K-tel was one of the major TV‑advertised budget‑compilation labels sold in Woolworths and identified as part of their “dominant share of the budget music market.” K-tel was particularly successful in the 1970s and early 1980s.
If you watch Top of the Pops, find Mary Whitehouse's hysterical outburst at the Rolling Stones' disc little short of puerile and think that Donald Peers' come-back is way over-due, it is odds-on that you know something about records. That being so, you will no doubt be aware of the quiet revolution that is making its presence felt on the British record-buying public.
For those who don't watch Top Of The Pops, who like Mary Whitehouse and think Donald Peers does not need to make a come-back, let me reveal that the revolution is being led by an unknown company, K-Tel. And if that means nothing to you, read on.
K-Tel is a Canadian concern that is best described as a marketing organisation. Led by Philip Kleves, K-Tel is the company whose record, "20 Dynamic Hits" is riding high in the top LP selling charts and some retailers put it at the top - above the Rolling Stones and Donald Peers. Among the many amazing facts about K-Tel and the "20 Dynamic Hits" album is the selling price of £1.99 and the total sales of well over 250,000 in just a few weeks.
K-Tel's approach is unique. They went along to disc companies like CBS and EMI and persuaded them to put on one long-playing record 20 individual hits by the original artists. Now, there is little revolutionary in that idea. But there was plenty different in the fact that, having signed up the various artists like Argent and other well-known hitmakers, K-Tel then produced a punchy advert for the commercial television stations. The cost was a staggering £300,000 and while sceptics laughed at the idea of K-Tel even breaking even on the deal, farmer's son, Kieves brought home the bacon in stupendous style; outstripping by a mile previous sales of similar discs. K-Tel's marketing approach brought it into contact with an audience that rarely touches the normal more conventional sector of record buying public.
No doubt Kieves and his colleagues were swayed by the fact that in 1971 the record business had a tough time. Sales rose only £4,000.000 compared with a £17,000.000 12 months earlier. Therefore. it takes little marketing imagination realise that Kieves felt a new audience need to be attracted. And that is just what he did. His television advertisement was an overwhelming success and now talk in the record trade is that K-Tel's "20 Dynamic Hits" will sell 500,000 copies, a massive figure by any standards, let alone by regular hit standards. And, it would be Interesting to know what people like EMI and CBS feel about making more money from a bunch of records that even optimists would have said had long had their day. Of course these companies are receiving some sort of royalty from the album and I doubt whether they will show much reluctance to any new disc planned by the successful Mr. Kieves.
K-Tel's next move is thought to be two albums, possibly "hits of the fifties" or a straight "rock 'n roll" long-player. But after their amazing success with "20 Dynamic Hits" it would be naïve to imagine that K-Tel will have the field to themselves in the future and the emergence of a competitor, possibly even one of the larger record producers, cannot be ruled out. Sceptics who scoffed at the initial thought of K-Tel's brain-child will probably be amongst the first to leap aboard the bandwagon.
K-Tel themselves are undeterred by it all. The "20 Dynamic Hits" album is not their only success. The company was responsible for the recent publicity surrounding the "brush-o-matic" clothes brush and recent estimates name the company as America's 21st largest advertiser with an annual budget of around £4,500,000. Profits are running at around the £10,000,000 mark, half of which comes from record promotion activities, and the company's shares are quoted on American stock markets.
The British record industry and perhaps even at some future date UK investors keenly await K-Tel's new venture. Might I suggest a Mary Whitehouse / Donald Peers partnership singing the Rolling Stones?
Michael Smith, Belfast News Letter, June 27, 1972
K-Tel International knows a winning pop album formula when it sees one. Earlier this year the firm, which is part of a group which usually sticks to marketing household goods, brought out the easy-priced 20 Dynamic Hits record. This broke new ground in the music industry in that it made available a recent collection of hits all by the original performers. It sold well and was followed up by 22 Dynamic Hits Volume II. Now two more albums have been put out specially for Christmas. Twenty All Time Greats Of The 50s is already in the charts and, 25 Rockin' And Rollin' Greats should join it before too long.
Peter Patson, Western Daily Press, December 7, 1972