The Atlantic Records Story (1994)

Atlantic was formed in 1947 by Ahmet Ertegun and Herb Abramson in New York City. Atco and Cotillion were later added subsidiary labels and Clarion was a budget label. Atlantic recorded rhythm and blues, jazz, blues, country and western, rock and roll, gospel, and comedy. From the beginning, Atlantic was different from other independent record companies. Their financier/dentist did not put pressure on them for immediate return on his investment, so Herb and Ahmet were free to make decisions based on their own good musical judgment. They did not cheat performers, as many of the other independent labels did. They gained a reputation for being honest, and that reputation as much as anything was the foundation for the success of the company. Many talented performers were willing to sign long term contracts with Atlantic because they believed that their royalties would be paid. Atlantic's business practices allowed them to hire the best musicians in the business. When it was industry practice to pay royalties below 2 percent -- or in the case of many black artists, no royalties at all -- Atlantic was paying 3 to 5 percent.