Record profits

Press, 26 May 1977, Page 14

Record profits

Sntertairiment scene

by

NEVIN TOPP

Today’s sermon is taken from a variety of sources, including Karl Marx, Adam Smith, “Cashbox,” "Fortune” magazine, "Rolling Stone,’’ and my head (not necessarily in that order). Whether on- chooses to like it or not, the rock music industry is governed by money. Tom Waits, the frog with a man in his throat, put it best in a January edition of “Roiling He is glad that the industry brought him to the public’s attention, but then he dislikes the marketing and merchandising techniques which reduce his "work” to products which end up in the miscellaneous or the bin of a record store. A sales rep for one of the New Zealand record companies put it more succinctly. It was “gogogo sellsellsell moremoremore.” Add the latest hot-of-the-press album in the gaps and that is what it is like. Still not convinced? Well, it is time for some facts and figures. In the United States, the WEA (standing for Warner Bros, Elektra

and Atlantic Records) group’s profits rose 33 per cent to SNZI9.6M in its first three months to March 31. Its sales rose by a similar percentage to 5118.5 M. It was the second best quarter in the group’s history, topped only by the three months to December 31, 1976. The sales of the CBS record group rose 24 per cent in its first quarter — a record for the company. The story is a similar one for the records division of RCA Corporation, which almost doubled its income on its previous first three month period last year. The Americar businessman’s bible. “Fortune’ magazine, has listed several corporations owning record divisions in its top 500 list of industrial groups. None of them got into the top ten, which was led by Exxon Corporation, the world’s largest oil company. with sales of 550.800 M. However, RCA Corporation came thirty-first in sales of 55567 M and thirty-sixth in assets of 54075 M. CBS came in at 111th and Warner Communications Inc., (which owns WEA Records came in at 261st.

In additon, there are another four corporations with record divisions which are listed in the top 500. Reminiscent of the film “Network,” each of these corporations is responsible to the shareholders which invested money in them. The shareholders seek a return on their investments, and are usually looking for improved returns over a period ol time — so that, at least, n matches inflation. This puts pressure on the corporations, which in turn looks to the divisions for improvement. Rock music, from a babe in arms in the early 19505, has become a giant multi-billion dollar industry, which includes records, hi-fi systems, tours by artists, and sheet music. Its growth has a remarkable similarity to television. Both had pio neering hey-days, for television in the fifties for rock music has become the late sixties. However, the demise of the Beatles spelt the end of an era in rock music. Since that time the creativity of the mid-six-ties has disappeared, and

rock music has become fragmented and, in some senses, regimented by record companies searching for new talent or a new wave (punk rock?) to replace the emptiness that has occurredConfusion also exists between artists and money. The big companies are unwilling to pay for an individual or group who "will not sell.” But, if they do sign an artist, then he is paid, promoted, and pushed on the road to glittering stardom. Only it isn’t, as so many rock songs wearily inform us these days. One has to usually separate the reality of the artist from the reality the advertising/promoters say about the artist. About the only person who has a third reality which is his own is Bob Dylan. A glance through the advertising in “Rolling Stone” or “Melody Maker” is good enough to get an indication of just how big the industry is and how it works. A few years ago when John Mayall was in Christchurch, he made a remark about audiences as “a market.” He was not far wrong.