CASH BOX NEWS FCC To Reduce AM Spacing; May Add Up To 1,400 Stations by Richard Imamura ween American broadcasters and those WASHINGTON, D.C. - The Federal Com-abroad has occasionally has been the munications Commission (FCC), in acause of interference from powerful USA - closed session here Dec. 12, voted to pack based stations. AM radio stations closer together on the Domestically, the ruling would open the dial, a move that could add up to 1,400 newdoor to both minority entrepreneurs and stations across the nation. the 2,250 "daytime only" broadcasters Leaked to the news services by FCC across the country. It is expected that both senior staff officials, the Commission's rul-groups will petition the FCC to allot the new ing would reduce the spacing between sta- frequencies on a preferred basis. tions from 10 kilohertz to nine kilohertz. (cow ,ied on page 19) The FCC's new ruling must now be ap- proved by the International Telecom-Court Order Raises AT THE HOP WITH XTC - Virgin recording artists XTC recently hosted a party at SIR munications Union in Geneva, Switzerland. Recording Studios in New York to the song, "Life Begins At The Hop," from their new LP, In addition, the new ruling will also be con- Questions About "Drums and Wires." Shown above (I -r) are: Allan Wolmark, national album sidered by the Regional Administrative promotion/special projects manager of Atlantic; Dave Glew, senior vice president and Radio Conference in Buenos Aires next Illegal Imports general manager of Atlantic; Colin Moulding and Andy Partridge of the group; Ken Berry, year. president of Virgin Records; and John David Kalodner, director of west coast A&R for According to the FCC sources, the Com- by Charles Paikert Atlantic. mission voted 6-0 in favor of the nine kilohertz spacing, with Commissioner NEW YORK - Is there a law which prohibits Robert E. Lee abstaining. The Commis-albums that were licensed for manufacture New Home Taping Survey sion's ruling also serves as a recommenda- and distribution in foreign countries from tion to the State Department to endorse the being transshipped into the United States? change at the Buenos Aires conference. According to a petition filed in United Indicates 29% LP Sales Loss International Approval States District Court here by Transworld by Aaron Fuchs Due to the need for international ap-Record Distributors of Long Island, there is proval and technical adjustments required no provision of the law "which requires the NEW YORK - An extensive study of home These conclusions offer a valuable sup- to implement the ruling, the full effects ofconsent of the copyright owner for the entry taping practices, jointly sponsored by the plement to those of the Copyright Royalty nine kilohertz spacing will probably have lit- and release of such goods." National Music Publishers' Association and Tribunal (Cash Box, Dec. 1), which noted tle practical results until the mid- to late - As a result of that petition, Judge Edward the Record Industry Association of that 70% of those who taped music say they 1980s, Neaher,ina civilaction consent order America, has found that home taping maywould have purchased the last record or However, on the international scene, dated November 15, ordered the U.S. be costing record manufacturers anywhereprerecorded tape they home -taped had such a change by the USA would most likely Customs Service to return approximately from 14% to 29% of their potential salesthey been unable to tape it. be welcomed by other nations - many of 2,600 front-line albums on major American volume. The survey, conducted by the The Roper report also notes that the ex - whom already use nine kilohertz spacing - labels to Transworld. The albums had been Roper Organization Inc. in March of this (continued on page 19) since the current spacing differences bet - licensed exclusively for manufacture and year, consisted of personal interviews with distribution in the Caribbean area by West a national cross section of 2,004 adults (age Indies Records Limited, a Barbados com- 18 and over) and 131 children (age 10 to Concert Attendance Declines; pany, from such labels as WEA, Capitol, 17). A&M, and London. After being purchased Distinction Between Figures by Transworld at an address in Puerto Rico, The survey noted the distinction between Promoters Change Approach they were shipped to New York, where they the two figures. The 29% figure was based were seized by Customs agents last August by Leo Sacks tertainment Company, which books con- (Cash Box, Aug. 25). on the number of albums and singles which NEW YORK - Concert attendance has certs at the Capitol Theatre, a 3,500 -seat people say they were saved from purchas- declined 10-15% in many major markets facility in Passaic, N.J. "The norm used to Implications ing by taping from a variety of sources, in- and as much as 25% in most leading secon- be that you could present a three -act When contacted by Cash Box about this cluding borrowed records, radio broad- daries compared to last year, according to package, and the middle act was a signifi- matter, Jules Yarnell, the RIAA's special casts, and their own home collection. The figures supplied by concert promoters cant seller," he said, noting that his anti -piracy counsel, said that he had not figure of 14%, which the Roper organization across the country in a Cash Box survey. As business is down 10-15% at the three been previously informed of the court's felt was more realistic, was based only on a result, promoters are learning to adjust to venues where he promotes in New Jerseyconsent order and therefore "hadn't had a the number of albums and tapes borrowed a changing scene, marked by the re- and 25% in Syracuse, Rochester, and chance to consider its implications." for the purposes of home taping. emergence of balanced tour packaging Ithaca, New York. "But the fact is that there Civil Matter Based on the figures for taping from all and the return of major artists to smaller has been a conspicuous absence of that However, when informed of Transworld's sources, the report concluded that 22% ofhalls for higher ticket prices. sort of bill level for quite some time. At this contention in its petition that "any possible the record industry's potential sales volume With concert attendance down, a grow- point, it's a hit or miss. If the headliner isclaim arising out of the transshipping by a for 'albums and prerecorded tapes were be- ing number of established promoters are strong enough, it will sell out. But, again, it's licensee is solely a civil matter between the ing lost to home taping, while the figure for passing on headline acts they have booked the ego problem, where the marginal licensor and the licensee," Yarnell respon- singles was 48%. Put another way, sales ofin the past, because they don't feel they can (continued on page 32) (contrnued on page 32) LPs would have been 28% higher, while meet the guarantees the acts are re- sales of singles would have been 93% questing to play the larger halls. As a cons- higher. quence, while some promoters contend that they have lost business to less es- tablished promoters who are willing to put Ariola America up the guarantees, others insist that those groups which take their advice and play the To Move To NYC smaller hall for several nights at a higher LOS ANGELES - Monti Lueftner, chair-ticket price stand to make an even greater man of the worldwide Ariola Group, and Jay amount than they would ordinarily make in Lasker, president of Ariola America, jointy the larger venue. announced last week that the headquarters Some artists,like Bruce Springsteen, of Ariola America will be moved from have always combined small halls with Beverly Hills, Calif. to New York City, effec- large arenas on their concert tours. Other tive Jan. 1. 1980. acts, like The Rolling Stones, The Who, the The relocation of headquarters willAllman Brothers Band, and The Grateful provide a closer liaison between Ariola Dead, have just begun to sprinkle their out- America and the recently acquired Aristadoor festival dates with engagements at Records, Inc. 3,000 -seat halls. But many promoters said Jay Lasker and Howard Stark will not be that they are finding it difficult to convince POLARIZED - Columbia artists Jules & the Polar Bears recently played tunes from their making the move to New York, but will be certain groups of lesser stature that they new LP, "fenetiks," at the Whisky in Los Angeles. After their gig, label executives went actively engaged in the transition of the would do better as a supporting act with an backstage to chat with the band. Pictured above in the top row are (l -r): Richard Berdice, company. Lasker stated that both he andequally -strong headlinerina smaller Stephen Hague, Gary Richwine and David Beebe, all members of the band. In the front row Stark will maintain a close relationship with venue. are(l -r): Ron Oberman, vice president, Columbia merchandising, west coast; Joe the company. "Everybody wants to be a headliner, and Mansfield, vice president, marketing, Columbia; Eddie Reeves, group's manager; Bruce The names of the new management team that has created a very dangerous situa- Lundvall, president, CBS Records; Jules Shear; Michael Dilbeck, vice president. Columbia in New York will be announced in the neartion," remarked John Scher, president of A&R, west coast; David Benjamin, corporate attorney, CBS Law; Peter Philbin, associate future. the South Orange, N.J.-based Monarch En- director, Columbia A&R, west coast and Rob Wunderlich, product manager, Columbia.