AVA President Fired After Board Dispute by EARL PAIGE Evidence That the Organization Had Separately, Power Scoffed at at Least Two Weeks After His Firing La
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IN THIS ISSUE LJt406 h) ci Ot4 JZ. JJALt. WHO'S WHO LL W íl ~, v..l-1 .:J.a ZiiMZ 6:iVw TE 06 LÓhn EL6LLd000 IN THE VIDEO PIPELINE: Top Telemarketers of 1990 FOLLOWS PAGE M -6 THE INTERNATIONAL NEWSWEEKLY OF MUSIC AND HOME ENTERTAINMENT August 4, 19901$4.50 (U.S.), $5.50 (CAN.), 13.50 (U.K.) Governor Kills AVA President Fired After Board Dispute BY EARL PAIGE evidence that the organization had Separately, Power scoffed at at least two weeks after his firing La. Sticker Bill; and PAUL SWEETING been significantly overvalued at the Weiss' claims, saying, "I don't know that Weiss was on vacation. time founder John Power sold AVA to what he is talking about." Power is In its most recent statement, the Is N.J. Next? LOS ANGELES -Michael Weiss was its members in 1988. also offering to return as head of AVA says, "Weiss was dismissed .. abruptly dismissed from his post as Additionally, Weiss concluded AVA AVA. for what it believes to be appropriate BY BILL HOLLAND president and CEO of the American had been selling service contracts on According to a statement issued by reasons." An AVA spokesman would Video Assn. July 5 after a dispute consumer electronics gear illegally Weiss, he presented his evidence to not elaborate on this matter or com- WASHINGTON, D.C. -The re- with the organization's board of di- because it was not bonded in states the board July 3 in a confidential ment on any other charges against cording industry, fresh from its rectors over what Weiss calls "appar- that require vendors of such extend- memorandum. He was dismissed two the management of the buying celebration of the July 25 veto ently serious financial and legal mat- ed warranties to be bonded. days later. group. by Louisiana Gov. Buddy ters" facing AVA. In its own statement, the AVA AVA has been extremely secretive (Continued on page 76) Roemer of that state's record- Sources close to the video store called Weiss' allegations of impropri- about the circumstances surrounding labeling legislation, now must buyer's group say Weiss uncovered eties "baseless." Weiss' dismissal, telling reporters for turn its attention to a lobbying WAYNE NUILENGA battle in New Jersey over a Hl mandatory labeling bill there. Billboard /TIME Nevertheless, industryites are To happy about the rejection of the Caplan Sells Applause Blockbuster Louisiana bill. BV IM MCCULUIUGH lanIan of his move to Blockbuster, which Lauderdale, Fla:Fla. -based based home video The Louisiana measure, he acknowledges was "the arch-ene- retail behemoth is emphasizing acqui- which was passed by the state LOS ANGELES -Allan Caplan, one my" just one week ago. Caplan is sitions again. FOLLOWS PAGE 44 legislature last month, would of home video's most outspoken and now a Blockbuster VP and corporate Sources close to the situation even have imposed large fines and fiercely independent personalities, officer. say that Caplan will eventually relo- GEMA Members Blast possible jail terms on violators. has sold his 8-year-old Applause Vid- Caplan also cites personal and pro- cate to Fort Lauderdale and become Many segments of the industry eo chain to Blockbuster Entertain- fessional growth reasons for the active in future acquisitions. Caplan Actions Of Ex- President had threatened or announced ment. move. was just re-elected to the board of the PAGE 4 boycotts of the state if Roemer "I was the Omaha Royals, 15 For Blockbuster, the phenomenal Video Software Dealers Assn. (see had signed the legislation. games ahead in my Triple A baseball growth continues -but via a differ- story, page 80). Initial Sales Strong (Continued on page 76) league. I was the best at what I did ent route. Instead of acquiring fran- The acquisition of the 41 -unit, Oma- but I wasn't in the majors," says Cap- chisees, as it has of late, the Fort (Continued on page 80) For Luke's `Banned' PAGE 5 ADVERTISEMENTS TNN Sets Deal Includes Remixes To Buy CMT, Its No. 1 IN BILLBOARD HOT 100 SINGLES Music Vid Rival * VISION OF LOVE MARIAH CAREY (COLUMBIA) BY DEBBIE HOLLEY TOP POP ALBUMS * PLEASE HAMMER DON'T HURT 'EM and EDWARD MORRIS M.C. HAMMER (CAPITOL) HOT BLACK SINGLES NASHVILLE -Opryland USA, * CAN'T STOP owner of cable station The Nash- AFTER 7 (VIRGIN) ville has signed a letter of TOP BLACK ALBUMS Network, * JOHNNY GILL intent to purchase competitor Coun- JOHNNY GILL (MOTOWN) try Music Television. Group W Sat- HOT COUNTRY SINGLES ellite Communications, which mar- * GOOD TIMES DAN SEALS (CAPITOL) kets and promotes TNN, is also in TOP COUNTRY ALBUMS volved in the purchase. * KILLIN' TIME Pending approval by federal reg- CLINT BLACK (RCA) ulators and all parties involved, the TOP VIDEO SALES * THE LITTLE MERMAID changeover could occur as quickly (WALT DISNEY HOME VIDEO) Digital Underground sellhowtheylike as SEX PACKETS (TB STEELHEART (MCA -6368) as the end of August, according to TOP VIDEO RENTALS "Doowutchyalike" (TB 955), featuring Attacking AOR With A Vengeance. 1026) tops 900,000. David Hall, TNN's VP /GM. * STEEL MAGNOLIAS Humpty Hump, is another multi- format smash. On tour. On MCA (RCA 'COLUMBIA HOME VIDEO) Tommy Boy. c 1990 MCA Records, Inc. (Continued on page 77) K1 (V LIVE FROM ACKNICKULOUS LAND THREE TIMES DOPE lrl (V The long- awaited new album from rap's original O stylists: EST, Chuck Nice and Woody Wood. Includes CO the fast -breaking first single "Weak At The Knees," ti now soaring up the Rap Singles Chart. o ADVERTISEMEN www.americanradiohistory.com Think they did it alone. oundártg77 first, now pop ra sizzles with crossover heat. www.americanradiohistory.com You Can't Stop this trio or their smash debut album after 7. Thankful. Proud. And blazing towards platinum. 50 Date Nati al Tour In Progress Now The album after 7 is available on Virgin Compact Discs, Cassettes and Records. Larkin Arnold Management. ©1990 Virgin lecords America, Inc. www.americanradiohistory.com GEMA In Uproar Over Advance $6 Million May Be Difficult To Recover BY MIKE HENNESSEY ing director, Joachim Neubauer, to the authors and the Budde compa- GEMA had involved itself and its ny, which includes part of Moroder's MUNICH -West German authors' members' money in a "speculative, writer share, is interest -free, is re- society GEMA is in the throes of the high -risk investment." coupable but not repayable, and is for biggest internal conflict in its 43 -year Says Neubauer: "As president of no fixed term. history, following the revelation that GEMA, Dr. Schulze was completely "This means that the recouping of its former president and general di- within his rights, legally, to make this the money is dictated by the perfor- rector, Prof. Dr. Erich Schulze, last decision, but we feel that he should mance of the repertoire -and my un- year authorized an advance of 10 mil- have consulted the board first, which derstanding is that GEMA income lion marks ($6.1 million) to assist the probably would not have agreed." from the catalogs in the last year has Rolf Budde publishing company of Neubauer says there is widespread been less than 5% of the advance. We Berlin in acquiring the catalogs of concern that the $6.1 million advance (Continued on page 75) Giorgio Moroder and Michael Masser, and thus to bring the two writers into GEMA membership (Budde's U.S. companies -Budde Mottola Gets CBS Records Tommy left, Music Inc. and Budde Songs Inc. - "Spirit." president Mottola, third from purchased most of the Moroder cata- Time Warner Posts Loss, is congratulated at the West Coast kickoff luncheon for this year's City of Hope fund -raising campaign. The luncheon took place Spago's in log in April 1989). at Los Angeles. Mottola will receive the "Spirit Life" from the Founding director Schulze, who re- of award Music Industry Chapter of tired at the end of last year, advanced But Music Units Are Up the City of Hope at a gala tribute dinner Sept. 12 at Columbia Pictures Studios in Los Angeles. Shown congratulating Mottola, from left, are recording artist Harry the money, says Rolf Budde, to BY DON JEFFREY erating profit of $274 million on rev- Connick Jr.; Jon Peters, co- chairman of Columbia Pictures; and Jerry Sharell, achieve greater international pres- enues of $1.36 billion, representing president of the Music Industry Chapter of the City of Hope. tige and payments for GEMA by re- NEW YORK -While reporting a increases of 9.16% and 10.9 %, re- cruiting Moroder and Masser for all huge overall loss in the second spectively, from figures released territories outside North America. quarter, debt -ridden Time Warner last year by Warner Communica- Moroder is a member of ASCAP in Inc. says its music businesses post- tions. the U.S. and was a member of ed gains in revenues and profits. According to Billboard's chart - EXECUTIVE TURNTABLE SUISA, the Swiss rights society, for The recorded music and music pub- share survey for the six months the world outside North America be- lishing division earned $125 million from Jan. 6 to June 30, WEA, the in- fore joining GEMA last year. Masser in operating income on $644 million ternational record distribution arm RECORD COMPANIES. Elektra Entertainment in New York appoints the follow- was represented by ASCAP world- in revenues. of Time Warner, led all six major ing: Kenny Hamlin, senior VP of sales; Beth Jacobson, director of press wide but, says Budde, assigned his Comparing those figures to re- distributors with a 36.9% share. In and media relations, East Coast; and Sonia Ives, manager of video produc- copyrights last year to GEMA for all sults posted in the same period last second place was Sony Corp.'s CBS, tion.