Exhibit 11 1. 2. Record Companies Consolidated Income This exhibit is based upon data provided by six companies for 1954; The yearly ratios of the Sample Companies' excise tax payments to the industry excise tax payments is: 3. Industry excise taxes are taken from Federal Tax Collections Exhibit 12 Record Companies Consolidated Income 1. Statement, 1960-1964, Millions of Dollars This exhibit is based upon a sample of 19 companies' financial results for 1960 through 1964. Excise taxes paid by these companies for 1963 were about 59% of the total industry. A 20th company was added to the sample for 1964. This company, which was not in existence in prior years, accounted for less than one-tenth of 1% of the sample's total 1964 sales. Exhibit 15 Record Companies Consolidated Income 1. 2. Smaller Companies 1963-1964 (Percentages) Same companies and data as in Exhibit 12. During 1963, the industry breakdown of active companies with sales by amount of net sales was: 3. 4. These figures were based upon the number of companies making fund payments to The Recording Industries Music Performance Trust Funds. [11, 12, 13] The fund figures are presented for six months. The total number of companies making contributions during the first six months of 1963 was 78. The total for the second six months was 120. Thus, excluding the 25 companies with sales over $1 million, the number of companies with less than $1 million sales must be somewhere between 95 and 173 for 1963. It is very hard to estimate with any accuracy the number of phonograph record producing entities. A number of the small enterprises are ephemeral. The 25 companies with over $1 million sales were confirmed by actual count. These figures are included to indicate the degree the sample companies are representative of the industry. Catherine S. Corry estimated that, in 1965, "over 200 companies released records on a regular basis." [6. p. 47]. Including the companies with sales during 1963, on December 31, 1963, there were 5, 188 phonograph record producers signatory to the 1948, 1954 and 1959 Phonograph Record Trust Agreements [12, pp. 5-6] Exhibit 16 Effects of Increase in Copyright Fees on Larger, 1. Based upon the 20-company financial survey data. 52-380 O-66-pt. 2-15 VI. RECORD COMPANIES AS A SOURCE OF INCOME (Self-explanatory) Exhibit 17 1. 2. 3. The number of record releases for individual years between 1960 and 1963 was taken directly from data supplied by Billboard [2]. The number of disks sold during the same years was taken from The gross copyright license fee payments by all record manu- For example, the ratio of 1963 excise taxes for the sample companies to the industry total (1.492) and the 1963 total copyright license fees were calculated as follows: For 1963, 19 companies' copyright license fees = $22, 228 thousand For 1963, industry excise taxes = $14,894 Total Industry Copyright Fees = 1963 excise taxes x 1.492 = $37.6 million |