Cash Box News
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CASH BOX NEWS PVC Suppliers Boost Capacity To Meet Demand In 1980s by Mike Glynn it is hignly doubtful that prices for raw LOS ANGELES - Two of the nation's materials will go down." leading suppliers of polyvinyl chloride In fact, Rupp added that producers of resins (PVC) to the record industry for the vinyl chloride monomers - which, along manufacture of discs last week announced with vinyl acetate monomers, goes into plans to expand their capacities for the making the copolymers used in manufac- production of PVC within the next two to turing records - will most likely raise their three years. prices in October. In turn, this will raise the Tenneco Inc. and Borden Inc. both price of PVC. released statements indicating that their "The only way I can see the price of PVC respective chemicals divisions would be dropping is if there is an oversupply or boosting production of the petroleum - overcapacity in the future," said Richard based vinyl copolymers. Borden Inc. plans Moore, manager of editorial services and PLATINUM CANDY FOR CARS - "Candy -O," the second album by Elektra/Asylum to construct a 240 million -pound PVC public relations for Borden Inc. "At this recording group The Cars, was recently certified platinum by the RIAA. The awards was production plant, beginning operation in point, there appears to be no shortage of presented to the group in Chicago, following a concert there. Pictured are (l-r): Fred Lewis, 1982. Tenneco will be expanding capacity PVC supplies to the recording industry, as The Cars' manager; Ric Ocasek, Ben Orr and Greg Hawkes of The Cars; Ralph Ebler, E/A at its Pasadena, Tex. plant and the there was in 1974, and we don't anticipate a east coast artist development director, and Elliot Easton and David Robinson of The Cars. Flemington, N.J. facility, which produces shortage in the near future either." the bulk of Tenneco's PVC used for In addition to Tenneco and Borden, B.F. phonograph records. Goodrich Co., which produces nearly 20% Tyrrell Starts T -Electric "We are only incrementally expanding of the seven billion pounds of PVC the production of PVC at both plants," produced in the U.S. each year, plans to In Association With Infinity noted William Rupp, business director of double its capacity within the next six years. the Polymers Group at Tenneco. "In fact, Georgia-Pacific Corp. expects to boost its by Ken Terry capacity for PVC at our Flemington plant annual capacity of PVC to 920 million NEW YORK - T -Electric Records Com- will only increase from 90 million pounds to pounds by 1982. pany, Inc. has been formed by Jim Tyrrell, 110 million per year. We're doing this all on While the costs of PVC have remained formerly vice president of marketing for very modest capital in anticipation of the stable within the past few months, Borden's Epic, Portrait and the CBS Associated growth of demand for PVC." Moore noted that production has been Labels. The new company, established with Guy Disch, director of marketing for Ten- hampered by costly safeguard measures the help of a $5 million loan from four licen- neco Inc.' Polymers Group, stated that the imposed on the plants by the Environmen- sees of the Small Business Administration, company did, in fact, anticipate an increase tal Protection Agency. Such expenditures will be marketed worldwide by Infinity in the demand for PVC from record raise production costs that can boost the Records and will be distributed by MCA manufacturers in the near future. price of PVC to record manufacturers and Distributing Corp. "Although record industry demand at the other consumers. Tyrrell is also launching a state-of-the- moment for PVC is a bit slow, we believe art, 24 -track recording studio called Studio this to be only a temporary aberration," he Six Covers On West Recorders to be opened in Manhattan said. during the early part of 1980. The recording However, Disch also noted that in- New Zeppelin LP creased capacity and supply of PVC studio will be a separate corporation. NEW YORK "In Through The Out Door," wouldn't ordinarily bring a reduction in cost - Tyrrell will supervise the marketing of all the new album from Swan Song recording or a drop in the price increases for the T -Electric product, which will bear an In- group Led Zeppelin, will be officially petroleum -based vinyl resing that were finity logo. He will work closely with the released Aug. 22. Jim Tyrrell instituted by Tenneco and other PVC sup- national marketing staff of Infinity and MCA The album is the first new studio Tyrrell elaborated, is working closely with pliers two months ago (Cash Box, May 26). Distributing's national sales and merchan- recording from the group in three -and -a - artists to help them "keep in touch with the "The cost of raw materials is based on dising staffs. The label's first release, by the half years. Produced by Jimmy Page, the marketplace" while developing themselves the price of crude petroleum and natural Philadelphia-based Love Committee, will album contains seven songs written by as performers. "They have to realize they gas," noted Disch. "Unless OPEC should ship this fall. T -Electric has also signed members of the group, and was recorded (continued on page 16) suddenly decide to lower the price of crude, Patrice Banks, formerly of Grand Central at Polar Music Studios in Stockholm, Station. Sweden. Old Friends Unite NARM Regionals Spur Retail The elaborate packaging concept for "In The formation of T -Electric reunites Through The Out Door" includes the Tyrrell with Infinity Records president Ron production of six different album covers, Alexenburg, who was senior vice Optimism For Reversal president Slump one of which will be inserted into a plain and general manager of E/P/A when Tyrrell industry. by Richard Imamura brown bag stamped with the group's name, was vice president of marketing for the On the subject of piracy, the RIAA's the title of the album and a listing of its label. "What we actually have here," com- LOS ANGELES - While acknowledging assistant special counsel on the subject, tracks. The consumer will be unable to mented Alexenburg, "is a family operation. the music industry's current economic Larry Kaplan, told the retailers in all three determine which album cover is in the bag All of us worked together at CBS for many problems, the prevailing attitude at the first cities that piracy "conservatively" costs the until after the purchase has been made. years. We have remained close friends and three National Assn. of Recording industry approximately $350 million an- Led Zeppelin, which is celebrating the associates through numerous changes. Merchandisers (NARM) regional meetings nually. "They (pirates) are in head-toehead tenth anniversary of its first album this year, This new venture will once more allow a un- was one of fierce determination to weather competition with you," Kaplan told the recently made its first live appearance in 'continued on page 23) ity of purpose and a chance for us to again the storm and turn the problems back into over two years when they headlined con- tap the magic personal ingredients that saw profits. certs in England's Knebworth Park on Aug. First In A Series A&M Folds Horizon the CBS E/P/A Labels Group gross sales LOS ANGELES Cutbacks hit A&M 4 and 11. from $6 million to $160 Held consecutively in Seattle, San Fran- - climb million under Records last week as an estimated 50 to 80 I cisco and Los Angeles from our combined leadership. am personally Aug. 13-15, the employees were laid off and Horizon three regionals were the first in a gratified and committed to our relationship series of Records, the A&M-distributed subsidiary 22 that have been designed with Jim Tyrrell and his group of com- to "bring the in- label headed by Tommy LiPuma, was panies. We welcome Jim's guidance and formation generated at the national con- discontinued. direction within Infinity's own marketing vention down to the local level," according The personnel layoffs reportedly affec- to Joe NARM president. programs." Cohen, ted most departments at A&M. Horizon will, Drawing nearly 700 local "We used to call ourselves the '13th floor retailers, the in effect, be dissolved following that label's team,' " said Tyrrell, speaking fondly of his three regionals conformed to the general final two product releases, which will in- days at CBS with Alexenburg. "And now format of advertising and merchandising clude albums from Doctor John and that the team has been reunited, T -Electric presentations in the morning sessions, BennSidran. Records Co. can offer a synergy of every followed by a discussion of music piracy Horizon vice president and creative and a lively music industry component that artists panel of record company director LiPuma will stay on for an indefinite could need or want for their career." representatives in the afternoon sessions. period to wrap up the label's business of T -Electric will operate predominantly in While the morning sessions concen- fairs. At press time, it was not known SHE LIGHTS UP THEIR LIVES - Debby the field of black music, at least initially. trated on the education of the retailers whether all of the Horixon's artist roster Boone recently performed at the White "Our goal is to create hit singles, hit albums regarding the proper utilization of print and would be absorbed into A&M. Artists on the House before 500 handicapped children and hit careers," said Tyrrell. "But whether radio advertising, the design and construc- Horixon label include: Brenda Russell, from across the U.S.