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impact of the "3¢ rate" on the typicai :: recert ane * stry, an analysis was made of the Top 15: 22: :1984 ine on March 3, 1973, selected as randon um s contained two records, a total of 165 records 6o.' 9. If, for purposes of calculation, abe us at**: ***
ate of 24 per license and released tune was paid, the sample would have called for a royaity of he yalties currently paid in acess of it as a resu! He ute" rate, the average mechanica: revisy 7:6 x ! le is estisaied to have been about it yaity that, in coatrass, outre ber 19. SP
chis Subcomit: ee by the publis..creme * *35 yon egon or 3,46 per minute of plaving ::2, 220; 3 per satucery ****27:: revay!! ?e ser
r3v:s: ons, would have been 356, do ": pe Exhibit 6).
9. tral 3:3 is based on the Top 150 of the top 200* LP albuas listed La). H or Marcs ), 1995. Because some albums contained two pekaru, total of 163 records with 1,653 tures were tired from the
ncrease in the mechanical revalty rate mea 721 rofits and revenues of the pub!!AM: and ** 1 the answer would depend upon whether some were 2.1 year. data are set forth Ich gauge wha: w t osed increase of mechanical son't ruim am the one :e past four years, 1993-1994, of wat * .*:
Standpoiar sf recording Sery grad.9. and
9 carriet av specifies a statutory rate of all per selection a. 9 years, record czepanies have gonerally adopted the practic of 1,
44::.00 mount o i/i pe: Ile of . tunes playing 1..
! ! !o **practice was taxes into act sunt in Sal.
MUSIC PUBLISHING INDUSTRY AND RECORDING INDUSTRY, 1971-1974
Estimated Estimated Increase increase, as Total
try, there increased royalties would have represented not less than 38.61 of the pre- tai profits, from all sources, of the whole recording industry
TO up to as much as $7.68 (in 1973). For the four-year period, includin the tre pood years and the two bad, the increased royalties would have taim as 50 of the entire recording industry's pre-tar profits from all sources.
en de la ters, the increase in royalty rates would have taken an average of about $46 million a year over the four-year period from the Tw2r!!!IMATy (a total of 1:34 million) and given that money to the mui, pad.1419 Industry. The publishing industry's "take" from sechanical *.*.1 .14 ve been lacreased from an annual average of about $8 ail!!on ti a rierage of about $i: a lion. This would have represented an increase wanapo mechanical roya;ty income of about $91.
The autost. pre-ta profit of the recording industry from all sources for the fourtar por.od vould have been reduced by the same $:34 aillion,
m. lipure of about $42 million to about $.:9 aillion. In teras of an Mirada 4. a average, the pro-tax profit of the recording industry would on We reduced from about $:00 si!!! on to $54 million.
hou lirures of lapact on pro-tau profits of the recording industry
** 11 fins records that scoestic ses tancat royailies relate,
MUTANICAL ROYALTIES COMPARED TO RECORDING INDUSTRY PRE-TAX PROFITS
IRON KI:CORDS MADE AND SOLD IN THE UNITED STATES, 1971-1974
* Sex indubitsc --* Labudes muntil ryutes on records made and sold in foreign countries.
Sue falilits 5 und 7.
tapete4 "Se Rate, including the increase, would have averaged 3151 of those *** tui profits. This would compare to the actual royalties at the "24 Rate", 1.a, fact, averaged 1981 of the pre-tax profits of the recording Industry mrkardı sase and so:4 in the United States.
In other words, whereas sechanical royalties were about twice the profits
.. paso lost
ta the treening paragraphs, we have been speaking of the recording 14.11ny *s a whole One can assume -- correctly -- that sone record saxers *** * able than others. The infact of the increased sechanica! n..... averafely profitabi. recording companies would have been s:agger. 14. average of 161 of their pro-tar profis 60 !! sources over . fra ar ?: For = less profitarle fin, the impact wou! I have been
at #t fire is not rere pensy increase, but a transfer 37 # * * * * mo y pone industry is another Oven, as we have seen, ***.*:* :*rite of the two industries to recorded xutic, and the p .#. *£!:*** derive respectively free resorte susic, this trans. Se h
e r, eared windfall for the one and a major ** a stagger.