NOTE: There is an misspelling in the article. In order to stay accurate, nothing has been changed.
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March 23, 1974
Col 'O' Sales
$6 Mil in 73
BY JIM MELANSON
NEW YORK
CBS Records racked up $6 million in SQ sales in 1973, its first full year of marketing the 4-channel records and tapes, and sharply rising quadrasonic sales curves have led company executives to gear production estimates for a 35 percent increase in 1974.
Bruce Lundvall. vice president of marketing, said that the company's 1973 sales figures represented a 60 percent increase over CBS' 4-channel budgets for the year. He estimated that their SQ sales translated into approximately $13-$14 million in sales at suggested list price.
According to Lundvall, the ratio of 4-channel records sold to tapes sold has run 60 percent disks to 40 percent tapes. Breaking down the musical categories in the CBS quadrasonic catalog, he stated that classical product, the bulk of which is now being released simultaneously in 4-channel and stereo, has sold at a rato of 65 percent records to 35 percent tapes; pop product has sold at 60 percent disks to 40 percent tapes; and country product, reversing the ratio, has moved 60 tapes to every 40 disks. At present, CBS's SQ catalog is comprised of some 160 selections.
Stanley Kavan, vice president of planning and diversification, stated that "roughly two million SQ units have been sold to date." He noted that the impact of quadrasonic product has had a strong effect on the stereo buyer. A recent label research program disclosed that 47 percent of the consumers who purchased quadrasonic product already owned a version of the selection in stereo. The program consisted of tabulating consumer response on post cards inserted in CBS SQ album product.
CBS is also alerting its accounts, via newsletters, to the actual unit sales of SQ selections. The move is geared to educate the dealer and/or rack to 4-channel sales potential.
Reviewing some of CBS' major quadrasonic sellers, Kavan said that Santana's "Abraxas" LP has sold over 100,000 units; Simon & Garfunkel's "Bridge Over Troubled Wa-ter" has sold over 80,000 units; Sly and the Family Stone's "Greatest Hits" has gone past the 75,000 mark; Janis Joplin's "Pearl" has sold over 70,000 units; and Juan Carlos "Switched On Bach" LP has sold over 57,000 units.
CBS is also heavily involved in providing the retailer with SQ marketing tools Lundvall stated that the label has designed its quadrasonic packaging, featuring gold trim on the album cover, to boost consumer recognition; it has urged dealers to create separate quadrasonic areas in the store (preferably up front) to take advantage of in-store traffic; and it has made available two SQ oriented posters for in-store display.
He added that CBS has also made a substantial commitment to SQ consumer print advertising.
As for the future, both executives felt that quadrasonic would eventually replace stereo, as stereo did mono-recording. They stated that the process might take longer, but that it was inevitable. They felt that the role of the quadrasonic single, at present, was not meaningful, adding that the impact of 4-channel singles would hinge on the development of quadrasonic jukebox programming.