FTC Seeks to Bar Warner /Poly Merger
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SM 14011 5 B8044GREENLYMON100 NEWSPAPER E MONTY GREENLY M/tR86 -v 3740 E.LM 03 )0 LONG BEACH UCY CA SOR 07 VIII I A Billboard Publication The International Newsweekly Of Music & Home Entertainment Mar. 17, 1984 $3 (U.S.) FTC Seeks To Bar Warner/Poly Merger This story prepared by Bill Hol- action to block the merger in the U.S. joint venture in the U.S. in which ment of the Warner -PolyGram plan merger concept. Loch stresses that land in Washington and Is Horowitz Despite statements by Warner and Warner would hold an 80% interest last June, a favorable response has "this is a worldwide plan, and we in New York. and PolyGram 20 %. Another joint PolyGram here that they would vig- come from government agencies in can't go ahead until we have resolved WASHINGTON -The proposed orously contest the FTC move, rising venture, covering the rest of the the national problems." joint ventures merging the U.K., Canada and France. the recording speculation was reported within top world, would be owned equally by The West German Cartel Office is interests of Warner Communications councils of the two companies abroad the two entertainment conglom- A statement by Siegfried Loch, yet to be heard from, having most re- WEA vice Inc. and PolyGram were dealt a se- that the mergers might have to be erates. president of European op- cently delayed its decision until at vere blow last week when the Federal rethought. The FTC asked a federal court erations, defends the legality of the (Continued on page 68) Trade Commission initiated a court The original plan was to create a Thursday (8) for a temporary re- straining order and a preliminary in- ALL -TIME BEST -SELLER Economics junction to bar implementation of the Brighter For merger while it sought to probe its le- gality through administrative pro- `Thriller' Album Breaks `Fever' `How -To' Video Software ceedings (separate story, page 68). By PAUL GREIN In its complaint, This is the last in a five -part series years," he says, "but the market size filed in the U.S. LOS ANGELES-Records are made to be broken, but one record that District Court for the examining the current and future pro- is just coming to the point that it's Central Dis- seemed likely to stand forever was "Saturday Night Fever's" claim as the best- trict of California, gramming components of the home economically feasible. Now we can the government selling album of all time. It was released in late 1977, at the record business' charges that video marketplace. produce programs for those special- the merger would con- peak, and quickly racked up sales in excess of 25 million. centrate a 26% share LOS ANGELES -The expansion ized interests. Still, the problem ex- of the domestic But that heady sales total is now only good enough for second place. CBS market in the of the home video universe has en- ists -how do you find those little joint company, sub- Records reports that as of Monday (5), worldwide sales of Michael Jackson's stantially reducing abled video manufacturers to create pockets of demand to serve ?" competition and "Thriller" reached 30.9 million. At the same time, U.S. sales hit 19.4 million programming for more specialized Increasingly, video software com- raising the likelihood of monopoly. (graphic, page 3). interests. And the creation of this panies are taking their programs to The filing notes that the merger This latest and greatest achievement caps a year in which "Thriller" has bro- more specialized software is requir- specific stores, salons and clinics fre- was scheduled to be consummated af- ken a wide variety of records. The album is now in its 33rd week at No. 1, the ing them to engage in more targeted quented by potential customers, in- ter March 12. It is known that longest run by any pop or rock album. In fact, "Thriller's" total is topped by marketing. stead of expecting those customers to Warner and PolyGram had an opera- only two albums of any type -the "South Pacific" original cast album and the Bob Cook, vice president of mar- seek out the programming in home tional blueprint prepared and ready "West Side Story" soundtrack (which, as it happens, were also CBS releases). keting and sales at Embassy Home video shops. for implementation had the FTC rul- And "Thriller" has produced a staggering seven top 10 singles, three more Entertainment, says his company is "Toys are best sold in toy stores," ing been favorable. than the nearest runners -up: Fleetwood Mac's "Rumours," Jackson's "Off The says much more involved in "directed" Embassy's Cook. "You're going The action of the FTC is the first Wall" and the soundtracks to "Saturday Night Fever" and "Grease." programming. "We've been talking to find us, Vestron and Disney -the in any world market to officially op- Jackson's record -setting isn't confined to records. Vestron Video's "Making about that prospect for the last six (Continued on page 68) pose the merger. Since the announce- (Continued on page 61) A N A - Inside Billboard - THE COMPUTER SOFTWARE OUTLOOK for 1984 was the key topic at Billboard's second annual Computer Software & Video Game Conference, which began last Wednesday in San Francisco. Keynote speaker Dave Ruckert of Atari called for an end to price wars and urged the software industry to "lis- ten to consumers." Page 3. .. THE COUNTRY RADIO SEMINAR drew its largest registration to date, '" established a working relationship with the Country Music Assn. and succeeded in selling its New Faces Show for television syndication. The March 1 -3 Nash- ville gathering attracted 751 attendees. Page 3. TOWER RECORDS has drastically altered the New York market in the e0 eight months since its Greenwich Village superstore opened. Both competitors es* and suppliers say the California -based chain's presence in the market has height- o ' t ened competition and created a new sales environment. Page 4. '4 i' ' ;. .'« e WXTU PHILADELPHIA has gone country, confirming months of rumors # «4 4 e '" ' . ' ''. '' but raising once again the question of whether that format can work in that t##a S t . has ' market. Larry Coates been named PD of the station, which will use the + t t 4 t''. ® ' ' 4 "Continuous Country" approach. Radio, page 12. e ' 'e's t ' t ' ' ' ' M.S. DISTRIBUTING has officially opened its national distribution wing. The veteran Chicago-based distributorship has formed Creative Union Enter- Jan Schaffer s rock Ip /fusion "BLUE BRIDGES AND RED tainment Co., which will manufacture LPs, cassettes and singles for its label THE EARONS are Hear On Earth. First single (7" & 12 ") titled is in a class by itself and is it WAVES" proving by pulling crossover clients and support them with a total marketing program. Page 3. "Land Of Hunger" crosses all formats. A reggae -flavored R &B/ airplay natiowide pleasing jazz and urban /dance format programmers FOCUS GROUPS, long established as a marketing research tool, are being Pop song. Shipping 3/19 on Island Records. (Advertisement) alike. Now available on SWS records and tapes uslp -9 -1110 national dis- used by the San Francisco -based Record Factory chain. With four sessions com- tribution by ALPHA DISTRIBUTING/New York. (Advertisement) pleted since early January, the chain is already making some changes based on the findings. Retailing, page 20. (AdvortimmeM) "Sharp Dressed Man THE LANDSCAPE OF ELIMINATOR beats Def Leopard, named NBC's Video Of The Peor "Gimme 411 Your Lavin" 'Sharp Dressed Man TV Dmneo debuts on MTV; debuts on MTV goesmto Tim Newman, director 'n Heavy Rotphon,, Heavy Rotation fhnona tor rt hed O Plad nun, el n natur ZZ Top remhed nominated for President Gold on Saturday Night live Gimme All Your Loon Leqr 3/23/83 goes into Heavy Robson ELIMINATOR RELEASED Am, ' 5/83 6/83 7/83 8/83 9,83 10/83 11/83 12/83 1/84 2'84 3 84 www.americanradiohistory.com David Gilmour of Pink Floyd does an "About Face: "About Face:'A new solo album featuring the unmistakable voice, guitar and songs of Pink Floyd's David Gilmour. Including the single, "Blue Light :'.... Plus 'All Lovers Are Deranged "and "Love On The Aír :'co- written by Pete Townshend. David Gilmour. "About Face" On Columbia Records and Cassettes. .. Watch for the David Gilmour U.S . tour this spring and his new videos, Blue Light and All Lovers Are Deranged Produced by Bob Eznn and David Gilmour. Manaeement: Steve O'Rourke. EMKA Productions Ltd Inc Columbia 41 are trademarks c` CBS Inc ' 1984 CBS www.americanradiohistory.com 3 News THRILLER: TOP 10 MARKETS WORLDWIDE AT BILLBOARD CONFERENCE Conflicting Views On RRA%lI. 41111,I)I111 ,II..I('O .;,0.000 StRiI I l '84 Software Outlook ALL OTHERS 500,01111 2.2 MILLION By JACK McDONOUGH SAN FRANCISCO -Amid con- $100, they perceive that the comput- HOLLAND flicting discussion on the pitfalls that er is an inferior machine of poor 560.000 Total: 30.9 million could make 1984 as treacherous as quality. The industry doesn't need 1983, as well as the opportunities in that kind of image. When the auto- 19.4 MILLION delivering to consumers the products matic ship -anything days end, busi- they want and need, Billboard's sec- ness planning begins." JAPAN As high as one million ond annual Computer Software & Ruckert substantiated his case by 700.000 albums every four days Video Game Conference got under- noting that while 3.8 million home way Wednesday (7) at the Westin St.