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K-tel

From Wikipedia, the free encyclopedia
For other uses, seeKTEL (disambiguation).
K-Tel International
Company typePrivate
Industryphonographic industryEdit this on Wikidata
Founded1962;62 years ago(1962)
FounderPhilip Kives
Headquarters
Winnipeg,Manitoba
,
Canada
ProductsTelevision advertising,music
OwnerPhilip Kives
Websitewww.k-tel.com

K-tel International Ltdis a Canadian company which formerly specialized in selling consumer products throughinfomercialsand live demonstration. Its products include compilation music albums, includingThe Super Hitsseries,The Dynamic Hitsseries andThe Number One Hitsseries and consumer products, including the Record Selector, theVeg-O-Matic,the Miracle Brush, and the Feather Touch Knife. The company has sold more than half a billion units worldwide.[1]

K-tel is based inWinnipeg,Manitoba,Canada, and has been in business since the late 1960s. It has subsidiaries or other controlled entities in the US and UK.[2][3]

History

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K-tel was founded byPhilip Kives,[4]a demonstration salesman fromOungre, Saskatchewan.[5][6]Kives had worked at a number of jobs as a young man, including selling cookware door-to-door and in a department store, and as a pitch-man on the Boardwalk inAtlantic City.

In 1962 he used his own money and his fast-talking demonstration style to create a new kind of television advertisement in Canada. His first product was aTeflon-coated frying pan.[7]He made a deal with theEaton'sdepartment store to carry the product and with a local television station to air the commercials on aper-inquirybasis with a guaranteed minimum.

Kives bought and marketed a number of products from Samuel Popeil, father ofRoncofounderRon Popeil,including the Dial-O-Matic and Veg-O-Matic food slicers and the Feather Touch Knife. In August 1965, he began selling the Feather Touch Knife in Australia and by Christmas had sold one million knives. Kives later began sourcing his own products, including the Miracle Brush, which sold 28 million units.[8]

K-tel was formally incorporated in 1968, with Kives as CEO.[9]The company operated profitably during the 1970s and expanded both through acquisitions in its core area of business and diversification into other areas. Kives' cousin Raymond worked as president of the K-tel US division from 1967 to 1977, and the K-tel Europe division from 1977 to 1984.

In the five years prior to 1981, K-tel sold more than $150 million of LPs in 34 countries. Its sales increased from $23 million in 1971 to $178 million in 1981.[10]The company diversified, forming subsidiaries in areas such as real estate and oil exploration and also acquired rival Candlelite Records in 1980. K-tel lost $15.9 million[11]when Candlelite's customers refused to pay for their shipments.

The failure of this and several other high-risk ventures forced the publicly traded US entity, K-tel International, to file for Chapter 11 bankruptcy protection in 1984. In 1986, the Bank of Montreal foreclosed on the K-tel Canadian subsidiary at the same time as the US Chapter 11 filing.[12]Advised by Minneapolis-based Sullivan Associates, K-tel negotiated settlements with banks and other preferred and unsecured creditors. Six years later, after all the legal battles, a settlement was reached with the Bank of Montreal, and in 1991, Kives got his Canadian company back.[clarification needed][10]

In 1993, K-tel earned a $2.7 million profit on sales of $56 million,[13]and in 1994, ranked #7 onBusinessWeek's annual Hot Growth List. Mickey Elfenbein, Kives' nephew, was appointed CEO of the K-tel International division in 1993[14]and served until the late 1990s. Elfenbein's son, Mark, produced the company's highest selling music products of the 1990s with the creation of the "Club Mix" series[15]which reached RIAA gold and platinum sales success.[16]K-tel increased its worldwide sales, primarily of music-related products, and had a successfulNASDAQIPOtrading under the symbol KTEL.

Dot-com bubble

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In mid-April 1998, during thedot-com bubble,news that the company was expanding its business to the Internet sent the thinly traded stock shooting from about $3 to over $7 in one day (3:1 split adjusted).[17]The short interest of the stock swelled. The price of the stock peaked at about $34[18]in early May, and began to decline, reaching $12 in November and eventually pennies. The sudden upswing was fuelled mainly by a largeshort squeeze.Traders with short positions either "bought in" or were forced to cover positions at very high prices because of the great losses.[19]

In 2007, Philip Kives took K-tel private again. The company completed a 1-for-5000 reverse split on July 18, 2007, reducing the number of public shareholders to under 300 and allowing the company to delist.[20]It changed its symbol to KTLI and moved from theNASDAQto theover-the-countermarket.

Recent years

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The company now earns profits from its catalogue ofBillboard-charting hits, by the original artists, particularly songs from the 1950s through the 1980s. Tracks include "The Twist"byChubby Checker,"What I Like About You"bythe Romantics,"Tutti Frutti"byLittle Richard,"Surfin’ Bird"bythe Trashmen,and "Help Me Make It Through the Night"bySammi Smith.[citation needed]

K-tel distributes 200,000 songs worldwide per year on digital platforms, includingAmazon,SpotifyandiTunes,and licenses songs from its catalogue for use in commercials (e.g.,Nike,Fiat,CokeandKFC), films (e.g.,Spider-Man,Baby Driver,[21]The Dallas Buyers ClubandHotel Transylvania 2) and television programs (e.g.,Stranger Things,[22]Ray Donovan,Breaking Bad,Californication,Mad MenandTransparent).[23]

Mini Pop Kidsautograph signing event in 2015

K-tel Records has also produced a Canadian children’s music group calledMini Pop Kids,[24]a series of recordings in which a group ofCanadianchildren aged 10 to 14 sing family-friendly pop hits.[21]The series sold millions of copies when it was originally distributed in the 1980s. K-tel brought the series back in Canada, the United States, and Israel as of May 15, 2004, and has continued to produce recordings. The latest album,Mini Pop Kids 18,was released in 2020 in Canada.[25]The series is promoted by a touring group that performs shows across Canada.

K-tel’s company founder Phillip Kives died inWinnipeg, Manitoba, Canada,on April 27, 2016.[26][27][28]

Music business

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In 1966, Philip Kives released the company's firstcompilation album,a collection of 25countrysongs entitled25 Country Hits.[29]Every copy was sold.[30]The idea of compilation albums was new,[29]and the venture's unexpected success led to further releases. K-tel's second release,25 Polka Greats,[31]sold 1.5 million copies in the United States[30]

K-tel recruited Australian Don Reedman (twin brother of Peter Reedman, who was already working in the Australian office) to set up the UK-based division of K-tel Records in the early 1970s.

The company built the business of releasing compilation albums that combined material from a number of popular artists onto a single theme album using the tag line "20 Original Hits! 20 Original Stars!".[7]The company negotiated directly with artists and labels for the rights to reproduce their original recordings, in the process also securing a long-term asset through adding those recordings to their catalogue.[32]

While most of the compilation albums relied on the pop charts of the day, there were some that focused on hits from a specific genre. Examples include:

  • 20 Power Hits(1973) andGold Rock(1975), mainly rock-oriented.
  • Super Bad,Super Bad Is Back(both 1973), andSouled Out(1975), soul and R&B hits of the day.
  • Summer Cruisin'(1976) andRock 'N' Roll Show(1977), mostly 1950s music.
  • Goofy Greats(1975) andLooney Tunes(1976) compiled novelty songs from the 1950s and 1960s.
  • Modern Dance(1981) compiled songs of the burgeoining synth-pop movement
  • Night Moves(1979), a two-record disco dance tutorial with accompanying instruction book featuringDeney Terrio;included one side of disco songs featured in the lessons.

The company also created original records, including the Grammy-nominatedHooked on Classicsseriesof classical recordings with theRoyal Philharmonic Orchestra.

Answering machine recordings

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In the late 1980s, K-tel International (UK) Ltd. released[33]several noveltycassette tapesby The Comic Answer Company Ltd.[34][35]Each tape contained several short audio clips which were intended to be played back aloud and re-recorded onto ananswering machine.A five-second countdown preceded each message to help customers begin recording at the right moment, and a formal answering machine message in a neutral voice was included at the end of each tape in case they wanted to revert the novelty message.

These recordings included at least fivespoken wordtapes released in 1988, and made in partnership withITV Central's popular satirical puppet showSpitting Image.Show regulars includingChris Barrie,Steve NallonandNigel Plaskittparticipated as voice actors. Examples and the impersonations therein include:

Other ventures

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In 1970 the company briefly began distributing foreign films in the United States, beginning withMr. Superinvisible.They produced their ownPardon My Blooperfilm, based on one of their records.

In the early 1980s, K-tel dabbled in the video game business under the brands K-tel Software, K-tek Software, K-tel International (UK) Ltd.[39]andXonox.Although K-tel's other divisions left this market after thecrash of 1983,K-tel UK continued to release several games into 1984.[39]

Legacy

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K-tel helped define the way people purchased music in the 1960s and 1970s. In 2013,Forbeswrote a piece on K-tel, entitled "K-Tel Records: The Spotify of the 70s", pointing out that the way people discovered new music in the 70s was through K-tel compilations, in the same way that Spotify playlists are now used to find related artists.[40]

In 2013,Dave Grohl,the front man ofFoo Fighters,gave a keynote speech atSXSW,praising K-tel for exposing him to music early in his life, specifically "Frankenstein"bythe Edgar Winter Group:"Grohl told the crowd earnestly that the song's inclusion on a 1975 K-tel RecordsBlockbustercompilation – the first album that he ever owned – was 'the record that changed my life.' "[41]

K-tel infomercials were spoofed on late night television, leading to skits such asDave Thomas's character Harvey K-tel pitchingStairways to Heavenand50 Psalms by 50 StarsonSCTV,Dan Aykroyd’s "Bass-o-Matic"Saturday Night Liveperformance, andThe Simpsonscartoon series, where the fictional B-movie actorTroy McClurepromotes widgets on a show calledI Can’t Believe They Invented It!.[42]

See also

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References

[edit]
  1. ^"Philip Kives, K-tel founder and 'wait there's more' infomercial king, dies at 87".The Guardian,29 April 2016
  2. ^Inc, Nielsen Business Media (1972-10-28).Billboard.Nielsen Business Media, Inc.{{cite book}}:|last=has generic name (help)
  3. ^"K-Tel International (UK) Ltd".Discogs.Retrieved2022-07-10.
  4. ^"Kives, Philip".The Canadian Encyclopedia.Archivedfrom the original on April 27, 2006.
  5. ^Fox, Margalit (2016-04-29)."Philip Kives, Pitchman Who Perfected 'As Seen on TV' Infomercials, Dies at 87".The New York Times.ISSN0362-4331.Retrieved2016-04-30.
  6. ^Palmeri, Christopher; Meeks, Fleming (1993-03-15). "Veg-O-Matic does Europe".Forbes.151(6): 114–116.
  7. ^ab"About K-tel International".K-tel. Archived fromthe originalon 2016-05-04.Retrieved2007-09-03.
  8. ^"Hall of Fame People".Globe and Mail Report on Business.October 31, 2003.
  9. ^Cross, Alan (2016-04-28)."We Just Lost Another Music-Related Personality: RIP The Founder of K-Tel - Alan Cross".Alan Cross' A Journal of Musical Things.Retrieved2022-12-05.
  10. ^abNewman, Roger (May 1986). "Report on Business".Death [and Rebirth] of a Salesman.
  11. ^Newman, Roger (May 1986). "Report On Business".
  12. ^"51st Annual Report of the U.S. Securities and Exchange Commission"(PDF).U.S. Securities and Exchange Commission. p. 141.
  13. ^"K Tel International: Sweet Music For A Frenetic Marketer".BusinessWeek.Archived fromthe originalon May 8, 2009.
  14. ^"K-Tel Annual Report 10-K".U.S. Securities and Exchange Commission. 1995.
  15. ^Club Mix '96 Vol. 1 - Various Artists | Credits | AllMusic,retrieved2020-07-18
  16. ^"Gold & Platinum".RIAA.Retrieved2020-07-18.
  17. ^Baig, Edward C.; Weiss, Gary (1998-05-18). "What's Making K-Tel Boogie?".BusinessWeek(3578): 151.
  18. ^"K-Tel Fails to Meet Nasdaq Listing Criteria".The New York Times.November 18, 1998.
  19. ^"What's Making K-Tel Boogie?".BusinessWeek.May 18, 1998. Archived fromthe originalon October 9, 1999.
  20. ^"SEC: Amendment 4 to Schedule 13e-3".U.S. Securities and Exchange Commission.
  21. ^abCBC Radio (23 Nov 2018)."But wait, there's more! K-Tel, the Spotify of the '70s, is still going strong".CBC Radio.Retrieved16 October2023.
  22. ^"'20 Original Hits! 20 Original Stars!' Inside K-Tel, the Innovator Behind the 'As Seen on TV' Compilation Album ".Mental Floss.2022-08-11.Retrieved2023-10-16.
  23. ^Reece, Doug (1998-08-15). "K-tel moves into digital distribution of songs".Billboard.Vol. 110, no. 33. p. 6.
  24. ^"K-Tel International Ltd".Discogs.Retrieved2023-10-16.
  25. ^"Canada's Best-Selling Kids Music Group the MINI POP KIDS Celebrate their BRIGHT LIGHTS RELIT TOUR with New Video for" About That Time "| Cashbox Canada".cashboxcanada.ca.Retrieved2023-10-16.
  26. ^Kliem, Theresa (April 2022)."K-Tel compilations were the Spotify of the 70s, thanks to one Sask. man".CBC News.Retrieved16 October2023.
  27. ^CBC News (April 2016)."Phil Kives, K-Tel International founder, dies at 87".CBC News.Retrieved16 October2023.
  28. ^Williams, George (August 2016). "K-tel founder Phil Kives sadly missed in Manitoba racing circles".Canadian Thoroughbred.31(6): 17.
  29. ^ab"K-Tel: The Secret History".The Independent.January 9, 2005.
  30. ^abSchudel, Matt (April 28, 2016)."Phil Kives, K-Tel pitchman 'As Seen on TV' who got America 'Hooked on Classics,' dies at 87".The Washington Post.RetrievedAugust 22,2016.
  31. ^"When Compilations began with a K"Nielsen Business Media, Inc. (25 November 2000).Billboard.Nielsen Business Media, Inc. pp. 100–.ISSN0006-2510.{{cite book}}:|last=has generic name (help)
  32. ^"The New K-Tel". by Matt Ashare. inSPIN Media LLC (December 1999).SPIN.SPIN Media LLC. pp. 76–.ISSN0886-3032.
  33. ^"K-Tel International (UK) Ltd".Discogs.Retrieved2022-07-10.
  34. ^"THE COMIC ANSWER COMPANY LIMITED company key information - UK.GlobalDatabase.com".uk.globaldatabase.com.Retrieved2022-07-10.
  35. ^"The Comic Answer Company".Discogs.Retrieved2022-07-10.
  36. ^Spitting Image Answer Backs Royal Impressions answering machine cassette,retrieved2022-07-10
  37. ^Spitting Image Answer Backs Celebrity Impressions for Your Answerphone,retrieved2022-07-10
  38. ^Spitting Image - Celebrity Answerbacks,retrieved2022-07-10
  39. ^ab"Abandonware games published by K-Tel International (UK) Ltd".My Abandonware.Retrieved2022-07-10.
  40. ^Catalano, Michele (February 20, 2013)."K-Tel Records - The Spotify of the 70s".Forbes.RetrievedApril 30,2016.
  41. ^"Dave Grohl's SXSW Keynote Speech: 'The Musician Comes First'".Rolling Stone.March 14, 2013.RetrievedApril 30,2016.
  42. ^"Philip Kives, K-tel's creator, brought loud chutzpah to TV advertising".The Globe and Mail.April 28, 2016.RetrievedApril 30,2016.
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