Record Manufacturers' Payments to Vocalists' and Musicians' Funds The 1963 payments by all record manufacturers to AFTRA and AF of M Funds was estimated by multiplying the 1963 total AFTRA and AF of M payments of the 19 sample companies, $1.8 million, (see technical appendix, notes to Section V) by 1.692 (the proportion 1963 industry excise taxes bear to the 19 sample companies' excise taxes). MPTF Payments MPTF fund payments by label companies was obtained from the Music Performance Trust Funds [12, p. 6; and 13, p.6]. Total Sales of Label Companies The Label Companies' sales to all distributors ($367 million) was obtained as follows: The 19 companies referred to in Section V paid excise taxes of $14.89 million during 1963. The 1963 total sales of these 19 companies, $202.6 million, was then multiplied by the proportion that total 1963 excise taxes paid by all record manufacturers ($25.2 million) bears to the 19 sample companies' total excise taxes ($14.89 million). This proportion is 1.692 (for an explanation of the total excise tax estimation, see notes to Exhibit 11). To the resulting industry sales estimate, about $342 million, the excise payments made by all record companies ($25. 22 million) were added. Juke Box Operators' Purchases The value of records purchased by juke box operators ($35 million) and the sources of these records ($5 million distributors, and $30 million one-stops) was obtained from a well known industry market research group on a confidential basis. Retail Sales The RIAA estimate is at retail Other estimates of total Total retail sales are estimated at $530 million, based upon the estimate of $529. 7 million for 1963 made by the Record Industry Association of America, Inc. [10]. value, i.e., sales at retail list prices. industry retail value are also available. One source quotes $595 million [9] and another $658 million [2]. The RIAA estimate of total sales appears to more closely represent actual retail sales dollars on the basis of information regarding industry margins, and was, therefore, selected. The total estimate for music stores, department stores, and appliance stores was broken down using internal data provided by the marketing research department of a record company. This breakdown is based primarily on data collected in 1959, slightly revised to adjust to 1963 conditions. The total estimate for record club sales and mail order sales was broken down on the basis of a study carried out in 1962 by a record company. III. THE CREATORS OF RECORDED MUSIC --A CASE STUDY OF "I BELIEVE" 1. 2. 3. Data regarding "I Believe" were obtained directly from nine The nine companies included in the sample are: Capitol Records, Inc. Dot Records, Inc. Mercury Record Corporation Warner Bros. Records, Inc. A number of the other 53 companies which accounted for the The following "Music Life Cycle Data" for each release of "I total number of records sold total sales dollar income (net at factory door) attributable to the recording (1/2 of sales dollars for a 45 RPM release; 1/12 of sales dollars for a typical 12 selection long-playing release; and so on) copyright license fee rate and total dollar payments total payments as a result of creative performance efforts |