The estimated annual average gross profits per record sold (before investment and artist royalties) were:

For the entire period, the average "investment" was $1,900
per 45 RPM "single"; $4,200 per LP release.

Exhibit 7 "I Believe" Income to Selected Groups 1953

1964 Cumulative

1. Exhibit 7 is based upon the following data:

1. The unit sales figures for both the "45 RPM records" and "LP records" were obtaineddirectly from the music life cycle survey data.

2.

The unit sales figures are based upon the following data:

45 RPM "Singles"

10% of the releases sold less than

3.

The "breakeven" points were obtained from another survey described in the notes to Exhibit 10. These breakeven figures reflect the 1963 average breakeven levels of all releases put out by six companies which accounted for about 32 percent of all releases during 1963 (see Exhibit 10).

Exhibit 9 "I Believe"

(self-explanatory)

IV. PRODUCING AND SELLING RECORDS

IS A RISKY BUSINESS

1.

2.

The data contained in Section IV were obtained from 6 companies:

Mercury Records, Inc.
Capitol Records, Inc.
Columbia Records

Laurie Records, Inc.
RCA Victor Records

Kapp Records, Inc.

During 1963 these companies accounted for about 32% of the industry's total releases.

Each of these companies was asked to provide the following data for "non-classical" LP's, "non-classical" 45's, and classical LP's:

(a) The total number of releases during 1963 (this information related to the records released, and not to the number of songs which were recorded).

(b) The number of 1963 releases whose unit sales fell into each of the following ranges:

In this way, a

(Even though data regarding 1963 releases was requested, 1964
sales of these releases were taken into account.
clearer picture of the risks and rewards associated with re-
leases made at the end of 1963 was shown.)