How Deutsche Gramophone was born

We saw how Trevor Williams and William Barry Owen set up The Gramophone Company in England in 1897-8 to exploit Emile Berliner’s new gramophone technology by finding & recording artists and marketing and selling their records – as well as selling the gramophones to play them on.

Under their deal with Berliner, Williams and Owen agreed that gramophones were to be manufactured in the US and then shipped to The Gramophone Company for European distribution. Their first order was for 3,000 machines, which they would sell for £10 (equivalent of circa £910 buying power today).

The Gramophone Company’s first stock of records also came from the States. The initial order was for 150,000 American manufactured discs. Berliner and the European management decided that a European disc manufacturing facility would be needed quickly because the boat from USA was not only too expensive but too slow for the new enterprise.

Berliner decided to set up a separate company to manufacture the European discs. His brother Joseph offered to invest in the enterprise on the proviso that the pressing plant be located in Hanover, Germany, where he lived. Berliner, who was apparently wary of British Trades Unionism, agreed to the plan in 1898. The new company was called The German Gramophone Company – or, in German, Deutsche Grammophon. It would go on to become one of the greatest record companies of all time and remains today a separate label functioning within the Universal Music empire.

Berliner sent over one of his American team, his nephew Joe Sanders, to set up the plant. He’s standing second from the right in this picture of Berliner’s early US team. Berliner is seated front left.

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