As successful as the label was financially, the independent label produced successes on the pop charts never before seen by the recording industry. By one point in 1978, the label boasted an unprecedented 6th consecutive #1 single on the Billboard (US) pop charts, holding the top spot for 21 consecutive weeks. With singles releases from the Grease album (“You’re The One That I Want”, and the title track) and another huge Andy Gibb smash (Shadow Dancing), RSO would log a further 10 weeks at the #1 position, giving the label a record 9 in one calendar year (it just missed a 10th, as the Bee Gees release “Too Much Heaven” was held from the top spot until January 6, 1979). This feat remains unduplicated by any record label to date.
As high as the label was flying in 1978, the disastrous commercial and critical failure of RSO’s movie version of Sgt. Pepper’s Lonely Hearts Club Band crippled the company. The woes of this monumental failure were only somewhat offset by the middle of 1979, as the Bee Gees album, “Spirits Having Flown”, went on to eventually sell nearly 20 million copies (with the album producing three further #1 singles that each sold more than 1 million copies in their own right).
In 1980, the label’s most famous act, the Bee Gees, filed a $200 million lawsuit against both RSO and Stigwood, claiming mismanagement. The lawsuit was subsequently settled for an undisclosed amount, and after a public reconciliation, the band remained with the label until its dissolution.