Only financial statistics on record and tape operations in the
United States should be supplied.

These figures can be estimates if necessary, but please indicate if they are.

PLEASE MAIL THIS INFORMATION BY JANUARY 15, 1975.

Record Companies Which Responded to the Questionnaire Entitled

"RIAA SURVEY OF MECHANICAL FEES

PAID BY RECORD COMPANIES IN 1973 and 1974"

ABC/Dunhill Records

Alshire International, Inc.

A & M Records, Inc.
Ansonia Records

Arista Records

Atlantic Recording Corp.

Bee Gee Records

Buddah Records

Capitol Records, Inc.

Challenge Records

Cinnimon, c/o Goldband Records

Columbia/Records Group

Disneyland/Vista Records

Elektra/Asylum/Nonesuch Records

GNP Crescendo Records

GRT Corporation

Hickory Records, Inc.

Icka-Delick-Music & Records Corp.
London Records

Longines-Symphonette Recording Society

MCA Records, Inc.
Mill City Records

Nashboro Records

Phonogram, Inc.

Pickwick International, Inc.

Polydor, Inc.

RCA Records

Savoy Records, Inc.

Sussex Records

20th Century Records

United Artists Music & Records Group, Inc.

Thomas J. Valentino, Inc.

Warner Bros. Records

Word Records

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RIAA SURVEY OF MECHANICAL FEES

PAID BY RECORD COMPANIES IN 1973 AND 1974

Only financial statistics on record and tape operations in the
United States should be supplied.

Company

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Code Number

*These figures can be estimates if necessary, but please indicate if they are.

PLEASE MAIL THIS INFORMATION BY JANUARY 15, 1975.

Exhibit 4

-

STATUTORY MECHANICAL ROYALTIES PAID PER RELEASE
OF RECORD TUNES: 1963 vs. 1972.

Exhibit 4 represents an attempt to estimate the mechanical royalties
which one release of a typical tune will gather in a year's time. It takes
the total sum of mechanical payments in each of the comparison years and
divides the sum by total tunes released as reported by Billboard. Such an
estimate ignores royalties paid on tunes released in previous years. How-
ever, RIAA studies show that the vast majority of record sales are of
records which have been on the market for 90 days or less; consequently,
the vast majority of mechanical royalties are paid on recent releases.
Furthermore, the Billboard release data, as mentioned in footnote "c" in
the Exhibit, by counting all releases issued, even if the same tune is on
more than one release overstate the number of unique tunes released.
two errors of estimation should roughly cancel one another.

These

Exhibit 5

-

ESTIMATED FINANCIAL STATISTICS AND INCOME
STATEMENT FOR THE U.S. RECORDING INDUSTRY
1955-1974 (PARTS: A, B, C, & D).

Data presented in Exhibits SA, 5B, 5C and 5D are based on a lengthy financial survey of recording companies which CRI conducted in 1973 and then updated in 1974 and 1975. The survey represents an important source of statistical information on the recording industry used in the full statement, and was conducted as described below.

Design of the Sample

The survey was distributed among all 55 member firms of the Recording Industry Association of America in 1973. It was determined in advance that limiting the survey to these firms was the most appropriate and convenient way of assuring cooperation of the respondent firms within the constraints of time and funds available.

CRI encouraged as many of these member firms as possible to respond to the lengthy questionnaire, under the assurance that individual company responses would be strictly confidential. Indeed, CRI itself was not privy to individual questionnaires; the results were tabulated by the CPA firm

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of J.K. Lasser and Co. In this manner, full responses were received from
13 firms. As spelled out in Exhibit 5-D in the main report, these 13 firms
represented 16 of the 19 firms in the Glover report of 1965, as three had
merged in the interim period. This overlap provides acceptable reliability
for year-to-year comparisons.

The questionnaire itself was designed with great care, in consultation
with financial executives of various recording firms. In this way, it
was assured that proper financial categories and definitions were employed,
and that the questions asked could be answered. The questionnaire was similar
to the one employed for the survey reported in the 1965 Glover report.

Representativeness of the Sample

.

For years 1967 to 1974, inclusive, financial survey data was provided, as follows:

All 13 companies reporting for years 1971-74 were unable to report for the full period 1967-74 because some were not in business for the full period; some did not maintain the requisite historical data; and still others were participants in mergers and acquisitions rendering historical data misleading or unavailable.

The survey encompasses firms which account for a low of 43.0% of industry sales in 1968 and a high of 63.8% in 1974. Such large sample size works to make sample results representative of the universe even when the sample is not known to be random in a scientific sense, as is the case here. Moreover, the data presented are as representative as it was possible to obtain.

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