaty previously had World say Thorn -EMI is willing to been approved by the U.S. Senate pay about $300 million to acquire and House of Representatives. SBK's considerable music Although they slumped badly in (Continued on page 70) the polls during the campaign and the Liberals came from behind to challenge, Mulroney's Tories hung ßCAI?,DI I?,AVIA on to power and the ability to con- French /African artist MORT- KANTE his American shores with Uneasy Listening trol the agenda of the House of AKWABA BEACH (833 119 -1 -2 -4). Ar infectious mixture of Ministry Commons. traditional African rhythms and the bes elements of European The Land Of Rape and Honey (4/2/1 -25799) The trade deal eliminates most pop. Featuring the smash single "Yé K3 Yé Ké" #1 in Belgium, Industrious hammerings and decompositions from the SCADDIDAVIA tariffs between the two countries West Germany, France, Switzerland and Sweden. Produced heartland's most compulsive preachers of the beat. The new by Nick Patrick. On Barclay /Polydor Ccmpact Discs, Chrome album features "Stigmata," the title track and "You Know What Follows page 52 (Continued on page 74) Cassettes and Records. You Are." On Sire Cassettes, Compact Discs and Records. os co .oco fs- The Astonishiing,Debut Album ADVERTISEMENT www.americanradiohistory.com The Triple The Third First week breaker in R &R. Platinum Album Smash Single #Q7 on the R &R singles char and climbing 11/25/88. OPEN UP AND SAY...AHH! EVERY ROSE HAS ITS THORN on the Billboard singles Poison's follow -up to the # 10 chart and climbing 12/3/88. multi -platinum debut album, Now available as CD3 single. "Look What The Cat Dragged In," is loaded with 10 toxic shockers that are giving ps, America a dose of Poison they will never forget. The Summer "Tour Of The Year" The band teamed with David Lee Roth for a 5 -month power - packed major American tour that shook 80 cities and led the way for Poison's first major headlining tour. The "Open Up And Say...Ahh!" Tour Poison's first major American headlining tour began September 16 and proves to be the most outrageous, rock 'n' roll bad -boy extravaganza to hit the stage this year. The tour continues rockin' audiences well into the new year. Produced by Tom Warman for Julia's Music, Inc. Engineered by Duane Baron Management: Frontline ©1988 ENIGMA/CAPITOL RECORDS ENIGMA. No antidote rock'n'roll from Poison. MUSIC THAT KNOWS NO LIMITS ON CAPITOL RECORDS. www.americanradiohistory.com MI M tiles- _ __ _ _ -Porn Law: What Does It Mean? _- - -__ = -m _ =m _- Anti BIillb _I - - - --- ---_-_ - --- - - Some Onerous Provisions Remain -- D -- -N.J., - Bill Hughes, - adminis- bill sponsor Rep. -- of the incoming - - - - - - one's view - - BY BILL HOLLAND -- who in a press release that his - tration of President -elect George stated WASHINGTON A month after Bush, reactions vary from tentative bill is designed to go after "large - VOLUME 100 NO. 49 DECEMBER 3, 1988 Congress passed the Child Protec- relief to alarmist gloom. While every- scale purveyors of smut while still tion and Obscenity Enforcement Act one is relieved about what was re- preserving our constitutional princi- COLUMBIA'S RODRIGUEZ AIMS HIGH (Billboard, Nov. 5) and a few days af- moved from the bill, no one is happy ples of free speech, a free press, and it, remains. the right for privacy." As senior VP of black music at Columbia Records, Ruben Rodriguez has ter President Reagan signed the about what entertainment industry is still trying Among the causes for alarm, some Hughes also underlines that the staked his territory and announced his strategy: to break the most black to figure out what it will mean. Did say, are ambiguous clauses defining thrust of the act is "to go after orga- has the story in The acts in '89. Black music editor Nelson George industry lobbyists succeed in getting what constitutes a trafficker in ob- nized crime dealers in pornography." Rhythm & the Blues. Page 21 the most danger- scene materials. There are also provi- However, the lawmaker admits that ous sections re- sions that might allow government the bill "navigates a lot of mine VSDA Faction, RCA /Columbia Face Off A SPECIALI moved from the attorneys to seize some of a dealer's fields." Though the dust has seemingly settled after a series of distributor cuts bill? Or does it business assets on a presumption One who feels the mines might ex- BILLBOARD is in the business of ob- plode under legitimate music and vid- made by major video suppliers earlier this year, emotion among retailers still contain provi- that he or she sions that could scenity- without a trial or any dem- eo people is Howard Bloom, co- wholesalers still runs high. David Wykoff reports on a Woburn, ANALYSIS and create treacher- onstration of obscenity. founder of the pro-First Amendment Mass., meeting of the New England chapter of the Video Software Deal- ous waters for the Those with a calmer outlook say Music In Action group and a music ers' Assn. in which RCA /Columbia Home Video brass attempted to ex- music and video indus- that while there are still possible dan- industry publicist. plain the company's position on the cuts. Page 45 tries? gers for legitimate business people, "The fundamentalist right is ob- A bit of both, say industry lawyers the law as written is designed to root sessed with sexual explicitness in the SPOTLIGHT ON SCANDINAVIA and First Amendment activists. De- out hardcore pornographers. arts," says Bloom. "And if it's true on page 72) Music industry reports from Denmark, Finland, Norway, and Sweden.
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