3 – 4 Paragraphs, no more than 600 words
Explain why The Beatles formed Apple- what positive changes did
it bring about to the Music industry and what aspects of Apple ended up being a burden to the band and contributed to the break up?
The Beatles have had 6 members: Bassist Stu Sutcliffe (deceased)
Drummer Pete Best (fired in 1962) and the best known line up of
John Lennon, George Harrison (guitars); Paul McCartney (bass)
and Ringo Starr (drums)
They performed and recorded together as The Beatles from 1960-1970
The remain the best selling group of all time- and by far, the most
popular rock band ever with nearly 2.5 billion units sold.
THE MAN WHO GAVE AWAY THE BEATLES:
is a former businessman and promoter of Welsh descent.
it into a coffee house called The Jacaranda,.
They would play there many times between then and August 1962. Initially they lived in squalor conditions in the storage room of an X rated cinema owned by the club owner. During the first visit, Harrison was only 17 and was deported for working underage. They worked three main clubs: THE KAISERKELLER CLUB
THE TOP TEN and the STAR CLUB.
over a 10% commission for one of their return visits to Hamburg. Furious over their refusal to pay- dropped The Beatles like a hot potato. He never had business dealings with them again. Shortly thereafter, Stucliffe fell in love with a German girl and left to pursue his art career. He died of a brain hemorrhage months later.
INSERT PHOTO OF PAUL w/Hofner
Play soundbite of McCartney re: Hofner bass
Williams and asked if there were any contractual obligations. Williams told Epstein,
“NO, but don’t touch them with a f___ing 10 foot pole- they will let you down.”
THE MAN WHO BROUGHT THE BEATLES TO THE WORLD: BRIAN EPSTEIN.
The Epstein family took the store over and opened other NEMS outlets around Liverpool. Brian had gone to acting school and tried to be an actor, but failed and returned to the family business. Brian’s father, Harry, asked him to run NEMS.
Brian took to the music store like a fish to water, and greatly expanded its record division.
Allister Taylor recalls:
took them on.
set on Jan 1, 1962, and the Beatles performed 15 songs in one hour, in a studio.
The Audition was recorded for review purposes. They were auditioned by Decca producer Tony Meehan (ex-drummer of the Shadows) and Decca president Dick Rowe.
Decca Records passes on Fab 4
who had already passed on the group once.
The Deal George Martin made to get The Beatles to EMI
The Beatles took this as their cue to fire Best. Best was fired from the band and Ringo was brought in. (He had filed in for Best when Best was sick and the Beatles decided to keep him).
They had seen many successful acts in the UK come here and fail miserably.
In Jan 1964, I WANT TO HOLD YOUR HAND is released on Capitol Records
(after two failed singles on indie labels released in 1963) and shoots to #1
Beatlemania, which had taken over the UK and Europe, begins in America.
The Deal Brian Epstein made with Ed Sullivan
Sullivan finds out about the Beatles when his plane is delayed
in London in 1963 because 10,000 screaming girls had turned up at Heathrow to greet the Beatles upon their return from a European tour.
Epstein, following the lead of Col. Parker books the Beatles for 3 shows on Ed Sullivan. Feb 9,16, 23. In between the Beatles play a few east coast shows
and sell out Carnegie Hall.
The Beatles on Ed Sullivan show broke all TV ratings and remains one of
the biggest audiences in TV history/. Percentage wise- it is still the leader.
BEATLES ON ED SULLIVAN
They sell 15 million records in 1964, alone and command the
#1 – 5 spot on the Billboard chart in the same week!
Shea Stadium in NYC. For the First show, they receive $189,000
for 22 minutes of music. Brian could have charged a lot more for tickets to the Shea Stadium concert ($10), but he thought it would be too much and be criticized as excessie
SHEA STADIUM VIDEO CLIP
THE DEAL TO MAKE A HARD DAYS NIGHT
Hard Days Night Trailer:
in 1964, and the soundtrack yielded several new #1 hits.
Elvis ones and snagged Dick Lester to direct.
THE BEATLES MERCHANDISE- MILLIONS GIVEN AWAY; IN THE END-
and in 3 days sold over 1 million shirts
wigs were made per day in 1964.
The launnch of BEATLES rock band video game; the Beatles CD box set;
In Nov 2010- The launch of Beatles on iTUNES: • Historically most artists have had a lack of understanding of the merchandising and licensing process in the context of artwork, trade shows, product approvals and so on. The Beatles 09-09-09 mexemplifies in many ways the fundamental shift in the approach to music licensing and how sophisticated the business has become. Apple Corps built an internal infrastructure focused on the process of brand extensions and merchandising and pioneered the approach of first establishing the artwork and image bank and approval process.
with Apple Corps., their company. A low estimate is that is likely to bring in over $20 million a year for EACH of the 4 Beatles EVERY year.
THE FORMATION OF APPLE RECORDS
career between 1966- 1970: Revolver; Sgt Peppers Lonely Hearts Club Band;
Magical Mystery Tour; The White Album; Abbey Road and Let It Be.
INSERT GEORGE HARRISON INTERVIEW CLIP ABOUT RECORDING
album of all time by many in the industry.
BEATLES SGT PEPPERS
mix of alcohol and prescription drugs.
It is a smash #1 hit forcing radio stations to play
until the late 1970s.
What Really Broke Up The Beatles-
the fight over Allen Klein & MACLEN MUSIC.
although they probably didn’t help. George Martin said it was John
and Yoko’s addiction of heroin that had more to do with it.
hard-boiled NY manager Allen Klein (manager of Sam Cooke
and Phil Spector and recently The Stones). McCartney
is vehemently opposed to Klein and pushes for his new father in law and brother in law Lee and John Eastman ( established NY entertainment attorneys).
The other 3 Beatles outvote him and hire Klein.
1968 and 1970, they over ride McCartney’s decision to return to
touring. And opt to make a film about the album making process
called LET IT BE. After the filming, Klein brings in Phil Spector
(a noted 60s producer known for his WALL OF SOUND recordings)
to re-mix and produce the soundtrack album. This causes a huge
fight between McCartney and other Beatles.
Most artists leave, and all but the label is shut down
2 VIrgins solo album cover cause problems for the other Beatles.
MacLen music, the Beatles publishing arm becomes a publicly traded stock.
McCartney on the advice of Lee Eastman buys as many shares of MacLen
music as he can. He does this without telling Lennon. When Lennon
finds out he blows up and threatens to quit the Beatles.
There would be no need to break up- just take a breather. Lennon agrees,
and 6 months later, McCartney surprises the other 3 by announcing he has
left The Beatles.
continue to work on each other’s solo projects and by the time of Lennon’s
death in 1980, most diffferences are resolved.
Beatles business: Still making money,
50 years on
Published Fri, Feb 7 2014 9934 AM EST
Updated Fri, Feb 7 2014 9934 AM EST
Television host Ed Sullivan with the Beatles on the set of his variety
series on Feb. 9, 1964.
Express Newspapers | Getty Images
The Beatles earned a total of $10,000 from three performances on “The Ed
Sullivan Show” in 1964. A month before the 50th anniversary of their debut
on the show, theyʼre still making millions.
They could have gotten more for even a single performance on the popular
television show back, but their manager, Brian Epstein, negotiated a lower
sum for top billing and increased exposure.
He was right. The Beatles were the headliners for each program and got a
massive TV audience—including a then-record 73 million viewers for their
historic U.S. TV debut on Feb. 9, 1964.
That kind of thinking, combined with a relentless drive and vast musical
history, has kept the Beatles brand making money half a century after John,
Paul, George and Ringo took America by storm.
“Their financial impact today is bigger than any other artist, living or
deceased,” said David Fiorenza, a Villanova University economics professor
who specializes in art and entertainment.
“The surviving members and the groupʼs holding company continue to
search avenues that werenʼt available to them in the mid-1960s,” he said.
“Theyʼve always been on the cutting edge.”
The business legacy of the Beatles started immediately, said John Covach,
a rock historian who teaches a Beatles course at the University of
“The Gretsch and Rickenbacker guitars they used on Sullivan just flew off
the shelves the next day,” he said. “Kids wanted to be like them, from the
instruments to the haircuts.”
Thereʼs no question that Beatles music sells.
As of this year, the Beatles have sold 600 million albums worldwide—with
177 million sold in the U.S. alone, according to the Recording Industry
Association of America. Elvis Presley is second in the U.S., with 135 million
The group once held the top five spots on Billboard 100—in April 1964—an
achievement thatʼs likely to remain unmatched. They made $25 million in
earnings that year, which translates to almost $188 million today.
(Read more: )
Apple Corps, the Beatles holding company controlled by Paul McCartney,
Ringo Starr and the estates of John Lennon and George Harrison, continues
to push out products.
In 1995, there was the release of the “Beatles Anthology” documentary,
along with the book and CD. A compilation of No. 1 hit singles from the U.S.
and U.K. was released as an album in 2000—and went to the top of the
charts. It became the best-selling album from 2000 to 2010.
Other deals include the “Beatles Rock Band” music video game, released in
2009—with multimillion sales—as well as the ongoing show “Love,” which
features Beatles music and performances by Cirque du Soleil in Las Vegas.
The TV show “Mad Men” paid about $250,000 for the rights to use the
Lennon-McCartney song “Tomorrow Never Knows” in an episode in 2012.
Also in 2012, after years of squabbles with Apple Inc. over naming and
music rights (the Beatles formed their company in 1968 for tax advantages;
the computer company was founded in 1976), the group finally allowed their
music to be sold on iTunes.
Thereʼs more repacking of Beatle albums in the works.
(Read more: )
“Itʼs remarkable for a band that stopped recording in 1970, they still have
such interest,” said Darrin Duber-Smith, a marketing professor at
Metropolitan State University of Denver.
He said that what has helped the Fab Fourʼs staying power is being a first
mover. In marketing terms, that means they were the first in their category
and came to symbolize a significant moment in time.
“They represent the British musical invasion and the change in music that
came with it,” he said. “Weʼve had other moments, like with Pearl Jam and
Kurt Cobain, but nothing like the Beatles did for their time. They were a
transformative band, and that has longevity.”
Beatles merchandise in a shop in Liverpool, England
Of course, Yoko Ono aside, the business side of things helped end the
Beatlesʼ recording career.The death of Epstein in 1967 from a prescription
drug overdose sent the group, by their own admission, into a business
The resulting bickering over managing their financial affairs kept the band
members battling each other into the mid-1970s. It reached a point where
Apple Corps, once listed on the London Stock Exchange in the 1960s,
nearly dissolved in 1975. But it was kept on to manage the business aspect
of the Beatles recording library.
It turned out well, as Apple Corps ranked second in 2010 on Fast Company
magazineʼs list of the worldʼs most innovative companies in the music
Rumors of a Beatles reunion—and there were many—ended suddenly with
Lennonʼs murder in 1980. Twenty-one years later, George Harrison died of
cancer. But both continue to sell records, with Lennonʼs estate taking in
some $12 million in 2011 and Harrisonʼs $6 million that year.
McCartney and Starr still tour and make music headlines. Both are
scheduled to appear on the Grammy Awards on Sunday and will tape a
concert to help mark the 50th anniversary of their Sullivan performances.
Starrʼs worth is listed at around $300 million, making him the worldʼs richest
drummer. McCartney is said to have a net worth of $800 million.
There could be more money ahead for him and the Lennon estate in 2018.
Thatʼs when full rights to the Lennon-McCartney song catalog revert back
to the songwriters. Lennon and McCartney have received a percentage of
royalties over the last decades. Singer Michael Jackson outbid McCartney
in 1985 for the rights—paying nearly $50 million for them. Jackson later
sold half-rights to Sony for $95 million.
‘When was the bubble going to burst?ʼ
Interest in the Beatles only seems to grow.
“Weʼre having a Beatle specialty events the weekend of the anniversary of
their stay here,” said George Cozonis, managing director of The Plaza,
where the Beatles stayed for their first Sullivan appearance. “They became
part of The Plazaʼs history. We expect it to be packed.”
(Clarification:The Plaza said on Friday Feb 7, that it is not holding any
special events over the weekend but will mark the anniversary with a special
Covach said more than 20,000 people have registered for his next course
on the Beatles. “Itʼs incredible how people canʼt get enough of them,” he
The Beatles themselves were circumspect about their longevity, according
to Larry Kane, a former news anchor in Philadelphia and reporter who
covered the Beatles on their U.S. tours in 1964 and 1965.
“It was always a big question for them—when was the bubble going to
burst,” said Kane, who has written three books about the band. “I donʼt
think they had any idea it would go on like this.”
(Read more: Business lessons from rapper 50 Centʼs playbook)
But there was one among them who did.
“I asked Brian Epstein in 1964 how long it would last,” Kane added. “He
said, ‘Larry, the children of the 21st century will be listening to the Beatles.ʼ
He was right.”
—By CNBCʼs Mark Koba. Follow him on Twitter @MarkKobaCNBC.
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