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FULL STATEMENT EXHIBITS
This section of the Technical Appendix documents in detail the sources sethodology for the exhibits in the full statement, pp. 33-118.
LAIDI! 1 .. STATUTORY LICENSE ROYALTIES AND RECORD
CUMPANY PRICLS. ut vs. 1974
Source for the price information cited in the exhibit are given in the footnotes to the exhibit. The financial survey cited in footnote nyt is expand in detail later in this appendix under "Exhibit 5".
The data relating to mechanical royalties are explained in the "Sources" section at the bottom of Lahibit 3. The two CRI surveys that provided rav tata ke briefly described in footnote "a" of Exhibit S, and are more completely ekstased later in this appendix under "Exhibit $".
CHATTIN nert' performance fee income from recordings vas estimated as
• 0f 139 $ addon (FCC Figures, in music license fees paid by
radio stations and networks to copyright owners in 19'), 901
of 119.4 million in ASCAP receipts in 1973 due to nonbroadcast
neral and background music, live symphomic and concert music,
estimated to be due to commercially produced recordings.
*countable for about hair of the AS A total for background
These estimates sum to $44.4 million in copyright owners' income from performance fees attributable to sound recordings, an increase of 2833 over the level of 1963, as reported in the 1965 Glover Statement.
In terms of the estimated mechanical royalties, it will be noted in footnotes "a" and "b" of Exhibit 3 that there are two estimates provided. The footnotes indicate that the two estimates are from different surveys, and it explains our rules for the use of each. The lower estimate ($77 million in 1973 and $79 million in 1974) is from a lengthy financial survey which was first conducted by CRI in 1973 and inter updated in 1974 and 19.5. It is discussed in detail below under the notes to Exhibit 5. The higher estimate is from a short, special 34-company survey which CRI conducted in 1975 in order to obtain the most recent information on mechanical royalties paid. It was conducted as follows:
A two-question survey was sent to 96 record companies
On the next four pages following, the remorandum introducing the short survey. the one-page questionnaire, the nases of the respondent firs, and the raw survey results are provided.
* December 2, 1974
Cambridge Research Institute, Cambridge, Massachusetts
1973 and 1974 Statistics on Mechanical Fees Paid by the
During recent Senate hearings on the Copyright Revision Bill, questions were raised about the total amount of mechanical fees paid by the record industry. In order to illustrate the severe impact on the record industry of raising mechanical fees from 2¢ (under existing copyright law) to 3¢ (under the copyright bill passed by the Senate in September 1974), there is an urgent need to collect statistics on the mechanical fees paid by as many record companies as possible. Could you, therefore, please fill in the attached questionnaire and return it by January 15.
The following procedure has been established so your company's financial data will be handled in a confidential manner:
After you have completed the enclosed form keep one copy
As you will notice, your forms have been pre-coded with
97-786 0 . 76 - pl. 3 - 10
RLAA SURVEY OF MECHANICAL FEES
Send form to:
Questions may be referred to:
Only financial statistics on record and tape operations in the
United States should be supplied.
. These figures can be estimates if necessary, but please indicate if they are.
PLEASE MAIL THIS INFORMATION BY JANUARY 15, 1975.
Record Companies Which Responded to the Questionnaire Entitled
"RIAA SURVEY OF MECHANICAL FEES
ABC/ Dunhill Records
Atlantic Recording Corp.
Cinnimon, clo Goldband Records
MCA Records, Inc.
United Artists Music & Records Group, Inc.