Part 7 (2/2)

MTV background and quotes: From Anson, Vanity Fair Vanity Fair, pp. 206216, 233. Quotes from Joe Smith and Robert Pittman are from author interviews.

”Like everything else, when the tide comes in”: Author interview with d.i.c.k Asher.

David Braun quotes and recollections from author interview.

Chapter 1 19831986: Jerry Shulman's Frisbee: How the Compact Disc Rebuilt the Record Business The bulk of the James T. Russell material comes from author interviews with James T. Russell and Barbara Russell. Quotes from Kees Immink and Michael Rackman are from author interviews. Supplementary sources were Dudley, Brier, ”Scientist's Invention Was Let Go for a Song,” Seattle Times Seattle Times, November 29, 2004; Holdorf, Adam, ”The Discoverer,” Reed Magazine Reed Magazine, November 2000; Optical Recording Corporation vs. Time Warner Inc. and WEA Manufacturing Inc Optical Recording Corporation vs. Time Warner Inc. and WEA Manufacturing Inc., US District Court, District of Delaware, June 23, 1992; doc.u.ments from the US Patent Office, such as Russell, James T., ”Photographic Records of Digital Information and Playback Systems Including Optical Scanners,” filed November 26, 1971, patented April 23, 1974; and ”Time Warner Is Told to Pay $30 Million for Patent Violations,” Wall Street Journal Wall Street Journal, June 24, 1992, p. B10. Immink points out another pre-CD pioneer, David Paul Gregg, who first envisioned an optical disc for video in the late 1950s and earned two patents for it in the 1960s. Official Sony Corp. history quote is from various authors, Genryu Genryu (Sony, 1996), p. 216. (Sony, 1996), p. 216.

Details about John Adamson, Optical Recording Corp., and its patent negotiations with Sony and Philips come from Adamson, John, ”Time Warner Inc. and the ORC Patents,” Ivey Management Services, Richard Ivey School of Business, the University of Western Ontario, 2001, pp. 120; Adamson clarified some details via email. Finally, Lawrence B. Goodwin, who represented Optical Corp. in the Time Warner trial, confirmed trial details in two author interviews, although he is no longer affiliated with the firm that partic.i.p.ated in the case.

Early Philips-Sony history of the CD: From Nathan, John, Sony Sony (Boston: Mariner Books, 2001), pp. 116121, 137140; (Boston: Mariner Books, 2001), pp. 116121, 137140; Genryu Genryu, pp. 216225.

”Ohga had a long discussion with Morita”: Author interview with Michael Schulhof.

”The meetings were absolutely fantastic”: Author interview with Kees Immink.

Later CD history, including Sony-Philips cooperation on lenses and players: From Nathan, Sony Sony, p. 141.

”Hostile. Very hostile”: Author interview with Jan Timmer. Description of Billboard Billboard conference in Athens: From Nathan, conference in Athens: From Nathan, Sony Sony, p. 143.

”I made a bit of a small statement”: Author interview with Jerry Moss.

Business climate for Philips and Sony: From Nathan, Sony Sony, p. 143, and ”Philips: An Electronics Giant Rearms to Fight j.a.pan,” Business Week Business Week, March 30, 1981, pp. 8687.

Ohga and the first CD plant: From Nathan, Sony Sony, p. 143.

CD meeting in which the late Jay Lasker grills Jac Holzman: Author interview with Joe Smith, confirmed in email from Jac Holzman.

”It was a guaranteed showstopper”: Author interview with Marc Finer.

Yetnikoff's resistance: From Nathan, Sony Sony, p. 169, as well as author interviews with John Briesch, Marc Finer, and Jerry Shulman.

”Super Goy”: From Dannen, Hit Men Hit Men, p. 204.

”[Yetnikoff] was pretty tough”: Author interview with John Briesch.

”I have no idea what they're talking about”: Author interview with Jerry Shulman.

Clive Davis's resistance: Author interview with John Briesch. Confirmed by Jan Timmer. EMI's resistance: Author interview with Joe Smith.

”The expense of digital-music equipment is horrendous”: From Foti, Laura, ”Digital Cost Deters Studio Commitment,” Billboard Billboard, February 13, 1982, pp. 1, 44.

Musicians Against Digital and ”the mind has been tricked”: From Nathan, Sony Sony, p. 145.

”We had a number of major acts”: Author interview with Alan Perper.

”The retailers' point of view”: Author interview with Jerry Shulman.

Beard and Yes alb.u.m detail: From Mark Knopper, my brother, who by coincidence was a friend of Simonds's during this period. ”I was the first one of the people that I knew” and biographical information about Rob Simonds: Author interview with Simonds.

Jan Timmer background and Warner seeing the CD as the future: Author interview with Jan Timmer. Some description of Timmer from Dannen, Hit Men Hit Men, pp. 253254.

Steve Ross's fondness for video games: From Bruck, Connie, Master of the Game Master of the Game (New York: Penguin, 1994), p. 165. (New York: Penguin, 1994), p. 165.

Hamburg meeting: Author interviews with Elliot Goldman, Jan Timmer, and Stan Cornyn. (Holzman did not respond to email questions on this subject.) Also Cornyn, Exploding: The Highs, Hits, Heroes, and Hustlers of the Warner Music Grou Exploding: The Highs, Hits, Heroes, and Hustlers of the Warner Music Group (New York: Harper Collins, 2002), p. 303.

The royalty stands today: Author interview with Jim Caparro.

”the CD marketing guys kept pus.h.i.+ng”: Information in this paragraph comes from author interviews with Marc Finer and John Briesch; McCullaugh, Jim, ”Compact Disc Seen Boosting Music Industry,” Billboard Billboard, April 3, 1982, pp. 1, 74; Spahr, Wolfgang, ”Compact Disc Officially Debuted; Timmer Stresses System's Standardization Benefits,” Billboard Billboard, August 28, 1982, pp. 10, 41; Penchansky, Alan, ”Digital Seen as Audio's Future,” Billboard Billboard, September 18, 1982, p. 51.

Stevie Wonder and other stars: Author interview with John Briesch. Tos.h.i.+tada Doi and Stevie Wonder: From Nathan, Sony Sony, pp. 145146. ”It was what I was wanting to happen”: Author interview with Phil Ramone.

Compact Disc Group background: Author interviews with Marc Finer, John Briesch, and Alan Perper. ”We ran around the country like a bunch of vagabonds”: Author interview with Alan Perper. MTV lobbying: Author interview with Robert Pittman.

s.h.i.+zuoka Prefecture plant information: From Fujita, s.h.i.+g, ”j.a.pan CD Demand Outstripping Supply,” Billboard Billboard, January 22, 1983, pp. 1, 56. Capitol Record Shop: From Lichtman, Irv, ”Compact Disc Spins On,” Billboard Billboard, March 12, 1983, p. 1. Sony executive (Michael Schulhof): From Horowitz, Is, ”Momentum Builds for US CD Bow,” Billboard Billboard, December 18, 1982, pp. 1, 64.

Windham Hill: from Sutherland, Sam, ”Windham Hill Pacts for CD Pressing,” Billboard Billboard, March 26, 1983, p. 6.

Rolling Stone printed: Booth, Stephen A., January 20, 1983, p. 55. printed: Booth, Stephen A., January 20, 1983, p. 55.

$16.95 opening CD price: From Horowitz, Is, ”PolyGram Advances CD Bow; WEA Enters,” Billboard Billboard, March 5, 1983, p. 1.

They also saw the CD as a chance to rejigger artists' contracts: Author interviews with Jay Cooper and Josh Grier. Note that the artist rate per disc is a hypothetical example based on a then-standard 12 percent royalty rate. To avoid confusion, I've calculated the rates based on the list price at record stores rather than the wholesale prices that labels change. Wholesale prices tend to fluctuate from store to store, making broad calculations difficult.

”They did it under the guise”: Author interview with Cooper.

”That's not an insignificant reason”: Author interview with Michael Schulhof.

CD price increases and ”Every year they'd do this”: Author interview with Russ Solomon.

CBS plant closings: From ”Slow Year for CBS Records & Parent, Too,” Billboard Billboard, February 20, 1982, pp. 4, 78; Lichtman, Irv, ”CBS Records to Close Plant in Terre Haute,” Billboard Billboard, October 23, 1982, pp. 1, 78.

”The environment is totally controlled”: Author interview with Jim Frische. Most of the Terre Haute plant information comes from author interview with Jim Frische. Other helpful sources were Schumacher-Rasmussen, Eric, ”20 Years Burning Down the Road: Sony Disc Manufacturing Celebrates, Rolls Out SACD Hybrid Production,” eMediaLive eMediaLive, July 1, 2003, and Chambers, John, ”Sony DADC TH Facility Is Company's Largest North American Plant,” Tribune-Star Tribune-Star, Terre Haute, Indiana, September 20, 2005, p. A1.

The plant had cost $20 million: From Horowitz, Irv, ”Momentum Builds for US CD Bow,” Billboard Billboard, December 18, 1982, pp. 1, 64; Reuters, ”Sony-CBS Deal,” October 19, 1985. Half from Sony, and half from CBS: Author interview with Jim Frische; Chambers, Tribune-Star Tribune-Star, September 20, 2005, p. A1.

”Ten million f.u.c.king f.u.c.king dollars for dollars for this this?”: Confidential source. Yetnikoff did not respond to multiple interview requests.

CBS profits: From ”CBS Records '82 Profits Down: Revenues Also Dip; Domestic 'Reorganization' Cited,” Billboard Billboard, February 19, 1983, p. 4.

”I had been predicting”: Yetnikoff, Howling at the Moon Howling at the Moon, p. 145.

Terre Haute plant growth: From Schumacher-Rasmussen, eMediaLive eMediaLive, July 1, 2003; record industry profits, from RIAA; players, from Murphy, Liz, ”Compact Discs Sing a Hi-Tech Success Story,” Sales & Marketing Management Sales & Marketing Management, Feb. 4, 1985, p. 34.

Rykodisc growth: From Morse, Steve, ”Amazing Little CD Firm That's Really Rocking,” Boston Globe Boston Globe, April 2, 1989, p. B1; anecdotal information from author interview with Rob Simonds.

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