Airplay Lifts New Age Sales the CD Manufacturer's Short-Term by KEN TERRY Profit Performance (See Story Below)
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#4 ## #x-# *» 3 DIGIT 908 000817973 4401 8748 `1AR88THZ MONTY GREENLY APT Pi 3740 ELF. .'A 90807 LY LONG BEACH TA SPOTLIGHT Follows page 36 I c I VOLUME 99 NO. 49 THE INTERNATIONAL NEWSWEEKLY OF MUSIC AND HOME ENTERTAINMENT December 5, 1987/$3.95 (U.S.), $5 (CAN.) CD Plants Face Uncertainty Labels Cite Gains Of 20 % -40% As Supply Exceeds Demand Airplay Lifts New Age Sales the CD manufacturer's short-term BY KEN TERRY profit performance (see story below). since the format began to take hold that elusive, high- income baby -boom BY KIM FREEMAN NEW YORK With compact disk According to other players in the nationally, and retailers say the new demographic -a group whose hearts supplies exceeding demand and low field, the sale of LaserVideo's fac- NEW YORK Broadcasters are not breed of radio is bringing a new programmers, labels, and record prices threatening profitability, the tories is not an anomaly; it's a precur- the only people raving about the breed of consumers into stores. stores all seek with equal enthusi- CD manufacturing sector is entering sor of things to come. Discovery Sys- boom in new age-oriented radio sta- By any name-"the Wave," "the asm. a period of transformation. The over- tems of Dublin, Ohio, for instance, is tions. Label executives estimate that Breeze," "hip AC," "the Key" or "the Labels have become more aggres- capacity situation is already restrain- widely believed to be having financial sales on contemporary jazz product Oasis" -the mixes of jazz, new age, sive in making these outlets a bigger ing expansion plans and will probably (Continued on page 70) have risen between 20% and 40% and "lite" pop tunes have captured part of their marketing plans, and re- result in a consolidation of pressing tailers are actively seeking creative facilities in North America over the co-promotions. Simultaneously, new next year. age stations appear to have made sig- Signs of change are already in the Take To CDs nificant improvements in identifying air. This week, an Australian manu- Slowly, Black Buyers the product they're playing, a pro- facturer named Disctronics agreed to a survey of black industry figures. acts, say executives. It is also clear gramming element that the first buy LaserVideo, which has two U.S. BY NELSON GEORGE Growth is expected within the next that there is a difference between Wave stations omitted for fear that CD plants; the current owner of La- NEW YORK With compact disks two years as CD hardware prices CD sales of crossover and noncross- listeners would view it as an intru- serVideo, the Quixote Corp., decided accounting for about 10% of unit fall and black radio begins to play over black artists. sion. to sell because it was disappointed in sales for noncrossover black artists, more CD promotion singles. For example, notes CBS Records (Continued on page 72) the configuration is just starting to Audience expectation and demo- VP of sales Jimi Starks, Alexander become a major factor in the mar- graphics play a part in deciding O'Neal's noncrossover album LaserVideo keting of black music, according to when CDs are released on black (Continued on page 63) Lorimar, MCA ADVERTISEMENTS ! Is Sold To Top Winners Disctronics At Vid Confab NEW YORK Disctronics, an Aus- LOS ANGELES Lorimar Home tralian company that owns compact - Video and MCA Home Video disk manufacturing plants in Mel- earned top honors at the first bourne and Southwater, England, American Video Conference agreed on Nov. 21 to buy LaserVi- Awards, collecting five of the 21 deo Inc. from the Chicago -based awards presented. Quixote Corp. for approximately The awards $55.5 million. LaserVideo operates gala Nov. 21 at two U.S. CD factories. the Hollywood According to LaserVideo chair- AVC Roosevelt Hotel man and CEO Jim DeVries, the here capped the company's facility in Anaheim, REPORT first American Calif., has a capacity of 3 million Video Confer- units a year and the newer Hunts- ence, a joint ef- ville, Ala., factory, which went on- fort of the American Film Insti- line about a year ago, currently has tute and Billboard. The event drew more than 300 attendees. an annual capacity of 15 million "Pop Goes The World" (888 859 -7), the first single from Men JUST A REMINDER ... units. Based on the rated capacity Without Hats sensational LP Pop Goes The World (832 730 -1) McAULEY SCHENKER GROUP IS MSG. The awards were presented side of the Huntsville plant's equipment, is pop dynamite, EXPLODING at radio & retail! On Mercury McAULEY SCHENKER GROUP IS MSG. by side with the ninth annual Bill- however, Disctronics estimates its Compact discs, Cassettes & Records. Management: Paul King McAULEY SCHENKER GROUP IS NñG. board video music awards (see sto- potential output at 25 million CDs for Outlaw Management. Produced by Zeus B. Held and Men McAULEY SCHENKER GROUP IS MSG. ry, page 3). Without Hats. GOT IT? GOOD! on page 69) (Continued on page 73) ON CAPITOL CLT 46985 (Continued Sales have now topped 700,000 uni's for Kiss Me, Kiss Me, Kiss Me, the specially- priced double album from The Cure. N "Just Like Heaven,"-is currently being played on more thar 125 CH R/Top 40 radio stations. The video's been jumping out of MTV's 0 Buzz Bir for weeks. "Why Can't I Be You ?" was the breakthrough single; with "Just Like Heaven" they're elevated to celestial new heights. I!l We're sure o =the Cure... on Elektra Superior -Quality Cassettes, Compact Discs, and Records è 1987 ElekrroIA,vlum Records, o ,b,rn of Warner Communicafions Inc.. 0 ADVERTISEMENT www.americanradiohistory.com Top 10 reasons to stock this album. 7. 8. 9. 10. And those are only ten of the 17 Top Ten hits (including nine number one singles) on Paul McCartney's 'ALL THE BEST," a collection of his greatest hits solo and with Wings. For the first time, available Ovutot on one Compact Disc, Cassette or 2 LP Set. 01487 MPI. cmmumc=nons, CLW-48287 www.americanradiohistory.com _ _I__ __I_I____I_ ___ - _I_ ___ ___ _ _ __-It____ _ _I_ _ Nesmith Calls for Video Creativity -E. ---&j - --am_ - - ---_--_ - - - Keynoter Sees Unrealized Potential - - symbols and icons in film and video only cater to the local market." - - - BY STEVEN DUPLER - - -- - say something meaningful. Video is The international market is espe- LOS ANGELES "We have entered its own art form with its own lan- cially open to picture makers, he VOLUME 99 NO. 49 December 5, 1987 the age of the articulate picture," guage, and it has potential power said, because "video exists beyond declared Michael Nesmith, presi- like nothing before." the tyranny of plot. It doesn't need ABC BECOMES SOLE AD SALES REP FOR SMN dent of Pacific Arts Video, in his elo- While calling on video makers to narrative to send a message, and it The ABC Radio Network has become the exclusive advertising sales rep quent keynote address to nearly 500 be aware of the power of their art, can communicate across language for the Satellite Music Network. And in a separate transaction, ABC's attendees of the first American Vid- Nesmith urged that the internation- and cultural barriers." eo al nature of the industry be better As is true in any industry, Nes- parent company, Capital Cities, will purchase Conference, a one -year warrant from which took place recognized. mith said, attention to producing a SMN entitling it a in -a to 10% holding the 24- hour -day satellite service. Nov. 19 -21 at the "This is an expanding and global quality product is essential to build- For details, see Featured Programming. Page 12 AVC Hollywood Roo- market," he said. "We must try to ing the market. "Integrity of de- sevelt Hotel here. develop worldwide product and not (Continued on page 70) Sting Riding High, Solo The AVC, a REPORT Ex- Police man Sting, who has a new album and a new single racing up joint effort be- the charts, has returned to the road for a marathon world tour. In an in- tween Billboard and the American Film Institute, in- terview with talent editor Steve Gett, Sting talks about a potpourri of sub- cluded the ninth Billboard Video Top jects, including songwriting, his tour, his solo career, and his 10 -year stint Music Conference and Awards as Genesis Takes Prize with the Police. Page 19 well as a series of panels and awards dealing with the burgeoning TOWER PLANS MAIL -ORDER EXPANSION field of special -interest video. In Video Music Awards Tower Records plans to computerize, streamline, and expand its mail - The event was climaxed by a LOS ANGELES Genesis won the Atlantic supergroup Genesis, order efforts. Marketing editor Earl Paige tells the story in Retail Track. packed -house awards gala hosted best -video award, but the night be- nominated in eight categories, by Martin Mull and featuring a longed to Paul Simon and ex-Gene- was honored for its "Land Of Con- Page 36 number of celebrity presenters (see sis member Peter Gabriel, who fusion" video. The clip features stories, pages 1 and 3; additional each took three prizes Nov. 21 at Claymation figures created by Orion Launches $3 Mil Promo For "RoboCop" coverage is on pages 42, 46, and 70). the ninth annual Billboard Video Spitting Images. Orion Home Video is going all out for the January release of "RoboCop "; Nesmith-an original member of Music Awards Geffen and Warner Bros. were the company's $3 million promo calls for heavy advertising and a sweep- the Monkees and a pioneer in televi- here.