European Stars And Stripes (Newspaper) - August 24, 1987, Darmstadt, Hesse                                Don Call us. Making  or breaking  in Rock n Roll by Geraloine Fabrikant new York times y 7 45  Madison Square Garden was filling with Young excited Rock n reliefs a Good Omen thought stove Mountain manager of the opening act the Hoo Lars. As he looked   18.500 scats the hoofers a Rock band thai had already had one million Selling album was trying to make m bigger. While ils nervous nigh album had been successful a rousing Welcome  she Garden this hot summer evening where Singer guitarist Bryan Adams was the headline act would Bode Well to the second album just reaching the stores  was not just Mountain and she live members of the coolers who were delighted that she audience was arriving in Lime to see he opening act. Rock n Roll is a big business and ass records the Hooters Label islands to make a Good Deal of Money from the band s Success. Indeed the Overall probability of lbs inc. Is heavily dependent on its records group the largest in the United Olalea As with the marketing of any new product the key to this risky business is the selection and promotion of promising performers. Every year lbs releases perhaps 150 albums created by ils roster of 200 artists some Are already superstars Bruce Springsteen Cyndi Lauper Michael Jackson Effly Joel and enormous sales Are assured. The superstar is the giant Bonanza said Al Teller the president of lbs records. The big hit is to develop superstar careers. That is the biggest win you can  superstars generate enormous profits for their record companies because Revenue climbs dramatically As More albums sell while production and marketing costs remain relatively lined. Fuelled by its superstars the records group earned $192 1 million in 1986 on sales of $ 1.49 billion that accounted for 45 percent of lbs inc. S operating profits alter several years in the doldrums the recording Industry is doing Quile Well. Profits  lbs and Warner communications the no. 2 record company in the Unildo slates Are  an All time High benefiting from both the Success of new groups and the sales of compact disks. Sales of disks Are up As customers replace their record libraries and the profit margins on disks Are higher than on either records or tapes. Nevertheless Teller believes this is a particularly difficult Lime Tor promoting a new group. Once you break a group you have to sustain  he said. Bui Public loyalty is More fickle than  used to be.  is Tough to achieve longevity Loday a major problem is overexposure. In the 1970s groups were leery of going on television because in might overexposed them he said. Today  is Ditl cult to estimate the Long term effects of videos. Wilh mtg the Public can get versa Luralee with a group sooner finding and nurturing nil groups is a harrowing business and the casualty rate is High. Although lbs docs not release figures Industry analysis estimate that in releases As Many As 40 albums a year by newcomers a third of whom Are never heard from again the Benchmark indicator of a group s potential is whether  can sell 100,000 copies of an album. And while record companies Are sophisticated in promotion and advertising Public Laste is unpredictable you can advertise your Way to Success Teller said. The jury is still Oul on the coolers which despite its Platinum album the recognition accorded for Selling 1 million copies has not reached superstar statue. You cannot be considered a superstar Teller said until you consistently sellout a 20.000-Seal Arena. Hooters is not yet in that Calegory. The second album one Way Homo has been Oul Lor a few weeks and Early sales Are encouraging but not Tokhi pirating. With a local of 450,000 albums shipped 10 stores the first single Tom the album. Jot any b. Is piling a Model reception from radio stations  those stations using Tho contemporary Hils format the Stalions with the target audience of a group like the Hoolis for newcomers such As the Hooters the path to Success in a music business can be tortuous. Teller said the airplay was Good bul no great Irving Adolf the chairman of Mca records noted ?.t an act s second album was often not As successful As the first. A group can spend years writing and producing its first album and six months on the second because icy Are rushed to gel  Otil he said. For the coolers to succeed in their drive for super stardom the new album Musl sell  least one and a Hall million copies. Concert Tours can be a critical Factor in producing such sales. Across the popular music Industry the biggest stars on tour this summer Are doing Well. But the second Lier acts have been suffering when lbs signed the Hooters  put up a recording fund of about $200.000 Lor the first album the group spent slightly More and paid the difference according to Teller deals Are slur cured in Hal fashion to encourage groups to control production costs. Mountain the Hooters manager said he thought lbs had also spent about $300,000 promoting and advertising the album. Record promotion these Days also includes the Cost of music videos which run from $75,000 to More than 1100.000. The record company and the performers generally share thai expense. When a new group goes on tour even As an opening act lbs sometimes underwrites the costs in order to promote record sates in Tho group s expenses Are Noi covered by their appearance fees. Mountain said the Hooters had not accepted lbs support or the Lour because he thought he would have More leverage in future negotiations if in did nol. The finances of a Rock band can be Complex. Although the Hooters first album for lbs contained four songs that became hit singles the musicians did not become overnight millionaires indeed Given the four hit singles Mountain said the 1 million copies sold was a Bil disappointing. Prom Hal album concert performances and royalties the members of the group Wilt take in More than $1 million. Terms of the agreements Between performers and companies vary widely. Mountain said lbs paid the Hooters a Royalty Lee based on 85 percent of the wholesale Price which is generally Aboul $5. You Don get Rich Selling a million albums he said we recouped enough to pay Oft the recording fund and our share of the music videos and to make a prom we came out clean there Are bands Oul there with very heavy  Afler recouping costs lbs records made $2 million to s3 million on the album an executive  another record company estimated for the Hooters. The path to Success has been tortuous Only iwo keyboard player Rob Hyman and Lead Gui Lunil Erie Bazilian who write the songs have been Wilh the group since to was formed nearly a decade ago As baby grand. Arista records a unit of monday August 24. 19b7 lbs signed Tho group in 1978. Two albums were released. Both lopped and the band was discouraged. Four years later Arista cancelled Iho contract by 19b2. Tho group had reorganized still a five piece band but with three new members to emphasised reggae Jamaica s popular music and ska. An up Lempo engish derivative of reggae the band built a following in Philadelphia the Home of several members but still ally acted no interest from record companies a year later inc Iun broke up the band again and two replacements Carno aboard. Al that Point the group took the name Hooters the musicians say  is a reference to the Melodia. One of the instruments they use. The band then hired Mountain. Managers generally gel 20 percent of a group s revenues for which they negotiate contracts with the record companies and booking agencies. They also handle personnel matters such As hiring and firing Road Crews for Tours. The coolers visibility will the Industry increased when Bazilian and Hyman were co authors Wilh Cyndi Lauper of her enormous Hil recording. Time alter time. The collaboration came about because Bazilian and Hyman had Al ended College Wilh Rick Chartow. A lbs producer working Wilh Lauper. The Hooters Ihen look the somewhat unusual Slop of recording an album on ils own. Ii Cost us about $25.000 to make recalled Mountain. The group did  in two weeks " the album sold More than 100.000 copies. Those sales were a Clear indication thai Tho group had Appeal according to Bolh Teller and Mountain we made Aboul s150.000 irom the record Mountain said. More important he said by icon in was september 1984 we had enough Buzz that record companies were finally me resold "  lbs Chartoff was paying attention signing groups is a highly competitive business Ollen. Newcomers attract their first notice in Small clubs once in a while a group actually comes Oil the Streel a Deal was negotiated with lbs. The first Alburn was recorded and discussions began on whal song to release As the first single. Teller said radio programmers we