Muushroom 25- Celebrating 25 Years Of Making Waves

Mushroom Records started out intending to beat the major record companies at their own game. In the early '70s, the multinationals in Australia had little respect for local acts. As a result, there was little realization that a large album market had developed for bands that would reflect the changes in Australian society. In the wake of Vietnam war rallies, pot and rock-festival culture and the abandonment of the segregationist White Australia Policy, Australians were beginning to see themselves as a unique people in a unique part of the world.
Mushroom filled this niche, providing its acts with the quality artwork and marketing previously afforded only to international acts. During its 25-year history, some 8,000 recordings by 400 signings helped break down a general 'cultural cringe' on the part of Australian fans toward local acts. Skyhooks, Split Enz, Paul Kelly, Hunters & Collectors, Jimmy Barnes, Nick Cave, Yothu Yindi, Archie Roach, the Church, Hoodoo Gurus, Frente!, Triffids, Renee Geyer, Jo Jo Zep & The Falcons, Dingoes, Ol'55, Stars, Ayers Rock and Swoop--these are just some of the artists who helped create a quality local-music language, providing worthy soundtracks of self-image and changing perceptions for young Australians. Mushroom's staff of 100 had a reputation for pro-active and aggressive marketing, forging a close retail/media alliance.
By the time Michael Gudinski launched Mushroom Records at age 20, he had had a number of interests. The son of Russian immigrants, by age 15, he ran shows at the local town hall. At 19, he was helping run a booking agency, managing acts (one, Chain, which had a No. 1 hit with an updated field holler blues 'Black And Blue') and co-publishing a music lifestyle magazine, 'Daily Planet.'
Mushroom Records borrowed from U.K. labels Chrysalis and Island the importance of branding, and their solution to financial viability.
'I also learned from them the importance of having a number of interests under the one roof--label, management, publishing, booking agent and merchandising,' says Gudinski. 'In a small market like Australia's, it was important to keep the cash juggling so you could take the project as far as you could.'
Within the Mushroom Group, Gudinski runs a large network of companies, usually with long time trusted friends: Michael Chugg is general manager of the Frontier Touring Company; Frank Stivala is managing director of Premiere Artists (Melbourne), and Sam Righi is managing director of the Harbour Agency (Sydney)--the first is the concert promotion arm of Mushroom while the latter two are booking agencies. Philip Jacobsen is financial director for Premiere Artists.
Each of these associates is from band-management or booking-agency backgrounds. Frontier Touring is understood to be Mushroom's most lucrative enterprise, with an office in Hong Kong to service the Southeast Asian tour circuit. Frontier has promoted tours by Madonna, Sinatra, Dylan, Kiss, Bon Jovi, Guns N' Roses, Tom Jones, the Eagles, Pearl Jam, Red Hot Chili Peppers and, in early 1998, Elton John & Billy Joel.
The Crown Entertainment Complex, a casino, hotel and retail development in Melbourne, opened in May 1997 and includes Gudinski's club, the Mercury Lounge. The club was launched by Sheryl Crow with a special appearance by Elton John. The Frontier Touring Company books for the casino's Palladium Room, which was opened by Elton John & Billy Joel and has had exclusive one-off appearances by Whitney Houston, Celine Dion, Rod Stewart and Stevie Wonder.
Mushroom Music, under managing director Ian James, is the largest independent publisher in Australia and has the publishing for the bulk of Mushroom acts, as well as the catalog for important bands such as Split Enz, Daddy Cool, the Loved Ones and the Models. It represents the international catalogs of Chrysalis, Flying, Windswept and Pacific, and sub-publishes Offspring, Red Hot Chili Peppers and ZZ Top. Mushroom also exclusively licenses to two phenomenally successful sitcoms, 'Home & Away' and 'Neighbours,' which are broadcast in the U.K. and Asia.
Mushroom Pictures under CEO Martin Fabinyi makes the 'Fashion' program for Foxtel pay-TV, produced 'Tribal Voice,' a documentary about Aborigine band Yothu Yindi, and produced the prime-time Mushroom anniversary special for Channel 9 in December. It is set to release its first full-length feature movie--about Australian hitman Mark 'Chopper' Read--this year.
Australian Tour Merchandising, under managing director Rosalind Braham, sells at concerts in Australia, New Zealand and Southeast Asia, with rights to the $1-billion Australian Football Leagues industry.
Here's a chronology of the sprouting of the Mushroom Group:
1972
Mushroom Records and publishing are set up to gain greater control over the acts in Gudinski's booking agency.
1973
Mushroom's debut release is a triple-album set, 'The Great Australian Rock Festival, Sunbury '73,' featuring some of the best live acts at the time.

1974
Gudinski signs up Skyhooks, whom he manages, while also handling publishing for some of its members. Their debut album, 'Living In The Seventies,' remains in the charts for over a year and puts Mushroom in the black for the first time. Australian Tour Merchandising is forerunner of music/sports memorabilia marketing in Australia.
1975
Oz Records, through A&M, is set up briefly as an assault on the U.S. market after releasing eight albums.
1976
Mushroom starts Suicide Records in the wake of punk. One of its signings, Boys Next Door, launches Nick Cave's career.
1978
Gudinski becomes talent coordinator for a Channel 7 music show, originally called 'Mushroom Hour' but changed to 'Nightmoves.'
1982
White Records is set up by the late Neil Bradbury as Mushroom's developmental imprint with alternative leanings. It signs Hunters & Collectors. Four years later, it absorbs Sydney indie Hot and gains the Triffids. White also signs Paul Kelly, Frente!, Archie Roach, the Church, Chris Wilson, Christine Anu, Nick Barker & The Reptiles and the Mavis's. It represents Billy Bragg in Australia, New Zealand's Flying Nun label and U.K's Infectious. More recently, White absorbed developmental label Bark, developed by A&R manager Bill Page.
1985
Mushroom launches Liberation Records, which initiates early success for the Bangles, Coolio and Faith No More in Australia. It takes over Australian distribution of Mute, gaining Nick Cave & The Bad Seeds and Depeche Mode.
1988
In the wake of U.K. success of pop signings Kylie Minogue and Jason Donovan (signed in the U.K. to Stock, Aitken & Waterman's PWL Records), the Melodian label is set up in partnership with TV commentator Ian 'Molly' Meldrum to widen the teen-pop market. Early signing Peter Andre becomes a U.K. big seller. Indecent Obsession tops the charts in South Africa and Indonesia.
1989
Mushroom Distribution Services (MDS) is set up under Scott Murphy as an alternative distribution network. Develops local artists, specializes in dance music globally and sets up a Hong Kong office with 10% of its business coming from that region.
1993
The Murdoch Group's News Corporation becomes a minority shareholder in Mushroom for a reported $10.5 million (AUS $15 million), funding the label's opening of a U.K. office in April, under GM Gary Ashley. Ashley signs Garbage to Mushroom for the world outside North America. The London operation includes Infectious Records, a joint venture with former RCA Records U.K. executive Korda Marshall, current GM of Mushroom U.K.
1996
Mushroom has its first U.K. No. 1 album with Peter Andre's 'Natural,' which spawns three chart-topping singles. Asian success for Andre, Swoop and Deni Hines.
1997
In March, Mushroom ends its 25-year distribution alliance with Festival and signs a new distribution deal with Sony. James Murdoch, VP of music and new media of News Corp., joins the Mushroom board. The Crown World Of Entertainment opens in May, with two of Gudinski's companies involved in booking the casino's Palladium Room. The complex also includes the Mercury Lounge nightclub, which Gudinski oversees with partners Philip Jacobsen and Frank Stivala. In October, year-long 25th-anniversary celebrations for Mushroom begin. Plans include a prime-time TV special, a huge concert with notable reunions, reissues of back catalog and a
coffee-table book on Mushroom artwork.
1998
Mushroom prepares to open its New York office to oversee a series of U.S. distribution deals, to be announced.Ên

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