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the impact of the "3¢ rate" on the typical li recent *** industry, an analysis was sade of the Top 50 911 ..** igazine on March 3, 1973, selected as rasdoa 11:atr.. bums contained two records, a total of 165 records ..* ined. If, for purposes of calculation, ce assant : ry rate of 24 per license and released tune was p., * * is sample would have called for a royalty of it!! ...
royalties currently paid in excess of it as a mi se minute" rate, the average sechanica! renalty pu: * tample is estimated to have been about it y royalty tha:, in contras:, would have bee 2. Melly # to this Subcommittee by the publish""Te " vs. ne or 3/4& per minute of playing time, b reit & Fur he statutory Dechanica: rovar :/ lerine sier W provisions, would have been 35€, 12 ***** * (See Exhibit 6).
Percentages of "Overtime" Over
Over 5 Minutes 4 Minutes
*.5 ***17113 is based on the top 180 of the top 200** albums listed LSI. ** March 3, 1993. Because some albums contained to *****, * total of 165 records with 1.653 tunes were tised from the 1) auto.
s increase in the sechanical rovalsy rate seara
ly, the answer would depend upon whether ** *** ***
the past four years, 1973-1998, of m e : the standpoint of recording indus: yrat.:),
Tint la specifi. & statutory rate of de per select love * #1 rears, record panies have general y adopt .d the practis
*64.513 , unt of Vie pe alu.. ol . ture's play!
$ pe: record.
MUSIC PUBLISHING INDUSTRY AND RECORDING INDUSTRY, 1971-1974
Estimated Estimated increase increase, as Total
Estimated Recording Increased Mech-
Profits From All
Increased Mechanical Royalties
of Record Industry Pre-Tax Profits from All Sources (Percent) as
try, these increased royalties would have represented not less than 38.61
the the pool years and the two bad, the increased royalties would have
dollat terms, the increase in royalty rates would have taken an rrug of about $46 million a year over the four year period from the PRE:1414 164TTY (a total of 1:84 aillion) and given that soney to the 28.6 p.shy ladustry. The publishing industry's "take" from sechanical
yen... 4 have been increased from an annual average of about $?! 21111on 11 e rrage of about $:::10. This would have represented an increase
****** metanical royaity income of about 391.
* surrogate pro-tar profit of the recording industry from all sources for the fourruar per ad would have been reduced by the same $184 million,
. tipart of about $497 aillion to about $2!8 million in terms of an a miar nerage, the pre-tax profit of the recording industry would en ser fram about $:00 million to $54 million.
se tiparts of inpact on pre-tax profits of the recording industry #oste to pro-tax profits from all sources, including foreign fees for records wie w tra V S. -nade sasters - on which foreign sechanical royalties
* 4 to $ copyright owners by foreig record companies -- together
* ;* . to se records that doestic sechanica. royalties relate.
a you.. st . laro' ina : ova...s 14€ :su. la..
MIUNILAL ROYALTIES COMPARED TO RECORDING INI USTKY PRE - TAX PROF ITS
Phu tu CORDS MADE AND SOLD IN THE UNITED STATES, 1971-1974
l routes on records made and sold in foreign countries.
proposed "Se Rate", including the increase, would have averaged 3156 of those
1., n fact, averaged 1991 of the pre-tax profits of the recording industry
1 ster words, whereas mechanical royalties were about twice the profits w! tans with recording csepanies derived from records sade and sold in 1 st Statos, the royaities under the "3¢ Rate" would be over three tises Tu te prutar profits.
ta the fupepring paragraphs, we have been speaking of the recording ko many as wie One can assume -- correctly - mat some record manors ens sont
p l . than semers. The impact of the increased sechanica: 2.1.1 sveragely profitable recording companies would have been stagger. 4 * average of 441 of their pre-tax prof::. fra a!! sources over a ! pour per: For « less profitable fin, the ispast wou! 4 have been
Et it at FN 11 t . nere penny increase, but transfer of a 1 annt of money for ne industry is another. Siven, as we have seen, * **.4'. *r: :ons at the two industries to recorded music, and the 1.41..hee!!** **r derire respectively or recorded music, this trang. Proud m or, rearned windtail for the one and a sajor - stagror.
* ble for other