The following is an article published in Billboard Magazine December 24, 1966, and written by Paul Ackerman and Claude Hale. I found the background information regarding Christmas records such as the Goodyear Great Songs of Christmas and Firestone Your Favorite Christmas series to be quite interesting. While many, many people truly enjoyed each of these series of music, few probably realize the impact the series’ success had on this portion of the record business. I hope you enjoy this article as did I.
“Brutal” Battle Flares for Premium Record Business
The field of premium records — and the allied area of special recorded products such as audio-visual, religious, and educational records — has become “brutally competitive” and the year 1967 is likely to see even more action in this little-publicized area of disk business. According to the Harry Fox Office, publisher’s agent and trustee, “the field is a big one and the majors are the chief factors in it.” To many labels, the premium field also has the attraction of being one of the few areas of the record industry where there is no credit risk whatever. Stanley Arnold, head of Stanley Arnold and Associates, Inc., consultants who have been very important in developing the premium business, states:, “The first essential for success is a client with courage, imagination, and determination.”
His clients include Goodyear, Standard Oil of New Jersey, National Cash Register, American Tobacco, United Airlines, and some thirty others. His firm is an “idea factory” for these giant corporations. He has been instrumental in Goodyear’s use of premium records as a traffic builder and mover of Goodyear products. Arnold stated that Goodyear’s premium record, “The Great Songs of Christmas,” produced annually for the past six years has sold approximately fifteen million at $1.00 each. “People write in for back copies,” he said, “and as a merchandising device, it is effective over a long period.”
Requires Creativity
Arnold explained that the premium field today requires people of creativity and original thought; it is not merely a matter of using recorded performances from the archives. Commenting on the Goodyear premium disk, made by Columbia, he stated, “A great deal of special recording is commissioned for such an album. Recording teams were sent to England to record Barbra Streisand and Pablo Casals was flown in from Puerto Rico to participate.”
Speaking of the potential of the premium record field, Arnold stated:, “The measure of success is in direct relation to the amount of imagination and creativity that can be harnessed to a particular project.”
The emphasis on creativity is apparent in the personnel of Columbia’s Special Products department. Headed up by vice-presidcent Al Shulman, this department has the services of Joe Carlton, veteran A&R executive.
Figures Unavailable
No figures are available regarding the gross racked up by Columbia’s Special Products department in 1966, but it is estimated that the total approximates $8 million — most of which derives from premium records. The label’s special products department not only has an A&R operation but also a very considerable sales force and an art department. The sales force is reported at more than a dozen across the nation.
In addition, there is a profit spillover to Columbia’s pressing division which presses the premium disks.
There is some controversy as to the future of the premium field and allied fields. A few say it really is not growing, but is merely becoming more competitive. The majority of tradesters, however, forecast a sizeable growth for the next five years — perhaps as much as fifteen to twenty percent yearly. There are various reasons for their faith in the latter view. One is that federal funds for education are very large and this fact encourages the purchase of educational records and audio-visual materials. A second is the growing belief in records as a traffic builder and mover of product over a long period.
RCA Expansion
RCA Victor Records, whose premium activities have been expanding every year, has just had its biggest sales year. In the past year, the label has become involved in paving a new area for premiums — tape cartridges. To date, the label provides at least three major automobile manufacturers with tape cartridges to use as courtesy gifts with the factory installation of cartridge units in their cars. Victor’s premium activity is headed by Robert Clarkson.
In the field full strength about five years, Victor has added to its premium staff each year and sees only continued growth for the premium business. A current Christmas premium album featuring RCA Victor artists is being used as a customer draw in RCA Victor appliance dealers.
At Victor, premiums have covered all types of music and the label, due to a catalog reaching back many, many years has been able to supply the unusual. For example, one manufacturer wanted an album to tie in with 1927; RCA had recordings from this period in stock.
The label feels that premiums, while bringing in a bonus business, is also invaluable publicity for artists.
Caps Mynatt
Capitol’s Creative Products division manager, Harry Mynatt, sees 1967 as the premium industry’s biggest year. Major users of premium records like Firestone and Goodyear have shown smaller manufacturers how effective premiums can be, he points out.
Mynatt bases his optimism on the interest he has created from potential customers and from his mail. “We haven’t scratched the surface of our catalog yet,” he said. Mynatt is looking to broaden the use of premiums into business other than Christmas.
He flew to New York over the weekend to interview three candidates for a New York-based job with his department. He will make his final decision this week. This New York operation of the department follows growth in the field.
Decca’s Brennan
Decca Records’ Claude Brennan said that the premium business had been growing for the firm, though he felt it was still a small part of the total operations of Decca: But, “Premiums have been good to us.” Among the premiums turned out recently by Decca have been an LP for Eastern Airlines and a soundtrack of the “Rudloph the Red-Nosed Reindeer” TV special for General Electric.
MGM Active
MGM Records has been active in premiums through Sales Plus, Inc., operated by Terry Philips. One of the big items out by MGM now is a self-liquidating Christmas album being sold by banks around the nation who belong to the Christmas Club plan. Other albums with major manufacturers and firms are in the works at MGM.
Pickwick International
One of the pioneers in the field is Pickwick International. S. Gordon Strenger, special sales manager and head of premiums, said, “For us, it’s the biggest year we’ve ever had. The label has suppied products for firms ranging from Nestle’s decaffeinated coffee to Lustre Creme.” Strenger said that while Pickwick works in many areas of the premium field, the biggest type of premium is the self-liquidator in which the LP is generally used as a traffic builder to bring customers into the store. The store often makes no money per se on this LP, but benefits from extra sales of other items. The second type of premium that has been proven effective for Pickwick is the “dealer loader.” In this the LP is used, for example, by manufacturers to get dealers to buy more product; if they buy an extra amount of goods, they get the LP as a bonus.
One of the LPs Pickwick has out now as a premium is “Merry Christmas – A Joyous Album of Beloved Christmas Music,” featuring artists like Kate Smith and others. Country Music has been one of the strongest premium properties of Pickwick on a Nationwide basis.
This blog is written and published by DLF Music Transfer, LLC dba Christmas LPs to CD. For more information on Christmas music or to purchase CDs of classic Christmas records on CD, please visit our website www.christmaslpstocd.com , call us 888-384-6970, or e-mail us david@dlfmusic.com.
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