ICD 08120 LO9O6 t13 1-1Dti30 ONO-1 z W13 01Lf tt d ti A 3 l 0 1 !' 0 A1N3389 A1NDW 4'a adW ß2?Z09t099010 slv * ** YY i r 1986/$3.50 (U.S.) VOLUME 98 NO. 21 THE INTERNATIONAL NEWSWEEKLY OF MUSIC AND HOME ENTERTAINMENT May 24, CDs Are A Growth Business LEVY ON AUDIO HARDWARE ONLY? For In -Store Thieves, T00 Senate Bill May Drop Tape Royalty Plan tion's higher cost, but also to tight provision to place a royalty fee on en -month -old bill, S. 1739, intro- BY GEOFF MAYFIELD supply. "When you've got a demand BY BILL HOLLAND blank tape when it takes the bill to duced by subcommittee chairman NEW YORK The compact disk is product that people can fence for WASHINGTON In a dramatic con- markup Wednesday (21). This could Charles McC. Mathias (R -Md.), may becoming the darling of profession- more than a record or tape -they cession to consumer electronics in- chop the anticipated $200 million an- find the necessary votes to send it al and amateur thieves. can get as much as $6 or $8 apiece dustry opponents of the audio-only nual royalty pool by more than half. to the full Judiciary Committee, At least two major chains and for CDs -the value of the product home taping bill, the Senate Copy- Sources say that with the hotly with only the hardware royalty fea- several regional webs report that (Continued on page 89) right Subcommittee may drop the contested provision deleted, the sev- ture intact. the configuration is an attractive The original wording of the bill target. contained provision for a penny -a- Arnie Bernstein, senior vice presi- minute royalty fee on blank tape dent of operations for the 512 -store used to copy music, and for a fee of Musicland Group, says, "The sale of Managers Tun, To Indie Promotion 5% of wholesale price on tape re- CD hardware has, unfortunately, This story prepared by Steve Gett fered by many indies to new ac- "There's no question that the cost corders normally used for music re- been leading the software. Whenev- and Fred Goodman. counts. of hiring indies is much less than it production. er you have that incidence, the de- While top 40 promoters have been was when every major label was hir- Stan Gortikov, president of the sire for theft of that software in- NEW YORK Two months after hit the hardest, other indies cover- ing them," says Danny Goldberg, Recording Industry Assn. of Ameri- creases. We have experienced some broad major label suspension of ing black, album, and dance mar- whose Gold Spaceship management ca (RIAA), says that "certainly, in eft rings that are going after CDs their services, independent promot- kets have also been aggressively so- company guides the careers of Be- principle, we're opposed to the aboli- more so than records and tapes." ers are dealing with artist manag- liciting work, hoping to increase linda Carlisle, Dennis DeYoung, tion of the provision on blank tape," He attributes the increased rate ers more than ever before. Cut -rate their share of activity at a time Andy Taylor, and Michael Des - and admits that if the subcommittee of theft not only to the configura- prices-as much as 50% less than la- when pop promoters could be vul- Barres. Goldberg declines to dis- (Continued on page 86) bels were paying -are being of- nerable. (Continued on page 86) MTV's Garland: ADVERTISEMENTS All -Night Pop Vidclip Future TV Programming Remains Bright Coming To U.K. BY STEVEN DUPLER BY NICK ROBERTSHAW MONTREUX Terming music video LONDON Britain begins its first an "art form still in its infancy, but all -night television experiment with with an almost unlimited future," pop music next month on the York- Les Garland, MTV senior vice presi- shire Television network, which dent for programming, kicked off serves some six million viewers. the International Music & Media For a three -month trial period be- Conference here (7 -10) on an upbeat ginning June 9, the commercial sta- note. tion will screen programs from the The MTV pro- Pan-European satellite service Mu- gramming chief sic Box during normal broadcast TV IM &MC: credited videoclips (Continued on page 86) REPORT FROM with helping spur a "half- billion -dol- MONTREUX TOO OLD TO GROW UP NOW features Pake's impressive Get ready for he fifth generation of rock'n'roll. Sigue Sigue PLUS PROFITS IN lar increase in rec- vocals backed by an exciting, new rockabilly beat. The 1st Sputnik's principal interests are video nasties, affluence, ord sales over the single, EVERY NIGHT, was a T -20 hit. Current single, SAVIN MY rockets, home computers and excitement. "Love Missile F1 -11" past three years." (See separate in- LOVE FOR YOU is the "ghost of Buddy Holly" says Chet Flippo. 12" (V56021) is a sales breakout ... now. Outrageous video on terview with Garland, page 83. For "Achingly pure. Appealing sound and fresh sensibility." On RCA MTV .. now. Sigue Sigue Sputnik -don't miss it -get it ... now. Records & Cassettes AEL1 /AEK1 -5809. On Manhattan Records -a division of Capitol Records. (Continued an page 83) FOCUS INSIDE gr- fV d tV OCO O N CO o PeterSO. Featuring "Sledgehammer" ProducedGabrie by Dame! Landis and Peter Gabriel. On Geffen Records. 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Panasonic Industrial Company www.americanradiohistory.com Post - Release Video Support Sought N S SSUE Dealers, Distribs Ask For New Approach show that 80% of VCR homes rent quency with which a customer BY TONY SEIDEMAN regularly; because of this, he says, comes in and doesn't get what he VOLUME 99 NO. 21 MAY 24, 1986 NEW YORK Home video manu- Thorn EMI /HBO "unabashedly" came in for." facturers should alter their market- focuses its marketing efforts on the Barnako says he wants manufac- 1 NEWS The Senate Copyright Subcommittee may drop a con- ing tactics so that more emphasis is video store, mainly via point- of -pur- turers to invest more money in pro- troversial provision in the audio-only home taping bill. The com- placed on post -release advertising, chase materials. moting titles after release on the lo- pact disk is becoming a target of thieves. Artist managers are national level. Many other turning to independent promoters. "-Britain begins all -night televi- according to many retailers and dis- This attitude causes real prob- cal and sion broadcasts of music programming. "-MTV's Les Garland hails tributors. They also call for adver- lems for video stores, says Frank retailers appear to agree. video's "almost unlimited future." 1.3 /Home video manufacturers tising in national media. "It is criminal what they're do- should emphasize post -release advertising, say retailers and dis- Such policies will be ineffective ing," says the head of one major tributors. 0-4 /Reagan supports a bill that would curb trade benefits and wasteful, manufacturers re- `Manufacturers act chain. "They're acting as if the deal- to countries not actively combating piracy. 0-6 /Many candidates spond, claiming they've already cre- er is the consumer. I understand the enter the VSDA election, compounding confusion about election ated highly efficient systems for as if the dealer attitude, but that's a bad mistake." procedures. promoting and marketing product. is the consumer' Retailers say more co -op funds 4 Executive Turntable 40 Classical The debate centers on three key are needed. More important, they 12,71 Newsmakers 43 Dance Trax issues: where advertising dollars say, are coordinated national media be Barnako, owner of the Video Place campaigns to create increased 38 Gospel 76 Album & Singles Reviews are spent, when they should spent, and who should be the target chain and a former Video Software awareness of home video as a medi- 38 Jazz 90 Inside Track of the ads. Dealers Assn. president. One of the um and to help boost store traffic. 40 Latin Nicholas Santrizos, head of Thorn biggest difficulties, he says, is that The lone manufacturer speaking EMI /HBO Video, says his compa- customers have no way of finding in favor of heavy post-release pro- 9 Column: Profiting from inter- COMMENTARY Guest special- ny's marketing system works best out about titles before they walk motion is Bill Gallagher, president est video.