Company Town : Recording Industry Has a New No. 1 of Its Own: ’94 Sales

Big-selling new artists such as Green Day, Counting Crows and Offspring joined with old standbys such as the Rolling Stones and the Beatles to make 1994 the biggest moneymaking year ever for the music industry.

The Recording Industry Assn. of America on Thursday reported $12 billion in revenue for 1994.

For the first time, more than 1 billion compact discs, cassettes, vinyl records and music videos were shipped to retailers.

Industry experts said both music and business accounted for the boom: The public responded to new artists, who were given more play on the radio, and 1994 saw the rise of superstores stuffed with CDs.

“There was just an enormous amount of good product out there,” said Jason Berman, RIAA chairman.

So-called alternative rock hit the mainstream last year, with bands Green Day and Offspring becoming major sellers. Pearl Jam, Candlebox and Stone Temple Pilots also showed marketplace muscle.

A new radio format geared toward more adventurous older listeners also took hold, boosting new artists such as Counting Crows and Sheryl Crow.

At the same time, the Rolling Stones, the Eagles and Billy Joel put on successful tours, renewing interest in their music. Even the long-defunct Beatles had a new hit, with an album of old radio recordings that topped the charts at Christmas.

About 368 million compact disc albums were sold last year, a 21% jump from the 304 million in 1993, according to SoundScan Inc., which tracks music sales.

The RIAA reported a 34% increase, to 662 million, in the number of CDs shipped to stores.

The rise of huge music stores such as Media Play, HMV and Tower, which has caused some turmoil among retailers, largely accounts for the difference, Berman said.

The figures also indicate a minor resurgence in sales of vinyl records, which have a certain cachet among fans of alternative rock.

The $17.8 million in revenue from record sales was a 68% increase over 1993, the RIAA said. Much of that increase was due to Pearl Jam’s new “Vitalogy” being available on vinyl two weeks before it sold on CD.

Sales of cassettes showed little change, and vinyl and cassette singles saw decreases in shipments and revenue, the RIAA said.