Editing Atlantic Records (section)

===Stax===
Atlantic was doing so well in early 1959 that some scheduled releases were held back. The company enjoyed two successive months of gross sales of over $1 million that summer, thanks to hits by The Coasters, The Drifters, LaVern Baker, Ray Charles, Bobby Darin, and Clyde McPhatter.<ref>Broven 2009, p. 68.</ref> Months later the company was reeling from the successive loss of its two biggest artists, Bobby Darin and Ray Charles, who together accounted for one-third of sales. Darin moved to Los Angeles and signed with Capitol. Charles signed a contract with [[ABC-Paramount Records|ABC-Paramount]] that included higher royalties, a production deal, profit-sharing, and eventual ownership of his master tapes. "I thought we were going to die", Wexler recalled. In 1990 he and Ertegun disputed the content of Charles's contract, which caused a rift. Ertegun remained friendly with Bobby Darin, who returned to Atlantic in 1966.<ref>Wade & Picardie 1990, pp. 98–99.</ref> Ray Charles returned to Atlantic in 1977.<ref>{{cite web |title=Ray Charles Albums – 1970s: Ray Charles |url=http://raycharles.com/ray-charles-albums-1970s/ |archive-url=https://web.archive.org/web/20100217020458/http://raycharles.com/ray-charles-albums-1970s/ |archive-date=February 17, 2010}}</ref>

In 1960, Atlantic's Memphis distributor Buster Williams contacted Wexler and told him he was pressing large quantities of "Cause I Love You", a duet between [[Carla Thomas]] and her father [[Rufus Thomas|Rufus]] which was released by the small label Satellite. Wexler contacted the co-owner of Satellite, [[Jim Stewart (record producer)|Jim Stewart]], who agreed to lease the record to Atlantic for $1000 plus a small royalty—the first money the label had ever made.<ref>Wade & Picardie 1990, p. 129.</ref> The deal included a $5000 payment against a five-year option on all other records. Satellite was renamed [[Stax Records|Stax]] after the owners, Stewart and Axton.<ref name="wade130">Wade & Picardie 1990, p. 130.</ref> The deal marked the start of a successful eight-year association between the two labels, giving Stax access to Atlantic's promotions and distribution. Wexler recalled, "We didn't pay for the masters...Jim paid for the masters and then he would send us a finished tape and we would put it out. Our costs began at the production level—the pressing, and distribution, and promotion, and advertising".<ref name="wade131">Wade & Picardie 1990, p. 131.</ref>

The deal to distribute Satellite's "[[Last Night (Mar-Keys composition)|Last Night]]" by [[The Mar-Keys]] on the Satellite label marked the first time Atlantic began marketing outside tracks on a non-Atlantic label.<ref>{{cite news |title=Atlantic to Distribute Satellite's 'Last Night' |magazine=Billboard |date=May 29, 1961 |page=5 |url=https://books.google.com/books?id=BCEEAAAAMBAJ&pg=PA5}}</ref>

Atlantic began pressing and distributing Stax records. Wexler sent Tom Dowd to upgrade Stax's recording equipment and facilities. Wexler was impressed by the cooperative atmosphere at the Stax studios and by its racially integrated house band, which he called "an unthinkably great band".<ref>Wade & Picardie 1990, p. 132.</ref> He brought Atlantic musicians to Memphis to record.<ref name="Atlantic Records Story"/> Stewart and Wexler hired [[Al Bell]], a disk jockey at a radio station in Washington D.C., to take over promotion of Stax releases. Bell was the first African-American partner in the label.<ref name="wade131"/>

An after-hours jam by members of the Stax house band resulted in "[[Green Onions]]". The single was issued in August 1962 and became the biggest instrumental hit of the year, reaching No. 1 on the R&B chart and No. 3 on the pop chart, selling over one million copies. Over the next five years Stax and its subsidiary [[Volt Records|Volt]] provided Atlantic with many hits, such as "[[Respect (song)|Respect]]" by Otis Redding, "[[Knock on Wood (Eddie Floyd song)|Knock on Wood]]" by Eddie Floyd, "[[Hold On, I'm Comin' (song)|Hold On, I'm Comin']]" by Sam and Dave, and "[[Mustang Sally (song)|Mustang Sally]]" by Wilson Pickett.