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The income provided to the music publishing industry_by_recordings_-Deasured in the dollar agregate, and per recorded tune -- has grown very rapidly. It has grown faster than inflation. It has even gTOWN faster than "Yedian Family Income." Music Copyright owners' income from recordin's cones not only fron Dechanical rovalties paid by U.S. record hakers. They also set incomes from paynents of sech ani cal rovalties by fore: record makers.cluding foreign companies that aake, and selle recor*s abroad powerican-made naster Recordings. Copyri ihtowers also receive larre and TCWing in comes from records used in radio and television broadcas: :, and in providing backgrouna au sic that is a wide y sold service.

Not only is the share of revenues from the sale of recordings that goes to publishing cospanies and other copyright owners much greater than orig. inally visualized by Congress, but their dollar incomes from recordings have, in fact, increased very much faster than inflation.


Inflation in the Decade 1963 and 1973

Between 1963 and 1973, the average annual Consumer Price Index, based on the year 1967, rose from 91.7 to 133.1, an increase of 451.. In those years, Median Family Income, that level of income where 501 of American Families have more and 50% have less, and which takes into account both dollar inflation and increases la real income besides, rose froa 56,26% in 1965 to $12,051 in 1993, an increase of 921.

40* 110 " merican music yabishia indus:- fare in compari. son, as between those years! Let us exaaine what happened to each of the several kinds of income that copyright owners derive from record. ines. The following facts are set forth la Exhibits : and 3. *

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the Decade 1963 and 1983 : 963 and 1973, the average annual Consumer Price isten vear 1967, rose from 91. to 153 I, a increase of any 1, Median Family Income, ther cover of income where he mises have more and 501 have ions, and the fun wito Dirar infiat. and screases in roa. 1:21 15.1.2 :3 to 8:: : 1 :9*), « 1378 of 1.

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[ocr errors][ocr errors][ocr errors][ocr errors] Romaities from U.S. Record Makers

Between 1963 and 19'), Bechanical royalties paid by V.S. record comparles more than doubled fros $37.6 million to $77.1 million. That is an increase of sosething of the order of 1131. This is to Due compared to the increase of 451 in the cost of Living Index and the increase of 954 in Median Faaily Incone. ***: a) leva!:ies from forem Record Companies

In addition to those domestic mechanical royalties, copyright ett sino receive royalties from forein record makers. A substanTudi of those foreim royalties come from the use of master Tere!?* use by Vs. recording companies in the United States and that are licensed for sanufacture and distribution abroad by non-US. tancanies forein rora.ties have grow even faster than 9.S. moy Hitler Mechanical royalties received by U.S. copyright owners tras record companies abroad rose from $6 9 aillion in 1963 to $35 Bila la 19'4. Det is an increase of 40°1.

. .:49. al rorulties

total mechanica: royalties paid to publishing companies rose, therstore, free $44 $ million to some here around $115 million. Say the sameling i.. 1581.

**1_9 arising Industry from Comercial use of Recorina!

La addition to enania rovaities from record ankers, COFYT: 3+ met got iarr and growing incomes from the use of recordings la "Wed 24 té.05. broe.asting and in canenia: suppii. "Sa...


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It should be noted in passing that, unlike the music publishing industry, recording companies receive not one penny in the form of performance royalties from commercial uses of their products, as in broadcasting and "background" music. Copyright Owners' Total Income from Records

Taking these several incomes together, publishing companies and others, in 1963, derived from records and their commercial use a total income amounting to $60.2 million. These kinds of incomes, in 1973, came to something like $159 million. The 1973 figure represented an increase of over 2601, as compared to the increase of 451 in the Cost of Living Index and of 924 in Median Family Income. These are the facts as to how music publishing companies and other copyright owners fared from recorded susic in comparison to inflation. Increase in Royalties Pet Tune

Not only have royaities to copyright owners increased faster than inflation in the aggregate, royalties per tune have also increased faster. This has occurred because of two reasons: first, because of the expansion in recording sedia, a new tune is often released in numerous mechanical forzs -- on a 45 RPM single, as a band on an LP, on an 8-channel tape or a tape-cassette. Royalties are paid on each unit of each of these forzs, many times under several different licenses. Additional paying licenses will occur if the tune is later released through a record club, or if re-recorded on a budget album. Second, if a second or third or fourth artist also perforas the tune, a separate license for each release wil1 result in further royalties for the same, original tune.

Accordingly, a reasonably popular tune can be the subiect of dozens and so:ons i separate.y ::censed ', .eases. : ising.e rear. This runber of "releases" of a singie performance has been tending 0 increase as the numbers and popularity of different recording media have been 13:eas:78. and with trissues, often on budget" labels, of bone: favor::s.

he way of estimating the grond in rovities recsaved pet me * :: 305 : ::::1. 10. a: noun:) .. :S supay o divi e ta.

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