Keeping a Scorecard on Winners, Losers in Record Industry Wars

T his was the Year of the Comeback, with everyone from the Rolling Stones to Donny Osmond to Alice Cooper making big splashes.

But behind the scenes, the record industry was full of tumult, with a flurry of executive shuffles and company sell-offs (the biggest being A&M;, which PolyGram bought for an eye-popping $500 million).

Still, most labels remained comfortably in the black, thanks largely to the continuing compact disc boom. Times are so good that everybody wants to get into the music business. Topping the list: Irving Azoff, who’s starting his own label, and the Walt Disney Co., which is jumping in with Hollywood Records.

Is there room for more players in the already fiercely competitive industry? Will the new labels spark a fierce bidding war as they vie for budding superstars? Will the CD boom finally go bust?

While the music business ponders these and other questions over the holidays, Pop Eye takes a look at how the industry’s major players fared this year.

A&M; Records

PolyGram Inc. certainly didn’t buy A&M; based on its 1989 performance, though the label’s lackluster showing over the past year may have been what finally prompted Herb Alpert and Jerry Moss to sell the company they had founded in 1962. (The execs shrewdly kept A&M;’s prized music-publishing firm.) It was such a bad year that the label’s biggest hit until October was a fluke No. 1 single by soap-opera star Michael Damian. Happily, Janet Jackson came through late in the year with “Rhythm Nation,” her ballyhooed follow-up album to “Control,” which sold a quick two million copies.

Arista

Critics rarely rave about Arista artists, but the label has achieved a solid track record in recent years by discovering acts with Top 40 appeal, such as Whitney Houston, Expose and Taylor Dayne. This year’s new model is Milli Vanilli, a pair of poster-boy popsters whose debut album has sold five million copies (and counting)--and spun off a trio of No. 1 singles. But despite the company’s high pop profile, the Eurythmics’ label debut album has gotten off to a slow start, and Dion’s comeback attempt fizzled.

Atlantic

It was a platinum pajama party as the label’s leading ladies all hit the Top 10. Bette Midler landed one of the biggest surprise hits of the year with the “Beaches” sound track, which spawned her first No. 1 single, “Wind Beneath My Wings.” An even bigger surprise was the Top 10 success of Donna Summer’s first post-Geffen single. Debbie Gibson aged gracefully, landing her first No. 1 album and another No. 1 single. Skid Row (who are even prettier than Gibson) and Winger (who aren’t) also scored platinum albums. Phil Collins and his Genesis mate Mike Rutherford (with the Mechanics) each topped the singles chart, but Foreigner’s Mick Jones bombed with his debut solo album.

Capitol

After several sluggish years for the label, Capitol’s executives were in the hot seat--and president David Berman got burned. The industry vet got the ax in September and was replaced by Hale Milgrim, a touted marketing exec from Elektra Records. The label’s A&R; department, which had a poor track record of discovering new hitmakers, was also reorganized this fall. Many of the label’s 1989 hits were with acts on the comeback trail, notably Bonnie Raitt (who had her highest-charting album ever), the Doobie Brothers and even Donny Osmond, who shocked the industry by zooming to No. 2 on the singles chart with “Soldier of Love.” But the label’s most cherished comeback bid was its biggest disappointment: Paul McCartney’s “Flowers in the Dirt” album, which didn’t even crack the Top 20. The label nabbed the Beastie Boys, but the rap hotshots’ follow-up to their No. 1 CBS debut stalled at No. 14. Capitol had a platinum album from rapper M.C. Hammer, and, thanks to its deal with Enigma, hard-rock hits by Great White and Poison.

Columbia

The industry is crediting new kids on the block with lifting this sleeping giant out of a lengthy slump. And they’re not just talking about teen phenoms New Kids on the Block, whose “Hangin’ Tough” album has sold 6 million copies--the year’s best seller. They’re also referring to the arrival of a new management team headed by former rock manager Tommy Mottola and one-time Arista hotshot Don Ienner. The label’s renowned marketing machinery also sparked comebacks by Billy Joel and the Rolling Stones. A greatest hits set by Journey quietly sold 2 million copies; making more noise on their way to platinum were metal upstarts Warrant and a trio of rap acts from Columbia’s Def Jam affiliate.

Elektra

It’s time for label chief Bob Krasnow to light up another victory cigar. The most artist-oriented label of the ‘80s continued to prosper with a remarkably diverse talent roster. Where else could you find speed-metal masters Metallica rubbing shoulders with silky show-tune crooner Michael Feinstein? Elektra’s across-the-board 1989 successes ranged from metal homeboys Motley Crue (who landed their first No. 1 album) to post-punk heroes the Cure, who had their biggest album to date (and headlined Dodger Stadium).

EMI

This label has had more to brag about in recent years than its much larger sister label, Capitol. Richard Marx avoided the sophomore jinx with “Repeat Offender,” which has already outsold his first album, topping the 3 million mark. Marx also came through with a pair of No. 1 singles as did Roxette, Sweden’s hottest pop export since ABBA. David Bowie’s “Tin Machine” was the label’s biggest disappointment, barely making the Top 30.

Epic

Thanks to a concerted label push and pivotal MTV support, Living Colour made history as the first black rock band to go platinum since the heyday of Jimi Hendrix and Sly & the Family Stone. But with the exception of that album and Gloria Estefan’s strong showing, Epic was living on its past laurels this year. Its other platinum albums (Ozzy Osbourne, Europe and Joan Jett) were all holdovers from 1988. Company stalwarts Cyndi Lauper and the Jacksons bombed, as did label newcomers Liza Minnelli and the Jefferson Airplane. One comeback that did pan out was Alice Cooper, who mined his first gold album since 1976.

Geffen

Talk about a label with momentum to burn. After a few lean years in the mid ‘80s, Geffen has built a much-envied track record in recent years thanks to a shrewd promotion department and a stable of high-profile (and hotly competitive) A&R; execs. The label has had so much success that it’s expected to reactivate Asylum Records early next year to make room for more young artists. Two smash albums by hometown bad boys Guns N’ Roses sold a combined total of 5 million copies. Aerosmith and Don Henley returned with platinum albums, while Cher (aided by a revealing video shot on the U.S.S. Missouri) earned the first platinum album of her career. Edie Brickell & the New Bohemians rode their 1988 album into the Top 5 in February.

MCA

Is there life after Irving Azoff? Last summer the industry’s most colorful (and controversial) figure left the label he brought back from the dead to start a new company bankrolled by Warner Bros. The crowning achievement for Azoff and his team--which included successor Al Teller--came in July when MCA became the first label in eight years to monopolize the top three spots on Billboard’s pop album chart. The label scored with the Fine Young Cannibals (whose album had the longest run at No. 1 this year), Bobby Brown and Tom Petty. The label’s black music division also had hits with Heavy D. & the Boyz and Guy featuring Teddy Riley. On the other hand, Tiffany’s album fell short of the phenomenal success of her 1987 debut, and Patti LaBelle’s latest flopped.

Motown

In its first full year of operation since former MCA hotshot Jheryl Busby took over the top job, Motown has been trying to regain some of its long-lost momentum by going after fresh talent and building relationships with hot producers. But it still has a long way to go. The one-time hit factory had a platinum album with teen dreams the Boys, but had the year’s most embarrassing bomb with Diana Ross’ “Workin’ Overtime,” the pop diva’s heralded return to her former home.

PolyGram

As recently as last year, PolyGram was one of the industry’s hottest rock factories, fueled by such bands as Bon Jovi and Def Leppard. This year it cooled off considerably, perhaps prompting the sudden departure of label chief Dick Asher last month. The label’s biggest album was a multiplatinum holdover from 1988, Bon Jovi’s “New Jersey.” John Cougar Mellencamp and Tears for Fears released eagerly awaited new albums that went platinum, but didn’t match past sales triumphs. Critics raved, however, about a pair of down-home up ‘n’ comers, Michelle Shocked and Texas.

RCA

It was a quiet year for ol’ Nipper, which didn’t have much product from its pop mainstays and lost respected A&R; chief Paul Atkinson to MCA. Apart from a strong showing by its venerable country division, the label has been living off profits from its “Dirty Dancing” sound-track bonanzas. In country, K. T. Oslin and the Judds each had two platinum albums while newcomer Clint Black scored a gold album. The best news for the rock division came from heavy-metal goddess Lita Ford, whose 1988 “Lita” album went platinum, and gothic-popsters Love and Rockets, whose album went Top 15.

Virgin

Wanna bet on who’ll be the hottest industry label of the early ‘90s? We’ll put our money on Virgin, a daring young label run by creative executives with a shrewd eye for artists with strong visual identity. Two years ago Paula Abdul was choreographing Janet Jackson’s videos. Now she’s Jackson’s arch-rival as the princess of dance pop, thanks to a trio of spiffy videos that ruled MTV all year. All three of those singles reached No. 1, as did Abdul’s debut album, which has sold more than 4 million copies. Virgin also had platinum albums from the late Roy Orbison and hot newcomers Soul II Soul, plus critical valentines for hip-hop diva Neneh Cherry and singer-songwriter Lenny Kravitz.

Warner Bros.

The Mercedes of the music business, Warners is renowned for its executive stability, wide-ranging artist roster and comfortable, family-style environment. This year, the Burbank-based company continued to be the industry’s most watched--and most imitated--firm (even if some young Turks are grumbling that the label is resting on its laurels a bit). Madonna and Prince, the ‘80s’ most erotic and adventuresome pop icons, were back at No. 1 with double-platinum albums. The label’s folksy oldsters the Traveling Wilburys also sold 2 million, while Karyn White became the year’s hottest black female singer with her debut album. Warners, with its Reprise and Sire affiliates, also had impressive outings with the B-52’s, Lou Reed, the Cult, Elvis Costello and Eric Clapton.

Mighty Indies

Delicious Vinyl landed the first No. 1 album by a black rapper with Tone Loc’s “Loc-ed After Dark” in April, and has Young M.C. coming on strong. . . . Priority landed two platinum albums with gangster-style rappers Eazy-E and N.W.A, whose incendiary anthems on “Straight Outta Compton” were the most hotly debated pop lyrics of the year. . . . Profile’s rap crew, Rob Base & D.J. E-Z Rock, also went platinum. . . . Def Jam had platinum hits with Slick Rick, LL Cool J and Public Enemy. . . . Tommy Boy won critical plaudits and gold sales with its rap rookies, De La Soul. . . . After losing both Robert Palmer and Steve Winwood, Island was sold to PolyGram. . . . And Rhino had continued success with its rock oldie reissues.