4.

Exhibit 6 "I Believe" Income to Selected Groups

1.

2.

3.

1953-1964

The fund payments figures are based upon data obtained directly
from the music life cycle survey data.

The artists royalties payments figures are based upon data obtained directly from the survey data.

The copyright holders' income figure consists of two parts: income
from copyright license fees; and, income from performance fees.
The copyright license fee portion was obtained directly from the
survey data.
The performance fee income was estimated as follows:
In recent years the ratio of total performance fee payments to
total copyright license fees has been about 1 to 1 (see Exhibit 17).
An estimate of the performance fees generated by this partic-
ular tune was obtained by applying this ratio to the actual copy-
right fees generated by "I Believe. " The data in Exhibit 17
are for all records: therefore, the "I Believe" performance
fee estimates are probably understated since this tune was a
"hit. "

The record companies' net profit figures were calculated as
described below.

First, the average price for single and LP records was calculated
by years (total dollar sales/number of units sold). Next, using
the cost data obtained from the survey described in Section IV,
the average cost per single and LP record (excluding artist
royalties) was estimated. (The costs prior to 1961 are lower
because only monaural records were available for most of
this period and during the latter few years stereophonic sales
were small, as evidenced by the average prices of records from
1953-1961 shown below.) The difference between these annual
average revenue and cost figures per record was the average
gross profit per single and LP record sold. The average gross
profit figure was then multiplied by the total annual unit sales
to obtain the total profit before amortization of the investment
costs and artist royalties of the records released during the
year, including the tune "I Believe". The total "investment"
and artist royalties were then deducted from the total gross
profits to obtain the net profit or loss before taxes for all
singles and LP releases. (The definition of "investment" was
the same as that used in Section IV). These annual net profit figures
were divided by the appropriate number of selections (2 for

"singles", 12 for LP's) to get the profit by years contributed
by "I Believe".

1

Profit before amortization of investment outlays.