From the MCRFB NEWS archive: 1966
Motown Goes Columbia House as Detroit Sounder Spreads
NEW YORK — Motown Record Corporation has negotiated an exclusive, three-year pact with the Columbia Record Club for mail-order distribution of product on the Tamla, Motown, Gordy, VIP and Soul labels.
The pact followed several months of negotiations between Barney Ales and Cornelius Keating, Motown and Columbia Record Club vice-presidents, respectively. Ales stated: “I expect the new arrangements to add widely to the distribution of Motown music without interfering with the company’s sales through other outlets.” Motown executives also verified that early in February 1965 they had arranged to distribute five albums via the Columbia club, and through this testing procedure Motown determined that the club distribution would not be harmful to other sales.
On August 1, a mailing to Columbia Club members will reveal the availability of Motown product. Ales stated that the new Columbia contract is one of several steps in the worldwide expansion of Motown and its publishing affiliate, Jobete Music. He noted Motown’s early decision to distribute its own 4 and 8-track tape cartridges and said that “substantial results in this area have already been achieved.” He added that the CARtridge business is growing rapidly “and will be a major factor in the company’s business by the end of next year.”
Ampex Licensed
In line with Motown’s philosophy of giving the public the music it wants in whatever form it favors, the company has licensed Ampex to distribute reel-to-reel tape. With regard to the world record market, Ales is concentrating on a thorough review of Motown’s foreign distribution. Some new licensing arrangements are virtually completed; others are being set. The review, Ales continued, “will continue for at least six months and will entail visits to the Far East, Europe and South America by Motown executives.”
Consistent with these expansion activities has been the addition of personnel to key Motown and Jobete departments. One of these appointments, of course, was Archie Levingston, veteran music man, who will seek broader exploitation of the Jobete catalog.
Ales noted that his company in 1965 had 42 chart singles and 16 chart albums. “The pace in 1966 is even faster,” Ales said.
Jobete for three years has been the top BMI award winner, and scored with 12 songs in 1965.
The agreement with Motown is obviously a plum for the Columbia club, giving them tremendous added power in the youth market, with such acts as the Supremes, Martha and the Vandellas, Marvin Gaye, Four Tops, Temptations, the Marvelettes, Smokey Robinson, Stevie Wonder and Junior Walker and the All Stars.
George Schiffer was counsel for Motown and Herbert Cheyette for Columbia in setting the deal. END
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(Information and news source: Billboard; May 28, 1966)