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"copyright qualification" and "popularity" aspects of the
individual TPT systems in each of the five revenue classifi
COMPARATIVE FEE IMPACT OF H.R. 2223 AND PROPOSAL ON
Table V presents a side-by-side comparison of copyright liability under the provisions of H.R. 2223 and the TPT proposal. This brings together the data from Tables II and IV in summary fashion. As indicated therein, the real significance of the TPT proposal lies in comparing its effects on the various revenue classifications of systems. For the 142 systems under the H.R. 2223 fee schedule, the copyright fee impact is 1.48 percent, or 8.6 cents per subscriber per month. The comparable figures for the 78 systems liable for copyright fees under the TPT proposal are 2.35 percent and 13.2 cents. Reviewing the data for each revenue classification indicates higher fee impact under the TPT proposal for systems in all revenue classes which remain liable (but somewhat higher
impact on systems in the lower revenue classes).
For the 17
liable systems in the under $160,000 annual revenue class, the fee figures are 1.82 percent of revenues and 10.2 cents per
subscriber per month under the TPT proposal, as compared with
0.50 percent and 2.6 cents per subscriber per month under H.R.
2223. This pattern persists in all intermediate revenue classes. The smallest relative difference occurs in the
largest systems with annual revenues in excess of $640,000.
The comparable figures for this class of TPT systems is 1.88
percent and 11.2 cents under H.R. 2223 and 2.42 percent and
13.4 cents under the TPT proposal.
(It is also significant to
note that all revenue classes of systems, other than the
highest, experience net increases in absolute dollar liability, despite a substantial reduction in the number of systems liable for payment under the TPT proposal. For example, the data in Tables II and IV indicate that in all revenue classes
under $640,000, 109 TPT systems have a liability of $238,672, an average of $2,190 per system under H.R. 2223. Under TPT'S
proposal, 58 systems which remain liable bear a liability of
$355,329, an average of $6,126 per system.
The only reduction
in absolute dollar liability occurs in the over $640,000
revenue class, and the difference is over $250,000 in fees as
compared with H.R. 2223.)
Table V also presents what would appear to be the "bottom line" of the TPT proposal, which is total copyright fees for TPT systems liable under the proposal (a) as a
percentage of total TPT system subscriber revenues, and (b)
per subscriber per month.
What emerges is an effective rate
for all systems of 1.28 percent and 7.5 cents per subscriber
per month under the proposal versus 1.48 percent and 8.6 cents
per subscriber per month under H.R. 2223. Again, all revenue classes of systems, other than the largest group, experience higher effective rates under the proposal than those which
result under H.R. 2223. Only the largest systems experience a
Total Broadcast Revenue less commissions to agencies,
Notice No. 54455, September 8, 1975, "TV