Universal Music Leads Sales; BMG Fracas Gets Spotlight

Teens may have ruled the 1999 record business, with the Backstreet Boys and Britney Spears dominating the cash registers as a record 774 million units were sold in the U.S.--a 1.6% rise from last year.

But it was music business executives who seemed to be acting like kids. The year ends with a power struggle between Arista founder-chairman Clive Davis and Arista parent BMG’s Chairman Strauss Zelnick. Zelnick reportedly wants Davis to accept L.A. Reid (head of Arista subsidiary La Face) as Arista president and Davis’ successor-designate. Davis is said to be adamant that he won’t share his power.

Meanwhile, Zelnick is also on the hot seat regarding another Clive--Clive Calder, head of the Zomba label group, which is home to the year’s two biggest acts, Backstreet Boys and Britney Spears, and who also lured ‘N Sync over from RCA. With Zomba’s BMG deal set to expire and other distributors salivating, Zelnick and Calder had been at odds, though a year extension of the deal has reportedly been agreed to.

Perhaps Universal Chairman Doug Morris and Interscope co-Chairman Jimmy Iovine owe Zelnick thanks for drawing the spotlight. Last year at this time, all attention was on them due to the impending merger of Universal and PolyGram, with special focus on Interscope adding the Geffen and A&M; rosters. The merger put Universal at the top of the business, controlling more than a quarter of the U.S. market share, while Interscope as a label ranked second with nearly 8% itself.

Getting label bragging rights again is Columbia, which under Chairman Don Ienner has become a hit juggernaut. With Ricky Martin, Mariah Carey and the Offspring among its acts, the label scored an astounding 9.43% of the U.S. market for current releases, up nearly two percentage points from its industry-leading 1998 figure.

Here’s a roundup of how the major labels fared in 1999, organized by distribution group. The sales figures are from SoundScan through Dec. 19, with rankings based on new product. Total sales, which include older catalog items, are also noted.

Universal Music

(new releases, 26.62% market share; total including catalog, 26.25%)

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Interscope (includes A&M;, Aftermath, Geffen)

The roster of hits is undeniable, highlighted by the year’s biggest-selling rock act (Limp Bizkit), second-biggest rap act (Eminem) and Smash Mouth’s staying power (sales of more than 2.2 million for “Astro Lounge”). But those who believe the merger-laden company simply has too much on its plate point to below-expectations sales from Sting and Chris Cornell (both inherited from A&M;), Beck (from Geffen) and Interscope’s own Bush and Nine Inch Nails. “If Sting and Nine Inch Nails aren’t your top priorities, you’ve got too much stuff,” says one business insider.

Biggest-selling album in 1999: Limp Bizkit’s “Significant Other,” 4.56 million. Number of albums in the year’s Top 200 sellers, through Dec. 20: 16.

Keep your eye on in 2000: returns by Eminem, No Doubt, Limp Bizkit and the Wallflowers, plus U2’s first album after sliding over from Island.

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Island Def Jam Music (includes Mercury, Capricorn, Rounder)

With the Def Jam team of Lyor Cohen, John Reid and Jim Capparo now in charge of the merged, streamlined unit, it’s no surprise that rap ruled the roost, led by Jay-Z and DMX. Doubters wonder if they can adapt to the needs of other markets, though, and point to the slow start of Melissa Etheridge’s “Breakdown” as evidence.

Biggest 1999 album: Jay-Z’s “Vol. 2 . . . Hard Knock Life,” 1.8 million. Albums in Top 200: 16.

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Mercury Nashville

They have Shania Twain. Do they need anything else?

Biggest 1999 album: Twain’s “Come On Over” (released in 1998), 5.1 million. Top 200 albums: two.

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MCA

A second straight solid year under President Jay Boberg saw Blink-182 clown its way into the modern rock elite, Mary J. Blige return to R&B; hitdom, and K-Ci & JoJo solidify their stature in their post-Jodeci soul. The big-bucks bidding war victory for Tommy Lee’s rap-rock Methods of Mayhem raised a few eyebrows, but affirmed MCA’s reemergence as an A&R; player.

Biggest 1999 album: Blink-182’s “Enema of the State,” 2 million. Albums in Top 200: seven.

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Universal

Thanks to huge years from Juvenile (via a production and distribution deal with hip-hop label Cash Money), 98 Degrees (cherry-picked from the Motown roster) and the platinum breakthroughs of hard-rocking Godsmack and rapper Lil’ Troy, Universal group chairman Doug Morris’ personal label had a very good year.

Biggest 1999 seller: Juvenile’s “400 Degreez” (released in 1998) 3 million. Albums in Top 200: eight.

Keep your eye on: the returns of Erykah Badu and Chumbawamba.

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DreamWorks

Earlier in the year, hard-rocking Buckcherry seemed ready to add some sales power to a roster heavy on critics’ favorites (Elliott Smith, Randy Newman) but light on market presence. But the album stalled short of the 500,000 mark. Now, though, Powerman 5000 is moving strongly, having passed 700,000 and sighting that million figure.

Biggest 1999 album: Powerman 5000’s “Tonight the Stars Revolt!,” 740,000. Albums in Top 200: two.

BMG

(new releases, 19.47% market share; total including catalog, 15.93%)

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Arista (includes Bad Boy, La Face, Time Bomb)

Did anyone but Clive Davis imagine sales of 4 million for a Santana album? That, along with an even bigger year from La Face’s TLC and continued strong sales from Sarah McLachlan and Whitney Houston put the House That Clive Built at No. 3 in individual label market share (No. 2 if Interscope isn’t credited with A&M; and Geffen numbers). That allowed Arista to weather the big fall-off from Sean “Puffy” Combs’ Bad Boy, with the Puff Daddy’s own “Forever” a big disappointment.

Biggest 1999 seller: TLC’s “Fanmail,” 4 million. Albums in Top 200: 17.

Keep your eyes on: the Clive Davis situation.

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RCA (includes Loud)

Losing ‘N Sync to Jive only partly dampens the continued return for a company that not long ago had little besides the Elvis Presley catalog. Christina Aguilera went on to rival Britney Spears as teen queen, Lou Bega became the novelty act of the year, and Dave Matthews sold 1.2 million of a little-promoted live acoustic release. And landing the Foo Fighters was a coup in terms of A&R; credibility.

Biggest 1999 album: ‘N Sync’s “ ‘N Sync,” 3.1 million. Albums in Top 200: ten.

Keep your eyes on: campaign to make Aguilera the new Mariah Carey rather than a passing fad.

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Zomba Group (including Jive, Volcano)

Having the year’s top two albums in the Backstreet Boys’ “Millennium” and Spears’ “Baby One More Time,” with combined sales approaching 17 million, would be a major achievement for even a veteran powerhouse label, let alone a relatively young upstart like Jive.

Biggest 1999 album: “Millennium,” 8.7 million. Albums in Top 200: seven.

Keep your eyes on: Will the expected extension of the deal with BMG smooth the waters, or just postpone the trouble?

Sony

(new releases, 16.81% market share; total including catalog, 16.11%)

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Columbia

With Ricky Martin, the Offspring, Carey, Nas, Lauryn Hill, the Dixie Chicks and Will Smith all in the year’s Top 50 sellers, Chairman Don Ienner can claim bragging rights not just for market share, but also for the well-rounded nature of the dominance--hits in every major genre and from both breaking acts and enduring veterans.

Biggest 1999 album: “Ricky Martin,” 5.65 million. Albums in Top 200: 19

Keep your eyes on: a possible Fugees reunion.

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Epic

There’s no way to replace the 7 million sales figure of last year’s Celine Dion “Titanic” tie-in, but it took late-year hits from Korn and Dion (a greatest-hits package) to push Epic into a solid year. Critics point to instability in the marketing and promotion wing for such problems as failing to turn Canadian group Len into more than a one-hit wonder.

Biggest 1999 album: Celine Dion,’s “All the Way--A Decade of Song,” 2 million. Albums in Top 200: 12.

Keep your eyes on: Will Pearl Jam’s new album find a new fan base in the wake of its lighthearted “The Last Kiss” remake? And can Epic can turn Macy Gray’s phenomenal press support into sales?

Warner Music Group

(new releases, 13.81% market share; total including catalog, 15.87%)

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Atlantic

Kid Rock continued Atlantic’s ‘90s streak of breakthrough mega-hits, following Stone Temple Pilots, Hootie & the Blowfish, Jewel, Sugar Ray and Matchbox 20. Sugar Ray even outdid its initial success, and Jewel’s “Spirit” continued selling in its second year. Working with its Nonesuch subsidiary, Atlantic sold more than 460,000 copies in ’99 of the “Buena Vista Social Club” Cuban sessions--100,000 more than Stone Temple Pilots’ “4,” the company’s big disappointment.

Biggest 1999 album: Kid Rock’s “Devil Without a Cause,” 3.85 million. Albums in Top 200: nine.

Keep your eyes on: Matchbox 20’s new album, following Rob Thomas’ vocal on Santana’s hit “Smooth.”

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Elektra

Not a lot to celebrate, with no albums breaking the million barrier, and four out of seven of the company’s Top 200 albums coming from Metallica (the new symphonic disc and three catalog items). And at least three disappointments--Busta Rhymes, Missy “Misdemeanor” Elliott and Ol’ Dirty Bastard--were costly projects.

Biggest 1999 album: Rhymes’ “E.L.E.,” 980,000. Albums in Top 200: seven.

Keep your eyes on: Will Third Eye Blind’s just-released second album be as big as its first?

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Warner Bros./Reprise (includes Maverick, Warner Bros. Nashville)

The revitalizations of Cher and the Red Hot Chili Peppers were impressive, as was the transformation of the Goo Goo Dolls into mainstream pop favorites and the hard-rock emergence of Orgy, making up for the failure to bring Alanis Morissette’s 2.4-million-selling “Supposed Former Infatuation Junkie” closer to the decade-leading 13.5 million mark of her “Jagged Little Pill.” But the late-year bomb of Paula Cole and the impending exit of Warner Bros. Records President Andy Schuon have left many wondering if the big restructuring that never came after Mo Ostin and Lenny Waronker left three years ago needs to happen soon.

Biggest 1999 album: Cher’s “Believe,” 2.7 million. Albums in Top 200: 13.

EMI Music Distribution

(new releases, 8.44% market share; total including catalog, 9.62%)

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Capitol (includes Capitol Nashville)

Garth Brooks’ ill-conceived “. . . In the Life of Chris Gaines” is far beneath his usual sales standards. But it and Brooks’ new Christmas collection stand as Capitol’s only new 1999 releases to make the year-end Top 200. Though a big hit overseas, ex-Spice Girl Geri Halliwell’s “Schizophonic” was a U.S. stiff, and fellow international superstar Robbie Williams’ “The Ego Has Landed,” released in the spring, is still struggling to make any headway here.

Biggest 1999 album: Brooks’ 1998 album “Double Live,” 1 million. Albums in Top 200: seven.

Keep your eyes on: Two new albums from Everclear and the continued campaign to break Williams in the States.

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Priority

Master P’s Priority-distributed No Limit tank slowed a bit in ‘99, and Priority’s market share shrank from last year’s 3.77% to 2.08%.

Biggest 1999 album: Snoop Dogg’s “No Limit Top Dogg,” 1.1 million. Albums in Top 200: five.

Keep your eyes on: the N.W.A reunion, with Snoop stepping in for the late Eazy-E.

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Virgin

Even with Lenny Kravitz’s “5”--a dud when released last year--turning into a hit this year, and with Fatboy Slim’s 1998 album “You’ve Come a Long Way Baby” turning into a 1999 success, Virgin had a tougher year than sibling Capitol. Like Capitol with Halliwell, Virgin got no flavor from its solo Spice, Mel C.

Biggest 1999 album: Kravitz’s 1998-released “5,” 1.4 million. Albums in Top 200: Five.

Keep your eyes on: the returns of the Smashing Pumpkins and soulster D’Angelo.