THE KING OF RECORDS AT CBS
LAST week began well for Walter Yetnikoff, president of CBS Records. On Monday, Michael Jackson's ''Thriller'' album, which has sold 21 million copies under CBS's Epic label, got 12 nominations for Grammy Awards, the record industry's answer to Hollywood's Oscars. That night, the young performer walked away with most of the American Music Awards. But on Tuesday, the music turned sour: the Supreme Court, in the Betamax decision, upheld the legality of television taping at home and dealt a blow to the record industry, which has lost billions in sales to the unauthorized taping of music. On balance, however, CBS Records is on a roll, and so is Mr. Yetnikoff. ''This has been the best year we've ever had for CBS Records profits,'' he said, in an office tiled in ''platinums,'' the prizes handed out by the Recording Industry Association of America for albums that sell over 1 million copies and singles that sell over 2 million.