Lame
Let's see, Julius La Rosa is told ballads don't sell and the first bit of evidence is Paul Anka singing a ballad. Actually, aren't most of the songs ballads in this (with the exception of "Let's Go to the Hop" and "Short Shorts")?
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The whole premise of this movie is faulty. Rock and Roll did not wipe ballads off the charts at all. Sinatra still had big ballad hits, as did Jane Morgan, Perry Como, Dean Martin and Della Rese (who is in the film) to name just a few. Instead of singing music for teens, the character Julius Rosa played just needed GOOD ballads to record for the adult consumers.
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