New York, May 22.—Columbia Records, Inc., is know to be preparing a brand-new wrinkle in phonograph records that conceivably may exert tremendous influence on the entire industry, from home record players thru library services. Opening gun in an intensive exploitation and promotion campaign on the new product is expected to coincide with the Columbia dealers’ convention in Atlantic City the week of June 21. In the nature of a new disk marvel, the basic gimmick is said to be a micro-grooved vinylite disk in both 10 and 12-inch sizes, which would be aimed mainly at the home record market but could expand readily into other fields. The disks would operate at 33 1/3 r.p.m. and, depending on size would yield from 30 to 45 minutes of high-fidelity, wide-range music on each record (two sides).

Since no home sets are equipped to run at the slow, e. t. speed, the diskery is known to be readying an entire unit for conjunction sale with the hush-hush platters. The unit reportedly will consist of a turntable and motor adapted for the lower speed, complete with a special head within an extra-light pick-up arm which is designed to fit the microgrooved disks. This company adapter unit attaches quite simply to conventional phonographs and radio and will retail at about [$30]. It is understood that the combination of the unique pick-up arm and microgrooved viny virtually eliminates all surface noise and affords tone reproduction superior to anything heretofore sold.

Columbia Records pitch to melt consumer resistance to the added expense probably will pursue the lines of “a trifle costly for the initial investment but a bargain in the long run because of the low price of the records.” The retail price of the disks is expected to run about $5 per for 12-inch (45-minutes) disks and about $3.50 for the 10-inch (30-minute) platters. Since these are made of special quality viny and compare favorably with the high cost of symphonic albums on the market today, the diskery feels it can legitimately merchandise a sock “consumer margin.” One of the special 12-inch disks, it is pointed out, gives the equivalent of nearly six 12-inch orthodox record sides.

Speculation

With Columbia execs maintaining complete silence on the entire project, observer are speculating as to the scope and potential revolutionary changes it may wreak on the industry. A disk which plays for 45 minutes can yield an entire symphony. A full-length opera can be grooved on four such platters. Inducements such as these can quite conceivably change the buying attitudes of collectors and delegate present modes of purveying recorded classical music to limbo. The new disk used in a library service for bars and restaurants, and other public gathering places could give wire services a wicked fight. Even juke boxes might be adapted, with juke records cut 5 to 10 selections on a side. The better production attainable on these disks could be a threat to wire and tape recording.

At the same time, adding weight to the possibilities of the new scheme, a leading radio manufacturer is understood to be all set to market a phono combination which will run at both speeds and obviate the need for an adapter unit. The tremendous implications of such an innovation in phonograph and record manufacture can only be guessed at right now. And right now the trade is more than curious to see how far Columbia’s campaign is going to go when it does up.

The Billboard, Saturday, May 29, 1948, pp. 3, 20.

Hollywood, May 29.—According to indications here, America’s disk-buying public will be tempted with a full array of 33 1/3-rpm phono equipment late this summer when the revolutionary long-playing platters for home use go on sale at record shops through the country. Phono manufacturers are said to be at work preparing for the fall-winter market, with consumers to get their choice in play-backs ranging from low-priced turntables to expensive models in the multi-hundred class.

The Hoffman Radio Corporation, Coast manufacturer of radio and phonograph equipment, is producing a 33 1/3-rpm turntable with feather-weight tone arm which will retail for less than $50. The attachment will be plugged into the speaker of the regular radio phonograph set. The Hoffman player is expected to hit the market in mid-summer.

Others in Line

According to reports from Chicago, Admiral is currently manufacturing 33 1/3-rpm sets, while rumors have it that Philco will also be among this year’s 33 1/3 trail blazers. (The latter could not be confirmed at press time.)

Larger models will contain dual motor systems for both 33 1/3 and 78-rpm, with separate tone arms for the long-playing and regular disks (delicacy of micro-groove walls demands lighter tone arm and special needles), while others will offer separate plug-in attachments as the Hoffman machine or just a 33 1/3 play-back in the lower price brackets.

Dealers see the 33 1/3 innovation as a hypo for sales, claiming that phonos have been void of sales-spurring gimmicks since the wide-spread adaptation of the record changer.

The Billboard, Saturday, June, 5, 1948, p. 17.

Hollywood, May 29.—New facts regarding the marketing of the micro-grooved long-playing Columbia vinylite disks (The Billboard, May 29) are coming to light. The Philco Radio & Television Corporation is now know to be the major firm readying an adapter unit which can convert home phonos for 33 1/3 rpm plays. It is understood that Philco (in a move to coincide with the initial promotion blast Columbia is expected to make on the 33 1/3 disks which play up to 45 minutes of music on a 12-inch platter) is preparing a console radio-phono which will be designed to, play both ordinary records and the new wax.

The Philco adapter, which will be marketed at $29.95 per unit, will contain a turntable and motor designed for 33 1/3 spins and a special extra lightweight pick-up arm designed for the micro-grooves. It will plug into any regular home radio or phono or combination.

Disks $4.85 and $3.85

Also revealed were the prices on new Columbia disks. The 12-inchers, which will contain from 30 to 45 minutes of music, will retail at $4.85 while the 10-inch platters, which will contain up to 30 minutes, will market for $3.85.

Columbia is planning to release its first micro-grooved disks in September^[•]. The firm is planning to duplicate sets of these waxing released on regular 78-rpm disks. The diskery plans to concentrate on its masterworks series for its first releases. It is believed that the firm gradually will transpose its entire masterworks library (some 700 albums) into the micro-grooved wax.

The Billboard, Saturday, June, 5, 1948, pp. 3, 17.

Hollywood, May 29.—Tempo Records, Coast indie, expects to be the first diskery to hit the market with a 33 1/3-rpm platter when its long-playing product goes on sale in mid-June. Following The Billboard’s exclusive report (May 29 issue) that Columbia Records will introduce a revolutionary micro-groove 33 1/3-rpm disk at its dealers’ convention in Atlantic City June 21, Tempo’s prexy, Irving Fogel, showed The Billboard completed vinylite pressings of 12-inch, 33 1/3 disk soon to be shipped. According to Fogel, many of Tempo’s distributors have already been furnished with samples of the long-playing disks.

The 12-inch, 33 1/3 viny platters will contain five tunes per side, each tune’s playing time similar in duration to an orthodox 10-inch disk. Average playing time per 12-inch side is 15 minutes, or 30 minutes per disk. Tempo will retail its 12-inch disk at $5 each. Platters are pressed on red-hued, clear vinylite, similar in appearance and thickness to RCA Victor’s Heritage Series viny pressings. According to Tempo, each platter is thick enough to be used in conventional record changers. This would allow five hours of music per single loading of 10 12-inch disks.

While the diskery feels its long-playing product will be eagerly welcomed by wired music outfits and locations (eateries, etc.) currently using non-coil-operated disked music, it is basically shooting after the home market. Disks produced and ready for shipping include recordings by Ben Light, Hammond Nova-chord team of Herb Kern and Lloyd Sloop, violinist Joe Venuti and accordionist Galla-Rini. Tunes on each disk are programmed along ‘mood music’ lines, with each pop selection a standard or of the ‘oldie but a goody’ variety. According to Fogel, dealers will be peddling low-priced 33 1/3-rpm players this summer.

The Billboard, Saturday, June, 5, 1948, p. 17.

“RCA-Victor drew attention last week by announcing the marketing of a two-speed portable record player. The new set, equipped with two motors, one spinning disks at the conventional speed of 78 rpm's and the other at 33 1/3, was spotlighted only 10 days after it became known Columbia Records planned to market symphonie and kiddie disks that will carry up to 30 minutes of music, stories, et al, on a 10-inch platter spinning at 33 1/3.

RCA’s new set, which will retail at $166, will compete with a large one Philco is marketing. Philco, incidentally, is also building the $30 units Columbia will sell on which its new long-playing disks can be played. These units are made to be attached to conventional radio or record-player speakers.

Only hitch in the two ventures is that Columbia’s marathon disks cannot be played on the RCA-Victor portable. Grooves of Columbia’s platters require a microscopic pickup needle, since they are impressed on the disks so closely together. It may be possible to interchange needles, however, to allow the playing of them on a Victor set.

The Billboard, Saturday, June 9, 1948, p. 39.

New York, June 12. —Columbia Records, Inc. (CRI) has approached major music publishers here with the proposal that the diskery be granted a special royalty-rate dispensation for pop standard songs to be released on its new long-playing (LP) microgrooved 33 1/3 r.p.m. disks.

The Columbia request is carefully stipulated by the diskery as extending for a one-year period only and makes the following suggestion to pubs: On the popular LP disks to be released as soon, as two months from now (four songs to one side, eight tunes to a 10-inch record which will retail at $2.85) the company shall be allowed to pay only 1 cent royalty per side, in place of the 2-cent statutory rate applied to 78 r.p.m. 75-cent list recordings.

Columbia’s argument to the pubs, altho it has met with initial resistance from one or two firms, may yet win majority co-operation, since the diskery is pegging its pitch on a “help us to help you” basis.

Point To Heavy Nut

The diskery argues that its fabulous LP disks are still in the experimental stage and that the 1-cent request is strictly for one year only. The record firm’s claim is that it has invested heavily (reputedly $1,000,000 or more) in LP recording in an effort to resuscitate a sallow record biz and restore bigger volume to the record store. Publisher concessions now, which are asked for only 12 months, may be vital in effecting successful merchandising of the pop LP disks (initial output would include such things as one LP-record album of Songs by Sinatra, Duke Ellington Suite, or a grouping of Xavier Cugat standards) and the possible returns form of increased mechanical revenue after the 12-month trial is a CRI strongpoint.

In answering major pub argument already presented against the 1-cent request, the company has obtained assurances that the few dissenters will go along if 51 per cent of the major pubs agree.

Pro and Con

Some of the pub demurrers and CRI’s counterclaims include the following:

Answering the complaint that extension of a 1-cent concession might pose unfair competish against other major record companies and bring royalty-cut demands from Decca, Victor, Capitol, etc., Columbia rebut that (1) the appeal is based only on a 12-month experimental period and the pub help may be essential in real revival of the disk biz; (2) there has been precedent in the past for a diskery to ask for temporary royalty relaxation for vital biz purposes; (3) technically the proportioning of 2 cents on regular 75-cent disks with an 8-cent price on the LP $2.85 disk represents unfair comparison. Says Columbia “We are asking for rates only on LP disks; the other record companies are not putting out LP records. If they should, pubs could grant them the same privilege under the same time limits given to Columbia.”

Other pub resistance on the grounds that a 1-cent grant would abase the license right and possibly convince a horde of smaller disk labels that they need pay only 1 cent a side (thru misinterpretation) has brought CRI reply that the 1-cent grant could be stipulated carefully for LP records only and the 12-month experimental, business-aid peg again applied.

Writer’ Angle

Pub concern that the songwriters after peace with the Songwriters’ Protective Association has finally been affected (The Billboard, June 12), might squawk about the penny concession is rebutted with the claim that business-aid principle applies as much to the writers as to the pubs.

In terms of co-operation from the pubs, CRI has pointed up its own co-op’ing problems. On its pop LP disks it, perforce, must favor selections on which royalty rate makes the operation less costly, altho it would prefer that such a factor in selectivity be eliminated. Too, on certain whole-works to be recorded on one side of a record which formerly would be released in a four-record album, the diskery points up that the statutory rate currently allows them to pay but 2 cents a side rather than the 16 cents per album computed on non-LP disks.

Initial opposition from pubs had been expected, Columbia officials state, but they are confident that patient explanation of the purposes of the request and the emphasis on the “12-month, experimental” term of the proposal will win pub-industry support. Estimating that at the most ridiculous maximum, no more than 800 songs would be re-released on LP records, the individual pub’s financial concern (he might have from 10 to 20 songs involved for the brief 12-month period) would be tiny as compared with the record firm’s cost-saving on the entire package. Should the LP project boom disk biz, and pub aid is considered a big factor, one the 12-month term is over, the pubs would be back in the statutory saddle.

The Billboard, Saturday, June 19, 1948, pp. 17, 23.

New York, June 19. Some further detailed and pertinent facts about Columbia’s LP disk were brought to light at the diskery’s preview showing of the platter yesterday (18) [at Hotel Waldorf-Astoria].

One 12-inch side can play up to 22 1/2 minutes but can play less if the recorded work falls short of that amount of time. Normal sized concert works can be reproduced on either one or both sides of an LP disk.

The microgrooves, used on the LP platter, are three one-thousandths of one inch wide. There are from 224 to 300 microgrooves to the inch on the disk as opposed to the 90 grooves to the inch normally found on the conventional platter.

The claim of hitherto unattained quality is based on the use of microgroove combined with the use of a reproducing stylus with a radius of one one-thousandth of one inch, plus the elimination of surface noise via production on vinylite. The LP principle makes the disk and the special 33 1/3 player complementary to one another.

Columbia’s LP disk will use a special design label which will be four inches in diameter with a special design as opposed to the conventional three-inch label. Label colors follow the standard Columbia procedure: Blue for classical and red for popular.

LP prices are set as follows: $4.85 per 12-inch masterworks disk, $3.85 per 10-inch masterworks platter and $2.85 per 10-inch popular platter.

The initial LP catalog includes 101 records covering 325 compositions^[•]. There are 70 classical disks which cover works running from Bach, Beethoven and Brahms thru Prokofieff and Khatchaturian. Twenty disks are include to cover the light classic and show score field with items like The Chocolate Soldier, Grand Canyon Suite and the original cast of Finian’s Rainbow included. The remaining 11 disks are in the pop field and include Frank Sinatra Sings, Harry James Favorites; For You Alone, with Buddy Clark, and Dinah Shore Sings.

The player attachment, designed by Philco for the LP record, will adapt any radio or radio-phonograph combination to play microgroove disks without disturbing equipment already set up to play conventional records.

It includes a specially engineered featherweight tone-arm which is cushioned in rubber for flexibility and toughness and which weighs one-fifth of one ounce. The stylus is housed in a spring-mounted, replaceable cartridge.

The player attachment is housed in a small cabinet which measures 15 by 14 by 6 inches. Many radio manufacturers as well as Philco, are readying built-in-33 1/3 controls on standard tone-arms, with a special added tone-arm included.

The Billboard, Saturday, June 26, 1948, p. 18.

New York, June 19. —At a press demonstration [Hotel Waldorf-Astoria, June 18], presided over by Frank Stanton, prexy of the Columbia Broadcasting System; Frank White, president of Columbia Records, Inc. (CRI); Edward Wallerstein, chairman of the board of CRI, and James H. Carmine, executive weepee of the Philco Corporation, the full story of the revolutionary LP (Long playing) Columbia disks was told this week. (The Billboard was first to break the news of the LP disk development some weeks back.) Step by step the company revealed the path and progress of the LP disks up to the news that a full catalog of 105 [101] records (325 selections) on 10 and 12-inch platters would be merchandised via a pin-point area-by-area program, beginning almost immediacy [see the following list].

CRI’s (Ted) Wallerstein demonstrated listening qualities of both 10 and 12-inch viny microgroove platters (playing respectively 27 and 45 minutes of music on a two-faced record) on a Philco adapter unit which will retail at $29.95 [see ad in The New York Times, New York, New York, Sunday, July 25, 1948, p. 50.]. He also pointed out a regular console Philco model, equipped with a dual-arm changer to play both Columbia 33 1/3 LP disks as well as the standard 78 r.p.m. Platters.

The full story started with Columbia’s research efforts some nine years ago, Wallerstein reported. Work on LP project was suspended during the war and then resumed about three years ago. Under the guidance of CBS Research Director Peter Goldmark, assisted by Rene Snepvangers, CBS engineer, and William Bachman, CRI research director, the LP microgroove record potential was realized this year.

According to Wallerstein, the company’s main plant at Bridgeport, Conn., for several months has been pressing the new LP’s for nationwide distribution. The attendant savings in storage space were graphically demonstrated by comparing a pile of 101 standard albums with the comparable LP catalog of 101 records. The albums required nearly eight feet of storage space, the LP records little more than one foot. Wallerstein stressed that the LP viny record was “full range, undistorted quality and a hitherto unachieved fidelity.”

He revealed that film, tape, wire-recording 16-inch transcriptions and other systems were carefully investigated before the LP microgroove system was adopted. “We decided to concentrate upon the development of a record which would combine all the long-playing qualities of these methods and at the same time improve its fidelity of reproduction, ease of use, and, above all, enable it to be marketed at a price far lower than any of aforementioned systems. Furthermore, and perhaps of paramount importance, the LP microgroove records do not make obsolete the millions of dollars’ worth of records and equipment the public already owns. The new records allow for a gradual transition at little or no expense. Either tape or wire recording would have tended to make existing equipment obsolete.”

Philco Reproducer

In conjunction with the CRI announcement, James H. Carmine pointed up the Philco development oaf an “equally revolutionary” balanced fidelity reproducer which complements the microgroove records. Carmine stated that the 1949 line of Philco radio-phonographs includes a full series of models designed to play both the new microgroove records and standard records. He also presented the Model M-15 album-length record player (adapter unit) which can play the LP records thru the speaker and amplifier system of any radio of phonograph.

Reproducer Vital to LP

Carmine indicated that a vital part of LP reproduction was achieved by Philco’s “balanced fidelity reproducer.” The reproducer used the lightest pick-up yet devised (1/5 ounce pressure on the disk) and its tracking pressure is so low and so stable that it has 10 times greater ability to respond to the minute variations of the microgrooves. It gives a wider range of “highs” and “lows” than ever before but attains an alleged almost complete freedom from surface noise and record scratch. The heart of the reproducer is an armored crystal, hermetically sealed against moisture, which is hinged to the tone arm with a shock-absorbing mounting which gives it complete freedom of movement. The needle is an extra-fine steel alloy permanent point which is replaceable.

The Billboard, Saturday, June 26, 1948, pp. 3, 18, 21.

New York, June 19.—Columbia Records’ Prexy Frank White has confirmed [Hotel Waldorf-Astoria, June 18], that the diskery will offer the manufacturing secrets governing the LP disk to any other waxworks that may wish to market the new platter. Most of Columbia’s competitors will not be able to immediately compete in the LP field, however, since the new disk requires full fidelity recording. Columbia has been making “safeties” of most of its disks via wide-range recording and thus was prepared for the current transportation into 33 1/3 platters. Most other diskeries have been employing limited range technique in cutting its wax.

It also was learned that the production and dressing of the LP disks will not require a unique or particularly expensive conversion operations. It will require only a little change-over of standard production equipment, mostly in plating process. Also different is the method of preparing safeties for mass production. This, too, is a reason why Columbia has a long jump over its competition.

LP’s Stir Adjuncts

Industrially the LP disk has caused a stir among the radio producing firms, juke box manufacturers, record changer producers, needle manufacturers and other adjunct producers of disk industry equipment. They are trying to figure just what immediate effect LP will have on their businesses. Particularly interested in the new development is the Seeburg firm, which recently turned out a new juke box and home phonograph which is capable of playing both sides of 100 records. Seeburg now is reported trying to figure now to apply the LP disk to its new machine.

The Billboard, Saturday, June 26, 1948, p. 18.

Sales of phonograph records have fallen off during the last couple of years, and the recording industry is anxious to get things back into the groove. This was evidenced over the week-end with the introduction by Columbia of its newly developed long-playing records, and announcement by two manufacturers of players to accommodate the new records.

Officials of major recording companies concede that record sales are in a slump. They say the record business usually is at a low ebb this time of year, but that the drop in sales this year began earlier and has been more pronounced that usual.

Edward Wallerstein, board chairman of Columbia Records, estimated the slump at 35 per cent for industry as a whole.

Neil Harrison, editor and publisher of the trade publication Record Retailing, estimated that record sales this year would taper off to 250,000,000. This would be a reversal of the upward spiral from 100,000,000 in 1941 to 325,000,000 last year.

Mr. Harrison said the slump id most pronounced in popular records, particularly in sales for coin-operated machines. Sales of classical recordings are holding up well and children’s records are selling like hot cakes, he said.

Blamed on Rising Coasts

Recording industry officials attribute the slum to several factors, but particularly to the rising cost of living. They say most folks have to count their pennies this days because of higher prices for food, clothing and other necessities and are spending less for non-essentials.

One spokesman made this point: From 1941 to 1946, he said, the public had more money than ever before to spend, but a limited supply of things to spend it on. This created a big demand for records, among other things. On the other hand, record manufacturers were confronted by production problems and materials shortages.

Now, said this industry official, “things have reverted to normal.” Consumers are able to get many things they could not buy during the war, while the record manufacturers are able to turn out enough platters to meet all demands—and more.

The new long-playing Columbia record is designed to give 45 minutes of music on a single 12-inch disk, compared with eight minutes for the two sides of a conventional record. The company also introduced a 10-inch record that plays 27 minutes. Both records on unbreakable vinylite and the company said they give higher fidelity and less distortion than conventional records.

New Player Introduced

However, the new records can’t be played on the standard record players. So Columbia and Philco jointly announced a new player attachment to be sold by both for $29.95. It will attach, they said, to any standard record player, radio-phonograph or radio. It has a turntable that revolves at the slower speed required to play the new records.

At the same time both Philco and Magnavox announced new lines of radio-phonographs with two-speed turntables to accommodate both conventional records and new, long playing disks. A number of other manufacturers are expected to follow suit.

A Columbia Records official said a single, 12-inch, long playing record containing a full symphony costs $4.85, compared with $7.25 for an album of five conventional records containing the same symphony. An album of the same symphony in unbreakable vinylite, recorded at the old conventional speed, costs $11, he said.

Other record manufacturers and trade circles generally interpreted the new Columbia development as a did to stimulate sagging sales and create a new market—with the hope that many record lovers would replace existing albums with the new space-saving recordings.

Their reaction varied from “no comment” to the statement by General Manager Leonard Synder of Decca the he had nothing to announce “at the moment.” They indicated, however, that they were not caught unawares or unprepared by the Columbia development.

An RCA-Victor spokesman observed that his company brought out a long playing record in 1932 and dropped it after a couple of seasons for lack of public acceptance.

Recording company officials were reluctant to appraise James C. Petrillo’s recording ban as a factor in the record slump, but several said it might be having some effect. Members of Mr. Petrillo’s American Federation of Musicians have been prohibited from making any recordings since Jan. 1, but most record companies piled up big backlogs of both old and new tunes before the ban was imposed.

The industry and trade circles, the consensus seems to be that there will be no immediate settlement of the recording ban. But it’s expected that some progress toward settlement may be made by fall.

The New York Times, New York, New York, Monday, June 21, 1948, p. L 29.

Atlantic City, June 26.—The two-day convention of Columbia Records, Inc., this week (21-22), convinced observers here that the initial reaction of over 400 distributors and distrib personnel to Columbia’s LP microgroove’s records was “mildly sensational.” Replete with dramatic skits which spared no humorous digs at competing record companies, the Columbia show ran the gamut of sales presentation that depicted a vast and expensive promotional program to back up its LP project. Sales material distributed at the show termed the LP push “a three-million-dollar promotion,” and kits presented to all distrib reps ran the gamut from a complete presentation booklet done up in gold, black and white thru an outline of press material, co-op ads and mats available, and the story of the tremendous ad budget to be expanded nationally thru such media as Life, Post, Newsweek, New Yorker, etc. [see ad in The Philadelphia Inquirer, Philadelphia, Pennsylvania, Sunday morning, July 25, 1948, p. ab SO 11]. Columbia will open its campaign with 800-line ads in 56 leading distributor cities. In addition, the same week that newspaper and mag ads break, chainbreaks will be spotted on key Columbia Broadcasting System and National Broadcasting Company stations across the country. Mailing pieces, a detailed publicity campaign, a dealer sales mutual, a six-foot display panel piece for the store, an easel poster, window display cards, record holders, packaging instructions and special necklaces and pins for sales personnel either were shown of described for the gathered Columbia clan.

Artist Turn Out

For the entertainment diversion of the attendants, the company boasted socko artist turnout and a well-rehearsed two-night show that had the distrib lads roaring in approval. Gene Krupa and his ork, the Modernaires, Roy Acuff, Jerry Wayne and others took heavy bows on first night, while on the finale banquet Buddy Clark, Toni Harper, Tony Pastor and his ork and a veritable slew of other pop artists and longhair reps of the talent roster put on a four-hour shindig.

A serious sampling of distrib opinion on the LP development seemed all positive and enthusiastic, altho the more sober attendants were quick to realize the “selling" job that still had to be done and to vouchsafe opinion that successful results, it attained, would have to be weighed over a long-term period. The attitude, according to these Columbia reps, was that the 33 1/3, microgroove-disk principle was an ultimate “must” for the biz, but it would require “patience, fortitude and a little luck” to really put it over. Judging from the ardor at various sales demonstrations and talks by the CRI brass, the distribs appeared convinced, however, that despite these considerations the thing would really “go.”

The Billboard, Saturday, July 3, 1948, p. 19.

New York, July 3.—Radio phonograph manufacturers, following upon the heels of the announcement of the revolutionary Columbia LP disk and the accompanying Philco-made 33 1/3 speed adaptor, are all set to accommodate the new record. In addition to Philco, the Capehart-Farnsworth, Magnavox, Crosley, Emerson and Admiral firms all have revealed that they have in preparation sets which will be capable of playing the LP record. Most of the above-named firms, in company conclaves held this week, showed with all of the machines combining the LP feature with a regular 78 r.p.m. changer and turntable.

Crosley’s set will introduce a changer, which will be capable of handling the LP disks, which will be the only set announced to date which offers such an innovation. The Capehart-Farnsworth firm revealed that it was able to manufacture a machine with a three-speed phonograph ‘if public demand should warrant it.’ This set would handle not only 78 and 33 1/3 speeds but intermediate 45 r.p.m. speed as well.

In addition, the Webster record changer firm revealed that it has developed a changer which can handle both the normal speed and the long-playing disk.

The Billboard, Saturday, July 10, 1948, p. 17.

Columbia Records will launch a national newspaper ad campaign in connection with its long-playing micro-groove record. While the company seeks to make the public conscious of the l.p. development, it had a far more-reaching motive for this campaign. It figures that if the ads only serve to get people into the retail outlets they will have paid off. The assumption is that if people can be induced to come in for a demonstration the visit will end with a percentage of them making some disk purchase. The major problem of the record trade for the past three or more months has been to find ways of getting whilom buyers back into the stores.

Variety, Wednesday, July, 14, 1948, p. 42

New York, Sep. 4.—Heralded as a move to aid in the stabilization of inventories of retail record dealers, RCA Victor Records this week revealed that the firm was going to conduct a nationwide price markdown program. The drive, which will allow Victor dealers to sell the line’s 75-cent wax at 35 cents or three for $1, will be launched September 13 and run for five days.

The price-cut plan, which was issued to Victor distribs this week, will be supported by intensive newspaper and radio advertising. The program will be confined to a list of 100 cut-out records in the diskery’s pop, country, Western, blues and rhythm catalogs and will be tagged “RCA Victor Value Week.”

Victor’s distribs in areas where fair-trade agreements are in effect are notifying dealers that fair-trade contracts will be amended for the duration of the diskery’s cut price promotion, with a note that dealers are to revert to normal fair trade price listings after the sale period.

Victor execs claim that the program should enable dealers to straighten unbalanced inventories which came as a result of “seasonal declines” in wax sales “which were more pronounced this year than at any time since the end of the war.”

The Victor-sponsored program aims to ensure for the dealer quick disposal of slow-moving and surplus records in order that the merchant could raise the necessary capital which he needs for proper purchasing prior to the pre-Christmas peak volume sales period.

The Billboard, Saturday, September 11, 1948, p. 17.

New York, Sept. 4.—Columbia diskery’s first monthly release of the new long-playing (LP) platters is skedded to hit the market sometime this month, with the listed works ranging from pop to longhair selections. In all, 14 disks consisting of six 12-inch and eight 10-inch platters will make up the first release, augmenting the diskery’s initial catalog of 101 LP’s.

Heading the 14 etchings is a two-disk offering of Puccini’s La Boheme, which will retail for $9.70, with the libretto being sold separately for 85 cents per. In addition to La Boheme, the release offers a Basil Rathbone dramatization of Sinbad the Sailor and the Budapest Quartet rendening Beethoven’s Quartet No. 6 in B Flat Major, coupled with Beethoven’s Quartet No. 11 in F Minor.

Semi-pop and pop tunes also are part of the new LP sked. Talent here includes Dinah Shore, Morton Gould, Andre Kostelanetz, Kay Kyser, Buddy Clark and the Charioteers.

All selections also are available in the regular Columbia shellac albums, tho to date some have not been released.

The Billboard, Saturday, September 11, 1948, p. 17.

New York, Sept. 18.—Columbia Records has blueprinted simultaneous national and local advertising campaigns plugging its long-playing microgroove records. The bally will be sustained during October and November, and on a national level and will include full page ads in Life, Look, Saturday Evening Post, Time[see ad in The New York Times, New York, New York, Thursday, October 28, 1948, p. C 25], Newsweek, Holiday, National Geographic, New Yorker, House and Garden and trade papers.

A merchandising plan on a local level ties in with the ad splurge. Dealers will be supplied with such items as window display material, including reprints of mag ads, suggestions as to co-op newspaper ads and pointers promotional gimmicks.

The merchandising plan also includes a direct mail campaign, Columbia supplying the dealers with a promotional booklet for this purpose. Telephone solicitation is also urged upon dealers.

Radio-wise, local campaigns are already being started. In the New York area, for instance, Columbia in co-operation with several dealers, sponsors Symphony Hall, 8:05-9 p.m., and other recorded program periods over WQXR. This time is purchased on a co-op basis, and this radio phase of the over-all promotion campaign is expected to continue year-round.

For use on local stations, Columbia has prepared a series of 20-second and one-minute chain break transcriptions.

The Billboard, Saturday, September 25, 1948, p. 19.

RCA-Victor is preparing its own version of Columbia Records’ Long-Playing Microgroove disk. Victor’s approach to the situation is based on an invention it has had for some time; it won’t be released for month yet. There are no details available concerning the process, and the company won’t discuss it. Columbia’s LP disks have been moving ahead steadily since first sprung on the market last June. sales assertedly have been slowed only by the lack of sufficient players to reproduce them (33 1/3 rpm), and the strides made is convincing Victor to bring out its own type.

Variety, Wednesday, September 29, 1948, p. 57.

“Turntable,” “…Tempo Records Co., Hollywood, has released its first album of long-playing records through retail outlets. Album contains ten 12-inch records consisting of 100 musical selections. Records play at speed of 33 1/3 rpm, on any dual-speed equipped machine. Total playing time is five hours, each side taking 15 minutes. List price of album is $45….”

Broadcasting - Telecasting, Monday, October 25, 1948, p. 52.

New York, Jan. 1.—Columbia Records next week will make official announcement of its seven-inch 33 1/3 microgrooved record. The new platter which has been in the works for a number of months, ever since, as a matter of fact, the original long-playing microgrooved record was introduced, actually represents an expansion of the Columbia 33 1/3 microgroove idea into all the rest of the line of the Columbia label. In other words, while the original 33 1/3 microgroove record, capable of playing 22 1/2 minutes of music per side, or 45 minutes per disk, was primarily intended for masterworks and show tunes, the new seven-inch platter will encompass the complete Columbia line.

Popular, hillbilly, race, children’s and masterworks singles will be handled with the new seven-inch platter. Columbia officials refused to comment on the introduction of the new platter this week, but it is presumed in trade circles that the new record will sell for something less than present records, of a comparable nature, on the market.

Date Unannounced

Columbia toppers also refused to comment on the date on which they would actually introduce their new seven-inch platter to the commercial market, but the best guess is that the introduction of the RCA Victor 45 r.p.m. record would have some bearing on any decisions on timing.

More details on the Columbia seven-incher will be forthcoming next week.

The Billboard, Saturday, January 8, 1949, p. 13.

New York, Jan. 1.—The full facts concerning the new and much-speculated-upon RCA Victor record and player, as they have been developed to date, are these:

1) RCA is bringing out not only a new type, new speed record, but is introducing a completely new phonograph system. Contrary to general trade rumors, in other words, the company is springing a record and player which constitutes a combination of evolutionary steps in the industry.

The New Player

(2) The player, the heart of which is a new automatic changer mechanism, will be made available in an adapter unit, which may be hooked up to any present radio or phonograph, as well as in the form of a complete player unit, which merely needs to be plugged into any socket and in various combinations. The adapter unit, with automatic changer mechanism, measures some seven inches in width, nine inches in length and 31/2 inches in depth. The spindle is actually the most revolutionary aspect of the mechanism. Unlike the present-day thin spindles, the RCA spindle measures about 1 5/8 inches in diameter, and into this spindle is built the complete changer mechanism. About an inch below the head of the spindle two tiny prongs extend from each side of the spindle. The new platters actually rest on these prongs and drop onto the turntable in order, once the changer is activated.

The same spindle, with changer mechanism built in, will actually be the feature of all new RCA Victor phonographs and combinations (excepting, of course, television combos, where the TV will naturally get the play). The least expensive, completely contained unit in the new RCA Victor player line will be an item measuring roughly 9 1/2 inches square and 4 3/4 inches deep. The casing is a black plastic with the spindle in gold with a red plastic cap, and tone arm in gold to match. This player has a three-tube amplifier and a small four or six-inch speaker. Every RCA Victor phonograph in the future will be either the new 45 revolutions per minute, 1 5/8 inches diameter spindle automatic changer machine, or this machine in combination with the standard 78 r.p.m. All RCA Victor combinations, phono-radio or phono-radio-TV, as a matter of fact, will contain both the new 45 r.p.m. players as well as the standard 78 r.p.m. player, both with automatic changers. This will apply to the least expensive sets in the line, clear up to the Berkshire, the company’s ultra-de luxe combination job. The new 45 r.p.m. phonograph mechanism, in any model, will utilize the special permanent sapphire needle, which has been in use in RCA Victor sets for some time.

The New Record

(3) The new phonograph as stated and as has been correctly guessed in some quarters, will play at a speed of 45 revolutions per minutes. The new RCA Victor, of course, in a 45 r.p.m. disk. It measures 6 7/8 inches in diameter and has a hole (obviously, to fit the spindle described) of about 1 5/8 inches in diameter. Only about an inch of the outside rim of the disk is utilized for grooving. The record was developed by RCA engineers with the express objective of achieving 100 per cent undistortion, or put another way, creating a record which is completely free of surface noises or distortion of any kind. It is generally known that the closer to the hole the grooves are cut, the greater elements of distortion are likely to creep in, all other factors being equal. Persons who have heard the new RCA Victor disk have told The Billboard that as far as they have been able to determine, the RCA engineers have successfully accomplished their total undistortion goal.

Not a LP Platter

An important factor about the new RCA record, which must be borne in mind, is that it has no long-playing feature, as such, at all. Popular, hillbilly and such recorded items, for example, will play at their established length of approximately three minutes. Classical and other normal 12-inch items will play at the same length as usual, roughly five minutes. Whatever long-playing factor may be said to exist, exists in the fact that if nine of the new records, playing 5 1/10 minutes each, were placed on the changer (the capacity will be billed as nine records, the 10 to 12 may fit on it), the listener would get some 45 minutes of music, interrupted only by the split second between the time one records ends and another begins thru the operations of the changer mechanism. Incidentally, the new RCA Victor record for popular, hillbilly, classical, children’s or nay other items, will all be the same size, as detailed above.

(4) The records are made of unbreakable vinylite and have a slight shoulder built up the inside rim so that a minute amount of air space actually exists between each two records in a pile placed on the changer mechanism. This is obviously intended to contribute to a complete elimination of changer service problems, which has been a headache to dealers to these many years.

(5) When RCA introduces the new records and players (this will be some time in the spring, between March and late April, most likely) they will kick it off with a substantial catalog of the new records right across the board. There will be popular, pop, specialty, race, novelty, children’s, Red Seal and religious items, all in goodly proportions. From the intro point on, the company will release all future pressing two ways, on the used standard 78 r.p.m. shellac records, and on the new 45 r.p.m., unbreakable vinylite disks.

Demonstrations Held

While at this point the entire project is still a closely guarded secret, with relatively few people even at RCA aware of the full details, the company has held a number of private demonstrations of the player and records for set, changer record, pick-up needle, manufacturers, etc. The reader reaction, as learned exclusively by The Billboard, is roughly as follow:

Approximately 12 set manufacturer are more or less committed to introduce the new 45 r.p.m. player in one version or state, or another about the same time RCA will introduce its new line for the first time.

One major record manufacturer indicated to The Billboard that he is inclined to go along with the RCA 45 r.p.m. idea, virtually concurrent with RCA’s own introduction of the new platter and player. The majority of the smaller record manufacturers have not yet seen the new RCA disk or machine.

Unquestionably the greatest stimulus in garnering support from other instrument and/or record manufacturers is the fact that RCA is making available to any and all comers on a completely royalty-free basis, final working blueprints for both the player, the changer mechanism and the records. The records can be made, it is claimed, with the same equipment being used in virtually all record plants today.

Lower Price

Speculation and rumors concerning the price of the new player and record have been on a level with same concerning the phono and disk themselves, i. e., lots of talk, based on no facts. The fact is this. The price of either the player or the disks has not yet actually been determined by RCA. It is a safe bet, however, that the price of adapters and players will be as reasonable as the company can make them, because top RCA management is acutely aware of the urgent necessity for getting as many units to play the new disk on the market as quickly as possible. The records will undoubtedly sell for less than the present records on the market.

Just as the pricing picture is a matter receiving most intensive through and study (cost studies, market potentials, competitive elements, etc.) on the RCA top levels, so is the entire merchandising and marketing procedure on the new player and platter. Selected red stations no doubt will receive 45 r.p.m. players as soon as the item is introduced, so that they will be in a position to give the new item a send-off if they are so inclined. Juke box manufacturers have been given a demonstration, and while it is unlikely that any juke makers will rush into quick production with a 45 r.p.m. unit, the time will probably come when the new record will get a boost from this quarter.

No Name Yet

A tricky problem facing the RCAites is how to identify the new disk and player when it is finally introduced. Since Columbia has been doing and all-out job publicizing and promoting the 45-minutes aspect of its long-playing microgrooved disks, the RCA gang, it was learned, want to duck the confusion which would result from their introduction of a 45 - revolutions - per - minute disk. Around Camden the project has long been referred to as the “Madame X,” but the feeling higher up is that this would hardly be in keeping with the company’s dignity on a consumer level. One plan being mulled, The Billboard learned, is to have the public name the new product via a gigantic contest.

While wiseacre trade comment anent RCA’s new disk has run along the general lines that the diskery would not sit still for Columbia beating them to the punch with the 33 1/3 long-playing platter, that RCA would find a way of “getting even,” the facts behind RCA’s development of its new system are these:

As the custom with all its many products, engineering research has gone on a record division for a long time. As far back as late 1938 the RCA engineers were diddling, not with a new type record, but with a complete phonograph system, which would give completely undistorted music. The record and player which will be introduced in March or April of 1949 were actually developed for all practical purposes by late 1946. The record business at that time was enjoying an unprecedented boom, and RCA hesitated to introduce the new product for fear of upsetting the market. In 1947 pretty much the same situation was true. Meanwhile refinements on both the player and disk were being made. In the summer of 1948 when Columbia introduced its long-playing 33 1/3 microgrooved disk and won the support of the majority of key instrument manufacturers, RCA decided the time had come to get serious about introducing their own version of a new standard. In view of the engineering research, production and other planning necessary to ready and launch such an item it seems ridiculous to believe that pique over the Columbia move dictated the RCA entry. On this score top RCA spokesmen point out that they are the sole firm with both an instrument and a record stake in the disk business. They would be silly, therefore they point out, to do anything which would tear down the industry. Rather, they insist, it is obviously to their interest to do everything possible to build up the industry.

Despite any pros and cons along this line, however, there is little doubt that the introduction of the new RCA player and platter in the spring will mark the beginning of a historic disk battle between the Camden characters and the Columbia gang from Bridgeport. In many respects the tussle is likely to turn out as fraught with significance and ultimate effect as the old battle between the cylinder and the flat record. There is also little doubt that the introduction of the new RCA items will create a certain amount of additional confusion on the dealer and certainly on the consumer level. Industry leaders, regardless of which side of the fence they occupy at the moment, are agreed on one point: That it is of prime importance that all factions contribute as little to the inherent confusion as possible and work as hard as they can to hold any confusion to a minimum. If they do, trade toppers believe, the industry is on the way to profitable rebirth. If they don’t…hold your hats, kids, and run for the storm cellars.

The Billboard, Saturday, January 8, 1949, pp. 3, 13, 83, 84.

“…Termination of the AFM record ban and introduction of long playing microgroove records by Columbia Records point to 1949 as one of the canned music industry’s biggest years, according to Frank K. White, president of the firm. Over 300 stations are equipped with LP players, he said, and 15 major manufacturers are now producing or considering production of LP discs….”

Broadcasting - Telecasting, Monday, January 3, 1949, p. 44.

Hollywood, Jan. 8.—Tempo Records will invade the classical field next month when it starts simultaneous release of 78 and 33 1/3 r.p.m. European recorded platters. Tempo’s prexy, Irving Fogel, recently returned from a European biz trip on which he acquired American pressing and distribution rights for a large classical catalog. Fogel, however, failed to divulge the name of the diskery, claiming that legal complications necessitate his keeping mum on that point until platters are released.

Tempo, which had disclosed its 33 1/3 r.p.m. plans almost simultaneously with Columbia’s LP announcement, said the label may go to 45 r.p.m. if the Victor sponsored speed shows buyer acceptance.

The Billboard, Saturday, January 15, 1949, p. 20.

Chicago, Jan. 8.—Mercury Records Prexy Irving Green stated this week that his diskery would soon debut with its own version of a long-playing platter—a vinylite job that will play on 33 1/3 micro-groove equipment. It’s understood the Mercury disks will include 7, 10 and 12 inchers.

Green, however, pointed out that the Mercury process has been made possible thru use of the Reeves-Faichild margin control process, which it is claimed, makes possible the cutting of many more lines to the inch, greater frequency range and better stylus tracking than has heretofore been possible with the longer-playing disks. Repertoire of the new Mercury microgroove wax will be drawn from the company’s catalog of 20,000 classical masters, the Czechoslovakian Ultraphon, Esta and Supraphon catalogs, as well as longhair sides of domestically made recordings.

Among the first items to be released on Mercury’s LP’s will be the Khachaturian Violin Concerto, featuring David Oistrakh, The 1912 Overtire by Mengelberg-Amsterdam Orchestra, and works by Erna Sack, and oboist Mitchell Miller. The Miller disks will introduce Mercury’s extended frequency range recording technique into the microgroove field. The leather-type packaging utilized in Mercury’s regular longhair line will be retained in the LP series. Price will be in line with recently released disks by competitive firms.

The Billboard, Saturday, January 15, 1949, p. 20.

New York, Jan. 8.—Details of Columbia’s new seven-inch microgroove disk (The Billboard, January 8), with respect to price structure and catalog, were revealed this week, together with a statement relative to public acceptance of long-playing (LP) records. According to Edward Wallerstein, chairmen of the board of Columbia Records, the seven-incher, on which Columbia will make available its weekly pop and masterworks releases this month, “is the logical step in the completion of the revolutionary technique established…when we introduced the microgroove system six months ago.”

Implicit in the Columbia announcement is the fact that the purchasing public is gradually getting a better quality disk for less money. The competitive picture assures this, inasmuch as RCA Victor and Columbia have both gone down the line together on price structure with respect to regulation 78 r.p.m. disks and will follow suit on their new developments.

60-Cent Pop and Folk

The seven-inch Columbia platters are priced at 60 cents plus federal tax for pop and American folk music releases, and 90 cents plus tax for masterworks. Regulation Columbia pop disks sell for 79 cents, with masterworks retailing for $1 per 10-incher and $1.25 per 12-inch. Frank White, Columbia topper, stated: “As future conditions warrant, this policy of lower prices will be pursued.”

The new non-breakable seven-inch disk, which has the full fidelity and tonal qualities of the LP microgroove introduced by Columbia last June, can be played on all existing LP equipment, and contains the same amount of music as a regulation 10 or 12-inch disk. “We we’re determined,” stated Wallerstein, “to make these vastly improved records available at substantial savings…these objectives have been accomplished.”

Frank White called the acceptance of LP by the public, press and manufacturers “gratifying.”

This, tho, was amplified by Wallerstein, who said that “already, several hundred thousand LP playing instruments are in the hands of the public and upward of a million and a half LP records have been sold. It was pointed out that since June, 1948, practically all leading manufacturers of radio phonograph equipment have either produced machines to play LP or stated their intentions to do so, including Admiral, Crosley, General Electric, Majestic, Magnavox, Philco, Stewart-Warner, Stromberg-Carlson, V-M, Webster, Westinghouse, Wilcox Gay and Zenith.

As indicated in The Billboard last week, the seven-inch disk will encompass a wide catalog, the initial release pf pop, folk music and masterworks selections to be supplemented soon. Following is the first regular seven-inch release:

No. Title and Artist

3-101 Shostakovich: “The Age of Gold.” Rimsky-Korsakov: “The Flight of the Bumble Bee.” Glinka: “Life of the Czar-Mazurka,” New York Philharmonic Symphony, conducted by Efrem Kurtz. 3-102 Kind-Weber: “Der Freischutz,” recitative and aria (Act II), Ljuba Welitsch, soprano, and the Philharmonia Orchestra, conducted by Walter Susskind. 1-103 “Let a Smile Be Your Umbrella,” “Sweet Sue, Just You.” Frankie Carle and his Orchestra. 1-104 “Con Maracas,” “Peter, Peter, Pumpkin Eater.” Xavier Cugat and his orchestra. 1-105 “Little Guy.” Arthur Godfrey with the Mariners. “I’m a Lonely Little Petunia.” Arthur Godfrey with Sy Shaffer. 1-106 “Sun Flower,” “Once in Love with Amy.” Frank Sinatra. 1-107 “Tara Talara Tala,” “A Rosewood Spinet.” Dinah Shore. 1-108 “A Little Bird Told Me.” Janette Davis and Jerry Wayne. “If That Isn’t Love, What Is?” Jerry Wayne and Janette Davis. 1-109 “If You Will Marry Me,” “You Was.” Doris Day and Buddy Clark. 2-110 “The Black Sheep Returned to the Fold,” “Matthew Twenty-Four.” Molly O’Day and the Cumberland Mountain Folks. [see ad in Chicago Daily Tribune, Chicago, Illinois, Monday, January, 31, 1949, p. 2.]

The Billboard, Saturday, January 15, 1949, pp. 20, 100.

A new system of reproducing music from records was announced yesterday [Monday 10, at Johnny Victor Theatre in RCA Exhibition Hall, 40 W. 49th Street] by RCA-Victor Records, together with a denial that it was engaged in any “trade war” with its chief competitor in the record field, Columbia Records, Inc.

A day after Columbia made public details of its new 7-inch “microgroove” record—a development of its long-playing disks—the RCA-Victor management demonstrated its new system, involving new-type records, record-changers and turntables.

Although there are many similarities between the records of the two companies—they are the same size, made of unbreakable vinylite, and have hundreds of grooves an inch—they differ in one important respect: they play at different turn-table speeds.

The new Victor records, which will go on sale about April 1 [see ads in Chicago Daily Tribune, Chicago, Illinois, Thursday, March 31, 1949, p. N A9; The Billboard, Saturday, April 1, 1949, pp. 36, 37], revolve 45 times a minute; the new Columbia records, which will each stores before the end of the month, turn 33 1/3 times a minute; and conventional shellac records, used at present by 16,000,000 owners of record-playing machines, revolve 78 times a minute.

As a result, neither of the two new-type records can be used on competing phonographs and neither can be played on conventional phonographs without additional mechanism. Considerable confusion has developed among record-buyers, according to trade circles. One retailer described the public as “just disgusted.”

In presenting their new system at a press demonstration yesterday, RCA-Victor officials said it was based on a “revolutionary” automatic record-changer mechanism. Up to eight records can be placed on a 1 1/2 inch center spindle that houses the drop mechanism. The period of silence during which the records change was timed at less than three seconds.

Because of this speed, RCA officials said, listeners could enjoy up to forty-two minutes of relatively unbroken, distortion-free music. For this reason, they added, the company would manufacture only 7-inch records of the new type, in both classical albums and popular music.

This contrasts with the Columbia records, which were introduced in the LP category last June. Columbia puts its classical albums on one LP record of 10 or 12 inches and will press shorter classical pieces and popular music on the new 7-inch record.

The RCA-Victor announcement said the new system provided “completely distortion-free music of unprecedented brilliance and clarity of tone.”

Frank M. Folsom, president of the Radio Corporation of America, parent body of RCA-Victor Records, said stories of a “trade war” between his company and Columbia were “not quite accurate.”

“I think it’s a normal commercial competitive job that people do every day in business,” he added.

Saw the Columbia Disks

He reported that Columbia had shown him its new records in late April, about forty-five of sixty days before they were released. He added that at a second meeting with the Columbia officials he told them that he was “not sure” that the 33 1/3-rpm system was best.

“I do not regard this as any warfare with Columbia,” he said.

His assistants insisted that the 45-rpm, machine gave “the highest fidelity we know of.”

“This is the best phonograph record ever made,” said J.G. Wilson, executive vice president of RCA. “It was developed jointly with its own unique record player. The combination of these two makes available to the American home recorded music of a quality and fidelity never before possible at low cost.”

Questioned about the cost of the new records, the RCA officials would say only that they would be “competitively priced.” Columbia has announced that its 7-inch records would cost 90 cents in the classical field and 60 cents for popular disks.

Available without Cost

As Columbia did on the previous day, RCA announced that its new system would be available to other manufacturers without cost. Joseph B. Elliott, a vice president of RCA-Victor, said blueprints and specifications already were in the hands of changer and set manufacturers.

Later in the day Edward Wallerstein, chairman of the board of Columbia Records, said, “We are unable to fathom the purpose of the records revolving at 45-rpm, which we understand are to be released sometime in the spring.”

He described the Columbia “microgroove” system as containing maximum flexibility for both classical and popular recordings and added:

“We do not see what additional advantages a 45-rpm record can offer to compensate for the unfortunate conflict it appears to be creating in the minds of both public and industry.”

The New York Times, New York, New York, Tuesday, January 11, 1949, pp. L 29, 36.

New York.

Relax, Folks.

Absolutely all you are going to need to enjoy fully the audio-video-phonograph age are the following:

A radio set.

A television set.

A record player with a turntable that spins at 78 revolutions a minute.

A record player with a turntable that revolves at 33 1/3 r.p.m.

A ditto with ditto that dittoes at 45 r.p.m.

You also will require the proper records and needles for all these electronic devices. But until United States business efficiency, engineering know-how, and ingenuity take their next big stride forward, unlimited home entertainment can be assured with the foregoing modest array of equipment.

RCA Stage Debut

Those who have not already decided to take up the mandolin may be interested to know that the newest contributions to the uncluttered life were introduced on Jan. 11 [10] in New York by the Radio Corporation of America. The debut occurred in the Johnny Victor Theatre [in RCA Exhibition Hall, 40 W. 49th Street] (81 seats) which meets the dual demands of aesthetics and acoustics with zodiacal shapes on the walls and inverted craters on the celling.

To launch its new 45 r.p.m. phonograph and record, RCA plied 150 representatives of the press with top executives, refreshments, and carnations. (White carnations designated reporters, who were rushing into print with the good tidings. Red carnations denoted those with less urgent deadlines. It was a pretty thought.)

By an apparently fortuitous coincidence, RCA demonstrated its new 45 r.p.m. 7-inch records within 24 hours after Columbia Records, Inc. had announced its new 33 1/3 r.p.m. 7-inch records. Each firm has declared that 12 or more leading manufacturers of radio phonograph equipment have begun making or are planning to make sets to accommodate its particular slow-playing record.

Joseph B. Elliott, vice president in charge of RCA Victor Home Instrument Department said he had even heard “rumblings” that someone will come out with a three-speed player.

‘On the Record’

When this fugitive from the 78 r.p.m. era made his way past the carnation dispensers and penetrated into the discreet depths of RCA auditorium, a stocky man who turned out to be RCA’s president, Frank Folsom, was assuring the crowd that all his remarks were “entirely on the record.”

From what Mr. Folsom said; it appeared that RCA and Columbia have each known what the other was doing over a period of some years. But each company resolutely persisted in its own course. Mr. Folson wanted to dispel the idea that there is an industry fight on. He assured the press that the 78-45-33 1/3 situation is simply the “normal, commercial, competitive” way of doing business.

Mr. Folsom ceded the platform to Mr. Elliott, who went into technical details. At one point, Mr. Elliott declared earnestly: “Ladies and gentlemen, I want you to have faith; this is a distortion-free record.” He described the RCA player and record as “an entirely new system” which eliminates 75 per cent of the usual record-changing problems.

‘His Master’s Voice’

At a suitable moment, the auditorium lights darkened, a curtain was drawn back disclosing several sample RCA sets. Francis Barraud’s quizzical “His Master’s Voice” terrier surveyed the proceedings from his portrait on the wall.

With appropriate enthusiasm, Mr. Elliott played several of the new disks, demonstrated the record-changer, and alternated a 45 r.p.m. record with a conventional record. The slow-playing disk was perceptibly clearer, deeper, and more resonant. Mr. Elliott assured the press people they never heard anything like it.

The comment was characteristic of claims by both competitors.

Edward Wallerstein, chairman of Columbia’s board, described his company’s seven-inch microgroove as “the final, logical step in the completion of the revolutionary technique established by Columbia when we introduced the microgroove (long-playing records) system six months ago.”

The Christian Science Monitor, Boston, Massachusetts, Tuesday, January 11, 1949, front page

The forthcoming battle between Columbia and RCA-Victor to control the evolution of recording industry, the first since the shape of recordings changed from cylindrical to flat, broke out into a choosing up of sides last week. Capitol Records and the comparatively new, but fast-rising Mercury label moved into the argument, which promises to be a lulu. Capitol sides with Victor and its new 45 rpm seven-inch disks, and Mercury agreed to fight on the side of Columbia 33 1/3 Microgroove Long-Playing platters.

Capitol has accepted Victor’s blueprints for the production of the company’s newest development, which will be marketed by the RCA organization by April 1. Mercury has accepted Columbia patents and will be on the market with a Microgroove disk “in the very near future.” Both companies have fairly extensive foreign alliances, Capitol only last fall completed arrangement with Germany’s Tele-Funken, a recording outfit comparable to Victor in this country. Mercury had previously completed a master-exchange arrangement with Czechoslovakia’s Ultraphon, Esta and Supraphon, which isn’t nearly as large as Tele-Funken.

Capitol’s tossing in with Victor and Mercury’s move to Columbia leaves Decca, and possibly M-G-M, but particularly Decca, in a key position. This firm, ranking with Columbia and Victor in the pop field, but some distance behind both in classical, could sway the balance toward whichever side it joined, if it does join. So far, Decca has been offered both the Columbia and Victor ideas, but it has leaned toward neither. Jack Kapp, the company’s president, states that Decca will sit back and watch and wait. Meanwhile, it will go after the standard 78 rpm business hotter than ever. Neither Victor nor Columbia, of course, intend going out of the 78 field, but Decca apparently figures that the absorption of both in trying to establish their new developments will open the 78 field wider to its own efforts.

Variety, Wednesday, January 12, 1949, p. 43.

From The Wall Street Journal, Chicago Bureau. Chicago—The first record player, that can handle all new slow speed records and conventional speed records, was demonstrated here yesterday by Scott Radio Laboratories, Inc., makers of radio, television and phonograph sets.

The record player has two pickup arms, one for conventional records that are played at 78 revolutions a minute and the other for the Columbia records, which play at a speed of 33 r.p.m., and the R.C.A. Victor record, which plays at a speed of 45 r.p.m.

The change the Scott player from the Columbia record to the R.C.A. record, a brass collar is placed over the normal spindle which has a smaller diameter. This takes care of the one and one half inch diameter spindle hole in the new R.C.A. records. Then a slight adjustment is made in the speed of the turntable and the set is ready to play the R.C.A. record. The new slow-speed records are played manually and the conventional records changed automatically.

Prices on the new Scott sets have not been determined as yet according to a company spokesman. Owners of Scott sets will be able to replace their present equipment with the new record changer.

The company expects to reach full production on the unit in one month.

The Wall Street Journal, New York, New York, Wednesday, January 19, 1949, p. 4.

Chicago, Jan. 25. The controversy begun in the recording business by the advent of RCA-Victor’s 45 rpm recordings in opposition to Columbia’s previously marketed 33 1/3 rpm disks is having far-reaching effects on record dealers and the public alike, distributors here claim. It’s asserted that retail dealers are burned plenty at Victor for muddling the entire recording situation with its 45 development, and they’re angered just as much at Capitol for joining Victor.

Dealers assert that the drop in record sales during the past two to three weeks, and it has dropped sharply in this area, is almost entirely in this area, is almost entirely due to the confusing and conflicting picture of the necessity of three different turntable speeds. It’s pointed out that neither Columbia nor Victor has, through all the slugging for newspaper and wire breaks for their respective developments, made it clear enough that the standard 78 rpm business will be continued for a long time, since it isn’t easy to induce the public to discard nearly 15,000,000 78 turntables. Most of these are new, having been manufactured and sold since the end of the war.

It’s claimed by the dealers that the confusion has caused the public to reduce buying. And for this RCA is blamed. Store operators point out that they were doing very nicely with a constantly expanding business in Microgroove disks and turntables and that if Victor had gone along with Columbia in producing the same platters the record business would have boomed again instead of dropping off. Now Capitol is drawing the same ire.

Department stores here and in various midwest keys have felt the record slump to the extent that many have shifted disk-sales counters out of choice floor positions. Some are claimed to be planning to dump them entirely on the theory that current profits aren’t worth the floor space recordings take up. One store in Buffalo, for example, has considerably reduced its disk counter and moved it into the basement, filling the same space with a television display.

That’s anther factor. The area between this town and N.Y. and 500 miles north and south of the line, is the heaviest disk-buying section of the country. And the opening of the video coaxial cable between Chi and the east isn’t going to help recording sales.

Variety, Wednesday, January 26, 1949, p. 45.

Hollywood, Jan. 25. William S. Paley, president of CBS, and Frank White, president of Columbia Records, CBS subsid, have been endeavoring to talk Capitol Records out of its aim to join with RCA-Victor in the marketing of the latter’s new 45 rpm disks and changers. Paley is said to have participated in conversations with Capitol men, but it was White who concentrated on trying to keep Capitol off Victor’s side and to induce the Coast major in joining the rpm battle on the side of Columbia’s 33 1/3 rpm Microgroove Long-Playing disks.

Columbia has already gotten Mercury, another budding firm to join with it in putting the 33 1/3 sides on the market and if it can induce Capitol to forego participating with Victor, the worry over Decca Records’ future moves will be minimized. Decca has not made any decisions, according to president Jack Kapp. He prefers to watch the situation and meanwhile concentrate on the 78 rpm field, which will be alive and kicking for some time yet.

But Capitol is the key. If it remains with Victor which is said to be likely, Columbia must secure Decca for its side. It can’t miss, because if Decca also went Victor there would be three majors lined up against Columbia and Mercury. If Decca went with Columbia, the balance would be in Columbia’s favor, even if Capitol aligned with Victor. But Columbia can’t chance, if it can be avoided, hoping to induce Decca. If it can snag Capitol from Victor, a good part of its worries are over.

That’s what White and Paley have tried to do. They’re now back in N.Y. and whether they were successful or not is unknown. Capitol’s not saying.

An angle on the Colombia approach to Decca might lie in CBS’ deal with Bing Crosby last week, which brings the Groaner to CBS next year. Though the deal does not involve Crosby’s recording activities, the fact that the singer is on CBS gives the latter’s execs an opportunity to talk him into talking Decca onto the CBS side.

Incidentally, while Columbia was making a pass at Capitol, Victor was making one at Mercury. Latter’s execs were in Camden last week again going over the Victor 45 development.

Variety, Wednesday, January 26, 1949, p. 45.

Mercury Records will release its first Microgroove-Long-Playing disk in two weeks. Initial issue will consist of one 12-inch disking by the Russian violinist, David Oistrakh, of Khachaturian’s Violin Concerto [see ad in The Billboard, Saturday, March 19, 1949, p. 25].

Disk will sell for $4.85. Mercury’s LP process is the same as that used by Columbia Records.

Variety, Wednesday, January 26, 1949, p. 45.

Columbia Records has agreed to discard the “experimental," royalty-free blanket licenses it secured from all major music publishers last June in relation to the marketing of its Microgroove Long-Playing disks. Company has agreed to pay full royalty rates to publishers for the use of copyrighted music as of Jan. 1, on the usual quarterly basis even though, in the majority of cases, its royalty-free agreements with pubs are not due to expire until June 31 next.

Harry Fox, agent and trustee for publishers in mechanical matters, arranged the new agreement with Columbia. He Followed the line of reasoning taken by many music publishers that CRC’s LP disks were beyond the experimental stage in view of the number of such disks sold. Publishers, however, will not realize any sizeable revenue from LP sales in view of the fact that the vast majority of sales in that category involves public domain classical selections. Columbia is, however, marketing numerous copyrighted standard tunes by its top artists. They will be the source of most of the income pubs derive. At least until CRC’s seven-inches LP disks get rolling on a larger scale. They will carry pops and standards and classical.

Move to secure royalty payments from Columbia on its LP’s may also have been designed to stymie a plea by RCA-Victor for its new 45 rpm disks, which won’t be released until April. It’s very probable that Victor anticipates requesting royalty-free experimental agreements from pubs on the new venture, in view of Columbia’s having such a deal. Whether Victor will be able to obtain such an objective now is anybody’s guess.

Variety, Wednesday, January 26, 1949, p. 44.

Hollywood, Jan. 29.—Capitol Records, wooed for many months by both RCA Victor (45 r.p.m.) and Columbia (33 1/3 r.p.m.) to join their respective speed ranks, is expected to give its hand to Victor despite amorous advances by Columbia. Latter put in its final plea to Capitol last week when Frank White, Columbia prexy, and William Paley, Columbia Broadcasting System (parent company) board chairman, huddled with Glenn E. Wallichs Capitol prexy, and other top execs of the Coast major. While Cap still chose to remain mum on its speed choice, all indications pointes to it definitely joining Victor. Understood only factor holding up Cap’s 45 r.p.m. announcement was the problem of setting up production facilities for the big-spindle, rapid-change platters.

Cap will bend all efforts to hit the market with the 45 r.p.m. disks as close to the RCA Victor Kick-off as possible. Reconversion of its own plants to the disks will take more time than is available. Victor has been selling its pressing plant facilities to Cap for standard disks. Understood deal is on for Victor to take over Cap’s 45 r.p.m. pressing until the Coast major can convert its own plant.

In the meantime Decca will remain on the 78 r.p.m. fence without joining either Victor or Columbia. Waxery intends fo follow the wait-and-watch policy until it’s sure which flattery emerges victorious in the battle of the speeds. Since one of outstanding attractions of both 33 1/3 r.p.m. and 45 r.p.m.-rapid change platters is to the classical disk buyers, Decca, who still emphasizes its pop platter biz (despite the English Decca tie) can afford to take its time before invading the slower speed field. Capitol, who intends to throw its full promotional weight behind its newly acquired Telefunken longhair line, feels that it is to its competitive advantage to offer a slower r.p.m. disk, now that both Victor and Columbia are stepping down the turntables.

The Billboard, Saturday, February 5, 1949, p. 20.

Reporter: “How’s the phonograph and record business?”
Music store salesman: “It ain’t.”

The dialogue is painfully close to typical of Wall Street Journal cross-country conversations with retail music-and-music-machine vendors. The advent of television and a record revolution “that”s giving birth to a new type of platter every day” are murdering sales of traditional melody-making equipment for the home, say the music men.

In mid-1948 Columbia introduced its “Long Playing” records, which required a new-type player. Soon now, RCA Victor will bring out still another sort of record, calling for yet another type of player. The confusion has caused consumers to cut record buying and to back away from machines that won’t “play everything” “And, further,” says one big New Yorker retailer, “radio-phonograph sets without television included are dead ducks.”

Au Revoir

Many disgusted retailers are dropping out of the record business altogether. Almost all slashing their radio-phonograph machine orders sharply.

One of the nation’s biggest department stores says it has cut its record orders 90% since the first of the year. A Big national department store chain indicates it will eliminate the record department in many of its units and drastically curtail it in others. The Vim chain in New York is discontinuing the record departments in all but one of its 18 stores.

“We’re tossing in the sponge on our record department and cutting orders hard on radio-phonographs,” says James H. Bell, partner in Philadelphia’s Heppe Co., a big phonograph and radio retailer. He adds: “If record manufactures iron out this confusion or we find Heppe’s is sacrificing customers by giving up records, we might—and I emphasize ‘might’—reinstate our record department.”

A spokesman of another Philadelphia retailing firm, the Witte Radio & Television Co., says his radio-phonograph business is 75% below a year ago “It’s just dead,” he adds. A third merchant in the same city says his “record sales are down more than 50% from a year ago, with radio-phonograph sales off even more.”

Prices Plummet

Drastic price slashes are epidemic. Typical is the tale from Berman’s Radio Store in Boston, which “has been trying to get out of the record business since last September.” Says a Berman spokesman “Because of the difficulty in moving stock, even at cut prices, it may take another month or two to complete the job. We are selling $[unreadable] albums for $1.95 and 75-cent records at four for a dollar.”

A Dallas retailer is selling for $200 a 12-tube radio-phonograph machine carrying a list price of $819.50. New York retailers sell one time $112 radio-phonograph for $10.

Most retailers agree the worst drop-off in record business has been the classical music. Such records, they emphasize, are purchased for long-time use, and people are wary of buying them if they are soon to become outdated.

The Record & Gift Center in Pittsburgh, which reports its sales of popular records lately have not been “too bad,” adds that classical record sales have dropped 15% just in the past few weeks.

Two at a Time

A Cleveland retailer, who says he is cutting his stock of classical records in half, describes his immediate future buying policy thus: “Instead of ordering 20 records at a time, we are going to take only two or three.”

Other dealers, however, are quick to emphasize that not all bad business is centered in “heavy” music. One retailer declares “I used to sell 300 Bing Crosby Merry Christmas albums at Christmas time. This past Christmas I sold 23.”

Radio-phonograph makers, plugging hard at new television business, are tight-lipped about current sales of machines not containing television units. But at least one of the biggest ones in the business admits “sharp cut-backs” in orders for non-television equipment.

Manufacturers all agree confusion reigns in the phonograph world. One Chicago producer, after bemoaning “television competition, year-end merchandise dumping, and a general business slow-down,” summed up the:

“Now we have umpteen different records to contend with. Unless the record makers get settled, the public won’t be happy with phonographs until they play everything automatically, interchangeably, and for four hours.”

Predictions Are Difficult

Bewildered phonograph makers are also hesitant about predicting what will finally become the standard type of player after the record revolution runs its course.

A principal mechanical difference between the different types of records is the varying speeds at which turntables must revolve to play them. The old, standard records call for 78 revolutions per minute. The New Columbia type calls for 33 1-3 revolutions. The new Victor type will call for 45 revolutions. But the size of the record groove, and hence the weight of the playing arm and the type of needle, also differs as does the spindle hole in the center of the record.

An executive of one radio-phonograph manufacturing company expresses a personal opinion that within a year no one will be producing sets to play 78 r.p.m. records. He thinks machines will go through a three-phase evolution. Fist would be sets playing 78 and 33 r.p.m. records, as some now do. The second phase will include an attachment for playing 45 r.p.m. records, as at least one will now do. The third will be machines playing only 33 and 45 r.p.m. recordings.

Production of the old-type, 78 r.p.m. records, however, is expected to continue for a long time. Reason: In the nation’s homes today are some 15 millions phonographs which will play only the old records.

The Wall Street Journal, New York, New York, Wednesday, February 2, 1949, front page.

New York, Feb. 5.—As of the first of this month the number of LP record changers un consumers hands totaled 766,023, according to a check with Columbia sources. The figure is expected to bounce considerably higher shortly as a result of Columbia’s promotion campaigns and the various distributor-dealer arrangement being worked throughout the country.

The latter deals vary, but all of them are making it increasingly easier for a consumer to get a Philco adapter—in some areas they are being given as a bonus with the purchase a number of LP disks; in others as a bonus along with purchase of TV receiver, et al.

The Billboard, Saturday February, 12, 1949, p. 17.

New York, Feb. 5.—Rex-Lee Enterprises, local phonograph outlet and electronic design firm, has developed a hideaway juke capable of playing Columbia 10-inch long-playing records, it was learned here this week. The unit, consisting of a specially modified Wurlitzer mechanism, is designed for wired music set-ups of single locations offering free music.

Created on the order of Max Schwartz, of the Manhattan sales Company, the first unit is to be placed on location early next week. For the past three weeks it has been undergoing extensive tests to determine the life of the 33 1/3 r.p.m. disks under continuous play conditions.

Basic modification of the unit involved the fabrication of special gears to cut down the turntable’s speed, explained Leo Knebel, who, with Tony (Rex) DiRenzo, is co-owner of the company. Also the head of the tone arm had to be changed to incorporate the long-playing cartridge. Since each of the 24 records plays for about 12 minutes, the mechanism has been fitted with an electronic timer adjusted to provide a three-minute pause between disks. Records are played in rotation, but by the addition of a selector unit request numbers may be played.

The entire mechanism is floated on sponge rubber to eliminate vibration. Long-playing records are said to be more sensitive to vibration than standard pressings.

The firm is set to produce the conversions in quantity and will shortly make them available to other operators.

The Billboard, Saturday, February, 12, p. 101.

New York, Feb. 5.—Electric Musical Industries (EMI) is surveying new technical developments in the American recording industry, with special reference to Columbia’s 33 1/3 long-playing system and RCA Victor’s 45 r.p.m.

W. S. Barrell, recording director for EMI, is in the U.S. studying both playing systems. When queried as to whether these types of disks would be produced in England, Barrell was silent.

The British recording director is scheduled to sail for England on the Queen Elizabeth February 18.

The Billboard, Saturday February, 12, 1949, p. 17.

Decca Records whose business curve the past 10 to 12 weeks is claimed to be higher than any time in the previous years of its existence, got caught last week in the confusion created by the imminent debut of RCA-Victor’s 45 rpm disks in opposition to Columbia Record’s 33 1/3 rpm Microgroove platters. As a result, Decca’s stock took a nosedive in Wall Street, to a new low of $6.25 per share at one point, whereas it had been up to $11.50 a few weeks ago. It closed Tuesday (8) at $7 per.

Sharp drop is directly attributed to the RCA-Columbia argument plus the general reduction in record-buying. Confusion attendant upon the rpm battle, in relation to the standard 78 rpm speed disks, has made disk-dealers and the record public sit back and await developments instead of buying, further deepening the sales slump. This news filtered through to Wall Street, and the Decca price drop followed.

Ironically enough, while the general disk business is off, Decca has more big sellers going for it than at any time in its history. There are nine or 10 hit disks bunched currently, led by Evelyn Knight’s “Little Bird Told Me” and Bing Crosby’s “Far Away Places.” But Decca’s stock is the only one that could have felt reaction due to the reports. Both Columbia and Victor are bolstered, overall, by being part of the CBS and NBC picture. Capitol’s stock is sold over the counter.

Variety, Wednesday, February 9, 1949, p. 43.

New York, Feb. 12.—Columbia Records this week [Feb. 9] took cognizance of the increasingly competitive disk picture with a statement amounting to reaffirmation of faith in LP. The statement, delivered by Edward Wallerstein, Columbia’s chairmen of the board, was buttressed with a set of figures pointing to a measurable degree of public acceptance of LP and indicating that Columbia was ready for a long competitive race against RCA Victor’s 45 r.p.m. system. The Wallerstein argument was also in the nature of an assurance to customers that Columbia would not let them down. And inherent in the whole was the angle of time. That is, the Columbia organization intends to gain public acceptance of LP to such a degree that when Victor finally gets rolling it will find itself facing a fait accompli.

In line with this philosophy, Columbia execs revealed they were making an all-out push to gain acceptance of LP by radio stations as well as the public. Approximately 400 stations, and perhaps close to 500, have already installed LP equipment, according to a check of manufacturers made by Columbia. A disk exec added that as stations obtain LP equipment, they are being serviced with LP records.

Trade War in Quotes

Wallerstein in his statement referred to the so-called trade war in quotation marks. The unique features of LP do not in themselves make a “record war,” he pointed out, and added, “but one major company—RCA—has chosen to ignore these developments (LP). If it had done only that, there would be no need for comment. RCA has gone much further. It has indicated it will make no provisions of any kind, either in its equipment or records, for long-playing records; it has suggested that the long-playing records already in the homes of the American people would not be successful despite all the weight of evidence and the considered judgment of virtually all other manufacturers of equipment… and it has just announced its own forthcoming new record development, a small record playing at the unorthodox speed of 45 r.p.m.’s, on a special turntable which can take no other records, either of the conventional long-playing type…This is the essence of what people have been calling a ‘record war.’”

Wallerstein claimed almost 600,000 families have bought LP players and that these families have bought more than 2,000,000 LP records. Current sales figures show that LP are being bought progressively faster, he said. The Columbia board chairman outlined the arguments for LP and then outlined the RCA Victor system for purposes of clarification. He concluded that RCA’s effort in 1933 to make a long-playing record had failed, whereas Columbia’s had succeeded, and summarized: “We give them (the people) our profound assurance that they can continue to buy LP with complete confidence. For these records have so clearly made an important contribution to music-loving America that they are certain to outlast any confusions of a ‘record war’—a ‘war’ which Columbia records has not initiated and in which it cannot be defeated.”

The Billboard, Saturday, February 19, 1949, p. 17.

New York, Feb. 12.—Beginning this week a dozen teams of RCA Victor commercial men and engineers will hit the road to run a series of meetings in the six regions into which RCA sectionalizes the country. At these sessions, in New York, Cleveland, Chicago, Atlanta, Dallas and Los Angeles, all RCA Victor distributors as well as key dealers will witness a demonstration of the company’s new 45 r.p.m. phonograph system (The Billboard, January 8) and will be given details as to the merchandising and marketing program set for the new system.

First meetings take place Sunday (13). These will be for distribs only. But beginning Tuesday (15) distribs and dealers jointly will sit in on a series of 60 get-togethers spanning a seven-day period.

Any dealers who aren’t covered via these 60 meetings will get the complete story and demonstration via follow-up meetings which RCA distributors, using their own personnel, will conduct. Over-all objective is to show the new phono and record to every dealer in the country before the end of this month.

In addition to the demonstration and merchandising plans, RCA will emphasize to distribs and dealers the fact that Capitol has announced its decision to go along with the 45, and will pass out to distribs a list of the instrument manufacturers who will produce 45 r.p.m. playing devices.

RCA teams, incidentally, will consist of two commercial men and one engineer. James W. Murray, veepee in charge of record division; John West, veepee in charge of public relations, and E.W. Engstrom, director of the engineering laboratories, for example, will constitute one team, which will run the Baltimore, Washington, Philadelphia and Harrisburg sessions.

RCA will also announce to the distribs and dealers that the following instrument manufacturers are either presently or will in the near future produce equipment to play 45 r.p.m. records: Emerson, Stromberg-Carlson, Philco, De Wald, Crosley, Stewart-Warner, Motorola, Admiral, Hoffman, Wells-Gardner, Scott, Sentinel, Teletone and Fad. This list cannot be presumed to be a complete representation of the manufacturers who will make 45 r.p.m. equipment, inasmuch as a number of set makers have not yet announced their plans, and the 45 r.p.m. records won’t actually hit the market until about April 1.

The Billboard, Saturday, February 19, 1949, p. 17.

New York, Feb. 12.—The eye-catching colors of RCA Victor’s 45 r.p.m. disk will provide dealers with wide opportunities for promoting and merchandising the new platters, according to J. B. Elliott, vice-president in charge of RCA-Victor consumer products.

The various colors (one for each category of music) were chosen by a board headed by John Vassos, industrial designer of psychological and aesthetic considerations. Classical music disks will be ruby red; semi classical, midnight blue; popular, black; children’s, lemon drop yellow; Western, grass-green; international, sky blue, and cerise for folk music [and blues & rhythm].

The Billboard, Saturday, February 19, 1949, p. 18.

New York. Feb. 19.—Manufacturers of phonographs and combinations, as well as firms who make equipment used by the leading manufacturers, are making intensive efforts to meet the problems posed by the development of the 33 1/3 and 45-r.p.m. systems. A check of manufacturers and firms making equipment indicates the public will be able to select any system it wants, in a variety of combos. The check-up also indicates that altho 33 1/3 is solidly entrenched as far as manufacturers are concerned, an increasing number of manufacturers are also jumping on the 45 r.p.m. wagon. In fact, since the announcement of 45 r.p.m., more than 15 changer equipment and instrument manufacturers have indicated they plan either to make or to use the RCA system in record-playing machines. LP, it is to be noted, has been on the market since June, and has therefore had considerable opportunity to gain acceptance. RCA's 45 system will not be out until April.

That manufacturers are hustling is attested to by information relayed by top companies. The following tells what they are doing currently, and what's in the blueprint stage:

On or shortly before June 1, VM Industries, servicing 27 radio makers with record player equipment, will have a fully automatic three-speed player. By using plastic insert disks which fit into the enlarged center hole of the Victor 45 r.p.m. seven-inch disks, stacks of both seven-inch 33's and 45's can be played automatically. Player will also intermix 10 and 12-inch 33-r.p.m. and 10 and 10 and 12-inch 78's. This player will also be manufactured as a separate unit, which will be sold to owners of most any set later than a 1941 model who want to remove the record player they have and insert this machine. VM has 700 distribs who handle their separate replacement sets.

On February 21, VM will release a two-speed player which will play 78 and 33 will play the new seven-inch 33's . On March 1 VM will put out a conversion kit containing a speed bushing to convert the 33 speed to 45. A larger center hole plastic adapter will be put on when the machine is geared to 45. All the foregoing VM machines will have one tone-arm.

By March 25, VM intends to have a player with one tone arm that plays 33 and 78 automatically and 45 manually.

Webster-Chicago

Wester-Chicago, which services 32 radio manufacturers with the one tone arm two-speed player for 33 and 78 records (which can be played automatically but not intermixed), reports that all its manufacturers are putting this product into the sets. Wesbter-Chi plans a three-way player soon, as indicated in The Billboard recently.

General Industries

General Industries, Elyria, O., largest manufacturer of turntable motors, reports it is working on a three-speed motor for record players. By end of next week it will know whether such a motor will be available within a month or a longer period. The firm stated almost all its clients have taken over the two-speed (78 and 33) motors.

Philco

Philco has ceased making the Columbia-approved 33 1/3 adapter, and has sold all it had in stock. Concentration now will be on regular radio-phonos to include 78 and 33 features. The adapter may be regarded as an interim device to help along public acceptance of LP. Now hat pioneering has been done, the adapter goes out. Philco’s unit will be two-speed turntable with two arms and will be included in: (1) Five television-radio-phono combination sets, ranging from $549.50 to $850; (2) eight console model radio-phonos from $150.95 to $475; (3) two table model radio-phonos, $99.95 and $129.95.

As to 45, Philco says it will not make an adapter, but it is not beyond the bounds of possibility that it will eventually include a 45 speed feature in its machines.

Emerson

Emerson has no immediate plans for 33. The firm is preparing a two-speed set-up which will consist of a separate 45 turntable with its own arm and a 78 turntable with its own arm. This two-speed arrangement will be incorporated into several console radio-phonos and, perhaps in the future, some table model radio-phonos. Emerson will go into one table model phonograph and a new tele-radio-phono combination.

Garrard Engineering & Mfg. Co., Ltd.

This firm of Swindon England, handled here thru Garrard Sales Corporation, in the past has made a turntable-changer-arm unit for two markets: The manufacturers of sets to incorporate in sets as made, and jobbers and distributors for custom use and replacement. This policy continues for the new player, which will have (1) a turntable capable of playing at 33, 45 and 78; (2) a changer to accommodate 7, 10 and 12-inch disks, intermixed, and (3) a single tone arm equipped to take any type of pick-up—crystal, magnetic or variable reluctance.

The needle system for this one arm is a design point which cannot be divulged, but it will accommodate any groove widths. Garrard will release features to the trade piecemeal as they come off the assembly belt. Price will be comparable to that of pre-33 and 45 machines—in the vicinity of $50 wholesale.

Westinghouse Electric Corp.

Westinghouse is making one changer which plays both 78 and 33 speeds. Company is now working on a changer to play all three speeds, including 45. Unofficial guess is that this may be ready by the middle of the summer. The Westinghouse products are not straight phonographs. They are combinations with and without television. Prices for the phono-radio combos range from $229 to $499. Prices with TV are from $625 to $725.

Stromberg-Carlson

Stromberg-Carlson uses the VM changer which plays either 33 1/3 or 78. VM, says Stromberg-Carlson, is working on a changer which will play all three speeds. Stromberg-Carlson expects this to be available in from 60 to 90 days. When it is available, Stromberg-Carlson will use it in its combinations, an exec stated.

Garod

Garod, as Standard, uses 33 and 78 thruout its line of 10 consolette and console combinations. Consolette is TV table model, and the console combo is done in period style furniture. Consolette prices are $495 and $575. These have TV, AM, FM, two speed changer. Console, with AM, FM, TV and two speeds, sells for $599.50, with other models at $639.50 and up to $735. A de luxe console, with all features, goes for $850 and $895, and another model with 15-inch screen and bleached mahogany sells for $995.

Garod stated it uses Webster equipment to play 33 and 78, in the TV combinations. An adapter, made by Webster, is supplied for 45 r.p.m. manual play. Garod also uses General Instrument equipment and VM for 33 and 78 play.

General Electric

GE states that all combinations on its line may be purchased for and additional $20 (no changer at this price, however). For $269.50 two combos are available with duo speed automatic changers (Seeburg and Milwaukee changers). Three models, with duo speed, non-automatic for 33 but automatic changer for 78, start at $144.95. Combos with TV are now being produced. These are two-speed with changers and are $695 and $995. General Electric will have a three-speed changer job when VM readies the mechanism (see VM elsewhere in this story). GE also has LP attachment for $19.95.

Bendix

Bendix has six machines with LP, all having 78, 33 and changers. Prices start at $179.96. Two models sell at $189.95; others at $229.95 and $239.95, and a TV combo sells at $629.95. Bendix system has one tone arm, with a switch which changes from 78 to 33. Does not play 78 and 33 intermixed automatically, but does play stack of each kind automatically. Bendix is doing further experimentation on multi-speeds.

Stewart-Warner

Stewart-Warner’s radio division has the 33 and 78 player, which plays with a single tone arm, playing automatically only for all 78’s of 33’s. Does not intermix. Radio consoles with 78-33 players range from $194 to $375. Company does not make a table top or tele console that has the record player.

Magnavox

Magnavox has the two speed, single tone-arm player on radio consoles ranging from $298 to $895, and on television combinations ranging up to $950. This means that all Magnavox sets are now equipped with two-speed players.

Admiral

Admiral has every set, ranging from $69.95 to the ultra-tele console, carrying the two-speed record player. It has one tone arm, with button switching from 78 to 33. The firm also carries an adapter which makes it possible to play the seven-inch Columbia LP. The set works automatically.

Freed-Eisemann

Freed-Eisemann is making all models with two turntables (one uses Webster 256 changer for 33 and 78, the other is RCA unit). The sets are to be unveiled in a few days at the Ritz Carlton Hotel, New York. One unit includes television, and two are without TV. Prices range from $600 to $1,200.

Crosley

An exec stated: “When 45 r.p.m. disks are available, we will have machines to play them.” Five models playing 33 and 78 are available. Two with TV, with Webster duo-speed changer, sell at $499.95. Three radio combinations, with General Instrument’s duo-speed changers, range from $149.95 to $299.95. Crosley has a small inventory left on players and combos with 78 only. The firm believes single-speed jobs will become extinct expect in the very low price class.

Andrea

Andrea has two consoles which have two speeds, 78 and 33, and provision for 45 r.p.m. as a separate unit. A third model, a table job, provides for an attachment in the ear of the cabinet to handle any speed. The two phono consoles include TV, AM FM.

Boetsch Bros.

This firm makes a phonograph which plays both 33 and 78. Exec stated a model which will handle 45 r.p.m. is in the process of manufacture.

DeWald

This firm’s Model 605, a radio-phono combination, handles 78. Another model, 614, handles both 78 and 33.

Ansley

All Ansley models are combinations and all have duo speed with changers. Purchasers of all sets get a gadget which makes possible manual play of 45 disks. All earlier buyers of duo speed sets are being supplied with 45 gadget. Ansley console combos range from $325 to $445, and TV combos from $745 to $1,295.

Envoy

Manufactured by Arthur Ansley Manufacturing Company, this line includes portable only. No changer; no combinations There is a three-speed job, which uses one turntable, one arm, and has a cap for a spindle to handle 45 r.p.m. disks. Sells at $54.95. Older model, handling 78 and 33, priced at $49.50. Another handling 33 only sells at $39.95. A 33 attachment has been temporarily discontinued, it was stated, because of the price-cut promotions of other companies. This attachment sold for $29.95.

Sentinel

The firm has none of the new sets. Spokesman says the company will go into production on 78 and 45 Victor player, but is by-passing the Columbia development.

Farnsworth

Farnsworth Television & Radio Corporation recently unveiled a record changer (The Billboard, February 19) which automatically plays 10 and 12-inch standard disks, LP microgroove records, and also the seven-inch microgroove disks. Changer will be used in Farnsworth’s Capehart line of combos.

In addition to the above, a flock other manufacturers are making equipment and machines handling LP and 78, in addition to whatever plans they might have. These includes Zenith Radio Corporation, Chicago; Symphonic Radio & Electronic Corporation, Cambridge, Mass.; Shure Bros., Inc., Chicago; Sandwick-Bowen Corporation, Bethesda, Md., and Califone Corporation Hollywood.

It has already been reported in The Billboard that Capitol Records will market its own 45 player, probably to be made by RCA. In a separate story in this issue, The RCA line, with prices, is described.

The Billboard, Saturday, February 26; 1949, pp. 3, 18, 115.

New York, Feb. 19.— Initial distributor and dealer reaction to the New RCA Victor 45 r.p.m. phonographs and records, as evidenced at meetings the company held last week (and continued this week), was extremely enthusiastic, according to RCA spokesmen. One RCA topper told The Billboard that distributor orders for the new players and records was 150 per cent over the quotas set for distribs.

Shown at many of the meetings for the first time were the automatic changer attachment, the self-contained automatic changer and some of the other instruments in which the new 45 r.p.m. changer would be included. Prices on all items were also announced at the meetings, and run as follows: Automatic changer attachment, $24.95; self-contained complete automatic changer, $39.95; console with AM and FM radio, and 45 automatic changer and player (no 78), $199.50; console with AM and FM radio, 45 r.p.m. and 78 r.p.m. automatic changers, $269.50, and a console combining AM-FM radio with 52-square-inch television, 45 r.p.m. and 78 r.p.m. automatic changers, $595.00.

Prices on the new 45 r.p.m. records were also announced at 65 cents plus tax for popular, folk etc., and 95 cents plus tax for the Red Seal.

Various incentive plans connection with introduction of the new 45 r.p.m. records and players were reported to have been offered distribs and dealers, but details on these were not available at press time.

The Billboard, Saturday, February 26; 1949, p. 20.

Hollywood, Feb. 19.—Capitol’s initial Telefunken (classical) release, skedded for mid-March, will consist of the following selections: (Albums) Beethoven’s Third (The Eroica) Symphony (12 sides), Wilen Mengelberg conducting the Concertgebouw Orchestra of Amsterdam; Synopsis of Franz Lehar, vocalists and orchestral accompaniment (six sides); Paul Hindemith conducting the Berlin Philharmonic in his own symphony, Mathis, Der Maler (six sides); Bruckner’s Mass in E Minor, chorus and orchestra of the Hamburg State Opera (10 sides); Erna Sack, “The European nightingale” (six sides), accompanied by Willy Czern conducting chorus and orchestra of the German Opera House. Singles will include Erna Sack in Strauss’s Voices of Spring; Verdi’s Overture to Sicilian Vespers, Gino Marinuzzi conducting the La Scala Opera Orchestra of Milan; Gluck’s Overture to Alceste, Wilhelm Furtwangler conducting the Berlin Philharmonic; Berlioz’s Overure to Roman Carnival, Willem Mengelberg conducting the Concertgebouw Orchestra of Amsterdam.

As reported by The Billboard last week, Cap will retail its 12-inch classical platters at $1.25 per 12-inch disk (plus tax) with an additional $1.25 for each album. All platters in the forthcoming release will be 12-inch. The entire Telefunken line will be available in both standard (78 r.p.m.) and rapid-changer (45 r.p.m.) form. It was also indicated that Cap may supplement its imported catalog with domestic classical recordings if and when the opportunity or necessity presents itself. However, the Coast major does not anticipate doing its own longhair cutting in the immediate future.

The Billboard, Saturday, February 26, 1949, p. 19.

New York, Feb. 19.—Decca Records joined the crowd this week with the issuing of a 10-inch disk that plays longer than the conventional three minutes. The waxery has no special designation for the platter, which plays at 78 r.p.m., is made of viny and can hold five minutes of music. Extra playing time is accomplished thru narrower-than-usual grooves. Platters will be released under the red label specialty series at $1.

Tho waxery execs neither confirm nor deny, tradesters believe that the firm is contemplating putting its kiddie material on the extra-length disk. Present kidisks, on 12-inch winys, sell for $2; same material might well be fitted into the 10-inchers.

First sample of the new disk is a Ray Bolger pairing of Once in Love with Amy and Make a miracle, cut with members of the Where’s Charley? cast. Amy runs 4:17. The ork for this date was fronted by Sy Oliver, who is understood to be virtually set for a musical director’s post with Decca in a similar capacity to Gordon Jenkins and Sonny Burke.

The Billboard, Saturday, February 26, 1949, p. 18.

Hollywood, Feb. 26.—Tempo Records will become the first diskery to make its product available on all three speeds—standard 78, LP 33 1/3 and rapid-changer 45 r.p.m.—when it joins the big spindle platter ranks April 1, Tempo was the first indie diskery to release 33 1/3 r.p.m. platters and disclosed its long-playing disk plans almost simultaneously with Columbia’s LP announcement. By going into 45 r.p.m. production, Tempo becomes the first indie to enter the rapid-changer disk field. Move comes on the heels of Capitol’s announcement that it would join RCA Victor in releasing platters for the Victor-developed rapid changer.

Irving B. Fogel, Tempo’s prexy told The Billboard that his firm’s engineers are currently studying RCA Victor blueprints for conversion to 45 r.p.m. Production and licensing contracts are being sent from Camden, N.J. Tempo’s will attend the RCA Victor meeting at Indianapolis before starting the plant change-over here. Fogel said Tempo’s first three-way release will affect only its Italian-imported classical catalog. As the rapid-changer marker broadens, Tempo’s pop releases will gradually move to 45 r.p.m.

The Billboard, Saturday, March 5, 1949, p. 18.

Hollywood, Feb. 26.—Tempo Records becomes the first diskery to shift its entire production to plastic. Move to plastic platters is skedded for early April, with diskery guaranteeing 1,000 plays per disk. Biscuit will have a vinylite content and will be break-resistant.

Firm will claim better reproduction, increased number of plays plus less breakage as features in its bid for boost in sales.

The Billboard, Saturday, March 5, 1949, p. 40.

New York, Feb. 26.—Altho the so-called record “war” has been highly publicized, a check-up of dealers across the country indicates that only a minority believe the introduction or a third speed system—RCA Victor’s 45 r.p.m.—will hurt business. The survey, made by The Billboard, also indicates that most dealers regard the sale on LP players and records as ranging from satisfactory to good.

Of the 587 dealers answering the survey, 489 stated they purchased LP players and/or records. Of the 489 dealers, 342 state sales of the latter were “satisfactory” or “good,” and 147 reported LP sales “disappointing.”

Breaking down the analysis further, the following point are made:

All the 489 dealers handling LP are aware of the 45 r.p.m. development.

Of the 342 dealers who reported LP sales satisfactory to good, 112, or 34 per cent, believe RCA’s 45 will help their business; 83 dealers, or 24 per cent, stated RCA’s 45 would not affect their business; 104, or 30 per cent, stated the RCA development would hurt their business, and 43 dealers, or 12 per cent, stated they did not know how the RCA development would affect their business.

Of the 147 dealers who reported LP sales disappointing thus far, 57 dealers, or 39 per cent stated they believed RCA’s 45 would help their business; 28, or 20 per cent, said RCA’s 45 would make no difference as far as affecting business; 46, or 31 per cent, said RCA’s 45 would hurt business, and 15, or 10 per cent, said they did not know what effect RCA’s system would have on business.

A continuing check on dealers’ attitudes will be made by The Billboard. It’s notable at the present time, however, that altho some dealers are upset by the new technological developments, much of the sound and fury and pessimism stems from a minority.

The Billboard, Saturday, March 5, 1949, p. 37.

Philadelphia, March 1, RCA-Victor sales executives assert that the demonstration teams now moving in and out of Camden showing the company’s new 45 rpm disks are meeting with unexpected sales success. Victor men refuse to quote figures, but it’s pointed out that Victor fully expected to meet much heavier resistance from distributors and dealers to the 45’s due to the widespread dissatisfaction among the latter with Victor’s bringing out the new discs.

Distribs and dealers felt that Victor had confused the public with its 45’s, following the introduction of Columbia Records’ 33 1/3 rpm disks, to the point where buying sloped off considerably. As a result, Victor’s teams fully expected to find the fire of stunted sales lingering in the eyes of dealers and distribs. They found it to be true in many instances but, it’s asserted, after the demonstrations dealers placed orders. Whether that’s due to the fact that many record dealers are also dealers in RCA-Victor radio and combinations is anybody’s guess.

Variety, Wednesday, March 2, 1949, p. 46.

New York, March 5.—RCA Victor distributors throughout the country have teed off their 45-r.p.m. disk sales push, offering dealers a 100 per cent exchange privilege on an initial $385 catalog stock order. Unsold platters may be exchanged for other disks sometime in August.

The list of disks in the package deal covers the entire catalog of available 45-r.p.m. disks, which is broken down as follows: Red Seal, 60 albums and 120 singles; popular, 49 albums and 47 singles; children’s, 22 albums and 3 singles; folk, hillbilly and Western, 8 albums and 23 singles; blues and rhythm, 5 singles; international, 5 singles; pop classics, 6 albums and 13 singles.

Altho many dealers taking the deal do not ordinarily carry some of these categories Phil Silverman, sales manager of Bruno, New York metropolitan area distributor, pointed out that the plan enabled the dealer “to experiment on the factory’s money.”

It is understood that some regional RCA distribs are offering a free demonstration player each $385 deal.

The Billboard, Saturday, March 12, 1949, p. 21.

New York, March 5.—Anxiety of dealers to unload wax stock has resulted in a rash of price cutting on RCA Victor and Columbia labels. The situation is apparent in many sections of the country, where distributors and dealers are talking the matter in hand to solve the problem according to local conditions. Altho the necessity to unload is considered the prime factor behind the situation, there’s a strong competitive angle to the picture, with Columbia claiming its disturbs and dealers are meeting the competitive situation wherever it may crop up.

“What do you expect us to do?” a Columbia exec asked after pointing out that price cutting on Victor labels has been rampant in such key cities as St. Louis, Chicago and Washington.

A Victor spokesman, queried on the matter of reported distrib-dealer co-op advertising plugging slashed prices in Philadelphia, Providence, R.I., and other cities, pointed out that Victor a few weeks ago had authorized cut prices on certain types of merchandise, including non-four star platters and non-current releases. In order to move such stock, distribs have been granted full permission to work arrangements with dealers, he stated.

Shaky Price Structure

In any event, the price structure on certain lines is shaky for the time being. For instance, in Providence this week and ad in dailies stated that $50,000 worth of stock (of one of two major labels) would be sold for $19,000. Classical albums were advertised at 50 per cent off. Popular albums normally selling at $3.95 were advertised at 1.98, and singles were advertised at 19 cents of six for $1. The price-cutting is not confined to small dealers, but is practiced by oldline, conservative houses such as Lyon & Healy, Chicago, and Denton Cottier & Daniels, Buffalo. In the latter city one dealer bought out another’s stock advertised this stock at two-for-one on singles and cut album prices by one half. The major company distrib asked “What’s up?” but then admitted it couldn’t be helped.

One dealer stated, “It’s all a mess, let’s face it.” Another said, “The situation stinks.” Some regard the price-cutting as necessary in view the promotional push being organized on Victor’s 45 r.p.m. and the drive behind Columbia’s 33 1/3. Others stated the situation boils down to one major point: The market is strong for only demand items—or name artists—primarily. Meanwhile, Capitol and Decca are apparently not faced with the same problem. Milton Rackmil, Decca exec, stated that anybody who slashes prices and mentions Decca in such ads will have “the book thrown at them.”

The Billboard, Saturday, March 12, 1949, p. 23.

Chicago, March 5.—A laminated plastic disk has about been decided upon as the best method of handling the wider Victor 45 r.p.m. center-hole problem. The Radio Manufacturers’ Association subcommittee on record changers met here last week, deciding to test the laminated insert. Chances are that the disk will be utilized as standard equipment by all record-changer manufacturers, observers said. The insert carries a series of outcroppings which can be turned over, thus cutting size of the hole to standard and making it possible to play the Victor and Capitol 45 r.p.m. disks on the same spindle which carries 33 and 78-r.p.m. platters.

The standardization meeting was attended by reps of VM Industries, Benton Harbor, Mich.; Webster-Chicago; General Instrument, Elizabeth, N. J.; Milwaukee Stamping, and Philco. This group represents manufacturers of approximately 75 per cent of the record playing equipment now being marketed.

The Billboard, Saturday, March 12, 1949, p. 22.

Philadelphia, March 8. RCA-Victor is issuing its 45rpm disks so they will be available on dealer counters on March 31. Unveiling of the disks to the public originally had been predicted for “early in April” by Victor. Un all probability it will precede the debut of the 45s being manufactured by Victor for sale by Capitol Records under that company’s own trademark.

Victor is preparing a hefty dealer window campaign to start the week of March 24. Company is shooting to have 3,000 windows prepared so that only a small peephole will draw attention. When the curious look through it they’ll see only a small sign asking them to “watch next week” for the new 45 disks.

Victor is also conducting a special trip to its Indianapolis factory next month, on which top engineers of various rival recording companies have been invited. They’ll be shown how the 45s are made.

Variety, Wednesday, March 9, 1949, p. 43.

New York, March 12.—Formal announcement of prices for RCA Victor’s 45 r.p.m. disks was made this week, the price schedule emphasizing that savings on the new disks amount to as much as 50 per cent when compared with prices of conventional 78 r.p.m. platters.

Single 45 r.p.m. red seal classical disks sell at 95 cents with singles in other categories selling at 65 cents. This compares with $1.25 for the regulation 12-inch conventional. Popular priced record is priced at 75 cents. Prices above are exclusive of tax.

Price of the 45 r.p.m. red seal album will be $2.20 for two-record job and $4.30 for the four-record album. In pop, children’s and other categories, three-record album are priced at $2.30 and four-record albums at $2.95.

According to J.B. Elliott, vice president in charge of Victor consumer products, a catalog of almost 200 individual selections in all categories will be available when Victor introduces its 45 r.p.m. system to the public March 31.

The Billboard, Saturday, March 12, 1949, p. 28.

New York, March 12.—Columbia Records is granting its dealers an extra 5 per cent return privilege on purchases of long playing (LP) disks during the three-month period that began March 1.

This offer, which supplements the diskery’s standard 5 per cent privilege, is designed to encourage dealers to carry a more complete stock of the 33 1/3 r.p.m. platters.

A spokesman for Times-Columbia, le local Columbia distributor, this week stated that LP sales were accounting for one-third of the outfit’s total business.

The Billboard, Saturday, March 19, 1949, p. 18.

Hollywood, March 12.—Kidisks will play a prominent part in Capitol’s initial release of its rapid-changer (45-r.p.m.) platter line. Bowing April 4 with its big-spindle disks, Cap will issue 18 albums, of which eight will be aimed for the tot market, four for the pop field, one of Western music and five will be classical (Telefunken) [see ad in Pittsburgh Post-Gazette, Pittsburgh, Pennsylvania, Sunday, May 29, 1949, p. 3]. In addition, Cap will release seven pop and four Telefunken singles. All rapid-changer disks will be duplicates of what is available on standard (78-r.p.m.) platters.

Kidisk albums will include So Dear to My Heart, Bugs Bunny and Sparky’s Magic Piano. Tot tallow selections will consist of Little Toot, Bozo Sings, Children’s Songs by Tex Ritter, Ken Carson’s Nursery Rhymes and Margaret O’Brien’s Fairy Tales. Pop packages include a yet-to-be released Jo Stafford-Gordon MacRae Kiss Me, Kate album, duplications of previously released Paul Weston’s Music for Romancing, Kenton Encores, Frank De Vol’s Viennese Waltzes and Cowboy Hit Parade. Tunes on the seven pop singles are not yet available for publication.

Cap’s initial Telefunken releases will also be duplicated on the slower speed disks. These include four albums and four singles. Cap said it will reveal prices on its 45-r.p.m. disks at a later date. It was also learned that RCA Victor will manufacture 45-r.p.m. player attachments for Capitol, using the latter firm’s name plate.

The Billboard, Saturday March 19, 1949, p. 18.

Mercury Records is so bullish on the Long-Paying Microgroove vinylite recordings it is marketing in conjunction with Columbia Records that all classical recordings and certain other items will be issued only on that type disk. Company will drop all regular shellac pressings in the higher-priced group, excepting that it will continue to service the market with 78 rpm shellac platters of material issued in the past in the way. Mercury is manufacturing some LP platters at its own plant in St. Louis, but the majority are being made for the label by Columbia at the latter’s main (Bridgeport) factory. Mercury’s plant head has been at CRC’s pressing plant for the past week absorbing additional know-how in the manufacturing of the disco.

Variety, Wednesday, March 16, 1949, p. 35.

Columbia Records has completed details of a fairly huge advertising and promotion campaign on its 33 1/3 rpm Long Playing Microgroove recordings, to be launched next March 28—three days before RCA-Victor’s rival 45 rpm disks are put on sale, Columbia’s purpose obviously is to becloud the debut of the Victor development [see ad in Pittsburgh Post-Gazette, Pittsburgh Pennsylvania, Monday, March 28, 1949, p. 24]. There have been whispers that Columbia is readying a price slash coincident with the campaign, but this is flatly denied by Col.

The recording business, incidentally, is looking forward to the debut of the 45s. It’s felt that once Victor’s machines and disk development hit the market, a good deal of the current confusion among record-buyers, which has caused a drop in sales and resultant confusion among dealers and distributors, will be cleared up somewhat. Of course, there’s still the fight for sales between the companies promoting the two different speeds of recording and reproduction, but the opinion of record men is that at least a goodly portion of the confusion among buyers will dissipated. They will be able to see and hear both machines and compare the differences and values for their own particulate needs.

Some record men assert that a large portion of record-buying public firmly believes that Victor’s development is a long-playing disk. That’s partially due to the unusual success Columbia this reached in establishing the “LP” tag for its Microgroove disks. Actually, Victor’s disks are not long-playing through they do carry more minutes of music (five minutes, 15 seconds on seven-inch), but only because they spin slower than regulation 78’s. Victor is emphasizing fidelity and changer-speed, but the public assumes the LP angle. It’s said, incidentally, that buyer confusion, has heightened in the past several weeks as the debut of Victor’s disks nears.

Victor says that the dealer reaction to its development has been far beyond its fondest hopes. There have been rumors to the effect that dealers in Philadelphia and Newark, et al, have flatly refused at accept 45 disks and machines for display, but no concrete evidence supports the reports.

Variety, Wednesday, March 16, 1949, p. 35.

Chicago, March 19.—Several leading manufacturers recently announced the production of phono equipment to play all record speeds. Admiral Radio last week announced the production of a record changer with one tone arm that will automatically play every record size, both standard and LP. The new record changer will be on all Admiral models after April 1, except for $49.95 radio-record player. The remaining 23 sets, from the $69.95 table top model to the $725 de luxe console radio television player will carry the new equipment, but at a price increase of $6 on each model. The Admiral models will carry a switch that controls all three turntable speeds.

In addition to Admiral, two of the major Midwest suppliers of record-changing equipment announced for April distribution record players which would handle 78 and 33 1/3 r.p.m. disks automatically and the seven-inch 33 and 45-r.p.m. disks manually. In the Webster-Chicago model, the conventional spindle will be used with a collar to handle the wider-center hold of the Victor seven inchers. In the V-M Industries model, made in Benton Harbor, Mich., the same collar will be used. Webster has not announced its price, but the V-M model will sell for $46.50.

Webster-Chi Plans

Webster-Chicago is now working on a plan for handling the seven-inch microgroove disks. V-M expects to have its completely automatic three-way player ready in late May.

From General Industries, Elyria, O., came another optimistic announcement regarding three-way players. The firm’s three-speed motor is now in production.

A new automatic record changer that plays records of all sizes and speeds has been announced by General Instrument Corporation. Elizabeth, N. J. R. E. Laux, the company’s president, stated the new changer will play the 10 or 12-inch 78-r.p.m. disks; the long-playing seven, 10 and 12-inch 33 1/3 disks, and the new 45 r.p.m. records. All records are played with the same pick-up arm. The changer has a conventional spindle diameter, with the problem of the larger hole diameter of the 45-r.p.m. disks overcome by using plastic adaptor buttons inserted in the center of the 45-r.p.m. record.

The Billboard, Saturday, March 26, 1949, p. 19.

Philadelphia—Initial orders from dealers for its new 45 R.P.M. record and record playing instruments has required R.C.A. Victor division of Radio Corp. of America to step up already substantial production schedules, J.G. Wilson, executive vice president of R.C.A., said. He cited the rate of incoming orders “as irrefutable evidence of enthusiastic dealer creation to R.C.A.-Victor’s new 45 R.P.M. music reproduction system.” The new products will be introduced to the public March 31. Mr. Wilson predicted that between 2,500,000 and 3 minion instruments to play the new small size records will be produced and sold this year by equipment and home instrument manufacturers. Among manufacturer now incorporating 45 R.P.M. record reproduction facilities their instruments, or planning to do so, are Admiral, Crossley, Emerson, Fada, Freed Radio Corp., Farnsworth-Capehart, Motorola, Stewart-Warner and Stromberg Carison. A Major record manufacturer has also announced its decision to produce the new 45 R.P.M. records, he stated.

The Wall Street Journal, New York, New York, Monday, March 21, 1949, p. 8.

New York, March 26.—The first local dealer to receive the new RCA Victor 45-r.p.m. records recently also found something new to worry about. In an urgent call to The Billboard, he expressed concern over the fact that customers were handling the different colored disks and, he feared, slipping them into their pockets. While he agreed that this was a surefire method to get the disks into more homes, “there’s no future in it.”

The Billboard, Saturday, April 2, 1949, p. 20.

The record-buying public will get its first opportunity today to show its preference in the phonograph record “war” between R.C.A. Victor and Columbia records, Inc., when the former will present its 45 r.p.m. record and record players at stores throughout the country. The Columbia long-playing records, which turn at 33 1-3 r.p.m., were introduced last June.

Columbia chose the occasion to announce price reductions in its standard 78 r.p.m. records as follows: twelve-inch popular and ten-inch Masterworks from $1 to 85 cents, and twelve-inch Masterwork, from $1.25 to $1. A price cut from 79 cents to 60 cents on the ten-inch popular record was disclosed last week.

Introduction of the 45 r.p.m. system is being accompanied by a large-scale promotion campaign announcing that five new instruments incorporating the system are now available. The new records are slightly under seven-inches in diameter, are plastic and come in a variety of color. They play up to five minutes of music on one side and are advertised by the company as being “distortion-free.” They are not “long-playing,” as are the Columbia records, which come in seven, ten and twelve-inch sizes.

The R.C.A. Victor instruments include three Victrola console radio-phonographs, a self-contained phonograph with built-in amplifier and loud speaker and a compact record player attachment for use with existing radio or phonograph instruments in the home.

All of the consoles provide AM-FM radio as well as the new phonograph system. In addition, one of the consoles also offers standard 78 r.p.m. phonograph facilities and storage space for substantial record libraries. Prices range from $24.95 and $39.95 for the attachment and the self-contained phonograph, respectively to $199.50 and $269.50 for the console combinations.

New York Herald Tribune New York, New York, Thursday, March 31, 1949, p. 32

New York, April 2.—Pubbers this week received notice from agent and trustee Harry Fox advising them that the RCA Victor diskery has asked for a 1 3/4-cent royalty to be paid for turns used on the firm’s new 45-r.p.m. pop platters. The pop disks are being retailed at 69 cents, including tax.

There has been no immediate reaction to the Victor request, but it is believed that most pubbers will go along with the diskery on the 1 3/4-cent royalty. The current royalty contract specifies the statutory 2-cent figure, but the sliding scale rate, which places 60-cent disks at the 1 3/4-cent royalty figure, has been accepted pattern in many instances. It is on the basis of the sliding scale, which moves up to 2 cents at the 75-cent retail mark, that Victor made its pitch.

The Billboard, Saturday, April 9, 1949, p. 19.

Columbia Records is approaching the sale of pop music via its microgroove Long-Playing platters from a new angle. It is readying a 10-inch LP disk for release within the next month or so which will carry a minimum of eight pops by different artists on two sides. Tunes will be a mixture of current, new and slightly frayed melodies, and the package will sell for $2.85. It’ll be called “Popular Favorites.”

Another grouping, which might be called Columbia’s one-disk hit parade, will involve eight to 10 “Country Hits” by various artists on two sides of a 10-inch LP selling at the same price.

Columbia also is producing 10-inch LP’s carrying the crew of past hits by such artists as Benny Goodman, Woody Herman, Frankie Carle and Claude Thornhill. Each platter will carry eight tunes, and sell for $2.85. They will be shipped from Bridgeport, Conn., starting week of April 18. Goodman sides will carry his “Jersey Bounce,” “String of Pearls,” Somebody Else Is Taking My Place,” “Gotta Be This or That,” et al. Herman’s for example, will tote his “Caldonia," “Apple Honey,” “Goosey Gander,” “Northwest Passage” all crack jump items, plus four others equally strong. Thornhill’s release will consist of his pre-war hits, “Autumn Nocturne," “Piano Concerto,” “Small Hotel,” “Night and Day.” Carle’s will be equally representative.

Variety, Wednesday, April 6, 1949, p. 40.

Cutting of record retail prices by Columbia Records and M-G-M seems to have had the opposite effect to that desired. Instead of boosting business on its shellac disks, the reductions have tended to toss sales deeper into the doldrums at least insofar as dealers are concerned.

Since only Columbia and M-G-M sliced prices, from 75c to 60c on the pop shellacs, Victor, Decca and Capitol have reiterated their intention of maintaining the 75c level. Dealers apparently do not trust this intention and are not ordering from factories for fear of being caught in a sudden decision to reduce by the companies that have said they will not do so. Columbia gave its distributors and dealers little or no time to adjust stocks before the cut was announced. As a result, sales have dropped even further off the lowered figures of recent weeks and months.

That the disk sales slump is due completely to confusion springing from the rpm battle between Columbia-Mercury and RCA-Victor-Capitol, and the price drop by Columbia and M-G-M, has been more or less proved in recent weeks. While disk sales figures continued to fall, sheet music figures held up well. Only the past week has music begun to drop and jobbers and publishers feel that it’s momentary, due to the advent of Holy Week and the Easter holiday. They expect totals to pick up immediately after Easter and the end of lent.

Variety, Wednesday, April 13, 1949, p. 53.

RCA-Victor will begin issuing all pop, country, western, blues and rhythm (race) on 45 rpm disks as of the first week in May. At that time the 45’s will really begin going into competition with Columbia Records’ 33 1/3 rpm Microgroove Long-Playing disks, since Victor’s entire current repertoire will be available to 45-changer owners, along with a good slice of catalog material.

When Victor debuted its 45’s a couple weeks back, it marketed only catalog stuff in various categories. No current pop material was made available, for the simple reason that Victor wanted its new changer machines to get into circulation in sufficient numbers so that pop disks would not become outdated.

Apparently Victor feels there are a sufficient number of machines in public’s hands. It is shipping a release of 12 current best sellers to distributors and dealers this Saturday (15). And it is speeding through the manufacturing of a special 45 release of Vaughn Monroe’s rising hit, “Ghost Riders in the Sly.”

Variety, Wednesday, April 13, 1949, p. 53.

Philadelphia, April 16.— RCA Victor’s introduction of the 45 r.p.m. records and record players, if nothing else, means pay dirt for the newspapers in this area. Using only four newspapers—The Inquirer and Bulletin here; The Courier in Camden, N.J., and The Eagle in Reading. Pa.—RCA Victor is shelling out a record $28,000 for April, using full-page and half-page ads. In addition, Raymond Rosen & Company, area distributors for RCA Victor, is spending an additional $8,000 to $10,000 this month in dealer co-operative advertising in newspapers.

While the newspaper ad splurge has created only a small ripple at this early date, the campaign has doubled business for Rosen distributing firm—that is, billings from distributor to dealer. It will be the repeat orders that will tell the tale—this month traditionally finding a letdown in record sales.

The Billboard, Saturday, April 23, 1949, p. 17.

Hollywood, April, 16.—Tempo Records will invade the classical field with its recently acquired European recorded line in mid-May. Initial release consists of 13 complete works in an album of five 12-inch 33 1/3 r.p.m. disks. Long-playing platters will be pressed on vinylite and packaged in blue alligator leather albums to retail at $22.50. Compositions also will be so arranged on the platters to permit sale of individual works at $4.50 per disk.

Album contains Scheherazade; Symphonic Suite Op. 35, Rimsky-Korsakoff, by Armando Gramegna, violin soloist, with Willy Ferrero conducting the Italian Radio Symphony Orchestra; Richard Strauss’s Pranks of Till Eulenspiegel, Vittorio Gui conducting the Florentine Magio Mausicale Symphony Orchestra and baked by the same artists doing Ceasar Franck’s Prelude, Ario and Finale; Alberto Erede conducting the Italian Radio Symphony Orchestra in Maurice Ravel’s Ma Mère L’Oye, backed with Sergio Failoni conducting the same orchestra in Strauss’s Dance of the Seven Veils from Salome and Jean Sibelius tone poem, Finlandia; Haydn’s Symphony No. 88 in G Major, performed by Bernardino Molinari and the orchestra of the St. Cecilia Academy in Rome, with the flipover containing Serenade No. 6 in D Major played by the Italian Radio Orchestra batoned by Carlo Zecchi, and the same aggregation led by Antonio Votto in Strauss’s Waltz from the opera Der Rosenkavalier; Claude Debussy’s The Festivals, performed by Ferror and the Italian Radio Orchestra and Molinari and the St. Cecilia Academy Orchestra backed by Franz Liszt”s Mephisto Waltz played by Igor Markevitch and the Maggio Musicale Orchestra who round out the side with Emmanuel Chabrier’s Polish Dance.

The Billboard, Saturday, April 23, 1949, p. 19.

As Frank M. Folsom, president of Radio Corp. of America, sees it, “It’s inevitable that scientific improvement in our records will make the 78 rpm disks obsolete in time. It can’t happen for years, but given enough time we must all veer to the 45, or some variation of the Vinylite, Long Playing record.”

This has reference to Columbia’s 33 rpm, which puts the accent on the long-playing features, in that four pops can be medleyed on one side of a disk; or a 12-inch LP can reproduce up to 45 minutes of music.

RCA Victor’s seven-inches are something else again. They’re the personal automatic machine, and possibly may result in a merchandising potential not wholly anticipated in the beginning. Because of its compactness and popular price, it’s the type machine that already is being bought for bedside use. Stacks of Vienneese waltzer or kindred soothing music are the substitute already in ultra-modern homes for nocturnal “music to read by” radio programs. Sans commercials, interruption of titles or call letters, a stack of eight platters means over 50 minutes of selected music, via RCA Victor’s fast-changing, noiseless player, and an equal amount when reserved.

Like the portable radio which has given millions of homes multiple AM receivers, these portable players already are finding great acceptance.

The LPs may be the solution for symphonies, concertos, musicomedy scores in their entirety by original cast (Columbia’s “Kiss Me Kate” for example, or its upcoming “South Pacific”). The 45 rpms are for the single selections of specially desired music.

It’s for this reason that Folsom thinks Decca inevitably must go the RCA system, since its specializes in pops. Columbia (Mercury followed the LP 33 rpm technique) might find its LP system better adapted for entire musicomedy scores or masterworks (classical symphonies, etc).

As Victor has evolved it, the vinylite disks are in different colors so that, at a glance, a stack of blacks means they’re international; reds are Red Seals (classics); midnight blue are popular classics; children’s on yellow, etc.

Merchandising-wise, of course, the 45s or the LP’s are the answer to the mass production record manufacturers’ lifetime prayers. It eliminates a corps of clerks for correspondence in re breakage, reconciliation of credits and debits because of such losses, not to mention the extraordinary savings in shipping coasts. Being plastic composition, the weight is greatly reduced, and with it come the compensatory values for the ultimate consumer whose living room space is always invariably at a premium.

This new stimulation to improved phonograph recording reproduction, plus the appeal of TV, none the less means show business in general must benefit. Flosom sees these improved home commodities chiefly as a stimulant to the appreciation, ultimately, of the actors. A veteran merchandiser he cites what radio did to bolster he cites in names on personal appearances, and the same will be true with video, says Folsom.

Variety, Wednesday, April 20, 1949, p. 39.

New York, April 23.—Columbia Records execs are attempting to work out a publisher royalty formula which can be applied for payment on sales on the firm’s long-playing disk product. It is understood that the diskery is going to ask pubbers to accept a 1 3/4-cent royalty for each selection used on the 10-inch pop LP disk which retails for $2.85 and which generally contains eight selections, or four standard two-faced disks. The diskery will propose to pay the statutory 2-cent rate for all selections used on the $2.85 and $4.85 LP disks.

When LP was introduced nine month ago, Columbia attempted to negotiate a special experimental royalty rate of a cent a selection. But rather than setting in precedent of voluntarily going under the stature 2 -cent rate, the pubbers agrees ate allow Columbia to make use of their material royalty-free thru the growing pains period of LP. Now that LP apparently has won a foothold, both Columbia and pubbers are anxious to work out payment royalties on the LP lines.

The Billboard, Saturday, April 30, 1949, p. 43.

Columbia Records doled out it’s first royalty statements covering sales of Microgroove Long-Playing disks to music publishers. last week, and the total disbursed was somewhat surprising to music men. All told, Columbia distributed between $75,000 and $100,000, probably closer to the later, for the first quarter of this year.

Columbia’s royalty rates for LP’s vary, from 1 1/2c. a tune on 10-inch disks which carry eight pops or standards; 1 3/4c. for its seven-inch 60c. pop LP’s, and 2c. on other uses. At perhaps an average 1 3/4c. that figures out to well over 3,000,000 disks on which royalty had to be paid during the period from Jan. 1 to March 31.

Of course, the royalty statements give no clue to the actual number of LP’s sold by Columbia during the three months, since a goodly amount of classical material is public domain, therefore royally free. Columbia originally had an agreement with publishers whereby it might have gone on until next June 30 recording and selling pops and other copyrighted tune without paying royalty. It had experimental licenses with publishers until that time, but agreed early this year to begin paying royalties as of Jan. 1.

Variety, Wednesday, May 4, 1949, p. 37.

Columbia Records has purposely avoided mentioning any retail price for its new, low-priced record player designed to spin all sizes of the company’s Microgroove Long-Playing disks. New machines, which were being shipped to distributors late last week for relay to retail counters are made for Columbia, with the latter’s name imprinted, by VM, Inc., Chicago manufacturers.

Sets coast approximately $8 apiece and Columbia is not setting the price retailers are to ask. They can get $10, let them go at coast as a means of creating a customer for LP disks, or even give them away on the theory that such a slight investment by the dealer can create a valuable customer in sales; not to mention possibly eliminating a potential buyer of RCA-Victor’s rival 45 rpm machines and disks, assuming that most customers will buy either of the two developments, not both.

Columbia’s new machine is not a changer, which is what the trade originally expected, to handle only the company’s seven-inch pop LP platters, retailing at 60c. It is smaller than the Microgroove turntable developed by Philco, but still can reproduce the seven, 10 and 12-inch Microgroove platters.

Coincidental with the debut of Columbia’s new set, RCA-Victor announced the availability of a leather carrying case for its 45rpm machine, with space enough for 30 recordings.

Variety, Wednesday, May 11, 1949, p. 37.

New York, May 14.—A spot-check of 145 top dealers thru-out the country, to gauge public acceptance of RCA’s 45 r.p.m. and to ascertain general facts in connection with LP and 78 r.p.m., strongly indicates that the slump in the disk business may be leveling off. The survey, too, indicates that 45 r.p.m., which RCA introduced April 1, already has a good measure of public acceptance. The figures on 45 are particularly optimistic when it is considered that RCA’s system has been on the market only six weeks, with an extensive promotional push still to come. Here are some statistics revealed in the spot-check: In answer to a query as to how 45’s are selling, 31 dealers stated “good,” 48 said “satisfactory,’ 51 answered “disappointing” and six said they did not handle 45’s. In other words, 78 of these dealers are doing okay with 45’s as against 51 who are not. Pitting the sale of LP against 45, the advantage is with LP, but certainly not to an overwhelming extent—and again bearing in mind that 45 has been out only six weeks, the figures on the latter stack up well. This is indicated by answers to the following question: “If you now sell LP’s and 45’s which would you say is selling best?” Total responses showed 77 dealers claiming LP’s sold better than 45’s, and 50 dealers stated 45’s were selling better. Five dealers stated they were selling about the same.

Biz Equals Pre-45 Days

Answers to the next question are revelatory. Dealers were asked: “Since the introduction of 45’s would you say your total record sales are better, about the same or worse?” Sixteen dealers said “better,” 82 said “about the same” and 43 said “worse.” Again bearing in mind the hue and cry attendant upon the introduction of 45, the figures would indicate that the “confusion” in the industry, often attributed to 45, is exaggerates. Despite the fact that the summer season is virtually upon the industry, and despite the fact that this is traditionally a slow period, most of the dealers nevertheless are doing as well as they did prior to the introduction of 45. A check-up on dealers’ current advertising, with respect to newspapers, radio, direct mail, indicates 42 dealers have recently jacked up their budgets, 78 are buying the same amount of advertising and 12 said they were advertising less. The dealers indicated that 25.43 per cent of their ad budgets are allocated to 45’s. The effect of the introduction of 45 on the sale of sets is indicated by another set of figures. Fifty-six dealers stated they are doing about the same dollar volume in set sales, 40 dealers said less dollar volume and 17 dealers stated more dollar volume.

LP’s Climb in Classical

That LP has successfully appealed to the classical trade is borne out by answers to the query: “Among classical record buyers, which record speed is presently selling best?” Sixty-one dealers said 78, 59 said LP’s and 22 said 45’s. In other words, LP in classical field is already selling virtually as well as the regulation 78, according to these dealers. Some diskeries, of course, claim the bulk of their classical is in LP’s. RCA’s 45, however, makes an encouraging show for the time it has been on the market. The effect on the new technological developments on dealers’ perpetual inventory systems for 78 r.p. m. has not been too drastic, according to indications in the survey. Of those queried, 102 said they had a perpetual inventory system for 78; 37 said they did not. In answer to a query as to now 45’s and/or LP’s affected this system, 69 said the system was unaffected, 34 stated that changes were required and six stated that 45 r.p.m. and LP made their perpetual inventory system entirely impractical.

The Billboard, Saturday, May 21, 1949, pp. 3, 17.

Hollywood, May 14.—Tempo Records will release its first 45 r.p.m. disks June 20 when it issues two classical works from its recently acquired European catalog. With this release Tempo will become the first diskery to make its product available in the three speeds—standard 78, 33 1/3 and RCA Victor’s 45 r.p.m.

Tempo will intro two innovations with its 45 r.p.m. release: (1) A single album will contain two complete classical works, with disks so arranged as to allow the listener to hear a single composition in its entirety without having to flip the stack at the midway point. (2) Tempo will pack the doughnut platters in albums rather than boxes, as does Victor and Capitol.

Album will be designed along plush lines with alligator leather covers aimed at customers pride of possession. Disks will be ruby red vinylite with a blue label with copy imprinted in red. Four-pocket album containing the two works will sell for $5 (plus tax). Initial compositions will be Maurice Ravel’s Ma mère l’Oye, recorded by Alberto Erede and the Italian Radio Symphony Orchestra, with back sides holding Richard Strauss’s Pranks of Till Eulenspiegel, performed by Vittorio Gui and the Florentine Magio Musicale Symphony Orchestra.

The Billboard, Saturday, May 21, 1949, p. 16.

New York, May 28.—RCA Victor has blueprinted a plan designed to give dealers extremely rapid delivery of hit disks so that the dealer can cash in when the demand for current hits is at peak level. The plan, called the “45 Triple S Delivery System” (super speed shipment), will apply only to shipments of current hits on 45 r.p.m. records. The reason is that the system is made possible because of the light weight, size and unbreakable quality of the new Victor disks. Being experimental in nature, the plan will first be restricted to the East Coast.

The Triple S System will operate as follows: Twice each day (about mid-day and the end of the business day) Eastern RCA distribs will wire to the Victor plant in Camden all orders for current hits on 45 r.p.m. placed by dealers during the morning or afternoon of that day. Orders will be immediately processed, the records drawn from stock or pressed and shipped via air express. When possible, the disks will be flown direct to the dealer. In order instances they will be sent to the distributor for reshipment to the dealer via the fastest possible transportation. RCA estimates that in many instances delivery will be made well within 24 hours after orders are placed. In virtually all instances, delivery will be made within 48 hours.

Activating Presses

To put the plan into operation quickly, Victor engineers are activating a battery of 45 r.p.m. presses in Camden plant.

Diskeries have always tried to solve the problem of getting hits into dealers’ hands while the demand is high, but heretofore the methods have generally depended upon strategic placement and adequate stocking of distribution points. Air shipment has occasionally been used but usually as an emergency measure. Victor’s plan, if it clears the experimental period, will mark the first use of air shipment of current hits on an economically sound basis.

The Billboard, Saturday, June 4, 1949, p. 17.

Chicago, May 28.—RCA Victor, drawing a parallel with merchandising practices in other industries, is alerting dealers to the desirability of an annual record clearance sale in order to move surplus stock. In a letter signed by George Koch, local Victor sales manager, it was stated that a periodic annual clearance was needed and that, until further notice, a one-month sale would be recommended during the second quarter of the year. The purpose, according to the letter would be to clear inventory so that the dealer could start anew in the fall. The Chi Victor sale would start May 31 and end July 2.

It was learned that Victor’s philosophy is on a national level, with the suggested idea of a sale to be sent to dealers through the country.

List Prices Unchanged

“We are not making any changes in the suggested list prices of RCA Victor records,” the letter stated. “It is our opinion that the sale should embrace all RCA Victor records (with the exception of all records released since January 1, 1949).”

The letter suggested that 10-inch red seal (RS) disks be sold for 49 cents each or two for 95 cents, while 12-inch RS go for 59 cents each or two for $1.15, based on the purchase price of 70 per cent off list. Kidisk albums might be sold for three for the price of one at 80 per cent off regular list. Masterpiece pop and miscellaneous albums might go at three for one, with mark-offs from 50 to 70 per cent off regular list. Pop, hillbilly and race records, which went for 12 cents per copy, might be sold at six for $1, while those at 21 cents list would go for 35 cents each. International series platters might sell for 35 cents each of three for $1, based on a net cost of 21 cents each.

Sale List

The attached sale list carried 99 10-inch RS disks (70 per cent off list); 117 12-inch RS (70 per cent off); 39 assorted RS, RS viny and show tune albums (60 per cent off); 153 miscellaneous albums (70 per cent off); 59 different albums, including kidisks (80 per cent off); 555 international and foreign series disks (21 cents each); 60 international and foreign disks (50 cents each); 58 assorted pop, h.b. and race disks (21 cents each); 500 assorted pop, h.b. and race (12 cents each).

In Chicago, the Victor move met some opposition on the part of the local independent record retailers’ associations, which banded together in an effort to halt the projected clearance sale. Reps of the association told Walter Norton, Victor distrib exec, that they were opposed to the projected Victor “dumping.” Norton said the clearance sale was a new type of merchandising which had been used successfully in parallel industries, and he felt that dealers wanted this type on inventory clearance.

The Billboard, Saturday, June 4, 1949, p. 39.

Since Decca set up its new Vocation label to sell at 49c. there’s been considerable speculation in the recording and music industries concerning the possibility that Columbia and RCA-Victor would follow suit with their prewar cheaper labels, Okeh and Bluebird. During the past week or so a report had Victor readying to reestablish the Bluebird tag in opposition to Decca’s, to sell at the same price, and late last week there was talk that Columbia was about to move with the Okeh tag into the same price field. Neither report is confirmed, but neither is denied too strenuously.

Both labels are well known. They weren’t dropped until the war was almost over due to the fact that government retail price regulations forced each manufacturer to market a certain number of sides in order to remain within price regulations.

In the event both Columbia and Victor issue cheaper sides the moves will, of course, establish a real trend back toward lower retail disk prices. But, as all major companies are now set up economically, it won’t be possible at least for a long time, to turn out top names at 49c. Decca’s Vocalion artists are on flat salaries, no royalties, because it isn’t possible to underwrite manufacturing costs, pay publisher royalties, and also pay high guarantees and royalties to artists.

Variety, Wednesday, June 1, 1949, p. 45.

New York, June 4.—The first five days of the record industry’s first major clearance sale, kicked off on a national basis by the RCA Victor Company Tuesday (31), precipitated an unprecedented late spring retail buying spree and also created considerable resentment among small and medium-sized dealers against the Victor diskery (see other story this page on organized Chicago dealer resistance). Initial reactions to the sale, which offers the public a crack at virtually all of the Victor catalog at 40 to 50 per cent discounts, with the exception of current releases, based on reports from key disk selling points in the country, indicate that the sale disks are moving at a rapid clip but that sales on all current pops and albums, with the sole exception of Columbia’s long-playing longhair platters, have come to a virtual halt. At this point it is too early to tell the exact effects and repercussions of the clearance, but The Billboard will conduct a running survey of the sale and will publish the results shortly.

Pressure on Dealers

Many feel that the sale is creating a situation whereby dealers are forced into a battle of a survival-of-the-fittest nature. An apparent objective of the clearance is to convert the inventory of 78 r.p.m. shellac into cold cash, altho it means that the manufacturer and the distributors will have to lose money to gather the greenbacks. Victor is making the clearance stock available to dealers at 65 and 70 per cent discounts off list price while the dealers are encouraged to sell to the public at 40 and 50 per cent of list, depending on the distance from the shipping point.

In the case of the major dealers of a Macy’s, New York, Hudson-Ross, Chicago or Bullock’s, Los Angele caliber, it is reported that these are enjoying brisk clearance biz. These dealers, loaded with capital, are in a position to buy up wads of the Victor stuff, particularly standard items, for storage and at the same time unload whatever slow-moving wax they have in the stockrooms. Virtually all the biggies contacted expressed little love it has stimulated volume business. But the earnings on the hyped business has been negligible, at least at the moment. The biggies point out most of the current sale merchandise is being sold at a loss out of stock to clear the decks but that the losses would be made up eventually in the resale at regular list prices of the standard items which they are picking up from Victor at the clearance discount. The average individual sale in these key buying centers has been somewhere between $10 and $15. They have been selling, for the most part, more expensive sets, those which contain six disks or more (see story on classical buyers elsewhere in this page)… a typical type of selectivity by a bargain-conscious American public.

Dealers Pinched

It is the small and medium-sized dealer who has hollered the longest and loudest about the Victor clearance. The smaller guys cry that Victor is putting them out of business. Others are ignoring the Victor cut-price offers complaining that the major dealers, with big buying and promotion power, had already grabbed off the cream of the clearance selections as well as a large portion of the business traffic. They also point out that they are not in a position to buy additional stock despite the extra markdown since they haven’t accessible cash. These dealers also point out that they could not afford to take a loss by marking down items already in stock in order to maintain competition with the bigger guys.

The Victor position on the sale is that when a new product is marketed in most other industries the outdated merchandise is offered in a clearance. This, it was pointed out, has never been applied in the disk biz. And this is the first time a diskery he’s ever attempted such a clearance. The inference is that Victor’s 45 r.p.m. is the new product which will replace the “outmoded” 78 r.p.m. shellacs. But in its announcement of the clearance sale last week, the diskery heralded this as an experimental deal which id successful would become an annual affair. Most tradesters seem to feel, however, that this sale is simply the result of too much inventory.

The Billboard, Saturday, June 11, 1949, pp. 17, 39.

New York, June 11.—Columbia Records will have sold approximately 3,500,000 Long-Playing (LP) microgroove records in the first year of LP merchandising, a mark which will be reached at the end of the current month. According to Columbia Prexy Edward Wallerstein, the marketed disks, which are the equivalent of about 17,500,000 standard shellac 12-inch records (based on the fact that one 12-inch LP record contains up to 50 minutes of music or a music content equivalent per record equal to an average of five 78 r.p.m. 12-inch shellac records), will be played in homes on between 750,000 and a million LP players and player attachments.

Wallerstein, in pointing to the first year of LP as an unqualified success, said that the diskery has been steadily building its LP sales from month to month and claimed that May marked the highest monthly sales period in the first six months of this year and that a good portion of the sales of the first six months’ of LP were concentrated in the preliminary shipments made last July and August.

3-Yer Profit

Wallerstein estimates that inside of three years, based on the current sales pulse, LP should begin to pay off in big profits as the costs of research and promotion are amortized. As the point of amortization, the Columbia topper said that the firm will realize “substantially greater profits” per LP unit as compared to the profits culled from sales of equivalent five 12-inch shellac record albums. Meanwhile, the consumer is able to absorb the saving at the retail level between the two types of record merchandise.

Wallestein admitted that the diskery has sold hardly any of its seven-inch microgroove pop and longhair platters. But he also pointed out that no player with changer equipment has yet been marketed to handle playing of the seven-incher, which is designed as competition for Victor’s 45 r.p.m. disk. The prexy expects that such equipment will be marketed shortly and stated that these machines are now being prepared by a number of manufacturers.

The Billboard, Saturday, June 18, 1949, pp. 20, 43.

New York, June 11.—The deal between Varsity Records’ topper Eli Oberstein and Columbia Records’ chief, Edward Wallerstein, which resulted in the creation of the new harmony Records’ label is a unique record business venture. According to modus operandi of the new Harmony firm, Columbia will provide recording and production. Oberstein’s Wright Record firm will merchandise the finished product. Oberstein, in collaboration with Columbia pop artist and repertoire chief, Manie Sacks, will select tunes and artists for the maximum of 16 new sides per month which Columbia will slice for Harmony. Oberstein will specify the amounts of each record he needs for merchandising and will pay for each pressing he orders. He will assume full responsibility for the sale, breakage, returns, etc., of the Harmony wax. The Wright firm also will assume full promotion and shipping responsibilities for the new line.

Columbia’s end of the deal seems to assure that company a profit. Columbia will make available to Oberstein its entire Okeh catalog and certain items from its standard Columbia catalog. This will provide Oberstein with rights to sell disks by such artists as Al Jolson, Gut Lombardo, Bing Crosby, Russ Morgan, Benny Goodman, Claude Thornhill, Les Brown, Count Basie, Duke Ellington, Wayne King, Artie Shaw, Phil Harris and many others.

Columbia, to fulfill its commitment to turn out 16 new sides a month, will shift some of its current stable of artists to the Harmony line, with some bands and a few singers, including Julie Wilson and probably Pearl Bailey, stated for the cheaper-priced line. Columbia musical director, Hugo Winterhalter, also will be made available for Harmony recordings.

Col. Keeps Masters

Under terms of the deal, Columbia will retain ownership of the Harmony masters and will pay publisher and artist royalties. Columbia, after working out production cost and recording expenses, including royalties, will sell the finished record to Oberstein at a fixed price, including a small profit, per platter.

For Oberstein’s Wright firm, Harmony will become a second, “high-priced” line to complement the firm’s 35-cents-plus tax Varsity line. Harmony disks will retail at 49 cents, including taxes, and will be sold via a network of some 20 field salesmen, who will operate on a personal contact basis.

Under terms of the Oberstein-Wallerstein deal, Columbia cannot go onto low-priced field.

The Billboard, Saturday, June 18, 1949, pp. 20, 43.

It doesn’t appear likely that the currently muddled recording situation, caused by the vari-speed disks being produced by Columbia Records and RCA-Victor, will soon be alleviated. Decca, which adopted a “watching and waiting” policy when Victor brought out its 45 rpm sides in opposition to CRC’s 33 1/3 rpm Microgroove disks, is the key to the situation. And Decca doesn’t want to, and probably can’t, make a choice right now although it probably will be forced to eventually.

It’s felt by the record business that should Decca make a move toward one or the other of the new systems, it could break up the impasse that dealers feel has been fracturing disk sales. But should Decca decide to go either way it could get hurt by its own move. Decca, like most other rivals, has a fairly large inventory of disks on shelved. Since they are all 78 rpm platters, a move by the company toward either 45 of 33 1/3 could make much of that stock obsolete.

Decca is getting plenty of pressure to swing toward either Columbia or Victor, particularly from Columbia. Its watching-and-waiting routine, aside from protecting itself in the diminished 78 field, also could be for the purpose of giving rivals enough time to dash their brains out against the wall of confusion set up by the different speeds. Decca doesn’t expect that either Columbia or Victor, both backed by powerful parent organizations, will wind up the soup. But it’s no secret that other indie companies, such as Capitol, Mercury, et al, which have made themselves felt in the disk industry, are in a spot of trouble. And by waiting awhile Decca could be figuring it will have less competition.

At the moment, thought is involved in a battle with RCA, Columbia Records is in the best position. Its Microgroove disks have gotten somewhat of a foothold on the market. Victor’s 45s haven’t as yet reached that stage. It’s admitted that difficulty is being experienced by RCA, but it’s claimed that such was to be expected in establishing a new product.

Columbia, too it must be remembered, has no instrument business to worry about. RCA’s radio manufacturing industry is a heavy weight portion the titan’s overall business picture. And people are not buying new radios at the moment, due in a large measure to the rpm fight. Portables and small set sales are okay, but larger combinations with turntables are going begging. Victor can’t stand that off too long.

There have been rumors of a possible get-together of all companies—that each would produce a 45 rpm platter for pops and 33 1/3 rpm Microgroove platters for classical. Execs at Columbia laugh at the idea. But heads of other companies, notably Milton R. Rackmil, Decca president, believe some such compromise will have to be worked out.

Variety, Wednesday, June 15, 1949, p. 41.

Columbia Records’ plan under which it will market a 49c. (including tax) label to be called Harmony, through distribution outlets established in recent months by Eli Oberstein’s Varsity recordings, had an immediate effect on the disk business last week. Firstly, Decca Records immediately dropped the retail price of its Vocation label from 49c.-plus-tax to 49c. -including-tax to match the as-yet unreleased Harmony sides.

RCA-Victor, which for several months has ben considering a cheaper-priced line to run with its top-grade Victor platters, also reviewed the situation again. Victor’s execs cannot see how the company can profitably turn out a label to occupy the same price groove as the Vocalion and Harmony sides.

Vocalion and the new Harmony disks will hit the market fairly close together. Decca expects to get its initial Vocation release out this week. Harmony anticipated beginning pressing yesterday (Tues.) on its initial releases, the first batch involving pressing of catalog material drawn from Columbia’s old Okeh and Columbia shelves.

Variety, Wednesday, June 15, 1949, p. 37.

New York, June 18.— London Records has decided for a 33 1/3 r.p.m. long-playing disk.

The records will be of a new mix called “Geon,” an unbreakable plastic said to have the blackness and sheen of shellac. Full frequency range recording will be utilized, affording the 30 to 14,000 cycle range. Platters will be 10 and 12 inches, and while no announcement has been made as to price, it is reported that they will retail at about $1 more than the Columbia LP’s which are currently sold at $3.85 and $4.85. Disks will be pressed in England and will mean substantial savings in reduced handling and shipping costs.

The long-playing disks will be merchandised thru all London branches and distributors, with the first release reportedly set in the neighborhood of August. Among the sides will be versions of Bartok’s Concerto for Orchestra, The Nutcracker Suite, Scheherazade, a Cole Porter suite, a Gershwin suite, A Lehar offering conducted by the composer, Strauss waltzes and a documentary on three 12-inch long-playing platters in the vein of the Columbia I Can Hear It Now.

A new label will be used on both the 78-speed shellac and the long-playing disks. The “FFRR” trademark will be centered on the label, with the word “London” beneath. The current system of label colors for the shellacs will be maintained—blue for pops, red for classics, black for international.

The Billboard, Saturday, June 25, 1949, p. 16.

RCA-Victor came up with a new gimmick last week that could plant an idea and start something in favor of the recording business and the company’s new 45 rpm platters, or turn out to be an inspired, but impractical dud. Whichever way the wind blows eventually, RCA right now is pressuring all possible promotion angles out of a new housing project in New Jersey which is offering 45 rpm equipped apartments to prospective tenants. It held a press party in New York Monday (20) afternoon to herald the new addition to family life—the built-in 45.

RCA collaborated on the idea with Milton L. Ehrlich, Inc., builder of a garden apartment project at Roselle, N.J. It consists of providing each of 310 apartments with an “RCA Musicorner,” built into one corner of each living room. Musicorner consists of shelving to hold recordings and books (none of the shelving is high enough, apparently, to accommodate 78 rpm platters), plus any model television receiver, plus a niche for one of RCA’s model 9EY3, 45 rpm set. This is the small set that spins and reproduces the 45s, as distinguished from the turntable that is jacked into larger radios.

RCA feels that there’s no reason why new housing should not come equipped with record players as well as refrigerators, gas stoves, etc. Presumably, it made Ehrlich a present of 310 of the small sets to start the ball rolling.

Variety, Wednesday, June 22, 1949, p. 39.

London Records, U.S. affiliate of British Decca, is throwing in with Columbia Records and the 33 1/3 rpm recording system, at least partially. CRC’s Microgroove Long-Playing development will be applied to London’s FFRR classical platters, which London will distribute in this country after July 1, when a deal with U.S. Decca, which formerly marketed them here, expires [see ad in The Billboard, Saturday, July 30, 1949, p. 106]. The Microgroove system will be applied only to the FFRR platters, not to London’s pop material, which employs only the conventional 78 system. Via its agreement with U.S. Decca, under which all ties with the latter company are severed, excepting British Decca’s handling in England, etc., of U.S. Decca pop sides, London will record and press pops in the U.S. Heretofore, everything was recorded and pressed in England and the product shipped here. However, it’s unlikely that the FFRR will be cut in the U.S. or at least much of it pressed here.

Variety, Wednesday, June 22, 1949, p. 37.

New York, June 25.—In moves auguring a major push on the 45 r.p.m. system, RCA Victor this week completed personnel changes on the talent, sales and merchandising levels.

Here is the line-up:

Joe Csida takes over as director of popular artists and repertoire, replacing Jack Hallstrom in this position. Csida, who has been assistant director of public relations, will retain the latter title and continue to be active on a promotional as well as a & r level.

Csida will retain present a & r personnel, including Steve Sholes head of hillbilly and race categories; Steve Carlin, children’s records; Alec Bard, international; Herman Diaz, Latin-American; Charley Green and Henry Rene, musical directors, etc.

Jack Hallstrom, heretofore a & r chief, has been promoted to the post of assistant to Paul Barkmaier, general manager of the record division. Hallstrom, in addition to his a & r experience, is highly regarded for his sales and merchandising savvy.

Jack Williams, formerly general sales and merchandising manager of the record department, becomes assistant director of distribution under Hal Winters, director. William’s post is an across-the-board one, including records, home instruments tubes, etc.

Larry Kanaga takes over as general sales and merchandising manager of record department. Kanaga formerly was assistant director of distribution, and prior to that was vice-president and general manager of the Detroit distributor branch of RCA.

The Big Push

The personnel revamp, as indicated, is part and parcel of the 45 r.p.m. drive now shaping up. The company, which has spent $650,000 on the 45 r.p.m. system since its introduction in March, has allocated an estimated $2,000,000 to carry the promotional phase into the middle of the fall season. This heavy expenditure, it was learned, will be only the beginning.

At a meeting of field salesmen, regional managers and top brass held in Philadelphia this week Barkmaier outlined objective of the 45 r.p.m. drive and pointed out that over 50 manufacturers other than RCA are now making 45 equipment in one form or another. He stated that this represented high manufacturer acceptance in view of the brief time the new product has been out.

In addition to the allocation $2,000,000 for use in the near future, many other promotional facets were indicated at the Philly meeting. These would include an educational campaign on the dealer level via a 20-minute training film produced at a cost of $30,000 by William J. Ganz; a trade paper ad splurge covering July, August and September, and the use of the so-called Tripe S delivery systems, whereby dealers would be assured delivery of hits while the hits were hot. The Tripe S System is now being readied. Men were also told of the new line of 45 r.p.m. instruments, including consoles, table models portables etc., which will debut in the fall.

RCA, it was stated, would participate strongly in the National Association of Music Merchants’ convention, scheduled to open the end of July at the Hotel New Yorker.

Underlying all phases of the 45 drive will be the basic matter of top quality product—talent and tunes. Csida is loath to talk of his plans at this early date, but it is understood that he will make an exhaustive analysis of the sales potential of all artists on the roster, bearing in mind national and regional factors, and the suitability of tunes to artists.

The Billboard, Saturday, July 2, 1949, pp. 3, 18.

New York, July 2.—The Philco Corporation will add 45 r.p.m. players to its new line of fall merchandise, according to unofficial reports. Philco, queried on the matter, refused to comment officially on the matter at this time, but nevertheless indicated the report had a “probable” basis of truth.

The Philco development—when and if it materializes—is of high trade significance. It means that virtually all important phono manufacturers with the exception of RCA, are on a three-speed basis.

It is believed that Philco, which went LP at the beginning of that development, will formally announce its decision to go three speeds at a forthcoming Philco distributor convention, at which time distribs will be apprised of the firm’s new line. No date has been set for convention, but it is expected to be held late this month or early in August.

The Billboard, Saturday, July 9, 1949, p. 17.

RCA-Victor has made up its mind that the low-priced record it has been mulling will sell at 49c. rather than the possible 39c. being considered. It will be titled Bluebird, tag of the company’s 35c. disks before the war. Victor figures on beginning shipments of the cheaper sides Aug.1, which means that dealers will not have them until Aug. 10 or 15.

Some of the eight sides Victor cut recently, in preparation for the final decision on a low-priced platter, will have to be junked. Company officials feel that since the tunes recorded are all current hits, they will be slightly faded six weeks hence and of little sales value.

Victor, incidentally intends operating its 49c. platters a bit differently than Decca and Columbia handle them. The Bluebird sides will be dispersed through regular distributor and dealer channels will all the current discounts applying. Decca distribs its Vocalion sides through indie handlers, and Columbia’s Vocation distribution is done through Eli Oberstein’s Wright Record Co., parent of his Varsity (35.) label.

Of the three majors now in the 49c. field, Victor, incidentally, is the only one using a label that may be known to the disk-buying public. Bluebird sided were only discontinued about five years ago. Decca’s Vocalion and Columbia’s Harmony were both discarded much farther back, Vocalion about 10 or 11 years ago and Harmony in 1931.

Variety, Wednesday, July 6, 1949, p. 39.

The entry of RCA-victor into the low-priced record field, along with Columbia and Decca, places the disk industry in a position unparalleled in its history. The business already is in a state of confusion due to Columbia’s 33 1/3 Long-Playing disks and Victor’s 45 rpm platters. And the introduction by the three major firms of 49c labels carrying hit songs by non-name artists, in competition with their own 79c (63c for Columbia) disks featuring the same hit songs but performed by expensive artists, creates a unique situation.

Recording executives, who for years have been trained to know the vagaries of the disk market, have no answers on the future. Not knowing what course the industry will take, they have their fingers crossed, hoping that current conditions will successfully weather the shakeup now occurring and which was bound to come to some extent after the war’s boom years.

Actually, in bringing out 49c sided, Victor and Columbia are backtracking on their own histories. Before the war these two offered two price lines, one at 75c (later 50c) and the other at 35c (Decca was always 35c until wartime). But current factors are different, and here’s the rub. Prewar it was not often that a hit was duplicated on the high and low-priced labels of one company. As a result, there was no intra-label competition among the artists of one company. The companies didn’t undersell themselves, which they will be doing now.

The new 49c labels by Victor, Decca and Columbia change the entire setup. The 49c sides admittedly will carry only tested hit tunes. True, it’s not anticipated that a Joe Doakes on Bluebird at 49c will be able to take the sale play away from Perry Como or Vaughn Monroe on the same song at 79c, especially if either of the latter created the hit. But nobody knows for certain. Then, too, price is a primary factor among today’s disk-buyers, and the song is almost always the heaviest sales factor in the majority of cases; performer names are secondary.

What the cheap lines will do today’s top-name artists, therefore, is a big guess. The companies themselves are thinking about it, unquestionably. In many cases contracts with top names guarantee a certain amount of coin annually, regardless of the sales the names manage to corral.

Top artists are doing plenty of thinking, too. Aside from the fact that coin is guaranteed to many of them, they want to maintain reputations. And if the 49c platters begin killing their sales, the disk industry will see many big names asking to be released on 49c platers. It happened before, prior to the war.

If the big names are successfully stopped by the lower-cost labels, the disk companies themselves will be in deeper trouble, at least for a while. It’s the 78 rpm “shellac” record that now sustains the financial life of the record business. The 49c sides’ profit is minute. If the swing is to them and away from the 79,-ers there will be plenty more red ink until all other cost factors fall in line with the consumer price.

The artists who figure to be hurt immeasurably by the conflict between the 79c and 49c sides are the secondary names now riding the 79c platters. They’ll either drop to 49c-ers or go off wax completely. They’ll not be able to compete at all. They don’t get the hit songs now, and with the 49c platters selling hits in competitions with the top names, the middle-class names will thus be whipsawed.

Variety, Wednesday, July 6, 1949, pp. 1, 55.

New York, July 9—(AP)—The first year of the phonograph record war has ended in a stalemate.

If there is any victor in the battle, it apparently is the consumer who owns an old-fashioned, standard phonograph. He can buy regular 10 and 12 inch records at price reductions of 20 to 50 per cent.

Record sales, which has been averaging about 15,000,000 a year, have dropped sharply because of the war between RCA Victor and Columbia Records to see which could give music lovers the most music for the least money, a survey of major dealers showed.

Most dealers said the customers are too confused to buy the new recordings and all the special phonographs, attachments and storage cabinets to go with them. The confusion has resulted, they said, from the manufacture of five different types of recordings, requiring three different mechanisms to operate, and many square feet of storage space. Here’s how the situation stand now:

1. Columbia has two long-playing records—the 12 inch and the 7 inch. They both turn at a rate of 33 1-3 times a minute. The larger one plays for 25 minutes on each side, the smaller one for five minutes.

2. Victor has a 6 7-8-inch record, which spins 45 times a minute and plays for five minutes.

3. Everybody still has the standard 10 and 12 inch records which have been spinning for years at a rate of 78 times a minute. The 12-inch records play for about five minutes, and the smaller one for about three.

All three different classifications of records must be played on different types of equipment. Victor is making phonographs which will play anything but the Columbia type record. Columbia is selling phonographs that will play all or one of the various speeds, sizes and color records.

Columbia reports it has sold 3,500,000 long-playing microgroove records since they were introduced. Between 750,000 and 1,000,000 families have bought equipment to play the records. The company said. That is an average of three and a half to four records for each family.

Victor said it was too early to tell how many of its little records had been sold. A spokesman said a survey of 600 stores in 47 states showed that most salesmen liked the Victor records.

A construction company in Roselle, N.J. is installing the new Victor phonographs in each of 310 apartments in Lockwood Village. The living rooms are designed to have a music corner, storage space for records, and a television corner.

“One album of records goes with every lease,” the spokesman said. “This marks the first time in history that an instrument of recorded music has been installed like kitchen ranges and refrigerators.”

Sunday American-Statesman, Austin, Texas, July 10, 1949, p. 10 c.

While top record executives continue to engage in behind the scenes maneuvering, while rumors—some of them vicious—continue to emanate from behind closed doors, while talk of “compromise” and “throwing in the sponge” still continues, while all this goes on, evidence continues to pile up that the record industry is on a three-speed basis. The latest indication of this is the fact that virtually all major phonograph manufacturers, with the exception of RCA which is still not making 33, have accepted three speeds. Philco, one of the top companies and the last major holdout other than RCA, will join the three-speed ranks via a formal announcement in the not-distant future, it is reported by reliable sources.

Philco Going 45

Philco, it will be recalled, gave a strong boost to Columbia’s LP by going 33 when Dr. Peter Goldmark’s innovation was first introduced. Now Philco, it is said, will add 45 r.p.m. players (see separate story in The Billboard’s Music Department) to its new line of fall merchandise. It is believed that Philco will reveal its plans formally late this month or early in August.

With Philco understood to be set to go three speeds officially in a reasonably short time, the list of those on the three-speed wagon is very impressive. In includes Admiral, Crosley, Stewart-Warner, Emerson and all the other noted names in phonograph business.

How much longer then will it be before the remaining facets of the industry decide to face the facts of the record business circa July, 1949?

Fait Accompli

In an editorial June 25, The Billboard stated that like it or not, the record industry is now on a three-speed basis, that both systems have gained a measure of acceptance, that talk of dropping either speed at this time is unrealistic. It was urged that disk manufacturers accept the fait accompli. It was urged that record manufacturers make available material on all three speeds in order that the public might decide what to keep—or junk.

A number of record manufacturers have already faced the fact that three speeds are here. Maybe not here to stay, but certainly here for the foreseeable future. Certainly the major phono manufacturers are taking a realistic viewpoint.

How about RCA, Columbia, Decca and Capitol taking a realistic view? It might mean burying the hatchet, but it could also mean breaking the log jam now existing in the music business.

The Billboard, Saturday, July 9, 1949, p. 15.

Hunted at by a series of meetings in New York of recording executives but never fully revealed, The Hollywood Reporter learned exclusively last night that a full “peace” among the major record companies has finally been effected. Chief element in bringing about the end of the “war of the slow speeds” was Decca Records, the sole standout in the 45 and 33 1/3 RPM duel between RCA Victor and Columbia. Due to Lewis Rachmil, Decca prexy, the majors not only agreed to meet but make all future releases the current standard speed of 78 RPM as well as both Victor’s 45 and Columbia 33 1/3.

Decca brought pressure to bear by agreeing to go in with the others only on the basis that they would compromise and supply disks on each other’s speeds. Decca currently has slated a sale at 50 percent off of all its present standard speed albums, commencing Friday [15]. Plan is to clear the dealers’ stocks and and then emphasize 33 1/3 speed on all albums. Single popular songs will be both 45 RPM and the standard 78.

Columbia and Victor both will use the Columbia speed for albums, chiefly classics, and manufacture the popular music for both their labels on Victor’s 45 development. Both majors will continue with the standard speed for all types of music.

Capitol, fourth of the companies of major standing, currently has both popular and classical recordings on standard and 45 RPM. The classical disks are of the Telefunken catalog recently acquired by Capitol on a deal with the Germain company.

Rachmil was understood not only to have brought about the peace through his agreement to manufacture both speeds, but to have pointed out that the current depression in recording sales was due primarily to the public’s confusion about speeds and fear of having obsolete machines incapable pf playing the new disks.

Release of the new Decca recording is planned for Sept. 1.

The Hollywood Reporter, Tuesday, July 12, 1949, pp. 1, 3.

Decca is set to clear its surplus inventory via a 50% sale, starting Friday (15), for six weeks to Aug. 31, with its first reduction sale in the history of the firm. This is believed to be a prelude to merchandising some of its albums on the LP (331/3 rpm) vinylite system.

Albums, such as the original cast recordings of “Oklahoma” and “Annie, Get Your Gun,” would be among the first go on the slower speeds. At the present time, Decca has no plans for cutting singles on either 331/3 or 45 rpm. Terrific sales of the Columbia LP disks of “South Pacific” and “Kiss Me, Kate” are believed to be the main factor in Decca’s decision to make the 33 1/3 imprints of a few selected albums. Whether Decca will extend its 33 1/3 rpm to a wider range of albums is not yet determined.

Decca, however, will still concentrate on the normal 78 rpm speed in most of its issues. For example, the firm is reissuing Fred Waring’s “Tree” backed by “Tears” on a 10-inch platter to sell at $1.

Decca’s half-price sale follows closely that of Victor’s price-slash. Victor did very well with the sale since a terrific amount of merchandise was moved. As another benefit to the retailer, the sale brought about a considerable amount of traffic in the stores at a time when sales are normally slow.

Variety, Wednesday, July 13, 1949, p. 39.

Hollywood, July, 16.—Capitol Records will produce 33 1/3 long playing microgroove pressings of its classical Telefunken catalog in addition to the 45 and 78 r.p.m. diskings now being released, thereby becoming the first major label to straddle the speed fence to make its product available in all three forms. Initial long-playing release will be sometime in September, by which time the Coast major intends to have all its Telefunken releases to that date available in 33 1/3 r.p.m. form. This will amount to approximately 25 long-playing 10 and 12-inch platters.

Capitol will keep its microgroove price structure in line with Columbia’s, asking $3.85 and $4.85 for 10 and 12-inch long-playing platters, Coast major will use 33 1/3 r.p.m. to supplement 78 and 45 r.p.m. only for its classical library, keeping pop, Western and all other wax categories on 45 and 78 r.p.m. Capitol factories are currently being converted for microgroove production. Bill Fowler, Cap veepee, it now in Scranton, Pa., to supervise changeover of the diskery’s major plant.

General feeling at Cap is that the entire disk industry will eventually crystalize down to producing the product in the three speeds and leaving it up to the public to buy what it desires. Hence Capitol has decided to be the first to make the three speed plunge. Cap’s move to add microgroove longhair to its releases came after its recent Hollywood based branch manager meeting, where the matter was discussed and agrees upon by diskery execs and sales toppers.

Cap was the first diskery to join RCA Victor in 45 r.p.m. disk production when it made its first rapid-changer release last March.

In the meantime, rumors on the Coast insist that Decca will soon plunge into the multi-speed disk pool, some stating it will side with Victor’s 45 r.p.m., others putting it on the Columbia LP side, while still others claiming Decca will follow Capitol’s move for three-speed production.

The Billboard, Saturday, July 23, 1949, p. 17.

New York, July 23.—Attempts to break the disk impasse foundered Tuesday [19] when representatives of RCA Victor, Columbia and Decca broke off talks which were initiated many weeks ago and which were intended to effect a settlement of the multi-speed tangle. Up to several week ago, outlook for a settlement was good. The plan, of course called for the majors to make material available on all three speeds, with pops on 45 and classical on 33. During the last several weeks, however, the deal progressively chilled. As of now, each of the companies is strictly on its own—the understanding being that neither of the companies now is under obligation to the others.

Whether of not the break is irrevocable is a moot point. One of the negotiation parties, admitting that the chill had definitely occurred, was of the opinion that talks might still be resumed. Some tradesters, however, were of the opinion that this could by done only if RCA Victor and Columbia buried several of their point of difference—some of which, they pointed out, were concerned not only with the record business, but with television and radio broadcasting. It’s no secret, either that RCA feels that Columbia salesmen have carried on a damaging “play down” campaign with respect to 45 r.p.m. while top officials were in negotiation.

Must Go 3 Speeds

In any event, tradesters took the following view of the matter: The majors, sooner of later, must go three speeds anyway. Acceptance of three speeds would have come more rapidly had the three companies agreed upon a concerted course and action. In the even each company goes its own way—which is the status of the situation now—three speeds will still be accepted by all companies. But each one will embark upon the venture when it considers the time is ripe. Decca for instance, figured as set to add 33 shortly after its clearance sale which ends September 1, and it’s considered only a matter of time before RCA Victor and Columbia embark upon the three speeds move already taken by Capitol.

Most of the parties involved were reluctant to go into detail regarding the break. Ted Wallestein, Columbia Records topper, stated, “What the industry does makes little difference—what the public wants is what counts.” RCA meanwhile, has alerted dealers that the push on the 45 r.p.m. system will be intensified.

The Billboard, Saturday, July 30, 1949, p. 14.

Disk manufacturers are being urged by many record retailers to concentrate on the needs of the 18,000,000 owners of regulation 78 rpm machines instead of bickering about odd speeds. They hold that the 800,000 machines now on market with 33 1/3 rpm, and the 250,000 phonos with 45 rpm brought out by Victor in the past few months constitute only a minor part of the market.

Viewpoint of many dealers is that both RCA Victor and Columbia have done the record industry much harm by the terrific amount of publicity given the odd speed attachments. They’ve confused the public to the point where many buyers are shying away from record purchases because of obsolescence fears. Many retailers think that an insufficient amount of stress has been placed on the fact that 78 rpm records and machines will continue to be the mainstay of the market.

Variety, Wednesday, July 20, 1949, p. 42.

New York, July 23.—RCA Victor this week informed its dealers that a 15 per cent return privilege is to be extended against all purchases of 45 r.p.m. disks between now and the end of the year. The regular 4 per cent return for conventional-type disks remains as is.

When Victor first introduced the 45 r.p.m. system in March, it offered purchasers of a $385 basic stock package a 100 per cent exchange privilege which is due in August.

The Billboard, Saturday, July 30, 1949, p. 18.

The Billboard has held to the position that the record business, for the foreseeable future, is a three-speed industry. It has urged disk companies to face this fait accompli squarely and to make material available on three speeds as quickly as possible—for only in this way can the public make up its mind. We believe acceptance of this philosophy will hasten the industry’s recovery.

Glenn Wallichs, Capitol Records president, has made a major move toward this end. What he has done should not be misconstrued. His action, in the larger sense, does not represent a victory of one speed over another. His belief in 45 r.p.m. remains unshaken. He also believes it is good economics to put his Telefunken catalog on 33. He believes that what he is going represents a step forward not only for Capitol, but for the record business.

The water has now burst the dam. Let’s hope the flow strengthens as companies other than Capitol find the courage and resources to follow the lead of the Coast major.

The Billboard, Saturday, July 23, 1949, p. 17.

Decca Records has decided to side with Columbia Records and apply the latter’s 33 1/3 rpm Microgroove Long Playing system to its vast album line. Decca executives will not admit that it has made a decision one way or the other in the attempts by Col. and RCA-Victor to line the company up with their respective LP and 45 rpm systems. Neither will Columbia admit that it knows anything about Decca’s intentions. But the company intends to announce shortly that it will cut many of its past and all of its future albums on LP.

Company’s move is definitely a blow to Victor, which has been meeting with Decca’s prez, Milton Rackmil, and Columbia’s prez, Ted Wallerstein, in an effort to iron out the rpm confusion which has retarded disk sales. Failing in inducing Decca to go 45, Victor would have been happy if Decca had gone into both systems, 33 for its albums and 45 for pop items, just as Capitol was more or less forced to do recently.

Decca had refrained from making a decision one way or the other ever since Victor debuted its 45 following Columbia’s LP launching. It explained it was watching and waiting. Meanwhile, Decca knew that a large inventory of 78 rpm platters on its shelves would be placed in jeopardy if it did make a decision without taking them into consideration. That inventory problem is being solved to a great extent currently by Decca’s country-wide sale. Emphasis is being placed on albums in the reduced-price clearance, to clear the way for the same albums on LP.

Picture in the rpm battle as it now stands puts RCA at a disadvantage. Columbia, Decca, London, and Mercury are lined up against Victor’s attempts to establish its 45 disks and changers in the market. Capitol is on Victor’s side with its 45 pop disks, but also on Columbia’s side with its production of Telefunken classics on LP.

However, Victor is fully prepared to wage a stronger promotional battle in favor of its 45s, beginning in September. Company is said to have planned pulling all the stops in a wide-scale promotion plan to solidify the development in the record-buyer mind. If it fails, it’s possible that Victor would be forced into using the LP system for its own classical releases in self-defense. Decca’s move seemingly would force RCA to market combination machines sides as well as its own 45s and that provide for the playing of LP the regular 78s.

Variety, Wednesday, July 27, 1949, p. 101.

Producers of both types of long-playing records voiced their intentions yesterday [Thur. 28] to continue along present lines at a merchandising forum held in conjunction with the convention of the National Association of Music Merchants in the New Yorker Hotel.

Dealers present at the meeting were vociferous in their protest of the “confused” situation with which they are confronted in selling phonograph records and called for concerted action to obtain standardization.

J. B. Elliott, vice president in charge of RCA Victor consumer products, told the dealers that his company will intensify its selling effort on its 45 revolutions per minute records and for the fall season there will be an intensified merchandising and advertising program.

Edward Wallerstein, president of Columbia Records, Inc., said that his company will leave in the hands of the public whether a change should be made in its 33 1/3 RPM slow playing record. From all available reports, however, Mr Wallerstein said, there is nothing to indicate that consumer acceptance has been lacking for the Columbia product.

In a discussion period following the talks, B.B. Chodash, president of the Chicago Record Dealers Association called for action among dealers to get a common standard for long playing records. A show of hands was requested on dealer preference in regard to the 45 and 33 1/3 RPM types and it appeared that a great majority of dealers were in favor of the latter type.

In his prepared address, Mr. Elliott held that an independent survey had shown that dealers were overwhelmingly in favor of the 45 RPM records. Surveyors for a private research company, he said, had found that 83 per cent of all salespeople contacted expressed by word and action a favorable attitude toward the RCA Victor’s new type of record.

The record industry will sell just under 200,000,000 records this year. Mr. Elliott said, and 80 per cent will be in the popular category. Another 14 per cent, he added, will be in the children’s international and miscellaneous group and only 6 per cent will be in the classical field.

John W. Craig, vice president of Avco Manufacturing Company and general manager of Avco’s Crosley division, told the meeting that home reception of color television is still a number of years away. “There are a few vocal individuals,” he said, “who, either not knowing or not wanting to know the fact make it a point to harass the industry by insisting that steps be taken on color television, a step the industry, is not technically prepared to take.”

Hasty adoption of a system which might be passable for a moment, he added, would shackle future color development. The long range outlook for television is very bright, he said, and in the first half of 1949, 1,000,000 receivers were produced, equaling the industry’s production for all of 1948. It is now likely that the industry will turn out 2,000,000 receivers this year.

“We are fast approaching the point where television production and selling costs leveling out,” Mr. Craig said, and “we are nearing that point in retail price cutting as well.”

Pilot Radio Corporation introduced its new 12 1/2 inch screen table model television set which, according to Edward Gilmore, sales manager, will spearhead the company’s selling drive for the coming season. The set, selling for $269.50, includes an FM radio receiver, and features an intercommunicating sound system which enables peak picture adjustment on the basis of peak sound.

The New York Times, New York, New York, Friday, July 29, 1949, p. 24 L.

In the discussion before a large group of dealers, which marked the close Thursday (28) of the Music Industry Trade Show and Convention in New York, Ted Wallesrstein, president and chairman of the board of Columbia Records made a statement which flatly pointed out that television isn’t expected to have any effect on the record business. He said, “there is the fundamental fact that whether it be a motion picture, whether it be radio, whether it be television, none them interferes with the fundamental thing that the record industry brings to the home—the whole world of music you want, when you want it, and by whom you want it…until some other thing comes along that can supply that, the record industry will be, as it is now, a great industry. So, it is something that we (record men) should have faith in.”

Wallerstein’s statement regarding the possible conflict between tele and recordings has a lot of merit, it’s felt by music publishers, record men, etc. Many industry people generally agree there exists now a TV-disk conflict, particularly in taverns, where coin machines and video screens vie for customer favor.

Since the disk biz flourished in the past decade, with radio growing during that period in leaps and bounds, Wallerstein’s statement seems to have taken a lot of the edge off the spectre of video.

Variety, Wednesday 3, August, 1949, p. 37.

RCA executives smarting somewhat over the enlarged accounts of what occurred during the final meeting between dealers and manufacturers at the Music Industry Trade Show and Convention in New York Thursday (28), have expressed the opinion that the meet was “packed" with dealers favorable to CRC’s Microgroove Long-Playing 33 1/3 rpm system. Ever since the meeting, which was marked by talks from Ted Wallerstein, Columbia Records president and board chairman, and Joe Elliott, RCA v.p. in charge of consumer products, the music industry in N.Y. has buzzed about and expanded on a “blowup” between Wallerstein and Elliott over the rivalry of the two new recording developments.

Actually, there wasn’t much of a ruckus. What there was was caused by harried dealers wanting to know what the score might be in the near future, and they asked questions of both Elliott and Wallerstein. Some of the queries flung at Elliott were rather bluntly put. Midway in his speech, Elliott pointed out that out that of 600 stores surveyed in 47 cities, around 500 dealers were favorable to and successful with RCA’s 45 rpm machines and records, 14 unfavorable and 86 indifferent. Later, a dealer called these figures the partial result of “some anonymous surveys” and suggested that, since the meeting then in progress was being attended by the “finest cross-section of the entire retail record industry in the country…I propose…a show of hands find out which system has met with the best consumer acceptance to date—the 45 or 33 1/3 rpm. We might also have a show of hands for those that have nothing to say.”

As a result, the Columbia LP system drew a large majority of the support of those dealers present.

Another wanted to know why Victor and Columbia don’t get together and each produce all three speeds of records, as Capitol is going to do. Both Wallerstein, first, and Elliott thereafter asserted that neither would take that course unless consumer demands made it mandatory upon them to do so, and that has not happened as yet with either one. Elliott, as a matter of fact, had previously stated in his address to the dealers that Victor fully intended to see the 45 rpm system through.

Elliott did make one statement, however, which has record and music men curious. He said, “I can announce to you today that at least for the balance of this year RCA-Victor will not merchandise any other records except 45 and 78. That phrase, “for the balance of this year,” is being taken by many as indication that if things do not go right RCA would be willing to begin making use of Columbia’s 33 1/3 system.

Variety, Wednesday, August, 3, 1949, p. 37.

Hollywood, July 30.—Capitol’s initial 33 1/3 r.p.m. release will hit the stalls September 5, with a complete array of the Coast major’s classical (Telefunken) catalog to date. Fist long-playing release will consist of 21 microgroove platters—nine 10-inch disks, remainder to be in 12-inch form.

After September 5 all classical releases will be issued in 33 1/3 r.p.m. form along with 45 r.p.m. and standard 78.

The Billboard, Saturday, August 6, 1949, p. 18.

New York, Aug. 6.— The 78-r.p.m. record business is headed for the low-price bracket. That’s the studied opinion of tradesters who point to two recent major developments as having greased the skids. These development are (1) the rash of nationwide 50 per cent-off clearance sales—initiated by RCA Victor and followed up by Decca and Columbia, and (2) the concurrent rise of cheap labels. Sum total of these developments is that the consumer is becoming conditioned to purchasing fine record merchandise at far less than the regular 78-r.p.m. price. Another factor is aiding in the devaluation of 78. This is continuous promotion scheduled for LP and 45—promotion which constantly remind the consumer of new and better music systems.

Top dealers, queried on the matter, show they are already aware of what’s happening. Some frankly state that it’s going to be very rough, perhaps impossible, to try to get back to the old price level on 78. One went so far as the state that in six months it would be impossible for the average performer on a 79-cent label to rack up heavy sales. A handful of top names, it’s conceded, still will be able to do it, but generally, its believed that 78 sales on 79-cent labels will be stymied, with most of the big sales being racked up on cheap labels. Simultaneously, the cheap labels are expected to make a rash of stars.

It’s interring to note that this predicted decline ties in with general economic conditions. The same thing is happening in many other industries, such as building and construction, clothing, etc. In the record business, the series of events which are forcing the price down are unrelated—but acting together the sales and cheap labels are like two halves of a seidlitz powder making a powerful reaction.

Cheap Competition

Helping the reaction is still another factor, namely, the competitive situation among the cheap labels—that is, each successive one, as it debuts, must attempt to be better than its predecessors. For instance, Eli Oberstein’s Varsity disk provided the consumer with copies of current hits; Decca’s Vocalion tries to provide lush arrangements; Harmony has name artists from the Columbia label and reissues of name artists, etc. RCA’s Bluebird, in addition to attempting to build new artists, will be unbreakable. In other worlds economic factors are forcing the cheap labels to be good, a situation which in turn helping to force down the price of regular 78.

All of which adds this: It’s expected that the day will come—and perhaps in the not too distant future—when the cheap labels will outgrow the big labels on dollar volume of income. This, it is pointed out, happened years ago when Bluebird totaled 75 per cent of the RCA Victor gross.

Alarming Aspects

There are various alarming aspects to the situation. For one thing, it’s alarming because high profits go with the big labels. With current high labor, production and material costs, it’s considered likely that name, many indies who attempt to meet the low prices will not be able to stand the gaff. There just isn’t enough profit margin to carry them, it’s argued. Following this reasoning, one comes to the conclusion that the manufacturing end of the disk business will show a drastic curtailment in the number of companies.

Ultimately prices must move up from the cheap level so that a reasonable profit can be made. Here again, the competitive situation will stymie this for a while, the question being who will make the first jump. Currently, Varsity is pegged at three for a dollar, with other cheap labels at 49 cents. When the price of 78 does begin to rise, however, it is believed that the rise will finally be stopped by the barrier of the price of LP and 45, the new speed disks. The decline in 78, too, is expected to help establish the new product.

Honeymoon Over

So it’s batten down the hatches on 78—and there are serious implications not only to dealers, manufacturers and distributors, but also to talent and publishers. For the latter two, it might be said that the honeymoon is over. Fancy royalty deals and fat advances are likely to go by the board on the cheap disks except in the instance of top artists. Publishers, too, are expected to feel the pinch of lower mechanical loyalty rates. All this on account of the narrow profit margin.

The Billboard, Saturday, August 13, 1949, pp. 3, 16.

New York, Aug. 6.—With most of the items on its initial long-playing disk release as yet unheard of unseen by the vast majority of dealers in this country, London Records already has booked LP orders totaling close to $1,000,000 at retail prices, and some sections of the country have not yet been heard from. According to London topper E.R. (Ted) Lewis, these orders will be shipped over a period of five weeks. Prices of these disks, it is interesting to note, are approximately $1 more than any other LP’s.

Lewis emphasized that ordering was not confined to metropolitan districts, but that the response indicated a strong cross-country reaction, with distributors reporting sales in stores that London had been unable to crack previously. A single dealer in Houston ordered 750 sets.

The biggest orders are coming in the D’Oyley Carte waxwings of Gilbert and Sullivan operettas. Three of these are available now, with the remaining seven to be recorded soon in England. Altho the disks have yet to be heard here, some dealers have ordered as high as 300 of each work. London execs estimate that the Gilbert and Sullivan sales are accounting for 15 per cent of orders dollar wise. Other leaders, in approximately this order, are the Ravel: La Valse and Bolero disk, Strauss Waltzes, Cole Porter-George Gershwin Suites, Scheherezade and Beethoven Overtures. Several of the more esoteric items, such as the Recorder-Harpsichord Recital, have been surprisingly well-received.

Meanwhile, London’s pop business appears to be on the upswing, due principally to the diskery’s rapid purchase and production-delivery job with Al Morgan’s smash Jealous Heart disk.

The Billboard, Saturday, August 13, 1949, p. 17.

New York, Aug. 13.—RCA Victor is set to kick off its 45-r.p.m. fall campaign approximately September 15 with a national advertising splurge, supplemented by other promotional activity. Big gun in the ad campaign will be a series of large ads covering 154 markets and placed in metropolitan dailies in key cities. These will be followed by a series of smaller ads in dailies. It’s understood that the crux of the promotional drive will be the low-priced record and phono attachment package. The latter will sell for $14.95 and will includes—in addition to a 45-r.p.m. attachment, $5 worth of RCA records, the selection to be made by the consumer.

The daily newspaper campaign, it was learned, will be supplemented by a heightened campaign in trade publications, plus additional dealer co-op tie-ins, radio time and use of other media. The initial impact, however, will be made by black and white space in dailies.

At press time it was learned that this schedule tentatively set at September 15 could vary one or two weeks either way, with the kick-off date perhaps brought up to early October.

Breakdown on Tee-Off

The tee-off ad, which will cover 154 markets, is blueprinted as follows: Ads of 1,000 lines will appear in 37 cities in a total of 67 newspapers; ads of 800 lines will appear in 51 cities in a total of 73 newspapers, and ads of 600 lines will appear in 66 cities in a total of 115 newspapers.

The follow-up ad campaign in daily newspapers calls for the following schedule:

Ads of 800 lines in 37 cities in a total of 67 newspapers; 400-line ads in 37 cities in 67 papers; 600-line ads in 51 cities in 73 papers; and 400-line ads in 51 cities in 73 papers. The newspaper ad campaign will carry on late into the year.

Radio, Sales Promotion

Tying in with the newspaper will be a spot radio campaign, scheduled to get under way probably early in October on stations of the National Broadcasting Company (NBC). The spot campaign will carry on for some six weeks in a large number of markets. Coincidentally, the 45-r.p.m. system will get heavy plugging via the Kukla, Fran and Ollie Show , NBC-TV program aired five times a weeks.

The newspaper and radio drives will be supplemented by intensive sales promotion accenting dealer aids. Foe instance, an “A” display kit will be delivered to 3,000 dealers; two follow-up displays will go to 5,000 dealers; follow-up Christmas displays to 6,500 dealers, and a “C” display kit to 2,500 dealers. This display material is expected to reach dealers prior to the kick-off newspaper advertising, and is expected to be installed by dealers in time to coincide with the newspaper ads—say, late in September or early October.

500G Bally Costs

The 45-r.p.m. promotional drive outlined above entails a cost of more than $500,000. This is allocated to set department, and does not include an additional budget of approximately $250,000 which will be spent on the fall campaign by the record department. Nor does it include an appropriation of $250,000 plugging RCA’s TV sets. Neither does it include dealer-co-op advertising and other promotional ventures, all of which will round out the fall promotion figure to about $2,000,000. The breakdown of the half-million expenditures outlined above includes more than $250,000 for newspaper space and nearly $80,000 for radio time; the sales promotion end of package (including the various display kits) accounts for a total cost of nearly $90,000; store demonstrations add another $50,000 to the figure, and production costs, a distributor prize contest and incidentals add approximately another $35.000.

The push on 45 will also entail a drive for the kiddie market, as outlined in another story this issue.

The Billboard, Saturday, August 20, 1949, pp. 16, 36.

New York, Aug. 20.—Decca Records, after many months of deliberation which stirred considerable trade speculation, this week got its feet wet in the disk business’s mechanical evolution by plunging into the 33 1/3 long-playing field. The Decca move, reports that MGM Records is favorable eyeing the long-play medium, preparation by Mercury to peddle LP players, and Capitol’s decision to market pop albums at 33 1/3 (see other stories page 15) combined to make this week a landmark in the rock-ribbed establishment of LP as an item of accepted contention in record business.

Decca Prexy Milton Rackmil, in unveiling the diskery’s LP plans to The Billboard, stated that the firm’s move to the medium will be backed up by the marketing of LP players and microverters bearing the Decca trademark. Decca, at one time in the phono set business, will not produce the players but will have them made by outside set manufacturers. Decca will sell these players and microverters via the firm’s regular distributing channels. They will retail at $9.95, which is the price tag on the machines which Columbia has been marketing.

Months of Confabs

The decision of Decca to go into LP follows many months of conferences and deliberation. Decca had become the central figure in the battle of the speeds, with Columbia, selling LP, and Victor, pushing its 45-r.p.m. system, both having spent many months negotiating with the giant independent diskery. At the beginning of the summer the three biggies of the disk industry sat down to a series of conferences which were aimed at some sort of stabilization of the three speeds. About a month ago the series or talks broke down. Decca’s action this week is the first the firm has taken in the speed situation since the breakdown of the stabilization talks. When queried about Decca’s plans regarding the 45-r.p.m. system, Rackmil said; “I have no comment to make at this time.”

Only for Albums

Rackmil stated that Decca will make use of LP only for the firm’s past, current and forthcoming album catalog. The diskery will continue to issue its regular single releases at 78-r.p.m. and on shellac. The initial Decca LP releases, which will include 30 long-play patters culled from the diskery’s catalog of over 700 album packages, will be made available to dealers on or around September 5. Decca’s long-play price line will parallel the tags established by Columbia, running from $2.85 thru to $5.85. Columbia’s top price is $4.85. The Decca $5.85 line will include special recordings, such as the Judith Anderson reading of Medea, which ids included in the initial release. Most of Decca release is in the $2.85 10-inch pop line, hitherto a field touched only lightly by the other LP producers, Columbia, Mercury and Capitol.

The first release will include such stellar Decca catalog items as the Oklahoma album (12-incher at $4.85), Annie Get Your Gun; Jolson Sings Again, Carousel, Miss Liberty. A selection by Fred Waring’s ork, four Bing Crosby 10-inch collections, and groups of selections by such artists as Dick Haymes, Ethel Smith, Jascha Heifetz, Guy Lombardo, Carmen Cavallaro, Les Paul Trio and Percy Faith.

The Billboard, Saturday, August 27, 1949, pp. 3, 15.

Hollywood, Aug. 20.—Capitol will devote an entire 33 1/3 r.p.m. release to its outstanding pop albums of the past. Release is skedded for sometime in the latter part of September [see ad in Pittsburgh Post-Gazette, Pittsburgh Pennsylvania, Thursday, December 1, 1949, p. 30]. In disclosing its entry into 33 1/3 r.p.m. field, Cap originally announced it would use that speed solely for its Telefunken product, but this week, The Billboard learned that the Coast major will press long-playing versions of pop albums as well. Altho Cap refused to confirm, it is understood that future pop albums of merit will be made available on 33 1/3 r.p.m. as well as on its standard 78, and recently acquired 45 r.p.m. forms.

Cap, all-pop 33 1/3 r.p.m. release will consist of approximately 20 of its best-selling albums of the past. List of the complete release was not available at press time, but disk books set for 33 1/3 conversion include Music for Romance, Straus Waltzes, Waltzing on Air, Buddy Cole at the Piano, Manhattan Moods, South Pacific, Familiar Themes from Opera, Familiar Selection from Ballet and Symphonic Portrait of Cole Porter. Cap will adhere to the established Columbia price line for LP’s, ranging from $2.85 for 10-inch 33 1/3. With the exception of the Cole Porter album, all of the above will be released in 10-inch form.

Cap’s move to make its pop as well as classical platters available in 33 1/3 r.p.m. form gives diskery a stronger claim on being the first record company to make all its product available in all three speeds. It is also in line with Cap Prexy Glenn E. Wallichs’ earlier statement that the diskery will leave it up to the public to decide which speed it prefers and that the record company owes it to the consumers to make its product available in any form the public desires.

Simultaneously it is reported that MGM Records plans to join the LP parade in the near future. It is expected that the diskery will issue microgroove disks embodying film sound track material and other standard catalog packages.

The Billboard, Saturday, August 27, 1949, p.15.

Decca Records, in dubbing material from its regular 78 rpm masters to the new 33 1/3 sides, used tape exclusively for the transfer. It’s a simple process of feeding from a 78 master to tape, thence to a 33 master, after which the latter were shipped to Columbia Records’ Bridgeport factory for pressing. (Columbia has been doing initial platters, but Decca will soon be turning out its own 33s.)

Decca’s use of tape in the process highlights what is not generally know—that the majority of major companies and many minor companies are using tape exclusively for cutting of masters. Use of tape has gathered momentum only during the past year or so because prior to that real fidelity wasn’t possible due to poor reproduction of highs and lows. That, of course, made the method unsatisfactory for virtually all finishing work.

With tape recording vastly improved, however, the task and expense of cutting new material are considerably reduced. For example, any minor error in wax-recording, by a musician or a vocalist, usually forced a master into the discard no matter how excellent the remainder have been. Often, master after master would be gone through before an acceptable performance was gotten, There have been occasions in which performers tried so many times that they wearied of the material and lost the spark and spontaneity of performance that makes for a good record.

However, with tape, it’s possible to splice out objectionable parts no matter how minute, and insert a new section, using scotch tape to hold the splice in place. Too, there are other advantages. For example, Decca recently cut an arrangement with Gordon Jenkins which demanded a banjo solo. At the last minute, the banjoist couldn’t appear, and Gordon and his musicians and choir were ready to cut. Gordon simply went ahead and completed the date. Later, a banjo twanger was brought in to do the solo and the part spliced into the whole. That couldn’t have been done with wax.

Variety, Wednesday, August 24, 1949, pp. 45, 46.

New York, Aug. 27.—Early next week 34,000 London LP records will be flown here from England on a specially chartered DC-4 Airtrader. The flight which, according to London topper E.R. (Ted) lewis, has been necessitated by the demand for speedy delivery of the new microgroove line is the company’s first heavy air shipment, and the first time that phonograph records have constituted a full Westbound plane load. According to an official of Seaboard & Western Airlines, Inc., the load weight seven tons.

London, having insured its timely delivery of pop platters by contracting some pressings in the U.S., intends to continue pressing its classical disks in England.

The Billboard, Saturday, September 3, 1949, p. 14.

London Records flew its first shipment of FFRR recordings into the U.S. from England Monday (29). Shipment consisted of approximately 35,000 high-fidelity disks of approximately 60 different classic selections. They’ll be distributed to dealers in the U.S. immediately. They’re all Microgroove Long-Playing platters.

London was to have the disks here earlier, but held up until a greater number of units could be brought in at once. They’re the first FFRR material to be retailed in the U.S. since British Decca and U.S. Decca concluded a deal whereby the sale of FFRR in the U.S. would be taken over from Decca here by London Records, U.S. counterpart of British Decca.

It cost 10c a disk to air freight the platters from England to this country.

Variety, Wednesday, August 31, 1949, p. 47.

RCA-Victor anticipates spending to $2,000,000 on its campaign, beginning Sept. 20 [see ad in Chicago Daily Tribune, Chicago, Illinois, Tuesday, September 20, 1949, p. 22], to consolidate its 45 rpm disks and machines with the public. Actually, RCA execs do not know for certain the exact amount that will be spent, but, including radio spot announcements, television, newspaper and magazine ads and dealer “incentive” contests, the coat will easily approach $2,000,000 and could possibly go much higher. RCA heads are so emphatic on putting over the 45s that it’s said they wouldn’t be averse to going up to $3,000,000.

All told, therefore, it’s likely that the 45 development and marketing will in the end coast RCA in the neighborhood of $5,000,000 or so, including the expense of development, loss of sales in recordings and machines, etc. And that’s probably a conservative figure.

As pointed out in Variety last week one of the prime movements in the fall campaign will be the reduction of the cost of RCA’s 45 player, which jacks into bigger combinations, from $24.95 to to $12.95 as a means of getting then into the hands of record buyers. This spearheads ads citing the price reduction calling for 1,000, 800 and 600-line blurbs in 154 key markets throughout the country.

This will be followed by a series of 12 weekly ads, bought on a cooperative basis by dealers, distributors and RCA, in similar territories. Radio spot ads will be used used on 30 major radio outlets, along with plugs on RCA’s tele show, “Kukla, Fran and Ollie,” which will emphasize the kiddie aspect of RCA’s small 45 players.

RCA sales, merchandising and promotion execs are now out on the road briefing distribs and dealers on the campaign. RCA will give three automobiles and 13 U.S. Savings Bonds ranging from $1,000 to $100 to distributor and dealer salesman on a contest basis.

Variety, Wednesday, August 31, 1949, p. 43.

Chicago, Sept. 10.—In a declaration of policy unprecedented in the automatic phonograph industry, the J. P. Seeburg Corporation announced this week:

1. Seeburg is giving up the traditional yearly model.

2. The present model, M100A, will not be changed during 1950.

3. This “no change” policy will apply to the 100-selection wall box equipment as well.

4. Factory production schedules of the current model will continue to run slightly behind actual sales to ovoid over-production.

5. Seeburg has developed its Select-o-Matic 100 mechanism to play 45 r.p.m.’s.

45 Not in Production

C.T. Mckelvy, director of sales, told The Billboard that the 45 r.p.m. mechanism, altho it is fully perfected, is not now in production and will not be placed in production until the 45 disk becomes a factor to music operators. If it does, McKelvy said, the 45 mechanism will be offered to operators “at a nominal cost” so that the Select-o-Matic’s present 78 r.p.m. mechanism can be replaced without removing machines from location.

Seeburg readied its 45 mechanism, McKelvy said to protect operators who have bought and will buy the 100-selection box. After analyzing the three-speed problem with which the record industry is currently faced, Seeburg decided 78’s will continue to be produced for many years to come; that long-playing disks (33 1/3), while they offer advantages in albums and classics, will not become factors in juke box business since that business is based on the principle of one selection for a nickel, and finally that the 45 could become a factor which would affect the juke box.

Public Will Decide

Of the 45, McKelvy wrote the company’s distributors this week: “This record will never be a factor in the coin-operated phonograph business until such time as public approval has been placed upon it and public demand is such that adequate stocks will be available in every record shop throughout the country and supported by a complete 45 r.p.m. catalog.”

If and when that time arrives—as Seeburg evidently feels is a strong possibility—the 45 mechanism can be installed in present Select-o-Matics by unbolting and unplugging the present record player and plugging in the replacement. The 45 mechanism will mean no change in wall box installations.

Distributors for the manufacturing concern were told of the new mechanism and of the firm’s intention of discarding yearly models at a meeting in Chicago’s Belden Stratford Hotel August 26.

Production, Sales Policies

During that meeting, and in a summary of the decisions discussed at that meeting mailed to distributors Wednesday (7), McKelvy affirmed the company’s decision to produce only as many pieces of equipment as the market can absorb in order to avoid inventory problems at the operator, distributor and manufacturer level

Further, he said that his company believes new equipment should not be forced into low income locations, or should new equipment be moved from good stops to poorer stops until the equipment is paid out and the operator has had “a reasonable length of time to enjoy unencumbered revenue from his top locations.”

There is a strong possibility that Seeburg may introduce no new model even in 1951 or 1952.

Two Postwar Models

Actually, Seeburg introduced only two new machines in the postwar market, having announced in 1946 that it would skip the 1947 model. Instead, replacement doors and domes were offered operators who wished to give their 1946 equipment a new look.

The first really new piece of music equipment the Seeburg Corporation put on the market following 1946 was the industrial-commercial music system, offering 200 selections, non-coin operated, for industrial and commercial establishments. This system made its debut in the spring of 1948 climaxing developmental work begun in 1939.

During 1948 rumor in the music machine field it that Seeburg would use the Select-o-Matic mechanism in an automatic phonograph. But the new model did no make its appearance until this year when its non-coin operated counterpart had been operating for a year.

The Billboard, Saturday, September 17, 1949, pp. 3, 96, 102.

M-G-M Records has a two-fold reason for issuing all recordings, as of Oct. 21, on Metrolite, its own name for an unbreakable material. By making the move, M-G-M execs feel that it will not be necessary for the company to make a 49c platter to go into competition with lower-priced disks being made by RCA-Victor, Columbia and Decca. They feel that an unbreakable product selling at 60c (plus tax), the current price of the company’s shellac records, will immediately be in competition with both the 49c lines and the 79c lines made by the above majors, at one and the same time.

The idea is that record buyers will appreciate an unbreakable record at 60c, only 11c higher than the 49c platters, and 15c lower than the 79c disks made by its rivals. There’s a heavier production cost in turning out the new Metrolite disks, of course, but the per-unit increase is low enough to permit an unbreakable record at 60c without dangerously cutting into the profit margin. Metrolite is the development of M-G-M’s own plant engineers.

Initial shipment of the unbreakable sides will be M-G-M’s 67th release, on counters about Oct. 21.

Variety, Wednesday, September 28, 1949, p. 52.

RCA-victor executives will make no comment on constantly increasing reports that the company will begin making 33 1/3 rpm Microgroove Long-Playing recordings after Jan. 1. It has been expected that RCA would sooner or later bow to the widespread acceptance being accorded the LP system, in so far its Red Seal and album works are concerned, despite its continuing full-scale effort to put over the 45 rpm platters. Latter is a strictly RCA development put on the market earlier this year.

RCA was seriously considering going into the LP system with Columbia, which put it on the market, and Capitol and Decca some months back. What interrupted those conversations at that time was RCA’s reluctance to issue LP platters before RCA’s radio manufacturing division could get sets on the market equipped with turntables that could handle all three speeds—78, 45 and 33. That killed the idea, because by issuing Red Seal and other albums on LP RCA could hand its radio-manufacturing division a staggering blow in the market.

In the even RCA does go into LP it’s certain the move won’t be made before the first of the year. And it’s likely to be done coincidentally, or following the announcement of the availability of RCA combinations able to play all three disks. The Jan. 1 date is predicated upon the Xmas sales period, for which RCA already has radio combinations ready—without provision for 33 rpm.

Meanwhile, RCA continues its huge campaign to put over the 45 system with the public. It’s too early to get decisive results. RCA execs point out, however, that dealer orders on 45’s have been more than gratifying. They are fully equipped to handle sales, and from here in it’s a question convincing buyers. There’s said to be considerable interest in the self-contained player unit from a kiddie angle.

Variety, Wednesday, October 5, 1949, p. 35.

New York, Oct. 8.—RCA Victor’s artists and repertoire department, headed by Joe Csida, is setting up a new operational procedure which may have a precedential effect on both the talent and distribution facets of the record business. The trial ground for the new modus operandi is the Bluebird label, and the crux of the plan is the creation of a “stock company" of such flexibility as to be able to handle virtually any recording assignment. This stock company, in the pop category, entails holding under contract seven attractions—these attractions chosen not only for their individual abilities but also for their capacity to blend with each other and form an integrated, flexible unit.

Normal procedure among cheap label—and to considerable degree among major labels—has been to contract a large number or attractions for short periods—say four sides. In contrast to this method, Bluebird is signing up all members of its stock company for periods of one year with options. In other words, the diskery commits itself to work closely and intensely with an artist over a sizable period.

Economy in Operation

Business aspects of the stock company plan are numerous. In addition to flexibility of such a unit, there is obviously implied an economy of operation. Also implicit in the plan is a control of inventory affecting distributors, dealers and ultimately the consumer. It is intended, for instance, to issues releases at four to six-week intervals so as not to choke up ultimate sales outlets.

Product of inventory produced by the stock company operation would be calculated to be salable thru the technique of recording tunes which have already hit the charts. This technique, of course, is not new. However, on the reverse side of the disk Bluebird would allow itself latitude to gamble—that is, the tune selected here would be as yet unproven.

Another important aspect of the plan is talent building. It’s the belief of the Victor a. and r. department that the handiness of the operation, plus the possibility of giving intense promotion to each of the attractions—owing to the small number of artists on the roster—will facilitate this.

Personnel

Personnel of the stock company is now crystallizing. The pop division’s seven attractions will include one boy singer, one girl singer, one dance band, one mickey band, one vocal group, one small instrumental group and one specialty artist. Already set are Ralph Flanagan as the band, with Harry Prime as band vocalist. Boy singer is Eddie Fisher, specialty artist is Eddie Cantor, and the vocal group comprises three boys and two girls known as the Honey Dreamers. The latter work on the Dave Garroway TV show over the National Broadcasting Company (NBC) in Chicago. Remaining personnel for pop category are expected to be added soon.

Also contracted for stock company are Jesse Rogers, in the hillbilly category; Cab Calloway, race, and Jack Lawrence, pop-hillbilly.

The Billboard, Saturday October 15, 1949, p. 16.

RCA-Victor sold over 500,000 45 RPM recordings during the past quarter, according to the company third-quarter royalty statement, released to publishers last week. While the figure seems larger and more impressive than reports of Victors sales problems with the 45 sides, the total represents only 7% of the overall sales of regular 78 and 45s during the quarter. Pubs draw only 1 3/4c per side on the 45s, against the full 2c per for 78 rpms.

Quarterly statement, for the period ending Aug. 31, was 35% lower than the second quarter (but only 13% lower than the corresponding three months of 1948). This was due partly to the fact that Victor’s fiscal year begins Dec. 1, therefore the third quarter covered the particularly poor June, July and August sales period. Too, during the prior quarter Victor had Vaughn Monroe’s “Rider in the Sky” riding high, which boosted its statement 55% higher than the first quarter figures.

Monroe’s “Rider,” incidentally, reaches a total sale of 1,213,000 disks, approximately 1,190,000 on 78 and the remainder on 45s.

Variety, Wednesday, October 12, 1949, front page.

RCA-Victor is using every possible means of putting over its campaign on 45 rpm recordings and machines, even to the extent of confining probable-hit disks to the 45 series for a time, bringing them out on regular 78 rpm platters later. That’s what’s being done with Perry Como’s new “Ave Maria” and “Lord’s Prayer” recordings.

Two sides will be marketed for two or three weeks on 45s only, Victor hoping that the demand for them will be such that additional sales of 45 machines will be created which in turn would create a bigger market for the disks themselves since the machines must be in homes before 45 records can be sold. Como’s two church tunes thereafter will be issued on 12-inch 78 sides.

Columbia records has in the past taken a similar course in endeavoring to establish its 33 rpm Microgroove Long-Playing disks. A number of times certain melodies have been made available on 33s and not on 78s.

Como’s “Ave Maria” and “Prayer” were made in New York’s Church of the Incarnation, with a 36-voice choir seated in pews, Como working from a pulpit spotting, and the accompaniment provided by church’s pipe organ only.

Variety, Wednesday, October 12, 1949, p. 41.

New York, Oct. 15.— Without fanfare or beating of drums, RCA Victor is taking a new tack in the merchandising of phonograph records with the release of its Bluebird line on 45-r.p.m. disks to sell at 49 cents. A high company exec, when queried, said, “Yes, we’ll probably take a flier in a low-priced 45 speed records.”

The current Bluebird release, the third since the label was revived, was shipped yesterday (14) [see ad on The Billboard, Saturday, October 29, 1949, p. 31] on both the conventional and the slow-speed disks. The move, which had been kept a well-guarded secret, may have far-reaching effects on the price structure and merchandising techniques of the entire wax industry.

To sell the new-speed vinyl disk at 49 cents will plainly necessitate working on a tiny profit margin and will require huge volume sales to keep the operation out of the red. RCA hopes to do this via its current drive, which is aimed at moving both disks and players. Tying in with these aims, of course, is Victor’s desire to make the entire line—including Bluebird—available to users of 45-r.p.m. system.

Widespread trade talk has RCA going for 33 1/3 some time in 1950, with the assumption that the two new speeds cannot co-exist in the market place. Others feel that the 45 can become the accepted pop medium, while 33 1/3 becomes the classical medium.

Before 45 replaces 78 as the pop medium, however, the big missionary job of winning the public over and getting 45 machines in homes must be accomplished. Putting the Bluebird line on a 49-cent 45-speed disk can be construed as a drive toward both objectives. In one swoop RCA hopes to woo record buyers to the disk itself and encourage sales of the players by implanting the idea that the savings on the records can soon pay for a new player.

The new Bluebird 45 disk will be on black viny, regardless of category. The separation of pop, country rhythm, international, etc., by colors as practiced on the original 45-speed disks constitutes an item in toting costs and is being dropped for the 49-cent 45-speeder to help make the price feasible. However, it’s pointed out that Bluebird releases do not include more than one hillbilly or one blues and rhythm disk, so the use of only one color, the black which is used for pops, is applicable.

The Billboard, Saturday, October 22, 1949, pp. 3, 13.

“…The engineers who sold RCA-Victor on that 45 RPM record have been let out. In Feb. RCA will announce the switch to L.P. (33-one-third RPM). The debacle cost them two millions bux…."

The Hutchinson News-Herald, Hutchinson, Kansas, Saturday, October 22, 1949, p. 4.

New Yok, Oct. 22.—Columbia Records has virtually completed an entire schedule of publisher royalty rates to be paid in the future on its long-playing records. In addition to the 1 1/2-cent and 2-cent rates previously fixed for pop material, the diskery, with the approval of pubbers and agent Harry Fox, has fixed a rate on long works of a classic type which are not in the public domain. The rate to be paid will be half of the established rates paid on an equivalent number of regular 78 r.p.m. etchings of the work involved. The established shellac rate is 2 cents per side.

The rate schedule, which will set the precedent for payment of LP royalties by all firms using the Long-Playing medium, includes the 1 1/2 cent rate per selection for 10-inch items priced at $2.85 and a 2-cent rate per selection on disks priced at $3.85 and $4.85.

The Billboard, Saturday, October 29, 1949, p. 14.

RCA Nips Report on Dropping 45 in Favor of 33

RCA-Victor top executives privately blasted a certain private source for originating the report printed in Walter Winchell’s column last week to the effect that Victor was going into the manufacturing of 33 rpm recordings. Victor didn’t mind so much the statement about the LP possibility, but Winchell’s line implied that RCA was dropping its own 45 rpm development in favor of the 33s, developed by Columbia Records, CBS subsid.

Victor men burned because, as soon as the WW item got around among its own distributors and dealers all over the country, they were deluged with querying phone calls and wires. Many distribs, its claimed, began cancelling orders for Victor’s Red Seal albums, expensive items, on the theory that if RCA were going to turn to 33 rpm LP disks for its classical material, they didn’t want to be caught in the switch with an overload of 45s or 78s.

Because of the reaction by distribs and dealers, RCA actually considered throwing a suit at Winchell for $1,000,000 for his statement. Whether the suit would have been a serious one or a publicity stunt, the Victor men won’t say, but it finally boiled down to a press statement refuting the item. which pointed out “that people with an axe to grind” had originated the false report. Winchell also published a retraction, with a “DD” admonition to his misinformants.

At any rate, Victor last week officially advised the National Retail Dr. Goods Assn., of which its dealers are members, the the WW report was untrue, and that it will continue to make 45 rpm disks.

Victor doesn’t say that it will never go into LP. It does, however, fully emphasize that if and when that happens the 45 system will continue to be used on pop material and on Red Seal. Sales of the 45s, it’s asserted, have risen heavily since the start of the current $2,000,000 campaign to put it over. Actually, Victor’s press release following the WW item says sales have jumped 260% in 90days. Victor men state that sales have jumped more than twice that, but the lower figure was used because “it was felt the higher one would not be believed.”

And, Victor says, none of the engineers involved in the development of 45s has been fired.

Variety, Wednesday, October 26, 1949, p. 54.

“The Aristocrats: The report that RCA-Victor will abandon its 45 RPM system is pure bunk. Frank M. Folsom president of RCA, report that the 45, introduced last April increases sales 260% within the past 90 days. They can’t keep up with the public demand. The source for the inaccuracy will now drop dead….”

The Zanesville Signal, Zanesville, Ohio, Wednesday, Evening, October 26, 1949, p. 4.

New York, Nov. 5.—RCA Victor’s custom disk pressing plant in this city is now knocking out LP microgroove platters for several indie labels and is making test samples for others. Altho none of the labels involved is believed to have taken any large volume of LP disks to date, the 17-press plant, equipped to handle volume, is reportedly dickering with another major diskery to handle a chunk of its LP production. Actually, LP platters can be pressed on conventional presses, requiring only a special stamper mold and some additional pressure.

Among the labels for whom the plant has done LP work are Horace Heidt, Standard and London.

The Billboard, Saturday, November 12, 1949, p. 18.

Columbia Records issued a third-quarter royalty statement to music publishers last week which contained interesting figures. Company disbursed an overall amount of cash that was approximately 9% higher than the previous (second) three-month period, but the breakdown on 78 rpm and 33 rpm platters showed a greater variance.

The 78 rpm sale was only 8% higher than the previous quarter. On the other hand, LP Microgroove returns jumped approximately 20%. Overall, the report showed that during the 90 days, more than one-third (about 35%) of all Columbia sales were accounted for by LP platters.

Recently, when RCA-Victor filed its third-quarter statement to music pubs, approximately 7% of the coin remitted sprang from sales of its 45 rpm platters. RCA states that that percentage has gone up appreciably since.

In Columbia’s case a majority of the LP sales were due to the “South Pacific,” “Kiss Me Kate” and “Miss Liberty” albums (even though 78 disks of those albums outsold the LP versions). These are pop items, of course, with the company’s Masterworks label responsible for the rest of the sales. Columbia’s seven-inch pop LP sales are negligible. Victor’s 45sales cover both pop and Red Seal, and the balance is said to be on the pop side.

Variety, Wednesday, November 9, 1949, p. 35.

New York, Nov. 12.—The first two reports of a weekly, continuous survey of phonograph and record sales, made by The Billboard and based on dealer reaction throughout the country indicates that RCA Victor’s push on 45 is producing very tangible results. Sales of players, attachments and records have bounced. The current period, leading to Christmas, represents RCA’s all-out push on a national level, and the question, of course, is whether the company can sustain the drive to carry on beyond the Christmas season and ultimately create enough consumer demand so that 45 can go on its own momentum. It’s known that RCA has every intention of doing this, and has already blueprinted plans to spark post-Christmas sales.

The Billboard’s dealer survey does not indicate by any means that the 45 system is in. It’s still too early for that. But initial returns indicate that those tradesters who predicted the early demise of 45 were woefully misled or emotionally upset. It’s know that many who regarded RCA’s venture into 45 as completely misguided now admit that the diskery stands a very good chance of putting over its product.

Gain Is Spotty

It should be pointed out, however, that 45 sales, while representing a considerable gain, are still spotty in many parts of the nation. This picture is by no means a consistent one, altho the over-all outlook is a vast improvement over that of several months ago.

The following chart shows the returns on the two initial surveys, the one covering the period ended November 3 and the second the period ended November 10. In each instance the survey represents the opinions of dealers who, during each of those weeks, sold upward of 1,200 phonographs and attachments, in addition to their disk business. The dealer list receiving the questionnaire is the same which receives The Billboard’s pop chart questionnaires . The survey covering the week ended November 3 was answered by 186 dealers; that covering the week ended November 10 by 170 dealers. The size of the sample, together with the continuous nature of the survey, gives it validity as a measure of dealer opinions.

Note: The percentages given in the second and fourth columns are similar in both weeks of the survey and indicate a good sample. Trends in 33, 78 and 45 sales cannot be gauged by small percentage differences.

The results of the 45 drive are available at a glance. It will be noted that sales of 33 1/3 phonos and records are going very well, but at this point that is scarcely news. LP has ben over the hump for some time. The figures on 45, however, are arresting. During the week ended November 10 the 170 dealers sold a total of 483 45 players and attachments. This was the greatest single item in the total of 1,232 phonos sold. Other factors making up the total were 219 of three-speed phonos, 163 of the 33 1/3 and 78 phonos, 87 of the 45 and 78 phonos, and 280 of the 33 1/3 players and attachments.

The survey of the preceding week has a similar set of figures, the 186 answering dealers having sold a total of 1,225 phonos. The greatest single item here was 478 of 45 players and attachments. Other factors making up the total were 233 three-speed phonos, 228 of 33 1/3 and 78 phonos, 42 of 45 and 78 phonos, 244 of 33 1/3 players and attachments.

For the week ending November 10 789 machines (out of the 1,232 sold) were equipped to play 45 disks. This is 64 per cent of the total. The preceding week 753, or 61,5 per cent of the total sold, were equipped to play 45. It is understood, of course, that these last totals (753 and 789) include machines which may be able to play 33 1/3 and 78 as well as 45. The same is true of the figures on 33 1/3 and 78 phonos.

LP Also Increasing

Dealers’ reports on the sale of the different speed disks also reflect the RCA drive. In the November 3 survey 111 dealers, or 59,7 per cent, stated 45 sales were increasing. In the November 10 analysis 102 dealers or 60 per cent, indicated 45 was on the way up. As in phonos, LP shows up very well in this phase the survey. November 3 report has 108 dealers, or 58,1 per cent, saying LP is increasing. Figure in the November 10 survey is 92, or 54,1 per cent. On 78 disk sales, 20,4 per cent, and 23,5 per cent, in the respective surveys, quote an increase.

RCA admittedly had got off to a late and bumbling promotion campaign on 45 and had run into extensive dealer opposition. Currently, however, the diskery is operating on a very optimistic peak. In the past few weeks formal releases from RCA have stated that production and sales were mounting sly-high on both players and disk. Prior to The Billboard survey, however, no attempt was made to analyze general dealer reaction and check that reaction against the RCA claims.

RCA, currently, admits that results go its campaign are not consistent in all areas. It also claims that high sales are much more uniform on 45 disks than on the 45 player. Some of its distributors, says RCA, are doing as much as 50 per cent of heir disk business on 45’s. The average distributor, however, attributes about 25-30 per cent of his record business to 45’s An interesting point, says RCA, is the fact that the company’s 78 business has not dropped. In other words, the dealers, according to RCA, feel that 45 customers are new ones.

RCA says it would be difficult to compare results of the drive in different areas of the country. Sections within each area vary considerably, with the disk business being most consistent. RCA of course, has been claiming 1,500,000 in 45 sales per month in ads. The Perry Como etching of The Lord’s Prayer, issued by Victor on both 45 and 78, is reported doing smash business, with 104,600 disks sold on 78 and 41,000 on 45. This, of course, is a hot Christmas item, but the figures are interesting in view of the proportion of 45’s to 78’s sold.

With regard to post-Christmas, RCA is planning to maintain and supplement the promotion push. Currently the promotional emphasis is on the 45 attachment which sells for $12.95. It’s understood that the post-Christmas phase will emphasize the self-contained player, reportedly at a new price, and perhaps involving a package deal.

Decca and Capitol are key companies in the ultimate outcome of 45 r.p.m. situation. Some months ago high Decca brass expressed the opinion that lacking industry support, RCA couldn’t make the grade with 45. Queried this week, Decca brass outlined the following point of view on 45: “Decca is in the business of providing entertainment. If and when it becomes apparent that 45 represents a plus business for Decca, the company will make 45’s.” That time, says Decca, is not yet, altho Decca believes 45 has picked up around the country, particularly in smaller cities and towns.

Decca stresses that its position is one of open mindedness—the same as it maintained toward LP. And altho Decca believes there is currently no plus business in 45 for Decca, the spokesman added: “This does not mean to say it couldn’t happen.”

Glen Wallichs, head of Capitol, claims that the 45 r.p.m. sales climb is “astounding.” Cap, he said, is rushing production changes to where it will be able to release simultaneously both 78 and 45 disks. The date skedded for twin release is January 2.

The Billboard, Saturday November 19, 1949, pp. 15, 42.

New York, Nov. 12.—Columbia Records next week will raise the prices of its regular single disk line to 75 cents for pops and $1.25 for masterworks from the current 60 cents and $1 tags. Columbia Prexy Ted Wallerstein explained that the diskery’s price raising move, unusual in view of an industry-wide belief that the platter retail price level can only be lowered, was being made simply because “everybody else is getting the same price.”

The new prices, which are effective Monday (14), will be 75 cents, excluding taxes, for all 10-inch pops; $1, excluding taxes, for 10-inch masterworks, and $1,25, including taxes, for 12-inch masterworks. The price schedule is the same which prevailed until the early part of this year. Earlier in the year Columbia lowered its regular disk prices to 60 cents for pops, 85 cents for 10-inch masterworks and $1 for 12-inch masterworks.

One of the reasons forwarded for price-lowering move was that the only difference between the 45 r.p.m. disk, which was going thru birth pains at that point, and regular wax was the price.

The current Columbia decision to raise retail prices and thus boost its own wholesale take by over 6 cents per disk is timed to catch much of the coming Christmas season business. It is estimated that the change will add more than $150,000 to Columbia’s take for remainder of the year.

The regular disk line price change will not affect the company long-playing disk prices. These will remain at the current $2.85, $3.85 and $4.85 levels.

The Billboard, Saturday, November 19, 1949, p. 16.

M-G-M Records, the only one of the five major labels to have ducked the vari-speed disk situation until now, will join the ranks of those producing Microgroove Long-Playing platters. M-G-M intends marketing LP’s soon after the first of the year and already has begun pressing some of its albums in that fashion in preparation for the announcement.

With M-G-M on the LP side, all top companies are in the vari-speed situation in one way or another. Columbia, Mercury and Decca are solely in the Microgroove camp. Capitol adheres to both LP and RCA-Victor’s 45 rpm system, using the former for classical releases and the 45s for pops. Victor itself, of course, uses only the 45, but has been repeatedly rumored as going into LP for its classicals after the first of the year. If that happens, it’s possible other labels would also accept the 45 plan for pop platters.

M-G-M, of course, did not not declare itself for either system before for several reasons. It didn’t go LP chiefly because its catalog of albums wasn’t too large. It bypassed 45s to await a clearer conception of their acceptance.

3d Qtr. Royalties Up 11%

M-G-M Records’ quarterly royalty statement to music publishers for the period ending Sept. 30 last jumped approximately 11% over the second quarter. Total coin minutely increased, too, over that distributed for the corresponding quarter of last year.

Difference between the third quarter of ’48 and the past quarter of this year is greater than is indicated by the money disbursed to pubs, however. Last year M-G-M was retailing its disks at 79c. and paying publishers a 2c. per side royalty; this year the label sells at 60c. and returns a 1 3/4c. royalty. That means the per unity disk sales for the past quarter are higher than the corresponding period of ’48.

Variety, Wednesday, November 16, 1949, p. 55.

New York, Nov. 26.— Attempts are being made to revive the projected three-speed phonograph industry compromise plan which seemingly had died a-borning late last summer. A top record company executive said that a heretofore neutral executive, who is indirectly involved in the disk industry, has been making efforts to round up the original participants in the compromise conferences—Ted Wallerstein, Columbia diskery topper; Frank Folsom, RCA chief, and Milton Rackmil, Decca’s boss man—to resume working out the originally proposed compromise.

Prior to the suspension of activity in the original compromise meetings which broke down in last-minute bursts of temperament, a compromise agreement reportedly was made which called for each of the diskeries to undertake production of their disks on all three-type platters. The efforts to revive the compromise talks are based on the originally snubbed agreement.

A number of reason were forwarded for the breakdown of the original compromise negotiations, one of which was the bitter competitive battling which was going on between Columbia Broadcasting System (CBS) and the National Broadcasting Company (NBC) affiliate of RCA.

The Billboard, Saturday, December 3, 1949, p. 14.

Hollywood, Dec. 3.—Ever increasing demands for 45 r.p.m. platters led Tempo Records to expand its releases. Coast indie has skedded 13 45 r.p.m. release for January. These will consist of its catalog’s best sellers, including four disks by Ben Light, four by Joe Venuti and Bobby Maxwell, four by Kern and Sloop, and one, The Man I Love, by Roberta Lee. Heretofore Tempo has saved 45 for its classical catalog, but only recently label has issued its pop wares in the slower speed.

According to Irving Fogel, Tempo’s prexy, the multi-million-dollar promotional campaign launched by RCA Victor on behalf of 45 has created such a demand that Tempo will continue to issue its product in doughnut disk form as well as standard 78.

Tempo also releases its classical wares on 33 1/3 and was the first indie to go to all three speeds.

The Billboard, Saturday, December 10, 1949, p. 18.

New York, Dec. 6 (AP)—The battle of phonograph record speeds apparently moved closer to eventual peace today.

RCA Victor, it was learned, soon will introduce sets to handle all types of records, including those that spin at 33 1/3 revolutions a minute, as well as its own 45s.

Heretofore, RCA Victor has made no provision in its radio phonograph combinations for the 33 1/3 developed by its archival, Columbia Records, Inc., nor has it produced players or attachments for the long-playing 33 1/3.

Two-Speed Model

Some of its combination models due on the market early in the new year will have one two speed turntable for 33 1/3 and conventional 78s, and a separate turntable and changer for 45s. Many other manufacturers have come out with three-speed players handling all type discs on a single turntable.

Although RCA Victor, a division of Radio Corp. of America, had no official comment, a source close to the company said the move was not a retreat on its campaign to put across its 6 7/8-inch 45 records.

Rather, it was termed a demonstration of confidence by RCA Victor that the merits of the 45 system had been put across, and willingness to have comparisons with 33 1/3s made on its own machines.

Separate Unit

RCA Victor has maintained that one of the great advantages of the 45 system was the simplified, high speed changer designed to play the lightweight, doughnut-shaped new discs. hence it is keeping the 45 unit separate in new models.

Columbia introduced its 33 1/3 long playing discs in June 1948. It was early this year before RCA Victor reached the market with its 45s which play as long as conventional records.

There still is no indication that RCA Victor will make its musical catalogue available on 33 1/3s or Columbia will offer its catalogue on 45’s.

Los Angeles Times, Los Angeles, California, Wednesday, December 7, 1949, p. 28, Part I.

The controversy over the speed of phonograph record players moved one step nearer solution yesterday.

RCA Victor announced that beginning next month it would offer few sale phonographs and radio-phonograph combinations equipped to play the long-playing disks manufactured up to now only by the company’s rivals. A spokesman for Victor denied, however, that the company was planning to make records of its own to play 33 1-3 revolutions a minute.

Officials of rival companies contradicted this, one of them declaring that Victor already was making long-playing records experimentally in its Bridgeport, Conn., factory.

Victor demonstrated to its salesmen, meeting yesterday in Atlantic City, its 1950 combination equipped with two turntables. One of these plays the old, 78 rpm shellac records and the 33 1-3 rpm long-playing disks. The other plays, and automatically changes, Victor’s little vinylite, 45 rpm records made exclusively by that company.

A spokesman for Columbia Records, Victor’s largest competitor, commented that his company would welcome Victor into the long-playing field. He added that Columbia would even be willing to make 45 rpm records, which it does not like, if Victor would make 33 1-3 rpm disks, thus ending the trade war.

The New York Times, New York, New York, Thursday, December 8, 1949, p. 39 L.

Edward Wallerstein, president of Columbia Records, Inc., denied yesterday reports that his company would manufacture records running forty-five revolutions a minute if RCA Victor would make 33 1/3 rpm records, thus ending the trade war.

“The report published today that Columbia Records Inc., would be willing to manufacture 45 rpm records if RCA Victor would produce 33 1/3 rpm records is absolutely untrue,” Mr. Wallerstein said. “No qualified spokesman for Columbia could have made such a statement. We have had no demands from the public for 45 rpm records and consequently have no plans whatsoever for their manufacture.”

The New York Times, New York, New York, Friday, December 9, 1949, p. 48 L.

RCA-Victor has no idea how much of its vast catalog of classical material would be transferrable from the 78 rpm speed to 33 rpm, in the even the company decides to go into the Microgroove Long-Playing disk, which seems likely since executives have been doing quite a bit of checking on complaints against rival LP disks. RCA’s vast catalog of longhair material goes back many years, and the constant evaluations of it for transfer to RCA’s own 45 rpm platters also gives the company’s artists and repertoire men and engineers answers applicable to the possible use of it for LP platters.

Of the amount of material already checked, engineers have found the largest percentage questionable for use on either 45 or 33 rpm. A lesser percentage is okay and a still lesser amount is completely unusable, unless the latter are marketed with explanations, to the public that they were made before electrical recording came into vogue, etc. Under such circumstances the entire catalog would be usable at either speed.

RCA’s methods of checking on long classical compositions consists of taking samples. Due to mechanical variations from one disk to another, it has happened that four disks of a number covering six platters were okayed by engineers and two rejected.

RCA, however, still is emphatic in stating that it has not made any plans to go into 33. It is, meanwhile, pushing its 45 promotion to the limit. And the company’s execs assert that the growing acceptance of 45 is surprising even themselves. They have found instances in which pop albums released on both speeds (78 and 45) were selling better on 45. For example, the recent Three Suns album. Some 40,000 sets have been sold, 22,000 in the 45 field and 18,000 in the 78.

Victor’s president, Frank Folsom, last week wrote Water Winchell, mildly objecting to WW’s recent reference to a Newsweek article, while stated that an RCA spokesman had “hesitantly” admitted the company was going into 33 rpms. Winchell printed this as confirmation of a previous item he had written. Folson, however, objected to the columnist’s remarks, which indicated RCA would drop its 45 development and substitute the LP system. Regardless of whether Victor goes 33, the 45 will stay, he emphasized.

Variety, Wednesday, December 14, 1949, p. 48.

New York, Dec. 17.—Columbia Records, after the first of the year, will inaugurate a promotion campaign designed to hike sales of its seven-inch microgroove disk. The seven-inch record, which has always been in the LP family, has never received a promotional push, altho theoretically all pops have been available in that size. Columbia thus far has not divulged any details on the extent of the projected promotion, but reports are that the diskery’s effort will be a major one in terms of advertising space on a national and local level. One Columbia exec, queried about the seven-inch campaign, said: “All of the changer manufacturers are now making changers for seven-inch records, so isn’t it the logical solution for presenting single selections on single sides for quick changer operation?”

In a bulletin sent by Columbia to distributors, it was pointed out that over 1,000,000 machines will be available with three-speed changers. The missive pointed out that this meant a very heavy sales potential for the seven-incher. Distribs were told to get busy on “local promotions.”

An important phase of the seven inch campaign, it was reported would involve a new player made for Columbia by VM Industries of Benton harbor, Mich.

News of the reported campaign caused a number of mixed reactions in the trade. On the one hand, it was claimed that promotion of the seven-inch disk is the logical conclusion to Columbia’s effort to establish 33 1/3 r.p.m. as a complete system. Also some expressed the opinion that dealers and consumers, who are now coming out of the fog and confusion engendered by technological developments, would not take kindly to the introduction of a “new” record. Dealers, it was stated, would be saddled with another inventory problem. On the there hand, others claimed that the seven-incher, far from being new, has been in the LP family all along and would pose no difficult problems.

The decision to push the small disk also infers other decisions. Chief of these is the fact that such a dive is in a sense a reaffirmation of Columbia’s decision not to go 45. In connection with this point it was learned that Ted Wallerstein and Milton Rackmil, Columbia and Decca chiefs, met this week and reaffirmed their stands on 45. Wallerstein’s position, which he stated last week, is to the effect that he has had no demand for 45. Rackmil, while admitting it has been doing some business, feels there is no reason for Decca to enter the 45 field at this point. He has indicated he would go 45 only when that speed represented a plus business for Decca.

All, of which of course, indicates that for some time, at least, the die is cast, with each of the three majors assuming a very independent attitude. RCA Victor, whose 45 sales have jumped phenomenally, feels it has carved out a good business in 45 and is not eager to persuade anybody to enter that field.

The Billboard, Saturday, December 24, 1949, pp. 16, 38.

New York, Dec. 24.—By the end of this week, London Records will join RCA Victor and Capitol in the production of 45 r.p.m. disks. Together with Capitol and the indie Tempo diskery, London will have new releases available on all three speeds, 33 1/3 (LP), 78 and 45 r.p.m. In last week’s issue of The Billboard it was revealed that Horace Heidt Records would soon add 45 to its two-speed line. This week it was also learned that Mercury has been conducting experiments with 45 r.p.m. at a RCA Victor plant.

Dan Berne, executive veepee of the British-based diskery, in an exclusive statement to The Billboard said: “A study of the American market indicates that there is now a demand for 33 1/3, 78 and 45 r.p.m. records. Accordingly, London, whose business is supplying the public with the type of records that it wants; it making London recordings available on 45.”

The initial releases, available for delivery this week, consists of four albums and 10 single records. (One of these, the Third Man Theme [see ad in The Billboard, Saturday, January January 28, 1950, p. 35], is being held up in the current release date hassle.) (The Billboard, December 24). Disks are in two price categories: The blue label 30,000 series, to consist of popular works, will retail at 75 cents, plus tax. The red label 40,000 series, to consist of classical and semi-classical works, will retail at $1.00, plus tax. London’s regular 12-inch shellac imports of similar material have always listed at $2.10 and will continue at that price. The red label singles will be packaged in metallic gold sleeves, with red printing, and the blue labels will be housed in metallic silver packages with blue ink. Disks themselves will be black vinyl, with special non skid labels. Labels and packages, as well as special display material, have been designed by London exec D.H. Toller-Bond.

Shipments will start December 29 on the following titles: Album-LGF-1, Cole Porter Suite LGF-2, George Gershwin Suite; LGF-3, Ravel’s Bolero; LGF-4, Ravel’s La Valse, Singles are 30,001, Jealous Heart and Turnabout Is fair Play, Al Morgan; 30,002, That Old Gang of Mine and You’re Always in My Heart, The Harmonicats; 30,003, Peg O’ My Heart and Fantasy Impromptu The Harmmonicats; 30, 004, Johnson Rag and Back of the Yards, J. Teter Trio; 30,005 Thirds Man Theme and Cafe Mozart Waltz (held up); 30, 006, Chained to a Memory and Tears on My Pillow, Al Morgan; 30,007, Copper Canyon and Way Back Home, Teresa Brewer and Bobby Wayne; 30,008, A Lovely Lake in Loveland and Everything That’s Wonderful, Jack Berch, 30,009, That Old Master Painter and Did You Ever See a Dream Walking, Snooky Lanson; 30,010, Milenberg Joys and Take Another Guess, Jack Teter Trio.

According to Berne, the London 45’s are being Pressed in Victor’s Cannonsburg plant. He credited Victor with building up the demand and especially cited the co-operation his diskery had received from Paul Barkmeier, manager of the Victor record division, and from Jim Davis, head of Victor’s custom pressing department. The decision to go 45 follows the repeated demand by London’s own distributing branches, with the heaviest pressure from Pittsburgh, Denver and New England. Some stores in these sections, Berne noted, have been doing up to 50 per cent of their volume on the little doughnuts.

Bid as Major

London, local wing of British Decca, was founded here a little over two years ago by E. R. (Ted) Lewis who, in the early 1930’s was one of the original backers of American Decca. During the past year, Lewis has freed his London label of several commitments with American Decca and cleared the way for his recording of American artists and also opened the way to issue classical disks here. Now, with three speeds and with an extensive catalog containing pop, classical, semi-classical, international, rhythm-blues and hillbilly selections the diskery is making a strong bid for recognition as a “major” in 1950. Two subsidiary labels, Beltona (Scottish) and Rex (Irish), are also imported. Currently, the catalog includes about 150 shellac albums, plus 32 imported Deutsch Gramophone titles from Germany. Fifty-three long-playing disks have already been released. The diskery owns six of its own distributing branches in the U.S. and one in Canada.

Several months ago London began to press all American-made masters in U.S. plants. In recent weeks it has contracted with Victor’s custom plant for pressing some of its LP platters here as well. Still, according to a recent report of the U.S. Department of Commerce, the outfit is itself importing 50 per cent of all records coming into this country. The biggest single shipment since the local company was started arrived last week from England on the Queen Mary.

The Billboard, Saturday, December 31, 1949, pp. 12, 30.

Long drawn-out market fight between RCA-Victor’s 45 rpm recordings and Columbia Record’s 33 Microgroove LP system appears to be well on its way toward dissolution. Victor definitely will announce the marketing of its Red Sea classical catalog on LP disks within a few weeks and at the same time it has interested at least two other companies in going along with it in the production of 45 platters.

Mercury Records, which has produced LP platters almost from the start of Columbia’s system, explains that it is “experimenting” with the possibility of adapting its current presses to the production of 45s, and that one of its engineers is at Victor’s Indianapolis plant absorbing know-how. But, Mercury states, there is no certainty that it will go into the field. London Records also has agreed with Victor on the production of 45’s and will issue 4 albums and 10 singles on 45s this this week.

Apparently, one of the things that makes it difficult for other companies to join RCA in the 45 field is that Victor’s facilities at the moment do not allow for the assumption of production for them. Virtually all the equipment available is being taken up by its own needs and that of Capitol Records, the first to joint Victor in 45 sales. Cap is doing some 45 pressing on the Coast, but Victor is still doing the majority.

Victor has been exerting heavy pressure on all other companies to go into 45 coincidental with its entry into the 33 rpm LP field. Answer to that is rather obvious; by making the switch to 33 there is always the danger that it would be construed as a signal of weakness in the 45 system. Too, the production of its vast catalog of Red Seal material, on 33 platters, must damage the 45 campaign, since a great deal of the latter’s sales have been in the Red Seal division. This sale figures to be impaired somewhat by the availability of the Red Seal material on LP.

Decca Records was one of those companies upon which RCA exerted heavy pressure to go 45. Company’s execs steadfastly refuse, not because of any objection to the system, however. It’s asserted that Decca will go 45 when and if there’s a sufficient demand for the platters in relation to its current 78 rpm business. In any event, Decca would not produce much, if any, of its huge album catalog of 45s, if it picked up the system. It has a great deal of that material available on 33 LP disks, since it went into that field last fall.

Effect of RCA’s unannounced entry into LP’s is reacting on retailers, incidentally. Macy’s, N.Y., began running ads Monday (26) morning in New York dailies heralding price reductions of from 33 1/2 % to 50 % on classical albums. And virtually all the material listed are RCA-Victor products.

Variety, Wednesday, December 28, 1949, p. 31.

New York, Dec. 31.—RCA Victor, strongly feeling it is over the hump on 45s, will start pressing 33 1/3 disks on or about March 1 in order to service all segments of the record-buying public In an announcement of new policy, the diskery stated that it intended to make available to the consumer RCA Victor’s unsurpassed library of the world’s greatest artists and music recorded for all record players: 45 r.p.m., 78 r.p.m., 33 1/3 r.p.m. The announcement is scheduled to break Wednesday (4) in full-page ads in 15 newspapers in New York, Philadelphia, Chicago and Los Angeles. RCA’s 33 1/3 is described as a new and improved unbreakable disk. Orders are not being booked for early spring delivery.

The diskery decided to press 33 1/3s in order to serve a “vociferous minority,” according to one company executive. It was stated, however, that the company’s major emphasis will continue to be 45, which it consider the best on the market, not only for pops but also for classical music on the basis of selectivity and fidelity.

Price a Question

Victor has not yet decided on the price for its 33 1/3 records. It is known, however, that the price will certainly be competitive and undoubtedly not relatively below that of the 45.

RCA’s thinking at this point is to limit the 33 1/3 catalog to truly classical music. The waxings of LP show albums, in other words, is not contemplated now. Talent schedule for RCA’s 33 1/3 includes many of the greatest names in music, including the Boston Symphony under Koussevitsky and Munch, the Boston Pops under Arthur Fiedler, the NBC Symphony under Toscanini, RCA Victor’s Chorale under Robert Shaw, the San Francisco Symphony under Pierre Monteux, Leopold Stokowski, and such top classical singers as Licia Albanese, Marian Anderson, Alexander Brailowsky, Jussi Bjoerling, Mischa Elman, Heifitz, Vadimir Horowitz, Jose Iturbi, Allan Jones, William Kapell, Arthur Rubenstein, Fritz Kreisler, Dorothy Kirsten and others.

Masters Status Quo

Much of the noted old waxings will not be pressed on 33 1/3 inasmuch as the condition of the masters does not warrant such a move.

Victor’s decision to go 33 on classicals was, of course, expected, and was first definitely stated in The Billboard recently an exclusive story which pointed out that such a move would follow shortly after introduction of RCA’s three-speed changes. This has come to pass. The decision, of course, indicates a sharply competitive picture for the future, with RCA pitting its top classical artists against Columbia’s

45 Still Tops

As far as RCA is concerned, 45 is still top system, and industry opinion admits that the diskery has successfully put over its product. Shortly after the first of the year the push on 45’s will be given additional momentum via a new drive. Last week London Records joined RCA and Capitol on the 45 bandwagon, indications being that Mercury would soon follow. This week two indies, Rondo and Discovery, announced their intentions of going 45. Recently Horace Heidt’s company went 45. Tempo some time ago jumped aboard. Decca has not yet changed its position. Altho it admits RCA has made great strides, the Decca company will not go 45 until such a move would represent a plush business. Columbia, of course, has been adamant in its opposition.

In its ad campaign announcing its new policy of serving the entire record market across the board, Victor states that it will continue a complete catalog of 78 r.p.m. for the millions of homes who want such disks. Every new selection will be available on both 78 and 45. The ad copy also states that today, nine months after the introduction of the 45, sales have jumped to a rate of over 20,000,000 a year. Forty-Five players, it stated, are selling at the rate of 65,000 per month.

The Billboard, Saturday, January, 7, 1950, pp. 11, 35.

The shoe is on the other foot in the conflict between Columbia Records and RCA-Victor over their respective 33 rpm and 45 rpm disks. Whereas it was Victor which drew bitterness from the recording industry and the press when the 45 rpm platters were debuted, because they confused the buying public with too many different speeds, it is now Columbia that is drawing frowns. Columbia has decided that it will now push the seven-inch 33 rpm disks it brought out at the time Victor launched its seven-inch 45s and the disk business from top to bottom is generally unhappy about the situation, feeling that Columbia will only further muddle the public.

That Columbia is makings its move due only to the apparent strides Victor’s 45 platters are making, seems a foregone conclusion. Though the small 33s, designed for pops only, have been on the market for months Columbia did little with them, promotion wise during that time. They made comparatively little headway without sales pressure and Columbia has been content to let it go at that, concentrating on getting the 10 and 12-inch 33s established, which it has done to the point where RCA-Victor had to go along.

However, Columbia does not intend appropriating a special promotion fund to exploit the small 33s. That alone seems to indicate that the promotion it will lay out is aimed solely to get its share of the small record business and keep the 33 LP system on seven-inch disks alive in the face of the constantly growing 45 rpm reaction. Special ads, window displays, radio spot announcements, etc., are being prepared for the putsch, but all within the framework of the regular LP and 78 rpm plans and budget, which makes it appear that Columbia doesn’t intend putting on another fight-to-the-finish with RCA’s 45s from the small record angle [see ad in The Cedar Rapids Gazette, Cedar rapids, Iowa, Friday, March 17, 1950, p. 12].

Variety, Wednesday, January 11, 1950, p. 40.

Major music publishers last week rejected a bid by RCA-Victor for a reduction in royalty rates on its pop 45 rpm disks from 1 3/4c per side to 1 1/2c. Victor’s premise in seeking the cut was the fact that Columbia Records’ 10-inch pop LP’s, which use four songs per side, eight in all, are required to pay only 1 1/2c per song royalties.

Victor added up the eight tunes on one LP and eight tunes on four 45 platters, compared the retail price of the former, which is $2.85, and the retail price of four 45s at 65c each, which would be $2.80, and decided it was entitled to the same rate of 1 1/2c per song that Columbia id drawing. They submitted findings to Harry Fox, agent and trustee, and asked him to query pubs on their attitude.

Publishers took the stance that the Columbia recordings, using eight tunes on one disk, is a “bulk” deal and as such figures to get a royalty break. The Victor platters are all singles and, while Victor’s arithmetic is good, the circumstances are different.

Variety, Wednesday, January 18, 1950, p. 35.

New York, Jan. 21.—MGM Records will begin to release 33 1/3 disks March 1 [see ad in El Paso Herald Post, El Paso, Texas, April 21, 1950, p. 14], according to Frank B. Walker, diskery’s general manager. The first MGM long-playing release will include four of the company’s top pop albums formerly issued on 78 r.p.m. shellac and Metrolite Records. Three will offer musical scores from MGM pictures performed by the original casts in recordings taken directly from the sound tracks of the specific films. Among these will be Till the Clouds Roll by, featuring Jerome Kern songs sung by June Allyson, Judy Garland, Kathryn Grayson, Lena Horne, Tony Martin, Virginia O’Brien and Caleb Peterson.

Two other sound tracks to be recorded on 33 1/3 will be the Irving Berlin score from Easter Parade, done by Fred Astaire, Judy garland, Peter Lawford and Ann Miller, and the score of the new MGM musical, Nancy Goes to Rio featuring Jane Powell, Ann Sothern and Carmen Miranda. The fourth album to be done on 33 1/3 will be David Rose’s Holiday for Strings.

MGM’s announcement to go 33 1/3 has been expected for months. The company’s disks will be 10 inches and will play up to 30 minutes on a single disk. They will be pressed on non-breakable material and packaged in hard-covered envelopes. The suggested price is $2.85.

MGM has made no mention of use of longhair material on 33 1/3. However, the company owns a flock of Musicraft classical masters and there is conjecture that some of this material will be used on MGM 33’s.

The Billboard, Saturday, January 28, 1950, p. 3.

New York, Jan. 21.—RCA Victor’s new 45 promotion is set to break at the end of this month or the first week in February [see ad in El Paso Herald Post, El Paso, Texas, April 21, 1950, p. 14]. The diskery, riding the high crest in both sales of 78 and 45, has blueprinted an extensive campaign plugging the 45 system in newspapers, national magazines, radio and television. The campaign will be built around the theme that 45 is sweeping the country. It will promote not only the doughnut disks, but also the self-contained player selling at $29.95, the attachment selling at $12.95 and all of the home instrument line which includes record players. In addition the merchandising line of the promotion, which will include elaborate display kits, will point up outstanding 45 disk items, such as Victor’s forthcoming band series.

The newspaper phase of the campaign, tentatively set for February 1, calls for space in 285 dailies. Lineage will differ, according to whether the newspapers serve “A,” “B” of “C” markets, but it is known at this point that the average ad insertion will be 1,000 lines once a week for seven weeks in each of the dailies. The first ad will be factory-sponsored, with succeeding ads being placed on a co-op basis. Copy will contain dealer signatures. The above amount if black and white newspaper space is already in the works, but it is understood that additional co-op advertising may be set before the schedule is completed.

National Mag Bally

Supplementing the newspaper linage will be a national mag campaign, with ads already set for Collier’s, Saturday Evening Post, Look, Ebony and others.

Air time on AM radio will be sparked by commercials on the Screen Director’s Playhouse, National Broadcasting Company (NBC) show which is aired over 170 outlets. All commercials will boost 45. Similarly, NBC’s TV show, Kukla, Fran and Ollie, aired over 54 stations, will tie into the campaign. In addition RCA has recorded a special series of spot announcements containing testimonials by Hollywood stars. These will be used throughout the country.

Buttressing the newspaper, mag, AM and TV facets of the promotion will be dealer display kits keyed to the type of store carrying the line. Also, Victor will publish an eight-page newspaper, headed “RCA Victor Good News,” which will give all phases of the promotion. This will be distributed to retailers by Western Union. In the second quarter of the year another edition of this sheet will be published.

It’s estimated that this phase of the 45 promotion will carry the diskery into May—or in other words, cover the spring selling season.

Columbia Promotion

An interesting facet to the small disk situation is that both Victor and Columbia are now engaged in what might be considered twin promotions—Victor on 45 and Columbia on its seven-inch microgroove . The Columbia campaign, first broken in The Billboard weeks ago, includes a national mag campaign, window displays, special ads in The Saturday Review of Literature and other sheets, co-op advertising, radio time and other items.

In line with Columbia’s new promotion drive on seven-inch 33 1/3 r.p.m. disks, dealers are being offered any of three package deals with 100 per cent exchange privileges. One unit, to cost the dealer about $50, contains a mixture of pops and standards, in both the 63-cent and 89-cent varieties. A second unit, to cost about $100, has similar material, exclusive of hillbillies , but in larger quantities per selection. Each group contains about five current pop titles, with the balance made up of regular catalog items.

The Billboard, Saturday, January 28, 1950, pp. 13, 50.

New York, Jan. 28.—Stations equipped to play long-playing records now total 1,092, according to Robert J. Clarkson, general manager of Columbia Transcriptions, Inc.

Columbia clients which have recently used microgroove transcriptions in campaigns include Dancer-Fitzgerald-Sample, Benton & Bowles, March of Dimes and the National Medical Health Association.

Clarkson pointed out that a quarter hour program may now be placed on a 10-inch microgroove whereas formerly a 16-inch conventional transcription was required for a program of the same length.

The Billboard, Saturday, February 4, 1950, p. 16.

Columbia Records upped the retail price of its seven-inch Microgroove LP pop disks from 60c to 65c as of last week and also boosted the tab on its 10-inch LP Masterworks platters carrying short classical selections from 90c to 95c. Increase on the small pop and hillbilly sides brings the retail price on them up to a level of the RCA-Victor 45 rpm platters, sold at 65c.

Changes are the second such revisions made by Columbia in the past few months. Previously, the company had jumped its 10-inch shellac 78 rpm disks from 60c back up to 75c, excluding tax.

Variety, Wednesday, February 8, 1950, p. 67.

New York, Feb. 11.—Mercury Records will undertake a wide expansion of its longhair line following the completion of a deal to lease tapes from the Bavarian Radio of Germany, which will open an extensive catalog to the diskery, and the return of David Hall to the firm as head of Mercury classics repertoire department. The diskery is planning to turn out about 100 long-playing longhair disks from now to the end of the year, with at least 2 platters due in the next 90 days.

The Bavarian agreement, made thru Herbert Rosen, American representative of Bauerischer Werbefunk of Munich, is for at least a one-year period and is a first refusal right deal—the diskery has first crack at the Bavarian product but has the right to refuse anything it does not like. The deal calls for a straight royalty to be paid on any material which is kept in the Mercury catalog and in production. When production ceases on an item, the matrice rights return to the Bavarian outfit. No matrice exchanges are involved. All the Bavarian products are of recent vintage, done within the past five years, and are recorded on high fidelity tape.

“Dutchman” First

The Bavarian catalog is heavy on symphonic, operatic, chamber and solo efforts and will form the crux of the coming Mercury product. The first available full-length recording of Wagner’s The Flying Dutchman on four LP disks will be the first major items to stem from the catalog which will be issued by Mercury. Danish, French, Czech and domestic diskings will round out the Mercury longhair catalog effort. The Bavarian Radio recordings have never before been made available in the United States.

Among the talent which will be offered in the Bavarian crop will be pianist Walter Gieseking, Fuertwangler, the Vienna Philharmonic, Hans Hotter, The Bavarian State Opera , Clemens Krauss, the Munichstate Radio Ork, the Bavarian State Radio Ork and chorus and many others.

The Billboard, Saturday, February 18, 1950, p. 16.

New York, Feb. 11.—RCA Victor’s initial catalog of 33 1/3-r.p.m. records includes 18 12-inch disks, four 10-inch, and three multiple sets. Altho prices have not yet been disclosed, the released date for the new line is now set at March 15. With the exception of the newly issued Well-Tempered Clavichord and the Bach B-Minor Mass, most of the sets have been among the catalogue staples on both 78 and 45-r.p.m. issues.[see ad in The Philadelphia Inquirer, Philadelphia, Pennsylvania, Sunday Morning, March 26, 1950, p. 30 A]

Following is the complete list:
10-inch—LM-1: The Moldau (Smetana) and Husitska Overture (Dvorak), Boston Pops Ork; LM-2 Highlights from Madame Butterfly (Puccini), Albanese, Melton, Browning; LM-4: Scottish Fantasy (Bruch), Heifetz; LM-5; Concerto in E Minor (Mendelssohn), Elman.

12-inch—LM-1000: Siegfried, Act 3, Scene 3 (Wagner), Farrell, Svanholm, Rochester Philharmonic, Leinsdorf; LM-1001: Gaîté Parisienne (Offenbach), Boston Pops; LM-1002: Scheherazade (Rimsky-Korsakoff), San Francisco Symphony, Monteux; LM-1003: The Swan Lake (Tchaikovsky), St. Louis Symphony Golschmann; LM-1004: Grand Canyon Suite (Grofé), Toscanini, NBC Symphony; LM-1005: Concerto No. 2 (Rachmaninoff), Rubenstein, NBC Symphony; LM-1006: Piano Concerto (Khatchaturian), Kapell, Boston Symphony, Koussevitzky; LM-1007: Carmen Excerpts (Bizet), Swarthout, Merrill, Vinay, Leinsdorf, Shaw; LM-1010: Sleeping Beauty Ballet Music (Tchaikovsky), Stokowski and Ork; LM-1011: Symphony Espagnole (Lalo), Menuhin; LM-1012: Bolero and Ma Mere l’Oye Suite (Ravel), Boston Symphony, Koussevitzky; LM-1013: Symphony No. 5 (Dvorak), Stokowski Ork, Mitchel Miller; LM-1014: Pictures at an Exhibition (Mussorgsky), Horowitz; LM-1015: Sonata in D, Opus 12 (Beethoven), Heifetz; LM-1016: Sonata No. 7 (Prokofiev), and No. 3 (Kabalevsky), Horowitz; LM-1017: Well-Tempered Clavichord, Book I (Bach), Landowska; LM-1018: Concerto (Grieg) and Concerto No. 1 (Liszt), Rubinstein; LM-1019: Romeo and Juliet Overtures (Tchaikovsky and Berlioz), Toscanini, NBC ork.

Two-record sets—LM-6000: Etudes (Chopin), Brailowsky; LM-6001: Symphony No. 9 (Beethoven), Boston Ork, Koussevitzky.

Three-Record set—LM 6100: Mass in B Minor (Bach), Shaw, Victor Chorale.

The Billboard, Saturday, February 18, 1950, p. 13.

Mercury Records will definitely bring out its line of 45 rpm records around the end of March. There is no date set for the debut. Merc is still working on improving various details on the original RCA-Victor platter, aiming at nonslip angles, etc. [see ad in The Billboard, Saturday, April 8, 1950, p. 21].

Mercury, too, will produce the disks itself, rather than have Victor make them.

Variety, Wednesday, February 15, 1950, p. 42.

Decca’s recording chief, Dave Kapp, heads for the Coast for a month of disking. He recently returned with his wife from a first time flying trip to London and Paris, mostly for pleasure.

Decca’s excellent business with 78s causes the veepee to reiterate that “when the time comes to also add 45s we will do so, but right now apparently the 16,000,000 78 rpm machines in American homes seemingly need plenty of servicing with new recordings.” Decca added LP (33 rpm) for its musicomedy and other albums some months ago.

Kapp recalls his late brother founder Jack Kapp’s credo about the fact it’s “what’s in the groove that counts” as evidence that the public will buy what is on wax, and not because of any new speed. However, it can’t be ignored that both RCA Victor and Columbia have done yeoman jobs merchandising and exploiting their own 45 and 33 rpm’s, and thus created a new revitalized market for their own brands or recordings.

Variety, Wednesday, March 1, 1950, p. 39.

Both RCA-Victor and Columbia are rolling new catalogs off the presses in the 45 and 33 1/3 fields, respectively. More coincidence than competition, the catalogs are slated to hit the retailers the middle of March. Both listings are the second editions of companies’ slow-speed disk listings.

Victor’s 45 rpm catalog will be a 64-page booklet listing both longhair and pop selections, including the lower-priced Bluebird line. Both companies charge retailers 5c each for the catalogs.

Variety, Wednesday, march 8, 1950, p. 41.

After sloughing the record business last year, “the battle of the speeds” has begun to pay off with increasing sales for both the 33 1/3 and 45 rpm type of disks. Industry leaders regard the upbeat in the slow speeds as the direct result of the heavy competitive promotions by Columbia and RCA, which made, the public “record conscious” on a wider scale than ever before.

Columbia, which launched the LP development about 18 months ago, has jumped away from the rest of the field in disk sales. According to the company’s latest figures, 5,500,000 LP disks have been produced since their birth, or an equivalent of about 27,500,000 conventional 10-inch platters. Currently, Columbia has stepped up production of the LP’s to 600,000 per month.

In the pop field, Columbia is cutting approximately 1,000,000 seven-inch LP disks monthly. Victor, which entered the field months later with the 45 rpm disks, is now turning them out at the rate of over 600,000 per month and is planning to step up that figure to 1,200,000 before the end of the year. Victor, at the same time, began marketing its 33 1/3 records this week. Columbia, however, is making no move toe enter the 45 rpm field but, on the contrary, is renewing its promotion of the 7-inch LP’s for pop music and shorter classical selections.

Latest figures on LP machines show that approximately 2,500,000 homes are currently equipped to play 33 1/3, while there are about 1,000,000 45 rpm machines in circulation. Columbia, through the VM company of Chicago, is presently turning out 1,000 player attachments daily and it’s estimated that all other companies are producing an equivalent number.

Variety, Wednesday, March 15, 1950, p. 45.

In the general sales upbeat of slow-speed disks, RCA Victor’s 45 rpm platters are currently being pressed at the rate of approximately 2,500,000 per month or over 30,000,000 annually. Current production rates covering both the pop and longhair catalogs, was hit during February and January and will be increased before the end of the year in line with upped distribution of the 45 rpm player attachments.

Capitol Records, one of the diskeries which joined Victor’s 45 rpm camp, has also felt the rising impact of that disk speed. Capitol execs report their monthly production of 45’s is now around the 1,500,000 month mark.

Variety, Wednesday, March 22, 1950, p. 40.

New York, March 25.—For one reason or another an unprecedented number of retail record dealers are engaged in producing their own labels. They range from the lowliest hole in the wall to such grandiose establishments as R.H. Macy’s, and their reasons for entering the field are diverse. Some are caught up with the idea that there’s more glamour in the creative end of the business; some have visions of building an empire via the rags-to-riches route blazed by the late Jack Kapp; others, with a special species of clientele, find the major catalogs deficient in items they require.

Several large chain outlets, such as Macy’s, Sears Roebuck and Montgomery Ward, all of whom advertise on a national scale, have perhaps felt it wiser to promote their own label rather than spend their money building a standard brand that their competitors also carry. Since the late 1920s such labels as Crown, Conqueror and Silvertone have been issued by chains.

Classics on 33 1/3

Today, a number of the latest entries are engaged in producing classical material on long-playing disks. With the major diskeries involved in rushing out microgroove versions of their more substantial catalog items, the connoisseur shopkeepers have endeavored to keep their clientele happy with the more esoteric fare, such as pre-Bach or Avant-Garde contemporary works. One they get off their recording nut, they can realize a long profit thru direct retail selling in their own shops. Most of these shops are advertising their disks for retail mail order sale thru national publications such as the Sunday New York Times and the Saturday Review of Literature; some of them are slowly acquiring national distribution thru jobbers and dealers.

Among this last group are such lines as Esoteric, issuing from the Greenwich Music Shop; Westminster, from Westminster Music Shop, and EMS, produced by Elaine Music Shop—all in New York. Esoteric has been able to obtain as big a name as Dimiti Mitropoulos for a special modern waxing. Westminster is reported to have cut over 40 tapes, with the first 33s to come out this week. EMS, which also makes its debut this week, is jointly owned by Jack Skurnick and Harry Lew, of the Elaine Music Shop, and Max Serbin, record department manager of Levy Bros.’ Department Store, Elizabeth, N.J. The outfit plans to specialize in early works, on 12-inch 33 1/3 wax only, and has skedded upward of 12 releases per year. An exclusive contract has been signed with the Pro Musica Antiqua of Brussels, Belgium, for a 30-disk anthology of music from the 11th thru 16th centuries. Pianist Webster Aitken has also been signed, and some recordings have been made with the Little Orchestra Society, conducted by Thomas Scherman. The Elaine Music Shop is also servings as headquarters for Robert E. Blake’s new REB label, which is devoted to similar fare. The latter label has cut 33 1/3 sides with Doda Conrad and with the Argentine pianist, Florencia Le Grand.

The Gramophone Shop, one of the oldest longhair establishments here, has produced a list of eight special items which are sold only in this shop. No discounts are offered to the trade, and the disks are available only on 78 r.p.m. pressings so far. A handful of new volumes has been issued in the last few months which the outfit believes is essential to its repertoire.

Liberty Music Shops, with a fairly extensive catalog of show tunes, standards and special material waxing, jobs its line on occasion to specially selected shops in cities outside Liberty’s competitive orbit. Dealer discounts on the high-price platters are about half that offered on standard brands. Liberty hasn’t cut anything new since before the war, but sales on many of its catalog items continue as strong as ever via local carriage trace and heavy mail business. According to Record Department Manager Murray Vega, much of the material will soon be made available on one or both of the newsfeeds.

Schirmer Deals

G. Schirmer, another institutional shop here, has also delved in disks. A number of Schirmer’s standard publications have been pushed via piano recordings by Rudolph Friml and various legit artists. Some musical comedy material reflecting the proprietor’s own taste, has also been issued. Schirmer’s has jobbed the line to other dealers at liberal discounts, selling thru its own music salesmen, or via direct mail.

Most or the dealer-diskers specialize in foreign-language wax and are located in foreign neighborhoods. Most of these sprang up during the war when the majors, with limited shellac, were forced to neglect the more exotic material. The same applies to a number of hot jazz rhythm-blues and hillbilly labels. Possibly the biggest mushrooming has been in Latin-American field. Casa Siegel became the base for the Seeco label which grew to such a point that Proprietor Sid Siegel sold his shop to devote full time to disking. Gabriel Oller’s Spanish Music Center is the base for both Coda and SMC labels. Hernandez Music, in East Harlem, is also the address of Verne Records. The Above Latin lines have international distribution, and have achieved major status in their field. Other recent Latin entries are the Mida Record Shop, with the Mida label, and Disco Albertos, produced by the Casa Albertos, in the Bronx.

Foreign Languages

The Scandinavian Music House, operated here by Eddie Jarl, turns out both Scandinavia and Cordion labels, which enjoy a healthy sale in the Middle West. The Kismet Record Shop produces Russian, Portuguese, Turkish and Jewish recordings on its own Kismet label. Fred Alam’s Shop, located in the Arabian section of Brooklyn, produces Alamphon Records, which are mailed out to a surprisingly large number of American Arabs.

In the hot jazz department, Commodore Shop has kept its Commodore label lively since the 1930s. For a spell the line was distributed via Decca branches, but today it has independent distributors. Savoy Records, which also maintains a top slot among rhythm and blues labels, sprang forth Herman Lubinsky’s Radio Shop of Newark. Regent Records has the same address. Regal Records, also a rhythm-blues specialist, is directed by Freddy Mendelson, who operates a shop in Elizabeth, N.J. Main Stem, Futurama and Dart records are located on the premises of Main Stem Music Shop, on Broadway, in a shop that appears only big enough to hold one record from each line. Chicago disk jockey Al Benson, who operates a string or rhythm and blues shops, produces and plugs his own Swingmaster label.

One of the most recent hillbilly lines stems from Randy Wood’s fabulous shop in Gallatin, Tenn., the country’s largest mail order outlet. The label is Dot.

This is by no means a complete listing. Many indies diskers currently operating began as retailers but have since given up that phase of their operation to concentrate on production. An equally large number of distributor are also label proprietors, for many of the same reasons.

The Billboard, Saturday, April 1, 1950, p. 13, 48.

New York, April 1.—Columbia Records has blueprinted the most lavish advertising campaign in its history, entailing expenditures in national magazines, television, radio, point-of-sale display material and co-op ads in radio and newspapers. The campaign is seen as implementing the company’s philosophy of promoting the entire line, with specific attention being given the seven-inch disk. The latter, a member of the LP family along with the 10 and 12-inch platters, has never received a major promotion drive—having always been on the short end of the budget while Columbia was engaged in putting over its regular LP disk. The new drive, however, would appear to be the realization of what the diskery has recently indicated—namely, that a strong attempt is in the works to buck RCA’s 45 platter with the small Columbia disk.

The immediate future therefore would seem to promise a sharp competitive battle between Columbia and RCA, for it is known that the latter, which has already expended heavy sums, is now on verge of another 45 r.p.m. campaign.

The Columbia promotion in certain of its phases will start this month and will carry thru to the end of the year. Diskery states that campaign is $2,500,000 splurge. However, it is pointed out that a sizable portion of this sum probably represents time and talent cost on the Columbia Broadcasting System, which Columbia Records is using for both TV and AM. Another portion of the sum entails co-op advertising in both radio and newspapers, and on this the dealer pays a good portion of the bill. Notwithstanding, the CRI expenditure will undoubtedly be heavy as indicated by the following analysis of advertising in different media:

(1) Sponsorship of one-half hour of The Show Goes On, on CBS Robert Q. Lewis TV program, starting Thursday, April 20, 8:30-9 p.m. Sponsorship will continue thru June 18 and will be picked up again September 24 and continued for the remainder of 1950. This marks CRI’s first use of TV as an advertising medium. Format of show will be altered, with a Columbia Records artist guesting each week. Spring station line-up includes WMAR-TV, Baltimore; WCBS-TV, New York; WCAU-TV, Philadelphia; WOIC-TV, Washington; WBKB, Chicago; WDNS-TV, Columbus, WKRC-TV, Cincinnati; WJBK-TV, Detroit; WXEL-TV, Cleveland. In the fall the TV hook-up will number 40 stations.

(2) The Columbia LP Record Parade, Sundays 4:30-5 p.m., will be renewed.

(3) National magazine promotion calls for the following: Double-page spreads in Life, Mat 7; Look, May 21, and The Saturday Evening Post, May 14, Single page ads in Life, May 28; Look, June 25, and Post, June 11. Theses will be followed by half-page spreads in the same mags in July and August, plus a total of 10 full pages in the same mags between September and December.

Remainder of the campaign will include co-op newspaper and radio, and point-of-sale material now being prepared.

The drive, incidentally, is intended to be flexible enough to permit the company to emphasize different segments of the Columbia line as the need arises, or in the event a switch in emphasis is indicated.

The Billboard, Saturday, April 8, 1950, pp. 3, 13, 48.

M-G-M Records, the latest diskery to swing into 45 rpm production, is mapping an initial limited release of the slow-speed platters for the end of this month [see ad in The Billboard, Saturday, July 15, 1950, p. a15]. Company’s first offerings on 45 will include the Betty Hutton-Howard Keel soundtrack album from the Metro pic, “Annie Get Your Gun,” and a single cut by Sarah Vaughan and Billy Eckstine. “Annie” has already been released on 78 and 33 rpm disks, while the Eckstine-Vaughan 45 platter will be pressed simultaneously with the 78’s.

Company has indicated it will not follow RCA Victor’s pattern of accenting the new speed for its full pop catalog. Instead, M-G-M is eyeing the 45 rpm disks for special current disks and selected reissues. Among future 45 rpm releases will be additional scores taken from future musical pix turned out by the parent film company, Metro.

M-G-M is pricing its 45 rpm disks at the competitive 79c. level established by Victor and Capitol for their similar slow-speed platters. Company followed a similar procedure in pricing its 33 platters in step with Columbia Records’ price structure.

Variety, Wednesday, April 19, 1950, p. 43.

Washington, May 6.— David Sarnoff, chairman of the board of Radio Corporation of America (RCA), went on record at the Federal Communications Commission’s (FCC) color TV hearing here this week with a prediction that Columbia will come out with 45-r.p.m. records “before very long” and he challenged Columbia to issue a denial.

The pronouncement, the first of its kind made publicity by Sarnoff in the bitter war over disk speeds, came dramatically and unexpectedly Thursday (4) in Sarnoff’s second day on the witness stand.

The RCA chief not only delivered his prediction but gave his version for the first time publicly of the “inside store” of now the disk industry’s family war over record speeds came about. Spectators in the Commerce Department auditorium edged forward as Judge Samuel I. Rosenman, CBS counsel and former White House adviser, touched off the topic when he suggested that an analogy might be drawn between RCA’s claims for its color TV system and RCA’s claim of leadership for 45 r.p.m.’s. Rosenman asked Sarnoff if he recalled that, “for a number of years” RCA declined to make long-playing record player attachments for disks. Sarnoff grinningly said he would be “very glad” to answer that, adding, “and I promise you this is going to be a long story if you want to hear it.”

“Answer the Question”

“All I would like to do,” said Rosenman, “is to have you answer the question.”

“I am not going to answer it the way you want me to answer it,” retorted Sarnoff, still grinning.

“If the Commission wants you to give a long story, that is all right,” said Rosenman. “I have asked a question which calls for a short answer.”

Sarnoff then declared that Rosenman’s analogy between the color TV system issue and the disk speeds was “incorrect.”

“Will you state in what respect?” asked Resenman.

“Well,” replied Sarnoff, joining the general laughter, “that calls for a long story.”

Sarnoff Gives Details

A brief colloquy followed, with Rosenman finally assenting to hear the “long story.” Sarnoff, with obvious relish, went into the details saying:

“Well, the 45-r.p.m. is, in my opinion and in the opinion of experts in music, including Maestro Toscanini, the greatest development in recording that the world has produced so far.

“Despite the fact the CBS is still not making 45s, I predict that it will, however; that it will not be very long. You can deny that if you wish but that is my prediction.

“I think that the 33 1/3 record which CBS has turned out is inferior, just as its color TV system is inferior, and we did not wish to produce a 33 1/3-r.p.m. record until we could put out a better one, which we have done, and therefore we have introduced it.”

Sarnoff went on to charge that CBS “reinvented and rediscovered the 33 1/3 record, which we had abandoned about 10 years before, and because we, at that time, had only shellac with which to make records. And then, when vinylite came along, CBS thought it invented a new law of nature and used vinylite and produced an inferior 33 1/3 record”

Met with Paley

Continuing, the RCA chief declared that at the time Columbia introduced that record, Sarnoff had “many discussions” with William S. Paley, chairman of the CBS board of directors, “and others of CBS and showed them at that time that we had the 45.”

“As a matter of fact,” Sarnoff went on, “I am sure Mr. Paley had no knowledge of the fact that we had a 33 1/3, and that we had a 45, and so, during the same week that he first told me that Columbia intended to bring out a 33 1/3 record, I demonstrated to him and to his people a 33 1/3 long-playing record and a 45-r.p.m. record, and a tape recording, so there we’re three different systems of recordings available.”

Sarnoff said he told Paley that the 45-r.p.m. was “the coming system of recording,” and that RCA had an automatic record changer, “the best in the world and the quickest; no such record changer had previously been put on the market. Here was a simple, inexpensive record changer with a small non-breakable record that had recording and reproduction quality superior to the 33 1/3 at that time,” said Sarnof.

Opened New Fields

“I said this introduced a new set of circumstances into the whole field of phonograph recording and phonograph reproducing. I showed Columbia everything we had and then we found that they had made some king of a deal with one of the manufacturers by which the manufacturer was to make this playing attachment for the 33 1/3 but not for the 45.

“Every effort and every pressure that could be exerted was exerted upon us by Columbia to abandon the 45 and not to introduce the 45, and to have only a 33 record, and not to have this record with a big hole in it, with this superior performance that it gives,’ Sarnoff declared.

“We told Columbia then and we have reaffirmed since, and we have demonstrated, that you cannot give the same kind or recording on a small 33, seven-inch record that you can on a 45, and I challenge you or anybody in the world to demonstrate that a seven-inch 33 1/3 record can produce the same kind of quality that a seven-inch 45 r.p.m. record can and does produce.

“We arrived at that system as the result of many years of research and development in RCA laboratories. In fact, the man who was at the head of the record business deserted us, went to the Columbia Phonograph Company, and told them about all the developments that we had in our plant, and this 33 business was an attempt on the part of Columbia to beat RCA to the punch.”

Drew Laughter

Sarnoff wound up his “inside story” by drawing a volley of laughter when he said to Rosenman; “Now after this happened, a lot of other things happened, and I have only given you part of the story—I will reserve the rest for another day.”

Rosenman said, “have you finished this part of the story?”

“I beg pardon?” asked Sarnoff.

“Have you finished what you think is all that I have to know in order to ask questions?” said Rosenman.

“I thing that is all you need to know tonight,” replied Sarnoff, adding, “but if you want some more—.”

Members of the FCC joined in the general laughter.

Under further questioning by Rosenman on RCA’s entry into the 33 1/3 field in addition to 45s, Sarnoff said that the 33 1/3 record which RCA has brought out is “superior” to the Columbia counterpart, but he added that he is sticking to his prediction that 45s will replace all others “in the course of years.”

During a recess which followed, Peter Goldmark, CBS’s director of engineering and research, answering a press query, said he was at variance with Sarnoff’s account of the meetings between the RCA chief and the Columbia group. Dr. Goldmark said he was present at the meeting between Sarnoff and Paley. According to Goldmark, Sarnoff told Paley, when shown the 33 1/3 record, “You caught me with my pants down.”

The Billboard, Saturday, May 13, 1950, pp. 3, 11, 16.

New York, May 13.—Indie diskeries who have been riding the band wagon on the new-speed disks—LP and 45—and cashing in heavily via the major diskeries’ lavish promotion of those speeds are now wondering how long the free ride can last. Already there are unmistakable signs in the LP field, where catalogs have grown heavy and competition is getting stiff, that the diskeries are being forced to step out and plug their wares rather than get lost in the avalanche of releases now pouring forth from Columbia, Victor and almost any storekeeper who owns a tape-recording machine. When the LP catalogs were small, almost any item in the repertoire was easy to sell, but now there are even competitive versions of the same musical work being offered by different labels.

In regard to 45 r.p.m., the situation has not reached the same point, but indies are already wondering how soon they will have to begin parting with their own dough. With Victor carrying the heavy load via several million dollars’ worth of 45 player and disk ads, the indies have played opportunist and done little more than make their demand items available on the new disks. Since 45 disks are single-play selections, mostly of ephemeral interest, the buyers’ choice is still limited to a comparatively small repertoire. In short, it’s still a sellers’ market on 45, and outside of RCA Victor, with its obligation to put over the system, diskeries have not been required to earmark funds for its specific exploitation

Unquestionably, Victor and Columbia dollars have indirectly spawned and sustained a flock of small indies. For several small, tottering longhair labels, LP has been their salvation. With Columbia’s co-operation in actual production, several have been able to erase the stigma of poor quality engendered previously by inferior shellac surfaces. Columbia even handled initial publicity for some indies who entered the LP fold. All of the initial expense of developing the new systems, and the expense of early commercial production, when rejects sometimes outnumbered satisfactory pressings—these were borne by the majors. The indies left the production headaches to the majors and simply hopped on the gravy train.

To the indies productions pops, kidisks and other short-play material, 45 has meant plus business. Some, cognizant of the heavy demand for repertoire, have dusted off old 78 masters and given them new life via dubbing thru echo chambers onto 45 disks. In some instances, where there are two competitive 78 r.p.m. versions of a tune on the market, the diskery issuing its cutting on 45 also finds clear sailing in a new but sizable market.

The situation among LP diskeries has become more complex. Such catalogs as those of London, Capitol, Mercury, Vox, Concert Hall, Allegro and Cetra-Soria are now important factors in the classical business, either from the standpoint of size or significance of particular disk performances. They can no longer afford to just ride along while the giants, Victor and Columbia, slug it out promotionally. An indie issuing a Bach disk, for example, must now guard against getting lost in the flood of Bach releases emanating from a dozen other longhair companies. When a small company is able to come out with a complete mass or opera, it must now make an effort to call the product to the attention of the buying public. Companies are vying for air time and for distribution. In short, there’s so much repertoire to choose from, a buyer’s market now exists. Witness an extreme Illustration of this—the current problem of dealers’ price-cutting on LP’s.

As one longhair indie pointed out, “Columbia helped us thru the early phase of LP—now we’ve made enough profit from our first releases so that we can afford to put some back into exploitation of our own, and we’ll have to do it.”

The Billboard, Saturday, May 20, 1950, p. 14.

Prediction by RCA board chairman David Sarnoff that Columbia Records would go into 45 rpm production has been flatly denied by Col execs.

Columbia spokesman indicated that Col would continue to plug heavily for its competitive 33 rpm seven-inch disk during the company’s current ad-promotion campaign on radio-TV and in the press. Similar reports that Decca is planning to enter the 45 rpm field have met the same categorical denials.

Sarnoff made his prediction last week in Washington before the Federal Communications Commission as part of the video color battle between the RCA and Columbia systems.

Variety, Wednesday, May 17, 1950, p. 41.

London, May 23. English Decca has stolen a march on other British disk manufacturers by introducing a long-playing 33 rpm record, beginning this June. Change in policy is understood to be mainly directed at an attempt to invade the American export market.

As an economy measure, the 78 record will be discontinued in Britain and there will be 100% concentration on the new type. Arrangements have been made with engineering companies for converter units to be on the market at prices ranging between $25 to $85. For the home market, 12-inch disks will be roughly $5.50 each. This price, however, includes 66 2/3 local sales tax. Present price for a similar-sized record is about $1.15. First list of the new disks to be available included Beethoven’s “Emperor Concerto,” which is recorded fully on one disk.

EMI, the biggest disk manufacturing organization in the country, has not yet announced any decision in regard to changeover.

Variety, Wednesday, May 24, 1950, p. 53.

London, June 24.—England’s first long-playing (33 1/3) records and players are due to hit the market this week under the auspices of the English Decca Company. The outfit, headed by E.R. (Ted) Lewis, has produced a low-coast player attachment as leader in a full-scale line. Price of this non-automatic unit, including the heavy luxury tax, will be about $25 in American money. A dual-speed (33 1/3 and 78) attachment, with interchangeable magnetic pick-ups, will sell for $42.

The first disk release will include 60 platters. A second release of approximately 50 titles will follow almost immediately. Classical disks are in two price categories: 12-inch gold label series is priced at $5.54; 12-inch red label at $4.75. Ten-inch gold label is $4.05; 10-inch red label $3.50. Ten-inch pop LPs list at $3.10.

The same diskery issues Brunswick and Capitol labels, with material from American Decca and Capitol respectively. Both labels specialize in American pops. Brunswick LPs will be issued at $4.75 for 12-inch and $3.50 for 10-inch. Capitol will be $5.54 and $4.05 for 12-inch and 10-inch respectively.

It was also learned this week that Polydor, the major French indie, will go LP in October.

The Billboard, Saturday, July 1, 1950, p. 12.

Fadeout of 78 rpm disks in the longhair field before the end of this year has been signalized by a series of exchange plans formulated by three major diskeries. Under a procedure designed to unthaw frozen stocks of shellacs on the retailer shelves, RCA Victor, Mercury and London have agreed to exchange old shellacs for new long-playing merchandise under specified ratios.

Decca and Columbia have not joined the plan, but these diskeries have been pressing virtually no longhair shellacs since the intro of LP.

Victor plan, which will go into effect over the next three months, provides for the exchange of 78’s at the ratio of $1 value for every $5 purchase of 45 rpm stock. Mercury’s liquidation plan is similar to Victor’s while London is offering to take back $1 of shellac for every $3 ordered on their long-playing product.

Variety, Wednesday, June 23, 1950, p. 46.

Buffalo, July 4. The battle of the speeds—33 1/3 r.p.m. long playing records vs. 45’s—has reached the jukebox industry. Within the next few weeks, there will probably be a pitched battle between Columbia, with its seven-inch LP’s, and the proponents of the 45’s mainly RCA-Victor, to secure conversion privileges among the major juke manufacturers, and a general sales rush to get records into the machines.

First step in the battle was the announcement last week by the Wurlitzer Co. that conversion privileges would be allowed on Wurlitzer’s newest box, the Model 1250. Wurlitzer will allow both LP and 45 conversion on the new box. The manufacturer has already arranged for a tie-in deal with Columbia Records, whereby if the operator purchasing the 1250 allows LP conversion on his machine, Wurlitzer supplies the $8.75 converter and Columbia provides 24 LP pop records, listing at $16.56, both free of charge. Similar privileges will be allowed by Wurlitzer to 45 manufacturers.

It’s likely that with Wurlitzer having made the first step, other manufacturers will follow suit. This will especially be true if Wurlitzer’s plan helps its jukebox sales.

With this will come the push by major record companies to get their records into the machines. For one thing, sales to the jukeboxes will represent a sizeable chunk of new revenue to the record companies. Far more important, though, is the effect the presence of the new speeds in the boxes will have on the public. Fact that the public will hear and see the records in the boxes will go a long way toward increasing popular acceptance of the new speeds.

Which Way for Decca

Still a more significant development will be the effect upon Decca, the only major which has refrained from adopting either of the new speeds. With other majors selling the slower speeds to jukebox operators, Decca generally considered supreme among the majors in jukebox sales and plays, will see a threat to its market. It will have to go into the long-playing field, and will have to choose between the 331/3 and 45 r.p.m. speeds. With public acceptance of the new speeds in the pop field still undecided between the two, Decca’s decision will probably swing the balance one way or the other.

Latest entry into the jukebox manufacturing field is company which is devoting itself exclusively to boxes which play only 45’s. This is the Ristaucrat Co. of Appleton, Wisc., which is manufacturing a table-model box equipped to play only the 45’s. Ristaucrat’s decision to use only 45’s in the box stems from two factors: its desire to manufacture of table-model, and the greater number of labels making the 45’s. However, practically all other manufacturers, whose boxes are set up for standard 78’s, will install converters, opening the field to both speeds.

Variety, Wednesday, July 5, 1950, p. 35.

New York, July 8.—Milton Rackmil, president of Decca Records, Inc., announced today that Decca would ship its first release of 45 r.p.m. single records and albums August 15, and from that date forward would issue all pop records and most albums on both 78 and 45 [see ad in Chicago Daily Tribune, Chicago, Illinois, Sunday, September 17, 1950, p. 27 F].

Thus Rackmil answered the long mulled industry question as to which of the new speeds Decca would employ for its powerful popular record line. The move is seen as serving to stabilize the rather wobbly record business of the past several years to an important degree.

It leave Columbia Records, Inc., as the only one of the four major diskeries not producing records in all tree speeds. Capitol was the first of the four to go three ways, having joined RCA Victor on the 45 r.p.m. speed virtually at the outset and adding 33 1/3 to its line for classical disks and pop and classical albums some time later.

Decca itself last September added 33 1/3 to its 78 r.p.m. line, but saved the microgrooved disks only for albums. Late Last year RCA Victor acknowledged the market which had been created for 33 1/3 disks by adding that speed to its line for classical albums.

Columbia, refusing to concede, recently started a heavy promotional drive to establish its seven-inch 33 1/3 r.p.m. platter as the disk for pop singles. There is little doubt that Decca’s move will make it extremely difficult for the Columbia seven-inch drive to catch hold.

Rackmil’s announcement was timed to hit at the opening of the annual trade show and convention of the National Association of Music Merchants (NAMM), which kicked off in Chicago today. That the news will dominate the record phase of the show, if not the entire shindig, is a foregone conclusion.

Decca’s subsidiary labels, Coral and Brunswick, also will go 45 August 15 and will issue on both 78 and 45 thereafter.

First Decca release will consist of 50 albums and numerous standard single disks by Bing Crosby, Guy Lombardo, the Andrews Sisters and other top Decca talent.

As soon as conversation can be made, an additional large quantity of singles and albums from the extensive Decca catalog will be added to the 45 line.

It must be emphasized that the Decca move to 45 will not affect the company’s program of converting its active album catalog to the 33 1/3 LP speed, nor will Decca let up in its efforts to service the 16,000,000 78 r.p.m. phono still American homes.

Decca also has a line of three speeds portable phonos and will probably make further moves in the three-speed instrument field in the months to come.

The Billboard, Saturday, July 15, 1950, pp. 3, 10.

New York, July 15.—Edward Wallerstein, president of Columbia Records, the sole major waxery not engaged in the manufacture of disks, on all three speeds now that Decca has embarked on the 45 r.p.m. disk, had this to say about Decca’s move:

“We don’t blame them. We understand their record business is pretty bad, so they are leaving no stone unturned, so to speak, to get what they can.

“LP, with us, happens to be quite strong without the aid of any deals for pressure merchandising, so we’re reasonably happy. However, as soon as we, or our dealers, feel that any appreciable Columbia pop business is being lost by our not having 45, we will make pop hits on 45.

“You may rest assured, as General Sarnoff would say, they will be better 45s.

Wallerstein asserted Columbia is now enjoying it’s bigger summer, figured on the basis of multiplying each LP disk unit into comparable component 78 r.p.m. units. He also said the 7-inch LP disk “is coming along strong,” and that the dealer reaction to the new 104 player is “tremendous.”

Decca execs were mum on Wallerstein’s comment on the condition of Decca’s current sales.

The Billboard, Saturday, July 22, 1950, p. 14.

Hollywood, July 15.—Tempo Records will market its musical wares on tape for home use, thus becoming the first diskery to move into the new medium. Tape invasion is skedded for August 15.

Thru the aid of electronic engineers, Tempo has solved the problem of rapid duplication of tape reels. Tempo’s system works on a basis of contact printing similar to photography. Master reel and raw tape are passed thru an energized field which relays or prints magnetic charges on the new tape. Using this system, Tempo is able to produce 35 reels per hour.

According to research, there are about 50,000 tape recorders in non professional use in Southern California and an estimated million machines in national home use. Firm is already working with 125 electronic distribs and intends to expand its distribs to 200. Sample reels, trade named Tempotape, are already in distribs’ hands. Dual-track reels producing 30 minutes of music will retail at $6.75 per reel.

First reels are devoted to Ben Light’s Steinwaying, Kern and Sloop’s organ music, Joe Venuti’s Strad, Bobby Maxwell on harp, Roberta Lee’s vocals, Brother Bones, Dixieland jazz and Mel Henke’s pianistics.

The Billboard, Saturday, July 23, 1950, p. 12.

New York, Aug. 5.—RCA Victor’s fourth Long-play catalog release will be shipped from the factory next week, raising the diskery’s total to 110 available platters. These will embody 143 longhair works. The new list alone contains 33 titles on 25 disks.

Altho several of the recordings are of most recent vintage, the diskery has begun to dig deeper into the catalog, and at least one work, the Landowska recording of Bach Goldberg Variations, is transferred from master cut in 1945. The release also includes the Rachmaninoff Rhapsody on a Theme of Paganini, and three Beethoven sonatas, including the Pathetique and Appassionata, played by Artur Rubenstein, Stravinsky is represented by four works, two of which he conducts himself.

Other items, mainly in the orchestral and chamber music categories, are performed by the Boston Symphony under Koussevitsky, the St. Louis Symphony under Goldschmann the Minneapolis Symphony under Stokowski. Soloists include William Kapell, Mack Harrell and Mischa Elman. Chamber groups are the Paganini and Hungarian string quartets. The Boston “Pops” ork under Arthur Fielder is represented by two ballet suites.

The Billboard, August 12, 1950, p. 15.

New York, Aug. 5.—The text of the Columbia statement on 45 is as follows:

“Having developed a better 45 r.p.m. record, CRI will release two of its current popular hits on 45 r.p.m. microgroove records in several test markets, it was announced today by Edward Wallerstein, CRI President. The two records are Goodnight Irene, recorded by Frank Sinatra, and Sometime, recorded by the Mariners.” [see ad in Variety, Wednesday, November 8, 1950, pp. 36, 37.]

The Billboard, Saturday, August 12, 1950, p. 15.

Hitting the road taken by all other major diskeries since RCA Victor introduced the 45 rpm disks early last year, Columbia Records is now going 45 also. Entry of Columbia as the last holdout into manufacture of that type platter now gives complete uniformity to the platter industry and virtually insures the development of a future two-speed setup in which the 45’s will be used for pops and 33’s for longhairs. Standard 78 rpm shellacs, while still a major portion of the market, are slowly shrinking in importance.

Columbia’s switch to 45’s, after conducting a single-handed fight against the RCA system, is being handled on a piece-meal basis. In order to cushion effect on its 33 rpm commitments, diskery has announced its entry on a test basis in a few selected markets Company is immediately issuing only two disk, Frank Sinatra’s cut of “Goodnight Irene” and The Mariners’ slice of “Sometime,” with which to test the market.

Trade execs, however, expect Columbia will be compelled to follow up the two initial releases with additional 45 rpm numbers in order to get some play in the market at all. Col execs, on other hand, are insisting that the 45’s will be distributed on a “test” basis, with the response determining whether they take a full-scale plunge into that field.

Capitulation of Columbia to the 45 rpm banner comes as a bitter pill after the promotional campaign for the 45’s representing over $2,000,000 in consistent plugging for the new speed, has, however, stirred a demand for the disks for which Columbia is now forced to bid.

Tough for Col to Swallow

The 45 rpm pill is particularly hard for Columbia to swallow in view of the 33 rpm record changers which it is distributing. New machine was designed to play automatically all size 33 rpm disks, from 12-inchers to seven-inchers, as part of the company’s all-out pitch for its own system. It’s understood Columbia has about 70,000 machines on hand or on order at a cost of $13, which comes to a $1,000,000 investment. What impact the switch to 45’s will have on sales of those machines is one of the chief current worries of Columbia execs.

Handwriting on the wall for Columbia was seen in Decca’s recent announcement that it was entering the 45 rpm field. Columbia had been making a strong pitch for Decca to make 33 rpm pops and handle the automatic player, but the latter company straddled the fence until the demand for 45 rpm disks became potent enough to push Decca into Victor’s camp. Decca’s switch to 45’s meant that Col would have to come in sooner or later. As it is, Columbia’s move was sooner than most execs predicted.

Columbia’s move into 45 rpm at last establishes the overall situation in the disk market which Victor hoped to set up when it adopted the 33 rpm system. At that time Victor was aiming at a setup in which 45’s would be the standard for the pop market while the 33’s would prevail in the longhair field. Columbia, however, refused to compromise on its 33 policy, and issued a seven-inch 33 disk for pops to buck the Victor’s 45’s.

Current Columbia move was dictated by dealer demand for a uniform layout with which to service customers who have, in many cases, been finding the multiplicity of speeds too difficult to handle.

Variety, Wednesday, August 9, 1950, pp. 41, 46.

Major part of Columbia Records’ production was cut off this week when personnel of its Bridgeport pressing plant walked out in what the company termed a “wildcat” strike. Company and union officials were negotiating for a settlement late yesterday (Tues.)

Walkout isn’t improving the attitude of Col executives towards the firm’s new position in the speeds field, since the strike not only prevented shipments of further “test” 45 rpm’s , but was reportedly caused over a dispute among workers turning out the 45s.

While the company refused to disclose the cause of the strike, it’s understood that a group of workers pressing 45s stalked off because no classification had been set up for the new jobs. It’s reported that the rest of the factory workers followed the group. Columbia’s office personnel are still on the job.

The strike, apart from stopping all eastern production, is deferring Columbia’s “testing” of the 45 market. After terming its initial tests on two pop 45s in certain markets “inconclusive,” company decided to release the two 45s on a national scale, and add to them another pop on 45, Sammy Kaye’s “Harbor Lights.” The first two were Frank Sinatra’s “Goodnight Irene” and “Sometime,’ by the Mariners. The walkout, however, has delayed shipment of the 45s.

Walkout occurred at 7 a.m. Monday (11). Little was done in the way of negotiation Monday because of the threat of a hurricane, which caused the company to close its offices in Bridgeport at 3 p.m. But company and machine workers’ Local 237 officials were in all-day meetings yesterday.

In addition to stopping production on all 45s, strike cut short most of Columbia’s other output. Diskery’s only other factory in Hollywood is unaffected by the strike, but presses only a minor portion of the company’s records.

Variety, Wednesday, September 13, 1950, p. 43.

New York, Sept. 30.—Another indication of the greatly accelerated pace of disk industry and a harbinger of what seems to be one of the biggest fall-winter seasons in the history of the business, is Columbia records 33 1/3 LP sales in the past month. From the time Sales Veepee Paul Southard kicked off his disturb meetings just about a month ago, to the present, the diskery has sold slightly over a million LP platters, the equivalent, roughly, of 5,000,000 standard 78-r.p.m. disks.

Columbia continues to follow a policy of issuing on 45 r.p.m. those pops for which the diskery sees a heavy demand. Currently, five Columbia pops are available on 45: Good Night Irene, by Frank Sinatra, Sometime, by the Mariners; Harbor Lights by Sammy Kaye; Rudolph, the Red Nosed Reindeer, and Frosty, the Snow Man, by Gene Autry. In the next week three other pop platters, including Paul Weston’s Nevertheless and Mitch Miller’s In My Arms will be added to the 45 list.

Columbia’s classical sales on 78 now represent as little as 15 per cent of the total sales, and Prexy Ted Wallerstein points out that the diskery continues to release the masterworks line on 78-only because he feels the company owes an obligation to that portion of the public which still insists on being able to get the classical works on the old speed.

The Billboard, Saturday, October 7, 1950, p. 11.

This week’s column I had intended to devote to recordings of Bach’s music, but since I am without electricity and therefore am unable to use my gramophone, no such review is possible.

In its place I am reproducing an important statement made by E.M.I. to the trade concerning long-playing records. While there will be some who will be disappointed at the news that E.M.I. will not enter the long-playing field in the immediate future, everyone will, I am sure, be grateful to the company for making its policy clear. The statement is headed:

“Recent Developments in the Gramophone Industry”

“During the past two years important events have taken place in the gramophone record trade in the United States.

“The first was the introduction by Columbia of a long playing record to play on suitably adapted turntables at 33 1/3 revolutions per minute, as distinguished from the turntable speed of 78 r.p.m. previously used universally, and still considered as normal in this country and in most parts of the world. This was followed later by the introduction of a 7-inch record by R.C.A. Victor to play at 45 r.p.m. with a different kind of automatic player.

“Since then the record trade in the U.S.A. has had to deal with a somewhat difficult situation owing to the existence of three different speeds for gramophone records, namely 78, 33 1/3 and 45 r.p.m.

“A considerable number of turntables for both the new speeds have ben sold, but there remain many millions of 78 r.p.m. machines still in use in that country.

“The records and instruments with the new speeds were widely advertised, and some instruments were sold at low prices; recently certain manufacturers have introduced one which can operate at all three speeds, but which, of course, involves some complications in the matters of automatic changers and pick-ups.

"Gradually the various makers of records have adopted first one and then the other of the new speeds with the result that all the leading manufacturers in the U.S.A. are now making and selling records for all three speeds.

“These important developments have at times caused difficulties in the record trade, particularly for wholesalers and retailers, because on the one hand it has complicated their stock positions, and on the other hand it has made the selection of records and instruments a much more complex matter for the customer than it was when only one speed was available.

“It is hoped and believed by most of the manufacturers in the U.S.A. that eventually the record business in that country will settle down to one speed only, but some time must be expected to elapse before that can be achieved.

“Electric and Musical Industries, Ltd., London, who produce records for the trademarks His Master’s Voice, Columbia, Parlophone, Regal-Zonophone and M.G.M., and instruments for the trademarks His Master’s Voice, Columbia and Marconiphone, have closely studies these new developments from their inception from all aspects including the technical, commercial and mechanical, and have been anxious to avoid causing any disruption business in the record and instrument business in this country resulting in possible loss to wholesalers and retailers and possible confusion to record buyers.

“It is E.M.I.’s intention to keep in close touch with all aspects of these developments and to avoid major changes in this industry until the situation becomes more clarified. Consequently, they believe it is essential in the interests of all parties concerned, and particularly in the interest of the buying public, not to issue records with speeds other than the standard 78 r.p.m., unless and until they give to the trade six months prior notice.

“Until that notice is given and six months after it is given the whole of the E.M.I. group’s extensive record repertoires, both classical and popular, will continue to be supplied at the standard 78 r.p.m. speed only. So far as these extensive repertoires are concerned, it will not be necessary to stock records of two or three speeds, nor for the public to purchase separate turntables of the more complex three-speed instruments.

“The unstable and complex situation in the United States today is well known and often referred to in authentic publications relating to the gramophone industry. Although microgroove records are expected to be a lasting feature it is a well-known fact no one has yet devised either a pick-up or a needle as satisfactory or reliable as those which exist today for 78 r.p.m. records and which are the result of many years steady development.”

Musical Express (UK), Friday, October 13, 1950, p. 2.

“…Tempo Records has shipped its 3,000 tape reel of music, with orders continuing to mount, according to Prexy Irving Fogel….”

The Billboard, Saturday, October 14, 1950, p. 16.

New York, Oct. 21.—Columbia Records, which had been venturing tentatively into 45 r.p.m. by putting out a few of their more successful recent pop singles, has taken a real plunge in releasing the original cast South Pacific and Kiss, Me Kate albums on the 45 speed.

Both have been potent LP sellers; in fact, the South Pacific LP is considered the key item in establishing the 33 1/3 speed as a popular medium.

The Billboard, Saturday, October 28, 1950, p. 13.

Chicago, Oct. 21.—J.P. Seeburg Corporation announced this week that it was adding the 45 r.p.m. Select-o-Matic 100 to its line and will continue to keep both speed juke boxes in production “as long as the record companies continue their policy of announcing simultaneous duplicate releases at both speeds.”

Samples of the 45 box were on their way to distributors this week, according to C.T. McKelvy, vice-president and director of sales. As they receive their samples, McKelvy said, distributors are inviting operator customers to examine the phonograph. No formal, national showing is scheduled.

First indication that Seeburg had developed a 45 r.p.m. mechanism came some 13 month ago (The Billboard, September 17, 1949) when the company announced that it had showed the 45 to its distributors but would not place it into production until the 45 r.p.m. disk became a factor in the music business.

This week, McKelvy said, “the decision on the part of all leading record manufacturers to release popular tunes and single classical selections on 45, and to make simultaneous releases at both speeds, has expedited the inclusion of the Seeburg 100 Select-o-Matic music system to its line.”

The company’s distributors were notified of the decision to place the “45” in production at their annual convention held in the Belden-Stratford Hotel, Chicago, September 29.

45 Smaller-Sized

Altho detailed description and price of the new mechanism were withheld pending distributors’ receipt of their samples, it was understood the 45 and 78 boxes are identical in outward appearance. The 45, however, is smaller in size.

McKelvy emphasized that until such time as the record industry itself settles on one speed, Seeburg will continue to produce both the 45 and 78 system—leaving the choice of boxes up to he operators.

The Billboard, Saturday, October 28, 1950, pp. 3, 114, 127.

Stanley Mottram, technical service manager of British Geon, is in this country for a month to study domestic vinyls and pressing methods. Geon, partially owned by the Goodrich Rubber and Chemical combine, is the sole supplier of vinyl-type plastic for phonograph records in England. English Decca, producer of London disks for the U.S., is the only vinyl user there at present, being the sole diskery to issue LP platters.

The Billboard, Saturday, October 28, 1950, p. 20.

Columbia Records, continuing its quiet expansion of 45 rpm releases, is currently at the point in its 45 program where it is releasing most of its better pop entries simultaneously an all three speeds. Current Columbia 45 catalog has 27 pops, one blues and rhythm and three folk singles, as well as three albums.

Columbia has refused to ballyhoo its 45 releasing schedule, because, in the words of one diskery official, “we’re still continuing our tests.” Actually, a list of 45s now on the market shows that Columbia is apparently in the 45 field to stay.

Action on the pops has been particularly strong during the past three weeks. Plattery has three Jo Stafford disks out—“Use Your Imagination,” “Stardust” and “Tennessee Waltz”—as well as seven singles by Doris Day, three of which were released only in the past two weeks. In addition, there’s one disk by Arthur Godfrey, one by Alan Dale, one by Percy Faith and one by the Ravens. These are out in all three speeds.

The above lineup represents Columbia’s strongest pop output during the past three weeks. Fact that they are being released on 45 would seen to indicate that the diskery is fearful of losing any potential market to those consumers who have only 45 players, or who have gotten into the habit of buying 45s only. It would further indicate that Columbia is past the “testing stage” so far as its marketing set-up is concerned in the 45 field.

Variety, Wednesday November 15, 1959, p. 46.

New York, Nov. 18.—RCA Victor this week was finalizing plans for its most ambitious album push since the Here Come the Dance Bands Again series. Unlike Bands, however, the upcoming drive will embrace both the Red Seal (classical) catalog and the popular catalog, even touching lightly on the folk field. Package theme will be the RCA Victor Treasury of Immortal Performances, and the first sets in the grouping are scheduled for release February 1.

In the classical Treasury will be works by some 54 longhair artists, including such all-time toppers as Enrico Caruso, Geraldine Farrar, Galli Curci, Paderewski, Rosa Ponselle, Mary Garden, Rachmaninoff, Chaliapin and John McCormick. Obviously, the individual album will present outstanding performances of these artists, regardless of age of the original masters involved. Masters have been carefully processed, so that in most cases they will sound better on the new speeds than they did originally on 78. In the classical series the albums will be issued only on 45 and 33 r.p.m. and not on 78 r.p.m.

Classical albums will range from three-record to seven-record packages. Retail price will be 95 cents per disk, plus 50 cents for the album.

Crosby, Columbo, Sinatra

In the pop Treasury of Immortal Performances, album No. 1 will be Dance Band Hits, consisting of six sides as follows: Benny Goodman’s Stompin’ at the Savoy, Ted Weem’s Heartaches, Tommy Dorsey’s Boogie Woogie, and Glenn Miller’s Song of the Volga Boatman. Album 2 will be an Immortal Performances of male vocalists, featuring Russ Columbo, Bing Crosby and Frank Sinatra. Other pop album will feature Keyboard Kings of Jazz, and folk singers Gene Austin, Jimmie Rodgers and Vernon Dalhart.

Pop album in the series will sell for 75 cents per disk, plus 50 cents for the album. These, too, will be issued on 45 and 33 only. Pop packages will feature liners written by Leonard Feather, and the classical stuff will have copy by such longhair critics as Deems Taylor and Irving Kolodin.

Immortal promotion was spearheaded by the company’s merchandise manager, Bob Macrae and, according to him, over 2,000 of the firm’s catalog items were culled to arrive at the finals for inclusion in the various sets. In a sense the series seems to stem from the same basic idea on which the company’s Heritage series was built. Heritage laid somewhat of an egg, but the company feels that the upcoming sets have mass appeal as against the specialized and limited appeals to collector’s of the Heritage sets.

The Billboard, Saturday, November 25, 1950, pp. 15, 51.

New York, Nov. 25.—Based on a study of sales of three MGM sound track albums which have been consistently in the top brackets of the best-selling charts in the past few months it is revealed that the aggregate sales of the newer speeds (33 and 45) are selling about equal with total 78 album sales.

The study also shows that 33 and 45 sales are virtually equal, with the long-play medium attracting just a shade more orders than the doughnut disking.

The three albums employed for this study are the sound-trackings for Annie, Get Your Gun; Summer Stock and Three Little Words. These latest of the MGM original movie cast albums have all topped previous sales marks. Previous MGM track albums have hit marks of over 125,000 in sales.

In the cases of Annie and Words, the ratio worked out to two 78-r.p.m. albums for every one 33 and one 45 package. Orders on Annie and Words LP’s are 1,000 more than those taken for the 45 equivalent, MGM diskery’s general manager, Frank Walker, found that the 78 sales accumulated, in the latter stages of the merchandising of these sets. He believes that the 78s are finding their major market as the movie showings bring the disk item to the attention of the hinterland outposts.

The Billboard, Saturday, December 12, 1950, p. 12.

Knocked out in the pop and longhair album field by the 33 rpm speed, the 78 rpm platters are rapidly being displaced in juke boxes by the 45 rpm speed. Conversion to the latter slow speed is now proceeding so rapidly that juke operators anticipate that 45’s will be used almost exclusively in coin machines by the end of the next year.

Movement to the 45’s has been facilitated by the major jukebox manufacturers, which are currently marketing new machines to plays the slow-speed platters as well as adapters to convert old jukes. Juke ops are latching onto the 45’s as quickly as possible primarily because of the economy in working with the 45 rpm platters.

Hit hard by the widespread installation of video sets in spots where coin machines were formerly paramount, juke ops have found that conversion to 45’s has partially offset these losses. The slow-speed disks have virtually eliminated the breakage problem, formerly an expensive headache, and has made servicing of the coin machines relatively simple. Latter advantage stems from the long-wearing quality of the 45’s, which make it unnecessary for the ops to buy two or three copies of the same number for each machine.

Only current drawback of 45’s is the lack of a big enough library to cover the tastes of all territories. In regions where folk and western tunes are predominant in jukes, ops find that not enough of these slow-speed platters are available. Many of the diskeries serving the ops with these regional platters are still turning out shellacs exclusively while the major companies often fail to cover the folk tunes post popular in a given area. But with an increasing number of waxeries switching to 45’s for their singles, the coin machine ops believe that enough 45 platters of all types will be on the market by the end of 1951 to make general conversion possible.

Recording company officials, meaning, report that sales of 45 rpm records during the past two weeks have risen to a total of about 30% of sales of the total market. Previous sales ratio of 45s was about 15%. The plattery execs expect the high ratio to continue until after Christmas.

Rise in sales of the seven-inches is attributed to huge holiday promotion campaigns devoted to 45 players and to the disks themselves. Promotion, they point out, is on all levels, from the manufacturer to the retailer.

Variety, Wednesday, November 29, 1950, p. 42.

Despite the absence of any official word that it has converted to 45 rpm, Columbia Records is converting 30 of its bestselling albums to 45 rpm. The company has in the past few weeks been releasing pops on all three speeds simultaneously, and has already released three of its current top album to 45 rpm.

Columbia would not divulge which albums are being converted, but it’s understood they will be in the pop, semi-classic and legit musical field. Three albums already out on 45 are original-cast albums of “South Pacific,” “Kiss Me, Kate,” and “Tea for Two,” with Doris Day.

Variety, Wednesday, December 6, 1950, p. 48.

New York, Dec. 2.—The record industry, coming into the 1950 home stretch, promises to wing up the year with the strongest sales figures since the boom year of 1947. This is apparently the greatest comparative comeback of any facet of the amusement business, the disk industry’s vitality in many ways outpacing radio’s struggle to maintain itself against TV, the film industry’s attempt to stabilize itself and the night club-vaude industry’s efforts to keep in the black.

Receipts from the disk tax for the current fiscal year are sailing along at a rate 60 per cent above last year, according to a report from the Bureau of Internal Revenue this week. For the first four months of the 1951 fiscal year (July thru October of 1950) Collections amounted to $2,133,879 as compared with $1,442,371 for the same period last year.

If the present rate continues, tradesters are speculating how closely the 1951 fiscal year may come to the 1947 level of some $8,500,000. The last three fiscal years showed successive declines about $1,000,000 annually to reach a low of $5,500,000 in the 1950 fiscal year.

October is usually a less-than-average month for disk tax collections, but October, 1950, brought in $568,002—a gain of $135,798 over the preceding October and the fourth highest month in the past 15.

The continuing gain in tax collections over the past few months, which directly reflects a similar gain in disk sales, indicates that the early apprehensions over the possible deleterious effect of the news speeds were unfounded.

Diskeries are now coming into a particularly lush period—the majors and indies being set for a Christmas rush far exceeding that experienced last year. Christmas merchandise, given the benefit of highly geared promotion campaigns by many diskeries, is already moving rapidly. Evidence of the lush year has been accumulating for some time, with financial reports within the last few weeks lending strong evidence to the picture.

Decca, for instance, in its financial report for the first nine months of 1950 showed consolidated net earning running 30 per cent ahead of the diskery’s take for the same period last year (The Billboard, November 11). Capitol’s third quarter net earnings this year more than doubled the company's income for the same period in 1949 (The Billboard, November 11). RCA Victor, which was still operating at a loss at the end of the first nine months of 1950, has nevertheless picked up considerably in the pop field in the last six weeks. Phil Harris’s disking of The Thing, for instance, has already hit a five-week sales figure of 750,000 and really broke the ice for the diskery after a long period of doldrums. Also in the forefront as hypos in the Victor picture have been the Como-Hutton etching of Bushel and a Peck and Como’s Patricia. Company’s Red Seal kiddie and pop album business maintained consistent level during the rough pop period and continues at a sturdy pace.

Columbia likewise has had a resurgence of business in the pop field. Acquisition of such name talent as Sammy Kaye, Paul Weston, Joe Stafford, in addition to the blossoming of young talent, has materially brightened the picture. Kaye’s Harbor Lights, and Gene Aury’s diskings of Rudolph and Frosty the Snowman have been outstanding during the later part of the year. Now Guy Mitchell’s My Heart Cries for You and Paul Weston’s Nevertheless are adding to the impetus.

Mercury has been hitting a consistent level with Patti Page’s Tennessee Waltz and earlier Vic Damone diskings, and MGM’s sound track albums and Billy Eckstine cutting are sparking the indie picture. A flock of lesser indies have been sailing along rapidly, via such strong sellers as Louis Prima’s Oh, Babe on Robin Hood; Bake a Cake early in the year, started by National, etc. Specialty houses, including rhythm and blues label and country and Western diskeries, such as King, Aladdin, Modern and Atlantic, have all hit with solid disks.

It is ironic, but still another situation may add to the industry’s strong financial outlook. This is the international situation. The war, if prolonged, is figured as certain to materially hurt production of such items as TV sets, electric irons and refrigerators, leaving disks in the comparative clear. Already (see separate story in Music Department) many distributors and dealers are turning to record lines as insurance against loss of income stemming from cutbacks on TV and other production.

The Picture in other phases of the indoor show business is some what spotty. Network AM business, with the exception of CBS, is down as compared to last year. Columbia, however is up appreciably. TV, as compared to last year, is up fabulously on both the manufacturing and the time sales levels. Many TV outlets are in the black and many are sold out completely. However, network TV operations continue at heavy losses owing to tremendous program and operations costs. On the other hand, network owned-and-operated TV stations are making big money and network owned-and-operated AM stations are having, for the most part, banner business. In general, AM is doing well in non-TV markets, but in TV markets the business conditions are very variable.

The vaudeville-night club picture nationally is not bright. Business is way down, owing in part to a lack of attractions and poor films and high living coasts. Collections from the admissions and cabaret taxes continue to run behind last year (see separate story in General).

Returning to the disk industry, this is by far the brightest angle of the entire music business. Sheet music lately has been moving very well, but is still far below peak years.

The Billboard, Saturday, December 9, 1950, pp. 1, 9, 14

RCA Victor has permanently shelved its project to establish its 45 rpm system as the disk industry’s sole speed of the future via introduction of a 45 rpm platter that could play up to 25 minutes on one side. It’s understood that Victor, which put up a bitter struggle against the adoption of the 33 rpm speed, is now reconciled to letting the latter system dominate the longhair field with 45s covering the pop field and longhair singles.

Victor decided to call off the 45 rpm push because of two reasons. Firstly, the shortage of materials due to the country’s military program has reduced the possibility of turning out the large quantities of new equipment that would be needed to play the larger-sized 45 rpm disks. Secondly, equally important, Victor fears a storm of public protest if it attempted to upset the status quo. With RCA currently battling Columbia Broadcasting System over their respective color systems, Victor execs opine that one such fight at this time is enough.

If the war economy doesn’t block all advances in the disk industry, Victor strategy now tends towards the belief that recordings via tape will be the next big development in the disk industry. That, however, is a project of the future.

Variety, Wednesday, December 13, 1950, p. 57.

New York, Dec. 16.—All major diskeries and a flock of the most important indies this week followed the lead of Decca Records and instituted prices rises on most segments of their 78, 45 and 33 lines.

Action by Victor, Columbia and Capitol, as well as the indies, occurred rapidly, most of the firms notifying their distributors early in the week. Lesser indies, however, were still switching to the new prices today, with indications that within one week the entire disk industry would be operating at the new levels.

In general, there has been no action regarding changes in the discount structure. Diskeries are known to be considering such changes, and in the event this materializes it is felt distribs will get a better break. For the dealer, it is believed a discount change is unlikely. It is also pointed out that, whereas the diskery, the distrib and the dealer will now take in more money on records (altho diskery and distrib may not necessarily realize more profit), the juke box operator is caught in the middle. He will pay more for disks, but cannot easily jack up the 5-cents-per-play rate.

Fast Switch

The switch to higher prices happened so rapidly, with so many joining the trek, that many dealers were not sure as to who raised what. Some dealers indicated they would not raise prices for awhile. Such a delay, in short, could be another form of price cutting. Other dealers reported little or no consumer resistance to the new prices.

A survey of the situation also indicated the following developments:

(1) Most of the indie kidisk firms did not raise prices at all. They may do so soon.

(2) The indie LP labels who were getting $5.95 for their disks did not change. A few firms moved up to that level.

(3) Some jazz lines are expected to settle at $1, as Discovery did last week.

(4) Whether all labels went up makes little difference to sharpie dealers. It was indicated they would charge 85 cents for all pops anyhow—just as they sold MGM for 75 cents when that company was pricing its line at 60 cents.

(5) Some LP companies simply moved all their stuff onto higher priced labels rather than announce a price increase on what they have. Some increased part of the line and switched part to a higher priced and differently colored label.

(6) Many diskeries are giving dealers and distribs a chance to buy at old prices for periods ranging from three days to three weeks.

Among the majors, here are the new prices for various segments of the line:

RCA Victor

According to word from distributors, Victor raised all pops, both 78 and 45, from 75 cents to 85 cents, plus tax. LP’s are settling to a single price on both 12 and 10-inch disks. Previously, this category had several price levels. The new structure is $5.45 plus tax for the 12-inch and $4.45 plus tax for the 10-inch. Formerly, most of the 12-inch LP line was $5.45 including tax, and the 10- inch $4.45 including tax.

Victor’s 45 classicals are up from 95 cents plus tax to $1.10 plus tax. Some major classifications will remain at the same prices. The 12-inch 78 classical line, for instance, remains at $1.25 plus tax. The non-breakable 78 children’s line remains at 95 cents, plus tax. Kiddie disks on 45 are up to the new pop prices, as are hillbilly and rhythm and blues.

Columbia

Columbia pops—78, 45 and 7-inch LP’s—are now 85 cents, plus tax. The 12-inch red label has gone from 95 cents to $1.10 plus tax. The 12-inch blue and green labels from $1.19 to $1.25 plus tax, and the 10-inch masterworks from $1 to $1.10 plus tax. Columbia LP’s as follows: 10-inch pops from $2.85 to $3 including tax; the 10-inch classical from $3.85 to $4 including tax; the 12-inch classical, which was $4.85 including tax, has been split into two categories, with prices depending upon amount of material and expense of recording. One category, A, is $5.45 including tax; B remains at $4.85 including tax. About one half of the 12-inch classical catalog falls into each category. Distribs and dealers are being furnished with list of the contents of both categories.

Capitol

Hollywood, Dec. 16.—Capitol moved swiftly this week to up its price line. Diskery announced new price structure Monday (11), with changes going into immediate effect. Label’s red, black and purple 10-inch pop singles and album singles were hiked to 85 cents. Biggest price boost is for Cap’s red and black label disks. Altho company hasn’t released either red or black label platters recently, they were price tagged at 63 cents and will now be upped to the 85-cent level.

LP albums will be based at $2.85, $3.80 and $4.75, with excise taxes bringing these to $2.98, $3.98 and $4.98 respectively. Pop 45 r.p.m. platters will move from 79 cents to 89 cents, including excise tax. No increases on 45 classical album were made. Cap’s general discount structure will remain unchanged.

Midwest Picture

Chicago, Dec. 16.—A check of Midwest diskeries showed that all are or will be following the Decca price raise (The Billboard, December 16) to 85 cents. Mercury has already notified all dealers and juke ops by mail of the price hike, as have Rondo, Aristocrat and Chess. Sid Nathan, of King, has notified all dealers and juke ops that the Cincinnati diskery will honor all orders, up to midnight, Tuesday (20), at the old price, but that the hike will be effective after that.

Rondo Records has dropped completely its Rolin label, the 49-cent label. Rondo is releasing a series of 10-inch LP’s taken from foreign masters which the firm exchanged for distribution of Rondo masters abroad. First two feature Gabor Radics, gypsy orkster, currently in Buenos Aires, with the masters coming from Pacific, the Paris firm, and also masters by Armand Bernard’s semi-classical ork from the same firm. Rondo has appointed Esquire label of London as its British distributor.

Hollywood Indies

Hollywood, Dec. 16.—All local indie diskeries followed the majors’ increase in disk prices this week with an across-the-boards price hike of their own. Boost is 10 cents plus tax on all platters, effective today (16). None of the waxeries, however, claim to have been moved by the previous announcement of the major labels. Distributors were informed that all diskings out of the plants thru Thursday (14) would go at former prices. Higher tariff and steadily rising materials and labor costs were blamed for the hike.

Aladdin, Discovery, Modern and Specialty simultaneously upped the retail prices from 75 to 85 cents plus tax on the 10-inch 78’s and seven-inch 45’s. The 10-inch LP’s were also boosted to $3 from the old $2.85. Tempo Records was the sole label locally that did not raise coasts of diskings. However, their 78’s already retail at $1 and its subsid, Theme, for 75 cents plus tax.

The Billboard, Saturday, December 23, 1950, pp. 1, 10, 34.

Final stabilization of the speed setup in the disk industry is due shortly with the expected demise of the seven-inch 33 rpm platter. Introduced by Columbia Records as an answer to RCA Victor’s 45 rpm disk in the pop field, the small-sized 33’s have failed to catch on in the mass market despite intensive promotional efforts by the diskery. Trade execs anticipate that Columbia will surrender the seven-inchers after Jim Conkling takes over as prexy Feb. 1, replacing Edward H. Wallerstein who nursed the L-P development in both the longhair and pop fields since tis introduction three years ago.

Two factors have militated against the click of the seven-inch 33’s vis-à vis the 45’s. Firstly, Columbia did not make a machine available early enough to play the disks automatically while Victor pushed its 45’s along with a specially-built automatic player. Secondly, Columbia failed to secure the support of other companies for its seven-inchers although the rest of the industry followed Col’s leadership in the long-playing longhair field.

For the past couple of months, Columbia has submitted to the 45 rpm advance by pressing much of its pop line in latter speed as well as on the seven-inch 33’s. Latter, however, have not been paying their way despite the general pickup in the company’s pop line.

The 45’s meantime, have been enjoying a steady increase in public acceptance with all major labels pressing their pops in that speed. Success of this speed system in the pop field stems from Victor’s tremendous promotional drive plus the fact that about 4,000,000 machines, currently in use, are equipped to play the 45’s automatically.

Variety, Wednesday, January 21, 1951, p. 35.

After a 10-year truce, the war between the 33 rpm and 45 rpm again broke out this week with Columbia Records’ introduction of a seven-inch 33 rpm stereo disk aimed at the single market. Since 1949 when the original fight was settled, or rather suspended, the disk industry has settled down to a double speed setup in which 33 rpm has become standard for LPs and 45 rpm for the singles.

Columbia, which pioneered the LP disk and attempted from the outset to get the 33 rpm speed established as the universal industry standard, now believes that the advent of stereo has made the time ripe for another try at 33 rpm singles. The monaural 33 rpm singles of 10 years ago were ultimately swept from the field by the huge promotion for the 45 rpm singles engineered by RCA Victor.

Goddard Lieberson, Columbia’s prexy, states that the new stereo 33 rpm singles, dubbed “Stereo Seven,” were designed “to reach a new and broader audience for single records, the mature audience which has largely abandoned single-disk collecting in recent years.” Lieberson said: “These mature listeners have become such enthusiastic and consistent 33 rpm buyers that this speed now represents 80% of the total record market dollar volume.”

Pegged at 98c

He pointed out that the steadily growing number of stereo buyers is drawn from LP audience. “We believe,” he said, “these mature listeners will be attracted to a 33 rpm stereo single disk as a logical development in their record purchasing. Stereo Seven, with its exciting potentialities for new effects and special material, will bring a new era in sound to single records and will thus revitalize that market.” Col’s stereo 33 rpm singles are being priced at 98c, competitive with the monophonic 45 rpm singles.

Reaction to Col’s move by the other majors was generally cool. One competitive label stated that the 33 rpm single would add to the difficulties of the dealer who already has enough inventory problems with the current two-speed, monaural-stereo releases. This label’s spokesmen said that stereo singles have already come out on the 45 rpm speed, hence Col’s move is only a technical matter representing no fundamental advance in the recording art.

Another disk exec pointed out that whatever market existed for the stereo single was now based on 45 rpm speed. The juke operators, for instance, are using 45 rpm singles in the stereo boxes and could not be expected to go for the 33 rpm speed after investing in 45 rpm machines. Doubting that any significant section of the adult audience would be converted back to the single market because of a matter of speeds, this exec asserted that, in any case, the great bulk of phonograph machines now in homes were equipped to play both 45 or 33 rpm disks and hence disk buyers have no special loyalty to either speed.

Could Cue 1-Speed

In favor of Columbia’s 33 rpm single is the argument that it represents a step in the direction of one-speed standard in the disk industry. There is no dispute that if one speed had to be adopted, 33 rpm would be it since it can do anything that the 45 rpm speed can do, while the same cannot be said for the 45 rpm speed.

Col’s initial release of the Stereo Seven singles is made up of recent and new releases by its top artists, including Johnny Mathis, Duke Ellington, Johnny Horton, Mitch Miller, Johnny Cash, Tony Bennett, the Four Lads, Percy Faith, the Kirby Stone Four, Frankie Laine and Ray Conniff. The disks will have a new multi-colored label and will be encased in special black-and-white envelopes.

Variety, Wednesday, July 22, 1959, pp. 1, 45.