March 17, 1973
WEA-JVC
Pact Effect
By HIDEO EGUCHI
TOKYO
Announcement of the CD-4 licensing agreement between the Warner-Elektra-Atlantic (WEA) Group and the Victor Company of Japan (JVC) here Feb. 20 was received by the Japanese music-record-tape industry with a traditional calm since it had been anticipated by the SQ matrix licensees and the RM users in this country from the beginning of the New Year.
Nevertheless, the WEA Group's selection of the "compatible" discrete 4-channel disk developed by JVC is bound to have a significant influence on the future popularity of a&r in Japan. It will also spur
CD-4 Licensing Agreement Met With Calmness in Japan
the Japanese manufacturers of phonograph records and home stereo equipment to reconsider the decisions that they had made following the adoption of the CD-4, SQ and RM systems as standard in April 1972 by the Japan Phonograph Record Association and the Electronic Industries Association of Japan.
Prior to the WEA Group's decision to induct CD-4 technology the "balance of power" between the Japanese licensees of the discrete quadrasonic system and the SQ matrix system was about equal in the number of manufacturers and the number of record selections released.
In fact, 9 Japanese manufacturers and exporters of home stereo equipment are both CD-4 and SQ licensees, namely Akai, Cybernet,
Hitachi, Nippon Columbia, Onkyo, Pioneer, Sanyo, Toshiba and Trio.
The other CD-4 licensees in Japan are Brother, Matsushita,
Mitsubishi, Sansui and Sharp, for a total of 15 discrete quadradisc hardware manufacturers and exporters including JVC. The manuFacturers and/or producers of CD-4 quadradiscs in Japan are Nippon Phonogram (Phillips-Matsushita/ JVC joint venture), Polydor (initial production suspended), Teichiku Records (a member of the Matsushita group) and Victor Musical Industries (software arm of JVC).
The 4 phonograph record manufacturers have released over 144 CD-4 selections to date.
Meanwhile, the other CBS SQ matrix system licensees in Japan are Aiwa, Nikko, Roland (Rotel), Sony and Standard (half-owned by Superscope), for a total of 14 including the 9 already mentioned.
In addition, 4 phonograph record manufacturers have released over 144 SQ selections to date, namely CBS/Sony Records (114), Warner-Pioneer (27), Canyon (2) and Trio (1).
As a result of the WEA-JVC agreement, Warner-Pioneer will shortly release its first CD-4 selections, pending since mid-1972.
They will feature the Rolling Stones, Frank Sinatra, Bread, Carly Simon and Japan's own Rumiko Koyanagi.
Nippon Phonogram which was issuing 2 more CD-4 (Philips label) albums March 5, will release at least 3 a month.
Teichiku, in addition to its Japanese artists and repertoire, is expected to produce CD-4 albums from masters owned by Pye and BASF, while Polydor will more than likely resume CD-4 quadradisc sales in Japan as soon as possible. And these will augment the formidable roster of artists and repertoire already available
On JVC's international labels: Globe, MCA, Paramount and, of course, RCA, among others.
As previously mentioned, Nippon Columbia (a member of the Hitachi group) and Toshiba are licensees of both the CD-4 and SQ systems. The record division of the former company has continued to adhere to its QX version of the RM system and has never produced a CD-4 quadradisc or an SQ quadraphonic record. Toshiba Musical industries, a Toshiba-EMI/Capitol joint recording venture, revealed toward the end of last year that it would release its first CD-4 album this coming spring but has remained mum about SQ ever since EMI/Capitol announced in favor of the CBS system in January 1972.
Meantime the joint venture adopted the standard RM designation for its QM (QuadMatrix) system and started importing Impulse albums.
However, since Warner-Pioneer is switching from SQ to CD-4, it is now more than likely that Toshiba Records will give top priority to production of SQ qauadraphonic albums from EMI/ Capitol masters, whose arrival was reported to have been delayed.
As for Nippon Columbia, the traditional arch rival of JVC and more recently CBS/Sony, choice of CD-4 and/or SQ would mean considerable "loss of face" in the highly competitive Japanese music-record-tape industry though its
PCM recording system could prove to be a technological asset in the manufacturing of CD-4 and SQ masters.
Among others Japanese users
of the Sansui regular matrix and similar RM systems, King Record is technically capable of manufacturing CD-4 quadradiscs and could go into commercial production as soon as a decision is made. The manufacturer is a longtime Japanese licensee of Decca (London) and Telefunken, and more recently A&M and Vanguard among others.
And, of course, if these international recording affiliates decide to adopt the SQ matrix system, King is prepared to go SQ, too.
The other manufacturers who are powerful enough to change the balance of power between the CD-4 proponents and the SQ advocates in Japan are Nippon Crown and Tokuma Musical Industries, Shinsekai, the Japanese licensee of USSR Melodiya, and Tokyo Records, which has no international labels, are corporate affiliates of JVC.
Along with the signing of the
CD-4 licensing agreement by Jac Holzman, president of Elektra Records, and Yoshiro Kitano, president of JVC, it was disclosed that 250 CD-4 lacquer masters could be produced per month starting this spring by JVC Records Inc. which is being set up with a capitalization of $200,000 in Hollywood, Calif.
In Japan, the race between the CD-4 developers and the SQ licensees to produce the "music" IC chip for the discrete disc system demodulator and the logic matrix decoder (Billboard, Feb. 17. 1973) will vie with developments in the record manufacturing industry.
More than anything else, however, Japanese audiophiles are now asking whether or not the CD-4 "compatible" discrete 4-channel high-fidelity home stereo systems.
They will be looking for the answer to this question at the 4th Kansai Audio Show in Osaka, April 18-22, if not the 10th Tokyo International Trade Fair, April 20-May 7.