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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
Actually, any impact on profits would not be distributed evenly
Annual Cost To Consumers Could Go Up $100 Million
SECOND: Since recording companies could not be
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
Other types of releases 45 RPM singles and new
Raising the mechanical royalty rate could reduce the probabilities
Generally speaking, these risky releases are those of new and experi-