***** * -*P3 -DIGIT 908 000817973* 4401 8902 á MAR90JHZ _a.' MONTY GREENLY A z 3740 ELM LONG BEACH CA 90807 VOLUME 101 NO. 2 THE INTERNATIONAL NEWSWEEKLY OF MUSIC AND HOME ENTERTAINMENT January 14, 1989/$3.95 (U.S.), $5 (CAN.) CBS Acquires Tree, Sets Thorn -EMI Buying SBK Pub Units Publishing Under Killen Deal Creates Bandier-Koppelman Label his titles as president and CEO and The deal, expected to be finalized in EMI Music, the umbrella for Thorn - BY GERRY WOOD becomes chairman of the CBS pub- BY IRV LICHTMAN April, will set a record for a music EMI's record and music publishing NASHVILLE When a Tree falls in lishing operations that will also in- NEW YORK After two months of publishing buyout. According to an interests. According to SBK, the joint Nashville, everybody hears it. In the clude offices in New York and Los intense speculation, Thorn -EMI and EMI spokesperson, both sides agreed venture is being funded with an in- largest financial transaction in Nash- Angeles. The transaction that gained SBK Entertainment World officially that the purchase price will be ap- vestment of $30 million by EMI. ville's storied music publishing his- headlines from the Nashville Tennes- announced Jan. 5 an agreement by proximately $337 million. A Thorn-EMI statement refers to tory, the long-rumored sale of Tree sean to The New York Times puts Thorn-EMI to buy SBK's music pub- A major sidelight to the deal is the the label as a "third U.S. record la- International has become a reality. (Continued on page 81) lishing interests. creation of an SBK label through bel" for the company for "global rep- CBS /Sony made a quantum leap resentation through the EMI organi- forward in reviving its fortunes in zation." The two other labels are Cap- the publishing field by purchasing itol and EMI. the last remaining giant Nashville in- Black, Meta/ Ring 88 Coils Bell While two of SBK's three princi- dependent company at a price in the pals, Marty Bandier and Charles $40 million range. The deal also black music and metal- oriented rock, million copies last year (on top of the Koppelman, will run the label, pre- By PAUL GREIN marks the first time a major New which between them accounted for 3 million it sold in 1987), while George sumably giving up most of their cur- York-based corporation will base its LOS ANGELES The number of more than half of the year's platinum Michael's "Faith," Guns N' Roses' rent production arrangements with international publishing thrust out of platinum albums, flat in recent years, certifications. "Appetite For Destruction," and Def other labels, it's understood that they Nashville. surged dramatically in 1988. The Re- It was a year of blockbusters. Four Leppard's "Hysteria" each sold 6 mil- will not be involved in the giant music Under terms of the sale, an- cording Industry Assn. of America albums each sold more than 6 million lion in 1988. publishing enterprise to result from nounced Jan. 3, Buddy Killen, who certified 67 platinum albums last copies last year, a sales level reached Five albums each sold 3 million the Thorn-EMI purchase. was the sole owner of Tree, retains year, up from 53 the year before. The by no albums in 1986 or 1987. The copies last year, and they, too, reflect (Continued on page 80) outlook was especially bright for "Dirty Dancing" soundtrack sold 7 (Continued on page 75) CD Players, ADVERTISEMENTS New Arb Diary: Vid Games Take Little Change CES Spotlight In Fall Book BY STEVEN DUPLER BY SEAN ROSS NEW YORK Audio iardware -in NEW YORK Despite the introduc- particular compact dis:{ players and tion of a new ratings diary that Ar- rack systems equipped to handle bitron claims is indeed capturing CDs -and video game systems con- more radio listening than its prede- tinue to be the brightes ; sales stars in cessor, it was still business as usual a consumer electronics universe that when the first fall survey results has been largely in the doldrums over came back. Top 40 WHTZ "Z100" the past two years. New York, crossover KPWR "Pow- The Electronic Industries Assn. er 106" Los Angeles, and top 40 says sales of home CD players, esti- KKLQ -AM -FM "Q106" San Diego mated at 2.8 million units and $560 each remained the top station in its million in 1988, are projected to rise to respective market. 327 million units and a total value of PETER ERSKINE'S IN MOTION. He's a veteran of Weather Voted by R &B radio and retail as the group most likely to make a The most significant feature of $655 million in 1989. Report, Weather Update, and Steps Ahead. He's played difference in '89, Klara continues to break through in style. "This the new diary, which bowed in Sep- But the EIA also resorts that an- extensively with the likes of Maynard Ferguson and Stan Kenton. Time," their hot duet single with Shanice Wilson is already tember, is the introduction of a col- nual videocassette rEcorder sales He's drummer /composer Peter Erskine and his new album, approaching Top 10 at R &B and is now creating a strong buzz at umn that allows respondents to de- have continued to run flat since 1987, "MOTION POET" features all originals, with guest artists Randy Top 40. To Change And /Or Make a Difference, a debut album lineate -work By and Michael Brecker Eliane Elias. DENON their at listening. on page 74) and CD: CY- 72582, we're going to deliver! ARISTA. (Continued DENON Cassette: CC- 72582. (Continued on page 80) 'MAN GIÌ our friends ° aqreatl989! A ADVERTISEMENT www.americanradiohistory.com www.americanradiohistory.com 1 . .. : . ' ' .'. .60606. ;'.i . .. '. - . r/ . : .. '.' ' 66.'11.0 t .' . '. .. ;''. : . : ' ' ' ; : . ; 4......6.6.....66.......6...........' ' ' .. ... ... r. ' . .... .; .. .. :. ... .. :. M.41.0.0.0., .. TRACY CHAPMAN :0aogoaa Make Vast Forever Tracy Chapman i 4 milion. Nice sale; aver I million. Worldwide sales over Worldwide sales over 7 million. ring "motorcrash. FecNring "Doni Stop lour love" Featuring "BabyCan I Hold you." . '. ano "Right And A Wrong Way." - .:..' . .:.''. .,..... .. SETTES, COMPACT DISCS AND IEC . ' Inc., ...'. ..: .. _:_, Communicol ons O ........... www.americanradiohistory.com ' _ M - --- --_- -___ --- - --IBM --__ --- - Indie Firms Evolving In U.S.S.R. ---_ -Dibod - --- - -_ -_-- --- - - --- Maturing Music Biz Fosters Competition - - - -- - - This final article in Billboard's latter would be designed with a view gram is currently under way to give three -part series on the music in- to accommodating top Western art- every major city in the Soviet Union dustry in the Soviet Union looks ists, who would be able to rent suites its own specialist record store, in- VOLUME 101 NO. 2 JANUARY 14, 1989 at Melodia's retailing operation, for $600 a day. The project is some- creasing the total from 41 to about at music publishing, and at new what speculative at present, but Me- 150. ACID HOUSE SIZZLES IN U.K. cooperatives in Leningrad. lodia chief Valery Sukhorado has Some of the major record stores Born in Chicago basements and groomed in Mediterranean resort clubs, high hopes of seeing it come to fru- have record clubs associated with ition in 1992. house music turned acid and sizzled on the underground U.K. dance them, but these clubs operate more BY MIKE HENNESSEY Melodia's retailing operation in- as groupings of record enthusiasts scene. Dance Trax guest columnist Dave Seaman traces the develop- MOSCOW Before the new economic volves about 30,000 outlets, 28 whole- than as merchandising operations. ment of the hottest musical craze to burn up Britain in 1988. Page 27 policies of perestroika encouraged saling branches, and 41 specialist There are currently some 28 record the development of cooperatives, the stores throughout the U.S.S.R. A pro- (Continued on page 78) New Backlot Beat Sounded In Video Soviet state record company, Melo- In this issue, Billboard's Jim McCullaugh launches a new biweekly col- dia, was a complete, vertically inte- umn focusing on the effects of Hollywood happenings on the home en- grated monopoly, with its recording studios, pressing plants, distribution tertainment field. In the debut installment of Backlot Beat, find out which operation, and retail outlets all func- BMG 1988 box -office hits should make waves in home video this year. tioning without a hint of competition. Distribution Offers Page 40 Today, however, independent oper- ations are developing in all areas of CES PREVIEW the business, including studios, rec- Front -Line CD -Price Cuts Consumer electronics industry sales were expected to pass the $32 bil- ord and music video production com- justments announced by industry BY GEOFF MAYFIELD lion mark in 1988 and should climb to the $34 billion -$35 billion level by panies, and retailing. leader WEA (Billboard, Jan. 7). Melodia has recording studios in LOS ANGELES BMG Distribu- The BMG cuts mean that all six the end 1989, to the Electronic Industries Assn. Home en- of according seven main centers, including Mos- tion, as expected, has announced major distributors have lowered the tertainment editor Jim McCullaugh reports. Follows page 42 cow, Leningrad, Kiev, and Tashkent, permanent price reductions on cost of most full -priced CDs since but with a release schedule averag- front -line compact disks. last July, when CBS replaced an ex- Wall Street View On Entertainment ing 100 new titles a month, pressure While dealers cheer BMG's policy tended discount sale with the imple- Financial editor Mark Mehler has a conversation with Stephen Diener, on studio space is high and the com- changes, which also reduce the cost mentation of a revised cost sched- president of New York finance firm Hersh, Diener, Raphael & Co., about pany urgently needs new facilities, ei- of several album and cassette coun- ule.