FOOTNOTES

Section II

1.

Shemel, S. and Krasilovsky, M. W., This Business of

Music. N.Y.: Billboard Publishing Inc., 1977.

2.

"The Gorillas are Coming." Forbes, July 10, 1978.

3.

"Narm Adult Market Study," Music Retailer, November, 1976
cited in Mary E. Stibal, "Disco: Birth of a New Marketing
System," Journal of Marketing, October, 1977.

56

FOOTNOTES

Section IV

57

1.

"Survey of Employment, Underemployment and Unemployment in

the Performing Arts," prepared for the Human Resources
Development Institute, Inc., AFL-CIO in cooperation with

the Department for Professional Employers, AFL-CIO by

Ruttenberg, Friedman, Kilgallon, Gutchess and Associates, Inc.,

6.

15% of all households have incomes of $25,00 or greater.
Of households whose head has four or more years of college 40%
are in this income class. 16.5% of the civilian labor force
has four or more years of college. Therefore 16.5 x .4 = 6.6
is the percentage of families headed by a college graduate and
earning $25,000 or more a year. Thus, 15 6.6 8.4 is the
percentage of families earning $25,000 or more and whose head
is not a college graduate. Of those families whose head is
not a college graduate, let P be the fraction earning

$25,000 or more. .835 x P = .084. Thus, P = .1 or

10 percent.

27% of all families have an annual income of less than

$7,000 while only 4% of families headed by a college graduate fall in this income category. Let Q be the percentage of all families that have an annual income of less than $7,000 and whose head has less than 4 years of college. Then

.04 x 16.5 Q x 83.5 = .27 and Q = .32.

40.4% of AFM members surveyed had four or more years of college. For AFTRA members the percentage was 49.4. Then if the rewards to education are the same for AFM and AFTRA members as for the rest of the labor force we would expect that for the AFM the percentage earning $25,000 or more annually would be

40.4 x 0.4 59.6 x 0.1 = 22.12%.

The expected percentage earning less than $7,000 annually is

and the expected percentage with incomes below $7,000 is

58

13.

14.

15.

59

Faulkner, Robert R., Hollywood Studio Musicians. Their Work and Careers in the Recording Industry. Chicago: Aldine-Atherton, Inc., 1971.

Ibid., p. 17.

"Survey of Employment..., op. cit., p. V-13.

21. "Statement of Recording Industry Association of America, Inc.," Performance Rights in Sound Recordings, Subcommittee on Courts, Civil Liberties, and the Administration of Justice of the Committee

on the Judiciary, House of Representatives, Ninety-fifth

Congress, Second Session, June 1978, p. 743.

Rosse, James N., "Estimating Cost Function Parameters Without

22.

Using Cost Data:

Illustrated Methodology," Econometrica,

23.

24.

25.

March 1970, pp. 266-268.

"A prosperous Turnabout for Records," Business Week,
July 27, 1974.

"The Gorillas Are Coming," Forbes, July 10, 1978.

Kirkeby, Marc, "The Changing Face of Record Distribution,"

The New York Times, February 18, 1979.

60