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present data for each cable system in each Congressional

District by revenue classification.

As a group, the 23 systems in the Congressional Districts are located predominantly within the lower revenue

classifications. Nineteen systems, accounting for more than

one-half of the subscribers, are in the two lowest revenue

classes (annual revenues under $320,000), with fee impacts of

0.5 percent and 3 cents per subscriber per month, and 0.64 percent and 3.6 cents, respectively. Three systems, with 28 percent of the subscribers, fall into the mid-range revenue class ($320,000-$480,000), with a fee impact of 0.91 percent

and 5.6 cents per subscriber per month.

Only one system, in

the Illinois 19th, falls into the highest (over $640,000)

revenue class with impacts of 1.43 percent and 8.5 cents per

subscriber per month. Overall, as indicated above, copyright fees per H.R. 2223 for the 23 Congressional District systems

work out to less than 1 percent of annual revenues and less

than a nickel per subscriber per month.

II.

EXEMPTION EFFECT OF PROPOSAL ON CONGRESSIONAL DISTRICT
SYSTEMS

Applying our definitions of signal qualification and "popularity" from the TPT proposal to the 23 Congressional District cable systems results in outright exemption from copyright liability for 11 systems, accounting for 32.5 percent of total re

The data for each Congressional District are presented in Table 2, Column (6). The effect on

revenues.

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revenue exemption by district is found in Table 2-a, Column (6). All the systems in three Congressional Districts

(Massachusetts 4th, California 39th and New York 21st) are

exempt entirely.

III.

COPYRIGHT FEE IMPACT OF PROPOSAL ON CONGRESSIONAL DIS-
TRICT SYSTEMS

For the 12 systems in three Congressional Districts that remain liable by application of the TPT proposal, copyright fee payments amount to 0.70 percent of revenues, or 4.1

cents per subscriber per month.

These data are presented in

summary form by Congressional District and revenue classifi

cations in Table 3.

Tables 3-a through 3-f present the data

for each cable system which remains liable for payment under the TPT proposal. The revenue classification section of Table 3 shows, that for systems which remain liable, the greatest

relative fee impact is experienced by smaller systems with

lowest annual revenues.

As shown in Column (5), for the four

systems in the under $160,000 class, copyright fees amount to

1.69 percent of revenues as contrasted with a weighted average

liability for all systems of 0.70 percent. From Column (4), note that the absolute dollar liability for the four smaller

systems with 2,631 total subscribers is higher ($3,426) than

the liability for the one largest system with 10,504 sub-.

scribers ($2,100).

The disparities that result under the TPT proposal

are also reflected by the data in Table 3-a (Illinois 19th

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CD).

One cable system in Monmouth with 1,453 subscribers has

a copyright liability of $2,834 on revenues of $112,462, or

2.52 percent and 16.3 cents per subscriber per month.

The

cable system in Moline, with 10,504 subscribers, has a copyright fee of only $2,100 on revenues of $749,986, or 0.28 percent and 1.7 cents per subscriber per month.

IV.

COMPARATIVE FEE IMPACT OF H.R. 2223 AND PROPOSAL ON
CONGRESSIONAL DISTRICT SYSTEMS

To summarize our findings thus far, application of the TPT proposal exempts ll systems and almost $1.4 million in system revenues from all liability. The copyright fee impact in toto for systems in the three Congressional districts which

remain liable under the TPT proposal is lower than under H.R. 2223. ' Overall, liability is reduced in absolute dollars from

$35,328 under H.R. 2223 to $19,971 under TPT's proposal. The

rate is reduced from 0.84 percent to 0.70 percent and the fee per subscriber per month from 4.9 cents to 4.1 cents.

The "bottom line" result of the true effective rates

is shown in Table 4.

Copyright fees for the 12 systems in the

three Congressional Districts that remain liable for payment

1

This effect is not necessarily true on a system-by-system basis. For two small cable systems in Carthage and Monmouth, Illinois (19th CD), liability amounts to $757 (0.50 percent and 3.2 cents per subscriber per month) under the provisions of H.R. 2223. (See Table l-a.) Under TPT's proposal, these same two systems are liable for $3,271 (2.16 percent and 13.6 cents per subscriber per month). (See Table 3-a.)

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under TPT's proposal amount to 0.47 percent of the full 23system revenue total or 2.8 cents per subscriber per month, as compared with 0.84 percent and 4.9 cents per subscriber per

month under H.R. 2223.

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SUNOURY
COPYRIGHT PELS POR CABLE SYSTEMS IN SELECTED CONGRESSIONAL DISTRICTS

PER N.R. 2223
BY DISTRICT AND REVENUE CLASSIFICATION

1

Illinois-19th CD

# Systems

32,057

4,007

$2,225,098

$5.86

$21,559

0.961

$.056

2

Massachusetts-4th CD

2 Systems

8,000

4,000

624,000

6.50

5,205

0.83

.054

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3,790

1,263

272,880

6.00

1,364

0.50

.030

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Average
Number of
Subscribers
per Systen

Number

ot Subscribers

(2)

Annual
Subscriber
Revenues

Congressional Districts and Number of Systems

Revenue

per
Subscriber
per Month

Copyright

Tee per Subscriber

Copyright

toe as .
Percent of
Subscriber
Revenues

Llng

Copyright

Tee per 1. 2. 2222

(5)

19

(2)

(6)

(7)

Annual Subscriber Revenues
Not More Than $160,000

12 Systems

9,885

Annual Subscriber Revenues
More Than $160,000 But
Not More Than $320,000

7 Systems

22,577

3,225

1,538,938

$.68

9,790

0.64

.036

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