We take this item from the January issue of Labour Research¥ This analysis is yet another example of the high standard consistently maintained by L.RoDe Notring is quite as simple as it appears on the surface, and this is particularly true of the record industry, The only predictable facts that emerge are high profits. The profits of the companies shown below come almost entirely from the sale of production of gramophone records + the companies are subsidiaries of parent companies set up to operate the record side of the business,
Company Year to Trading Profits dividend
£000 £000 E.M.I. Records Jan 30, 1964 3,446 1,495
1965 2595 1,400 Decca Records Co. Mar 31 1963 ' Al2a* 796
1964 2,17) 796 Phillips Records Apr 30, 1963 87: ~
1964 “ee / 3h Pye Records Jun 30, 1963 664 oe
1964 445 LOT C.B.S. Records Dec 31 1963 TT an
| 1964 31 -— New Musical Express Feb 28 1964 167= 25
1965 164 10 *Before adding tax refund of £692,572; +15months; =17months. After this, nothing remains simple, Philips is owed by the Dutch firm Philips' Gloeilampenfabrikan, NV; CES records is owried by the Columbia Broadcasting Corporation of America, although EMI own the Columbia record labe!; Pye records is owned half by Associated Television, a quarter by Pye of Cambridge, and a quarter by Caledonian Investments (Part owners of British & Commonwealth Shipping COs The five record companies above account for most of the 'pop! labels, although independent companies successfully exist in the more specialised fields like. folk music, with 'Topic! EMI Records have among their labels Capitol, Columbia, Encore, HMV, Liberty, MGM, Parlophone; Decca Records own Atlantic,Argo, Brunswick, Decca, RCA~Victor, Telefunken and Vogue; Pye Records own Cameo- Parkway, Colpix, Pye, Picadilly, Reprise; Phillips Records own Caedmon, Fontana and Riverside; CES Records own CBS, Oriole, Embassy, Realm and Time Orlolesscoes The price structure of a record is similar for all the large record companies. The manufacturer selis the 45r.pem. record to the wholesaler for 2/ll, the wholesaler to the retailer at 3/10, the retailer to the public at 6/8, The manufacturer out of his 2/11 must pay lld tax and any production costs, artist's fees, royalties etc. .The record companies have applied for permission to continue maintaining the selling price on records and so far the case as not been heard, However the record companies are zealous in their efforts to enforce resale price maintenance particularly against the competition of record clubs and long playing records, that are appearing at prices as low as 10/6. "Mrs E Cohen, a widow, submitted to the High Court yesterday to a perpetual injunction being made against her restraining her from selling at her stall in Romford Market cut price gramophone records and record tapes supplied by EMT records,...-Mr. D.J. Nicholis, for the Broadcasting Company, said the records, which had been registered under the Resale Price Act, were supplied on condition that they were sold at a recommended price. Mrs Cohen had been selling records at below recommended prices, and had continued to do so despite giving an assurance that she would not." (Financial Times 8412.655)secsese * Available from L.R.D. 78, Blackfriars Rd., Lonion S.B.1. price 1/9 p.pe