He became their producer throughout the group's career. By early 1963, the machinery was in place to make the Beatles a national sensation. The group soon achieved their goal, first becoming well known in their native Liverpool, and then throughout England. In October, the Beatles gained national exposure when they performed at the London Palladium. (Beatlemania also begins to spread throughout Europe.)
Within two more weeks, on Nov. 4, the group solidified their reputation , performing for the Queen at the Royal Variety Performance. (They followed Sophie Tucker and sang "Till There Was You", "Twist And Shout" and "She Loves You". This was the performance that had the famous Lennon line: "Will the people in the cheaper seats clap their hands?" Looking up toward the royal box, he then says (two accounts here): "Those upstairs, just rattle your jewelry". Or, "And the rest of you, if you'll just rattle your jewelry". 26 million British watched. They were a hit.
By Dec. 1963, manufacturers started to offer Beatles products. There were: plastic Beatles guitars, miniature Beatle drums, lockets, red and blue Beatle kitchen aprons, with guitar-playing bugs. Their faces and signatures were on: belts, rubber airbeds, shoulder bags, badges, record racks, pencils, handerchiefs, bedspreads, buttons, jigsaw puzzles, ottomans, and trays. There was a Ringo roll, (a brand of confectionery), Beatle chewing gum with seven photos, and a northern bakery had guitar-shaped Beatles' cakes.
Brian Epstein, at first, personally examined each product, but soon unauthorized goods appeared-the group's name was spelled "Beetles" to get around copyright infringement. (Epstein actually may have lost billions here: he didn't foresee the huge monetary potential.) By late 1963, the merchandising was in such a tangle that all this was handed over to Brian's lawyer, David Jacobs .
Jacobs, in turn, turned it over to Nicky Byrne, who made a 90% profit on the entire merchandising! (The British company was called Stramsact.) Meanwhile, the Beatles fan club swelled to more than 800,000, two singles, "I Want To Hold Your Hand" and "She Loves You" were million sellers, and their first British album, "Please Please Me" was no. 1 for more than six months.
By the end of 1963, the group had sold 11 million records and 18 million worth of Beatle products. The Mersey Sound had become red-hot. Even at this first stage of success, the group began questioning the value of stardom; they felt diminishing control over their music and lives. Despite their doubts, the Beatles prepared for even greater success in America.
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