Racks in Price Confab;
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I,Spotlighted in this issue 08120 AUGUST 26, 1972 $1.25 A BILLBOARD PUBLICATION SEVENTY -EIGHTH YEAR The International Music -Record Tape Newsweekly TAPE /AUDIO /VIDEO PAGE 38 HOT 100 PAGE 78 i O ® TOP LP'S PAGES 80, 82 Ist U.S. Anti - Racks In Price Confab; NATRA Calls Piracy Arrest For Expert WASHINGTON - The Justice Discuss RIAA Survey Department made a historic first arrest last week for anti -piracy By PAUL ACKERMAN and EARL PAIGE violation in connection with its own 'Job Bank' prosecution of record bootlegging NEW YORK-Key rackjobbers, pany), David Lieberman, Norman what, if anything, can be done by of post -Feb. 15, copyrighted rec- seeking an answer to narrower Hausfater, Milt Salstone, David the rackjobbers to counteract the By RADCLIFFE JOE ords (Billboard, Aug. 19). The ar- profit margins resulting from price Press, Jesse Selter and others, in- price schedules, it was revealed at increases imposed by manufactur- cluding Jules Malamud, NARM PHILADELPHIA-There is a rest, made in Marietta, Ga., in- that the Rec- movement among a fac- volved an order for stamper plates ers, convened for an exploratory executive director. Malamud re- the Chicago meeting growing ord r y Association of members for the Bill rap session Wednesday (9) at the cently issued a statement terming Indust tion of NATRA to master Withers' album hit, America a survey a job bank from "Still Bill," on Sussex label. Regency O'Hare Hyatt House in the manufacturers' moves a back- had completed establishment of Chicago. ward step. His comments followed of its membership's views with re- which personnel from various areas Justice spokesman said the al- what thought the industry could leged violator was Walter Ronald Present were the creme de la closely on the heels of statements gard to they of of the broadcast was creme of the rackjobber segment in Billboard by Heilicher, Norman NARM convention and manufac- be culled when employment op- Matthews, who apprehended therein. Did the This by the FBI on a warrant issued by of the record business, including Wienstroer and Lieberman who turer participation portunities present themselves. the U.S. Assistant District Attorney Amos Heilicher, Lou Lavinthal, protested the price increases as un- RIAA members feel they were get- was brought out at NATRA's in Atlanta. Jim Schwartz, Johnny Kaplan justified. ting a good return for their partici- seventh annual convention here. According to the complaint filed (representing the Handleman Com- Along with a consideration of (Continued on page 84) The group is also pushing the and FBI reports, Matthews al- issue of unionization of NATRA legedly went to the Vistel Sound members in an effort to eliminate Corp. and ordered two stamper continuing inequities in job oppor- plates and a master to be made tunities, employment security and Foley's Puts CTV In Disk Dept. benefits on wage scales among from a tape. The Vistel people recognized the music as the Bill By BOB KIRSCH black broadcasters. Withers album, and checked it with According to spokesman for the a bona fide Sussex album, which LOS ANGELES Videotape, tape department and added, "The knows what's happening in soft- group, challenges to the FCC of - the licenses of malpracticing sta- (Continued on page 84) both blank and prerecorded, will record buyer will be the buyer for ware, so he's the logical choice be bought and sold through the all videotape, not the hardware to purchase it. The same holds tions is only half the answer to the record and tape department of man. The television buyer will buy true in hardware for the TV problems. The other half of the Foley's in Houston, and vice presi- the hardware. buyer." answer they claim lies in NATRA's Franchise Chain dent, sales promotion, Lee Dubow "The record and tape buyer," Foley's is handling Cartrivision ability to supply trained personnel feels the tape will have to be chan- he continued, "is the man who (Continued on page 40) (Continued on page 84) Begins O & O's neled through established software distribution if it is to be successful. By JOHN SIPPEL "Software in video will have to Moss Traces A&M HOUSTON - The burgeoning be a mass market item if you don't two -year old Budget Records & want to limit your audience," Du- Tapes stores, the national franchise bow said, "and I see people, such retail chain founded by Cleve How- as the rackjobbers, also doing the Rise to Eminence ard, will open its first "18 owned - big job with the item." By NAT FREEDLAND and- operated stores before Novem- Dubow also said Foley's will ber." sell all videotape in the record and LOS ANGELES -A &M Records doesn't want to be Howard said he feels the need the No. 1 label, just to maintain "a goodly share of the to open his own stores for a num- market," according to Jerry Moss. The A &M president ber of reasons. Researchers from said, "When you're No. 1, everybody is trying to knock the University of Texas provided VidExpo Eyes you off. We're perfectly happy hitting a lot of home Howard with a national report, runs with No. 1 artists." specifying areas where he had no Retail Thrust A &M has been hitting enough home runs to make franchised stores, but where stores the No. 4 position in Billboard's chart action for both might prove successful. Howard singles and albums during the first six months of 1972 would not divulge the entire study, NEW YORK-Ramifications of VidExpo here at the Roosevelt (Billboard, Aug. 5). Moss was back at the A &M offices but he did state that two provisions for a one -week break in his summer vacation at the south were for towns with, at least, Hotel this week go far beyond the educational / industrial orientation of France, to set up 10th anniversary festivities for the 15,000 college students or a city company. of more than 300,000 population. of exhibitors and panelists. One Howard said he will open first reason is that retail firms such as "At least after 10 years, the competition has stopped stores in major cities and will also Polk Bros. in Chicago are promot- saying A &M is a one -shot label that can't last," said go into hinterland towns, like Ce- ing the heretofore school and busi- Moss. "We expect our next 10 years to be twice as ex- dar Rapids, Ia., and Missoula, ness slanted Sony U-Matie to con- citing . and hopefully twice as profitable." sumers. Mont. His new store expansion will You've Come A Long Way Baby -BOB SEGER, SMOKIN' O.P.'s A &M is now the largest record -tape producer selling take him east into New York state Put another way, it can be said -Now Saturating Boston, Houston, Dallas, Seattle, Los through independent distributors, rather than owning its and heaviest into the mid- South, that innovative retailers are grow- Angeles, San Francisco, Chicago, Miami, and Detroit. You Get own branches. "We've always preferred to work with where he will open first stores in ing more aware of systems with A Lot to Like With Bob Seger, on Palladium, Now Distributed people who are working for themselves, and who make (Continued on page 84) (Continued on page 33) By Warner /Reprise. MS 2109. (Advertisement ) (Continued on page 84) Advertisement) ANEW BEG NN NG www.americanradiohistory.com Jefferson Airplan Jack Casady Bass Paul Kantner Vocals, Guitar Jorma Kaukonen Vocals, Lead Guitar Grace Slick Vocals, Piano Papa John Creach- Violin John Barbata Drums, Cheek l+r Rip Tom as Long Jain Silver Album cover ctn be The Jefferson Airplane will appear: assembled into a box, Aug. 21st Rubber Bowl, Akron, Ohio genuine cigar Hall, Detroit, Mich. box, cash b x, Aug. 22nd Cobo stash Aug. 24th, 25th Auditorium Theater, Chicago, Ill. ' or whatever kindpof , Sept. 3rd Hollywood Bowl, Hollywood, Calif. box you happen San Diego, Calif. to get off on. Sept. 7th International Sports Arena, FTR-1007 Sept. 8th Community Center, Tucson, Arizona RECORDS TAPES Sept. 10th Albuquerque City Arena, Albuquerque, New Mexic Manufactured & Distributed by RCA Records Sept. 15th, 16th Winterland, San Francisco, Calif. www.americanradiohistory.com General News Wexler & Jacobs MGM Stages Cutouts Prove Perk GOP Concerts Store's Success Air By Summit JIM MELANSON By ELIOT TIEGEL LOS ANGELES -Dual key- with Sir Douglas Sahm, wherein noters stressed the need for origi- he felt progressive country is "one MIAMI-The White House has NEW YORK -Retailing cutouts wicke, the Four Tops, Iron Butter- nality, innovation and a greater mix of the hopes." called upon MGM Records to de- and overstock "has proven so suc- fly, Herbie Mann, John Mayall, of recorded product to a record "There are not enough KSAN's. velop a series of contemporary mu- cessful" for Michael Adler, sole - B.B. King, Jerry Butler, Diana turnout of over 500 at the Fifth If there were more, our culture sic concerts to run during the GOP owner of the Wholesale Record Ross and the Supremes, Cannon- Annual Billboard Radio Program- would be better," he said. convention here starting Monday Outlet, that current product will ball Adderley and Junior Mance. ming Forum here at the Century Ron Jacobs, program director (21). MGM label president Mike not enter into his future retailing "An unusual situation," Adler Plaza Hotel Friday (18). of KGB, San Diego, radio Curb, and his associate Mike Vi- plans. stated, "is the fact that quite often flayed is in Jerry Wexler, executive vice for its lack of courage. "It's inse- ner, have put together two shows The Wholesale Record Outlet, 10 percent of our volume president, Atlantic records, urged cure for everyone to look over to follow a nostalgia concert which located in the north end of soundtracks, even from pictures a "love and respect of music" and everyone else's shoulder.