PolyGram

PolyGram N.V. was an entertainment company and major music record label formerly based in the Netherlands. It was founded in 1962 as the Grammophon-Philips Group by Dutch corporation Philips and German corporation Siemens, to be a holding for their record companies, and was renamed "PolyGram" in 1972. The name was chosen to reflect the Siemens interest Polydor Records and the Philips interest Phonogram Records. The company traced its origins through Deutsche Grammophon back to the inventor of the flat disk gramophone, Emil Berliner.

"Polygram" redirects here. For the geometrical figure, see Polygram (geometry).
This article is about the former record company and Universal Music Group's current film unit. For for the defunct PolyGram Filmed Entertainment whose assets belong to Universal Pictures, see PolyGram Filmed Entertainment.
PolyGram
Subsidiary
Industry
FateSold to Seagram and reincorporated under Universal Music Group. Label still used by UMG's Polygram Entertainment and for some of its label divisions in certain regions.
The 1996-1999 PolyGram Filmed Entertainment catalog is currently owned by Universal Pictures (part of Comcast).
Predecessor
  • Hollandsche Decca Distributie
    (as subsidiary of Decca)
  • Philips Phonografische Industrie
    (as subsidiary of Philips)
Successor
Founded1962 (1962) (original) (as Grammophon-Philips Group), a joint venture of Philips and Siemens
2017 (2017) (Relaunch)
FounderPolydor and Deutsche Grammophon
Defunct1999 (1999) (original)
Headquarters
Baarn
,
Netherlands
ParentPhilips (50%)
Siemens (50%)
Websitepolygram.com

Later on, PolyGram expanded into the largest global entertainment company, creating film and television divisions. In May 1998, it was sold to the alcoholic distiller Seagram which owned film, television and music company Universal Studios. PolyGram was thereby folded into Universal Music Group, and PolyGram Filmed Entertainment was folded into Universal Pictures, which had been both Seagram successors of MCA. When the newly formed entertainment division of Seagram faced financial difficulties, it was sold to Vivendi, and MCA became known as Universal Studios, as Seagram ceased to exist. Vivendi remains owner of the Universal Music Group (while the film and television division was sold to NBCUniversal). In February 2017, UMG revived the company under the name of PolyGram Entertainment, which currently serves as their film and television division.

History

Hollandsche Decca Distributie (HDD), 1929–1950

In 1929, Decca Records (London) licensed record shop owner H.W. Van Zoelen as a distributor in the Netherlands. By 1931, his company Hollandsche Decca Distributie (HDD) had become exclusive Decca distributor for all of the Netherlands and its colonies.[1] Over the course of the 1930s, HDD put together its own facilities for A&R, recording, and manufacturing.

HDD was commercially successful during World War II because of the absence of American and British competition. Van Zoelen wanted to sell to Philips so that HDD would have sufficient financial backing when their major competitors returned after the war. This led Philips to purchase HDD in 1942.[1]

In the mid 20th century, the majority of large recording companies manufactured both gramophones and records; Philips CEO Anton Philips noted the risk in creating gramophones without an interest in music recording and record manufacture, and that Radio Corporation of America (RCA) had merged with the Victor Talking Machine Company in 1929[2] for this reason. Philips' labs were developing magnetic tape and LPs, and they could support eventual new formats, although other record companies were notably unenthusiastic about experimenting with new formats.

After the war, Philips built a large factory in Doetinchem to produce 78 rpm records. Recording took place in Hilversum, whereas development took place in Eindhoven.[3]

Philips Phonografische Industrie (PPI), 1950–1962

In the 1940s, the record business was spread out within Philips: research in the Eindhoven labs, development elsewhere in Eindhoven, recording in Hilversum, manufacturing in Doetinchem, distribution from Amsterdam, and exports from Eindhoven. During the late 1940s, Philips combined its various music businesses into Philips Phonografische Industrie (PPI), a wholly owned subsidiary.

PPI's early growth was based on alliances. A merger was first proposed with Decca of London in late 1945, but was rejected by Edward Lewis, Decca's owner. (PolyGram finally acquired Decca in 1979.)

In the early 1950s, Philips set itself the goal of making PPI the largest record company in Europe.

PPI's second attempt at a merger was with Deutsche Grammophon Gesellschaft (DGG). DGG, owned by Siemens AG, and well known for its classical repertoire, had been the German licensee for Decca from 1935. DGG also owned Polydor Records. Shortly after PPI was founded it had made a formal alliance with DGG to manufacture each other's records, coordinate releases, and refrain from poaching each other's artists or bidding against each other for new talent. PPI and DGG finally merged in 1962.

The alliance with DGG still left PPI without repertoire in Britain or the United States. But in 1951, after Columbia had failed to renew its international distribution agreement with EMI, PPI agreed to distribute Columbia recordings outside the United States. Columbia became PPI's distributor within the US. This agreement ran until 1961 when Columbia set up its own European network. PPI signed a worldwide distribution deal with Mercury Records in 1961. PPI's parent company Philips, through its U.S. affiliate Consolidated Electronics Industries Corp (a.k.a. Conelco), acquired Mercury in 1962.

PPI built or bought factories in smaller countries. In 1962, PPI had a large factory in Baarn and factories in France, Britain, Denmark, Norway, Spain, Italy, Egypt, Nigeria, and Brazil.

PPI played an important role in the introduction of the long-playing vinyl record to Europe. Columbia introduced their LP record in 1948 and Philips presented its first LP at a record retailers' convention in 1949. Philips' commitment to LP technology was an important factor in its 1951–1961 deal with Columbia.[4]

GPG and PolyGram, 1962–1980

In 1962, PPI and DGG formed the Grammophon-Philips Group (GPG) as a joint-venture holding company, with Philips taking a 50% share in DGG and Siemens a 50% share in PPI. In 1971, the UK record labels of Philips, Fontana, Mercury, and Vertigo were amalgamated into a new company called Phonogram, Ltd. In 1972, Grammophon-Philips Group reorganized all its operations and was renamed The PolyGram Group (in some countries, like Argentina, its name was Phonogram), of which Philips and Siemens each owned 50%. In 1977, both organizations merged operationally, integrating the recording, manufacturing, distribution and marketing into a single organization.

The various record labels within PolyGram continued to operate separately. PolyGram gave its labels, as A&R organizations, great autonomy.

After the merger, PolyGram began to move into the US and UK markets, and did so by a process of both formation and acquisition: Polydor Records established its American operations, Polydor Incorporated in 1969, Mercury Record Productions (US) was acquired in 1972 from sister company North American Philips Corp., and became Phonogram, Inc. MGM Records and Verve (US) were acquired in 1972, RSO (UK) in 1975, a 50% stake in Casablanca (US) in 1977 (with the remaining 50% in 1980), Pickwick in 1978, and Decca (UK) in 1980 (the latter acquisition basically brought PolyGram full circle, see the HDD section above). PolyGram acquired United Distribution Corporation (UDC) in 1973, and changed its name to Phonodisc, Inc., and signed international distribution deals with MCA and 20th Century Records in 1976.

In the late 1950s and early 1960s, Philips had been at work on a new consumer magnetic tape format for music. The Philips Compact Cassette was introduced in 1963. It was small and could play longer than an LP. In 1965 the cassette accounted for 3% of revenues, growing in 1968 to 8% and in 1970 to 10.6%.

In the late 1960s, and through the 1970s, GPG/PolyGram diversified into film and television production and home video. RSO's successes included Saturday Night Fever and Grease. PolyGram's highly successful marketing during the disco craze included the Casablanca FilmWorks production Thank God It's Friday (1978) and its associated soundtrack. During the boom in disco, PolyGram's US market share had grown from 5% to 20%. This can also be attributed to multi-million selling albums and 45s by the Bee Gees, Donna Summer, the Village People, Andy Gibb, Kool & the Gang, and rock band Kiss. For a short while in the late 1970s, it was the world's largest record company.[5]

In 1969, PolyGram established a direct mail-order business in the UK, Britannia Music Club, which ran till 2007.[6]

Reorganization, 1980–1999

Before 1978, with the acquisition of UDC, the distribution organization was too large and PolyGram was losing money. When US operations were running at full capacity, PolyGram expanded aggressively, and would press large quantities of records without knowing the demand. In late 1979, PolyGram was caught off guard by the sudden end of the popularity of disco music, leaving it with an underutilized distribution network, profligate labels, and over optimistic product orders. PolyGram's Casablanca label was known for management spending on lavish industry parties and luxury cars. After 1980, PolyGram's losses had spiraled upwards of US$220 million.

Another contributing factor to PolyGram's financial woes was the massive failure of the big budget musical Sgt. Pepper's Lonely Heart's Club Band (1978). The film starred the Bee Gees and Peter Frampton at the height of their popularity, and featured The Beatles covers by them as well as Aerosmith, Billy Preston, and Earth, Wind & Fire. The film was highly anticipated to surpass the box office success of both the Saturday Night Fever and Grease, mostly due to its popular music stars. The soundtrack LP, based on only advance orders, was released triple platinum. However, the movie was released to poor reviews and died at the box office. Despite its triple platinum start, the soundtrack LP's sales bombed after the film's release. In turn, record dealers flooded PolyGram with returned LPs. The resulting losses nearly wiped out the profits the company had made on both the Saturday Night Fever and Grease soundtracks. The company took further loses when the disco craze ended in 1979 and record sales for both the Bee Gees and Casablanca's Village People plummeted. PolyGram also experienced losses with the defection of Casablanca's Donna Summer to newly formed Geffen Records as well as the dropping of Andy Gibb, whose personal problems with cocaine and alcohol began to affect his recording career, from RSO. Summer and the Bee Gees also had legal disputes with their labels which further complicated matters. Summer ended her contract with PolyGram in 1980, and was awarded the rights to her songwriting catalog by the courts; she owed them one more album, and finished out her contract by recording her album She Works Hard For The Money (from which the title track was a huge hit in 1983).

In 1980, PolyGram created PolyGram Pictures in a partnership with Peter Guber. During the late 1980s and early 1990s, PolyGram continued to invest in a diversified film unit with the purchases of individual production companies.

In 1981, Philips executive Jan Timmer became a member of the Group Management of PolyGram and was appointed President and Chief Executive Officer of newly formed parent company, PolyGram International Ltd. in 1983. He cut the workforce from 13,000 to 7,000, reduced PolyGram's LP and cassette plants from eighteen to five, and decreased the company's dependence on superstars by spreading the repertoire across different genres and nurturing national and regional talent. Also in 1983, PolyGram's U.S. roster of labels by this time included: Polydor, Mercury, London, London/FFRR, Casablanca (until 1986, later to be reincarnated in 1994), RSO, De-Lite, Riva, Threshold (owned by the Moody Blues), Tin Pan Apple (under Polydor Records), Total Experience (founded by Lonnie Simmons, from 1981 to 1984) and Atlanta Artists (founded by Cameo lead singer Larry Blackmon). They were all consolidated into PolyGram Records, Inc.

Under the new company, PolyGram decided to discontinue Philips as a pop and rock label in the UK and throughout much of Europe, though it was still frequently issued records in France and South East Asia by Chinese and Hong Kong pop artists. The majority of PolyGram's rock and pop music signings went to Mercury, and Polydor in the UK and Europe, though the label was used sparingly in America. Philips became part of PolyGram Classics as a classical music label along with Decca Records and Deutsche Grammophon. By 1985, PolyGram had returned to profitability.

Wing Records was reincarnated in 1987 and became a very popular label over the following years, spawning the careers of Tony! Toni! Toné! and former Miss America, Vanessa Williams; the label was discontinued in the mid-1990s. Fontana was revived in the U.S. in 1989, but only for a short while. Today, Fontana Distribution is an independent label distribution unit of Universal Music Group. Vertigo Records still remained a rare U.S. PolyGram label, as most of its music was from Europe.

In 1982, PolyGram purchased 20th Century Fox Records from 20th Century Fox, which had just recently been bought out by oil magnate Marvin Davis, who was not interested in keeping the record company. The assets of the former 20th Century Fox Records were consolidated with the company's Casablanca label.

After an attempted 1983 merger with Warner Elektra Atlantic failed, Philips bought 40% of PolyGram from Siemens, acquiring the remaining 10% in 1987.

The CD, invented by Philips and Sony, helped greatly in boosting the company's sales and market share. PolyGram's strength in classical music helped greatly, as many of the CD's early adopters were classical music lovers. Total US sales of CDs were $1 million in 1983, $334 million in 1990 and $943 million in 2000. Total UK sales were $300,000 in 1983, $51 million in 1990 and $202 million in 2000. The CD increased PolyGram's profit margin from 4-6% in the mid-1980s to 7-9% by the early 1990s. As well, videos were distributed by PolyGram Video.

In 1988, Philips acquired the remaining 50% of PolyGram from long time partner Siemens and later in 1989, floated 16% of PolyGram on the Amsterdam stock exchange, valuing the whole company at $5.6 billion. PolyGram embarked on a new program of acquisitions, including A&M and Island Records in 1989, Swedish company Polar Music which held the rights to the ABBA catalogue, Motown and Def Jam in 1994, and Rodven (Venezuela) in 1995.

In 1990, after acquiring Island Records and A&M Records, Alain Levy (then) executive vice president of PolyGram N.V., re-organized the U.S. operations of PolyGram Record's, Inc. into a new expanded conglomerate entitled PolyGram Group Distribution, Inc. In addition to overseeing the sales, marketing, manufacturing, and distribution of music and video products created by PolyGram, PGD was also responsible for supervising a number of other divisions within PolyGram (U.S.) such as: PolyGram Music Group, PolyGram Video, PolyMedia, PolyGram Special Markets, PolyGram Merchandising, Independent Label Sales (ILS), and New Media & Business Development.

Polygram and Granada TV formed a joint venture, Big Picture Productions, in 1990, as a music programing firm. At Cannes in 1990, Big Picture purchased exclusive international distribution rights to Brown Sugar, from the New York–based Gene David Group. The two-hour special featured black female performers and was hosted by Billy Dee Williams.[7]

In June 1991, Alain Levy was promoted to worldwide president/CEO of PolyGram N.V.

In 1993, PolyGram purchased the video arm of Virgin Group from General Electric Capital for $5.6 million, and remodeled the label as Vision Video ltd

In 1995, PolyGram purchased ITC Entertainment for $156 million.[8][9]

In May 1998, PolyGram was sold to Seagram for $10 billion.[10] Seagram, which owned Universal Pictures and Universal Music Group, sold off some of PolyGram's assets. The ITC Entertainment library was sold to Carlton Communications for £91 million,[11] the pre-April 1996 PolyGram Filmed Entertainment library was sold to Metro-Goldwyn-Mayer,[12] PolyGram's US distributor was sold to USA Networks,[13] and Slash Records and London Records were sold to Warner Music Group. In June 1998, Alain Levy resigned as CEO of PolyGram.[14]

What remained of Polygram was merged into Universal Music Group and Universal Pictures.[15] The name survives via reissue of music under the Polydor Records label as well as a publishing arm of Universal Music Publishing Group. The Japanese branches of the PolyGram labels that were absorbed to form Universal Music Japan were merged into one label named Universal Sigma.

PolyGram Entertainment
Polygram Entertainment
Division
IndustryFilm
TV
PredecessorPolyGram Filmed Entertainment
PolyGram
HeadquartersSanta Monica, California
Key people
David Blackman (UMG head of film and TV)
ParentUniversal Music Group
SubsidiariesFederal Films
Websitewww.umusic.com/ 

Universal Music Group (UMG) had been dabbling in the documentary field having a hand in producing of 2015 Amy, Amy Winehouse documentary, and HBO’s Kurt Cobain: Montage of Heck. In January 2017, UMG hired David Blackman to head its newly formed film and TV unit and reports to Universal Music Publishing Group chairman/CEO Jody Gerson and UMG Executive Vice President Michele Anthony.[16]

Polygram Entertainment on February 11, 2017 was relaunched as a film and television unit of Universal Music Group led by Blackman, UMG head of film & television development and production. Before the announcement, the revived Polygram co-distributed with Studio Canal in September 2016 The Beatles: Eight Days a Week documentary. Polygram had on its slate as its first production The Story of Motown, a documentary about the record label's cultural and historical effects. Also on its slate is the co-production and financing of Mystify, INXS frontman Michael Hutchence biography.[17]

Republic Records appointed its first executive vice president of film & television in July 2017 to oversee film and TV projects and Federal Films initiative in working with Polygram.[18] In June 2018, the company announced the appointed to the post of Vice President, Scripted Film & Television Daniel Inkeles, who moves over from a sister Vivendi company to UMG, StudioCanal.[19]

Lionsgate and PolyGram agreed to a multiyear first-look television deal in August 2018 to develop projects for TV from UMG’s portfolio of labels, artists and music with UMG issuing the corresponding sound tracks.[20] Universal Music Group agreed in April 2019 to allow Wondery a license to use UMG music catalog and develop UMG artists' story podcasts, which then may be adapted into TV or film projects. Wondery would work with all UMG labels and with its Polygram Entertainment film and TV production unit.[21]

Films
Release Date Title Co-production companies Notes
September 15, 2016The Beatles: Eight Days a WeekApple Corps, Imagine Entertainment, White Horse Pictures, UMGdocumentary
UK distribution only with StudioCanal[17]
June 7, 2019PavarottiPolygram, Decca Records, Imagine Entertainment, White Horse Picturesdocumentary
Co-financiers: Polygram, CBS Films
International sales rights: HanWay Films[22][23]
April 3, 2020Beastie Boys StoryApple TV+, Pulse Films, Fresh Bread[24]documentary
August 27, 2021The Beatles: Get Back[25]Walt Disney Pictures, Apple Corps, Wingnut Filmsdocumentary
distributed by Walt Disney Studios Motion Pictures
Pending[16]
TBAThe Story of MotownMotown, Ghost Pictures, Fulwell 73
The Velvet UndergroundVerve Label Group, Killer Content, Motto Pictures Productiondocumentary[26]
Based on Bob Marley's songs20th Century Animation, Khalablo In Society, Principato-Youngdistributed by Walt Disney Studios Motion Pictures[27]
2019[28]Bee Gees
  • The Kennedy/Marshall Company
  • White Horse Pictures
  • Diamond Docs
The Go-Go’s
  • Universal Music Publishing Group
  • Fine Point Films
  • Fadoo Productions
  • television rights:
  • Showtime (US)
  • Sky Arts (UK)
Ice Coldhip hop genre's jewelry's importance
From Scratch: How Mixtapes Changed Music Forever (working title)mixtapes' controversial history

TV series
Series Year Production partner Original
network/channel		 Notes
Untitled Def Jam Recordings TBD based on NYPD Rap Intelligence Unit[29]

Notable labels
gollark: BRB, calling all 10000 possible numbers.
gollark: I don't think you can strangle yourself to death.
gollark: Riiiiight.
gollark: Good job, alt!
gollark: Besides, surely you could do something bad with my phone number, if that were possible.

See also

Sources
  • Bakker, Gerben. "The Making of a Music Multinational: The International Strategy of PolyGram, 1945-1988." Business History Review 80:1 (Spring 2006), pp. 81–123. (preprint)

References
  1. Hardy, Phil. "Would You Like to Dance? EMI and WMG". Download! How The Internet Transformed The Record Business. Music Sales Group / Google Books. pp. Chapter 4. Retrieved 15 April 2016.
  2. Geisst, Charles R. "Radio Industry". Encyclopedia of American Business History. Ifobase / Google Books. p. 352. Retrieved 15 April 2016.
  3. "Polygram N.V. Business Information, Profile, and History". companies.jrank.org. Retrieved 2017-12-15.
  4. Bakker, p.17. "Philips’ commitment to the LP technology was an important factor for Columbia’s willingness to enter the long-term alliance with PPI in 1950. "
  5. Bakker, p.26. "During the disco-boom, Polygram’s US market share had jumped from five to twenty percent. For a few years, it was the world’s largest record company."
  6. Billboard - 25 Dec 1999 - 1 janv. 2000 - Page 90 "In the year ending in June, both companies are said to have had combined sales of $460 million and an operating profit of $50 million. Sales of $480 million are forecast for the year to June 2000. Britannia, launched in 1969 by Poly Gram, has ..."
  7. "Worldwide deal doings at Cannes" (PDF). Broadcasting. Broadcasting Publications Inc.: 39 April 30, 1990. ISSN 0007-2028. Retrieved September 15, 2017.
  8. PolyGram filmed entertainment acquires ITC Entertainment Group. Business Wire January 10, 1995. Retrieved on November 21, 2010.
  9. PolyGram buys Itc for $156m. The Times, Wednesday, January 11, 1995; pg. 25
  10. "Seagram buys PolyGram from Philips for $10.6bn". The Independent. 22 May 1998.
  11. "Thunderbirds are going, going, gone". BBC News. 1999-01-19. Retrieved 2013-06-22.
  12. "MGM Agrees to Acquire PolyGram Movie Library". 23 October 1998 – via LA Times.
  13. "USA Will Buy Some Seagram Film Assets". 8 April 1999 – via LA Times.
  14. "Chief Executive at Polygram Resigns". The New York Times. 23 June 1998. Retrieved 5 November 2019.
  15. Universal Music shake-up. The Times, Friday, January 15, 1999
  16. Littleton, Cynthia (February 12, 2017). "Universal Music Group Revives Polygram Label for Film and TV Production". Variety. Retrieved August 22, 2017.
  17. "Universal Music Relaunching Polygram, Announces 'Story of Motown' as First Production". billboard.com. Retrieved 17 February 2017.
  18. Halperin, Shirley (July 17, 2017). "'Fifty Shades' Franchise Veteran Dana Sano to Head Film and Television at Republic Records". Variety. Retrieved August 22, 2017.
  19. Staff, Variety (June 5, 2018). "Universal Music's Polygram Entertainment Names Daniel Inkeles VP of Scripted Film & TV". Variety. Retrieved October 5, 2018.
  20. Staff, Variety (August 6, 2018). "Universal Music Group and Lionsgate Sign Multi-Year TV Deal". Variety. Retrieved October 4, 2018.
  21. Lee, Wendy (April 17, 2019). "Universal Music Group partners with Wondery, which produced 'Dirty John' podcast". Los Angeles Times. Retrieved July 22, 2019.
  22. McNary, Dave (June 1, 2017). "Ron Howard to Direct Luciano Pavarotti Documentary". Variety. Retrieved August 22, 2017.
  23. Wiseman, Andreas (October 12, 2018). "HanWay Films Boards Ron Howard's Pavarotti Movie Ahead Of AFM, Production Under Way". Deadline. Retrieved October 12, 2018.
  24. Vlessing, Etan (January 15, 2020). "Spike Jonze's 'Beastie Boys Story' Lands at Apple TV+". The Hollywood Reporter. Retrieved March 5, 2020.
  25. White, Peter (March 11, 2020). "Disney Sets Release Date For Peter Jackson's Beatles Documentary". Deadline. Retrieved March 14, 2020.
  26. Ramos, Dino-Ray (January 27, 2018). "Todd Haynes To Direct And Produce 'The Velvet Underground' Feature Docu For Polygram, Verve". Deadline. Retrieved April 5, 2018.
  27. Halperin, Shirley (February 6, 2018). "Fox Animation, Universal Music Team for Film Based on Songs by Bob Marley". Variety. Retrieved April 5, 2018.
  28. Blichert, Frederick (February 11, 2019). "Polygram Entertainment cues up four music-themed docs". Real Screen. Retrieved June 18, 2019.
  29. Staff, Variety (December 12, 2017). "Pras to Helm TV Series Inspired by Real-Life Stories of Hip-Hop Cops (EXCLUSIVE)". Variety. Retrieved April 5, 2018.
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