Exhibit 18-A (continued)

ROYALTY DISTRIBUTION OF TUNES ON RECORDS RELEASED TO THE TRADE IN 1974 PERIJD
Regular Price LP Albums *

112

Not including eight records either released before 1974 or to be released later on which only one of the tunes was licensed in 1974. No such tune was licensed ag

a discounted royalty rate

12 Artist interest discount

21 Block, discount.

3) Medley discount

*** Records 407, 408, 409, and 410 and #422,423,424, and 425 are four record albums, #453, 454,455, and #460, 461, and 462 and 463 are 3 record albums, and #414, 445, #458, 459 and #463, and 464 are 2 record albums. Each record in such albums has been shown separately and counted separately.

57-788-76 pt. 3-9

173

Exhibit 19

ROYALTY DISTRIBUTION OF TUNES ON RECORDS RELEASED TO THE TRADE IN 1974 PERIOD

113

Total royalty rate for the album was set at 164 and involved two medley discounts and one block discount.

A two record set retailing for $7, on which some publishers agreed to

grant budget album discounts, especially on the shorter duration-tunos

114

Rates on "Club" Records

Finally, there is the second category of non-regular price albums which are sold either to record clubs or to non-music organizations for use as premiums, and which provide additional opportunities for incremental revenues to copyright owners. In the 1974 periods the two record companies released 98 of these so-called "Club albums", all at lower than regular prices. These 98 albums contained 1,052 licensed tunes. For these club album tunes, a standard pattern of discounts is very apparent. In 948 or 90.1% of the licensed tunes.

the royalty rate is 75% of the regular commercial rate for that tune. In 89 instances, 7.4% of the total, no discount at all occurs from the regular commercial rate for the tune. In only 15 instances did discounts of other than the standard 25% occur.

It should be noted that the regular commercial rate from which the club
rate is calculated is not always 24. It is 24 for more than 80% of the tunes,
but in the remaining cases the regular rate is either above or below 24. The
pattern of the discounts from the regular rate is set forth, record by
record, in Exhibit 20, on pages 82-83.

Three other characteristics of the rate pattern can be cited.
First, in all cases where the regular rate was greater
than 24, the club rate was 75% of the commercial rate.
Second, in 820 of the 841 instances where the commercial
rate was 24, the discount was exactly 25%. Of the other
21 cases, no discount was granted on 17 tunes, and a 50%
discount was granted on the other 4 tunes.

Third, where the regular commercial rate was less than
24, there tended to be less than the standard 25% discount
from the commercial rate. For example, of the 52 instances
where the commercial rate was 14, only 5 tunes were granted
the special 25% club discount; there was no club discount
granted for the other 47 tunes.

This concludes the presentation of rate data.

The first rate of each pair is the regular commission rate and the second
AF Ibe Club Album rate.