177 If Fully Absorbed, The Cost Of Increased Royalties Could Cut Record Makers' FIRST: The most obvious possible impact could be a decrease in profits of record makers. In 1974, the second-best year the recording industry ever Pre-tax profits of the industry from records made and sold in Actually, any impact on profits would not be distributed evenly Recordings Of New Performers And Music Forms Would Be Riskier THIRD: As portrayed in Exhibit H, higher royalties could cause a reduction in the number of recordings brought out. Higher royalty rates would raise the breakeven point of releases. The probabilities are already low that these costs will The average breakeven point of popular LP's is up ever. - 45 RPM singles and new Other types of releases even lower probabilities of covering their initial out- of classical releases now fail to break even. Raising the mechanical royalty rate could reduce the probabilities One consequence of a reduction in the number of recordings made and |