Exhibit 18-A (continued) ROYALTY DISTRIBUTION OF TUNES ON RECORDS RELEASED TO THE TRADE IN 1974 PERIOD 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 at a discounted royalty rate. 11 Artist interest discount 2) 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 #444, 445, #458, 459 and #463 and 464 are 2 record albums. Each record in such albums has been shown separately and counted separately. 57-786 76 pt. 39 173 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 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 For these club album tunes, a standard In 948 or 90.1% of the licensed tunes, albums contained 1,052 licensed tunes. pattern of discounts is very apparent. 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 2¢. 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 Third, where the regular commercial rate was less than This concludes the presentation of rate data. 114 |