June 16, 1973
'Q' Double Inventory Woe;
Labels Weigh SQ vs CD-4
By CLAUDE HALL
LOS ANGELES-
The industry is, without doubt, facing the vast headache of a double inventory as the world of quadrasonic nears. The fledgling quadrasonic industry, however, may reap a great benefit from the woes of double inventory because, in the long run, the result will be the same as if the entire industry underwent a subtle price increase.
Right now, only RCA Records' Quadradiscs are selling at the same prices as stereo records. Most other labels are charging about a dollar higher suggested list for quadrasonic records.
The record industry has long needed-and deserved--price increases. Surging cost increases in such major factors as paper, studio time, jackets, lithography has been hampering the industry for some while. Just printing of slicks alone have gone up 15 percent in recent months.
Other Costs
Quadrasonic brings on other costs that are additional. For example, mixing. Because sounds must be spread around a total of 360 degrees rather than just a "sound wall" in front, much more time and care has to be taken in mixdown. Special equipment is required, regardless of whether the system is matrix or discrete.
And, if you're talking about discrete records, a special compound is necessary. It not only costs more, but there's a lot of work and time spent in cleaning up the pressing equipment between cycling a stereo record and cycling quadrasonic and vice versa.
In any case, it's the majority opinion in the industry that quadrasonic records cost more and while the charges may not amount to a $1 per album, other rising costs inherent in the music industry and the high risk factors of putting out a record, more than offset the dollar per album.
One cost that the industry will obviously have to bear with for a while, for example, is the cost of double inventory.
RCA Records had hoped to avoid a double inventory by selling their discrete CD-4 Quadradises at the same price as stereo, but found that perhaps this very fact was more of a handicap than a boon as dealers stocked their compatible product in special displays and not in regular bins with stereo product, thus, in effect, causing the label to lose sales to stereo customers.
Huge Display
Recently, a survey of one Rush Street Chicago dealer found that CBS Records SQ matrix quadrasonic albums were stocked in a huge display, but none of the RCA Records discrete CD-4 albums were displayed at all.
RCA was closely discussing the possibilities recently of going to a double inventory instead of just releasing compatible quadrasonic versions of individual records.
"There's no question," an RCA
Records spokesman said, "but that an educational process is needed at the dealer level to educate him to the fact that Quadradiscs should be stocked at both places-not only under stereo, but under quadrasonic.
We had no problem with the recent Elvis Presley albums ... it sold more than a million units even though it was a 2-LP set. But that particular album was generally placed near the cash register because it was such a big seller." The album jacket also pointed out the stereo possibilities of the albums other than the quadrasonic capabilities.
Survey
A survey of 59 key record dealers in the nation in May by Billboard revealed that most customers who were buying quadrasonic albums didn't even know whether they were buying matrix or discrete quadrasonic-each system plays the other as ordinary stereo. However, 15 percent of the dealers in the Billboard survey said their customers requested discrete albums specifically when they bought quadrasonic, as opposed to only seven percent of the dealers stating that their customers specifically requested matrix product. But, 64 percent of the dealers said they were only stocking quadrasonic in special displays and not also in the regular bins with stereo (both discrete and matrix quadrasonic albums are compatible when played on stereo players and emit stereo sound).
Nearly all factions of quadrasonic are gearing up for educational cam-paigns. John Mosely, consultant to Sansui, has been touring and giving quadrasonic demonstrations. The WEA Group of labels has an education campaign in the wings.
Refraining
Right now, however, because of the confusion at the dealer level, several record companies are refraining from any commitment to any quadrasonic system, whether matrix or discrete. All of the systems—Sansui, CBS, and CD-4-claim they have several labels standing up about ready to commit. The possibility is that they all are counting their chickens before they hatch. Because informal surveys with chiefs of manufacturing and/or engineering at some of the labels not yet committed reveal an amazing lack of knowledge of what quadrasonic is really all about and, in many cases, a "don't care" attitude.
But, on the other hand, CBS
Records claims to be racking up half a million dollars a month in quadrasonic records and tapes in the U.S. alone, according to Stanley J. Kavan, vice president of planning and diversification. "Abraxas" by Santana has sold more than 60,000 copies in SQ form and many classical albums are selling better in quadrasonic than they are in stereo.
Last February, the label did around $750,000 in quadrasonic records and tapes.
Only Way
CBS feels that its SQ system is the only way to go, pointing out that no one can broadcast a discrete CD-4 record on the air. Jac Holzman, president of Elektra Records, on the other hand, said the reason he guided the WEA Group of labels to discrete quadrasonic was that he wanted their product in the best system possible.
A major handicap in discrete product right now is the shortage of cutting lathes in the U.S. More cutting lathes are en route to the states though and this bottleneck should be eliminated soon. Another problem right now with discrete is that pressing the records takes more care; some poor pressings are hitting the market on the RCA label. However, a new IC (integrated chip) that will be unveiled soon will greatly rectify this problem; it eliminates any popping noise caused by poor pressing.
Matrix systems, too, are not without their handicaps at the moment and the greatest of all is in the hardware stage. To effectively get even a "sense" of direction from the rear speakers, you've got to have a decoder with a logic gain circuit built in. These are just now hitting the market to any great extent and a matrix IC due out soon will give matrix advocates a better chance.
'Q' Double Inventory Woe;
Labels Weigh SQ vs CD-4
By CLAUDE HALL
LOS ANGELES-
The industry is, without doubt, facing the vast headache of a double inventory as the world of quadrasonic nears. The fledgling quadrasonic industry, however, may reap a great benefit from the woes of double inventory because, in the long run, the result will be the same as if the entire industry underwent a subtle price increase.
Right now, only RCA Records' Quadradiscs are selling at the same prices as stereo records. Most other labels are charging about a dollar higher suggested list for quadrasonic records.
The record industry has long needed-and deserved--price increases. Surging cost increases in such major factors as paper, studio time, jackets, lithography has been hampering the industry for some while. Just printing of slicks alone have gone up 15 percent in recent months.
Other Costs
Quadrasonic brings on other costs that are additional. For example, mixing. Because sounds must be spread around a total of 360 degrees rather than just a "sound wall" in front, much more time and care has to be taken in mixdown. Special equipment is required, regardless of whether the system is matrix or discrete.
And, if you're talking about discrete records, a special compound is necessary. It not only costs more, but there's a lot of work and time spent in cleaning up the pressing equipment between cycling a stereo record and cycling quadrasonic and vice versa.
In any case, it's the majority opinion in the industry that quadrasonic records cost more and while the charges may not amount to a $1 per album, other rising costs inherent in the music industry and the high risk factors of putting out a record, more than offset the dollar per album.
One cost that the industry will obviously have to bear with for a while, for example, is the cost of double inventory.
RCA Records had hoped to avoid a double inventory by selling their discrete CD-4 Quadradises at the same price as stereo, but found that perhaps this very fact was more of a handicap than a boon as dealers stocked their compatible product in special displays and not in regular bins with stereo product, thus, in effect, causing the label to lose sales to stereo customers.
Huge Display
Recently, a survey of one Rush Street Chicago dealer found that CBS Records SQ matrix quadrasonic albums were stocked in a huge display, but none of the RCA Records discrete CD-4 albums were displayed at all.
RCA was closely discussing the possibilities recently of going to a double inventory instead of just releasing compatible quadrasonic versions of individual records.
"There's no question," an RCA
Records spokesman said, "but that an educational process is needed at the dealer level to educate him to the fact that Quadradiscs should be stocked at both places-not only under stereo, but under quadrasonic.
We had no problem with the recent Elvis Presley albums ... it sold more than a million units even though it was a 2-LP set. But that particular album was generally placed near the cash register because it was such a big seller." The album jacket also pointed out the stereo possibilities of the albums other than the quadrasonic capabilities.
Survey
A survey of 59 key record dealers in the nation in May by Billboard revealed that most customers who were buying quadrasonic albums didn't even know whether they were buying matrix or discrete quadrasonic-each system plays the other as ordinary stereo. However, 15 percent of the dealers in the Billboard survey said their customers requested discrete albums specifically when they bought quadrasonic, as opposed to only seven percent of the dealers stating that their customers specifically requested matrix product. But, 64 percent of the dealers said they were only stocking quadrasonic in special displays and not also in the regular bins with stereo (both discrete and matrix quadrasonic albums are compatible when played on stereo players and emit stereo sound).
Nearly all factions of quadrasonic are gearing up for educational cam-paigns. John Mosely, consultant to Sansui, has been touring and giving quadrasonic demonstrations. The WEA Group of labels has an education campaign in the wings.
Refraining
Right now, however, because of the confusion at the dealer level, several record companies are refraining from any commitment to any quadrasonic system, whether matrix or discrete. All of the systems—Sansui, CBS, and CD-4-claim they have several labels standing up about ready to commit. The possibility is that they all are counting their chickens before they hatch. Because informal surveys with chiefs of manufacturing and/or engineering at some of the labels not yet committed reveal an amazing lack of knowledge of what quadrasonic is really all about and, in many cases, a "don't care" attitude.
But, on the other hand, CBS
Records claims to be racking up half a million dollars a month in quadrasonic records and tapes in the U.S. alone, according to Stanley J. Kavan, vice president of planning and diversification. "Abraxas" by Santana has sold more than 60,000 copies in SQ form and many classical albums are selling better in quadrasonic than they are in stereo.
Last February, the label did around $750,000 in quadrasonic records and tapes.
Only Way
CBS feels that its SQ system is the only way to go, pointing out that no one can broadcast a discrete CD-4 record on the air. Jac Holzman, president of Elektra Records, on the other hand, said the reason he guided the WEA Group of labels to discrete quadrasonic was that he wanted their product in the best system possible.
A major handicap in discrete product right now is the shortage of cutting lathes in the U.S. More cutting lathes are en route to the states though and this bottleneck should be eliminated soon. Another problem right now with discrete is that pressing the records takes more care; some poor pressings are hitting the market on the RCA label. However, a new IC (integrated chip) that will be unveiled soon will greatly rectify this problem; it eliminates any popping noise caused by poor pressing.
Matrix systems, too, are not without their handicaps at the moment and the greatest of all is in the hardware stage. To effectively get even a "sense" of direction from the rear speakers, you've got to have a decoder with a logic gain circuit built in. These are just now hitting the market to any great extent and a matrix IC due out soon will give matrix advocates a better chance.