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'Derived by multiplying the product of the system's monthly subscription rate and the number of subscribers by 12.

Popularity estimates represent the market share percentage of non-network programming carried on copyright-qualifying signals.

Excludes systems with zero popularity.

Data for this system are based on the number of winter subscribers.

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COMPARISON OF COPYRIGHT FEES FOR TELEPROMPTER CABLE SYSTEMS

PER H.R. 2223 AND TELEPROMPTER PROPOSAL

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DISTRIBUTION OF TELEPROMPTER CABLE SYSTEMS WHICH
RETRANSMIT "COPYRIGHT QUALIFYING" SIGNALS BY
"POPULARITY" AND BY PROXIMITY TO THE TOP-100
TELEVISION MARKETS

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'Market share percentage of viewing of copyright-
qualifying signals in the county in which cable
systems are located.

'Systems retransmitting signals which do not achieve
"popularity" of at least 0.5%. The minimum reporting
standard of the Arbitron television rating service is
0.5%.

Source:

Derived from Tables II-A through II-E and
Tables IV-A through IV-E.

TABLE VI

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APPENDIX

ANALYSIS OF COPYRIGHT FEE IMPACT OF H.R. 2223 AND
TELEPROMPTER PROPOSAL UPON SYSTEMS LOCATED WITHIN
THE CONGRESSIONAL DISTRICTS OF MEMBERS OF THE
HOUSE JUDICIARY SUBCOMMITTEE ON THE COURTS,
CIVIL LIBERTIES, AND THE ADMINISTRATION OF JUSTICE

In addition to the study presented in the body of this report, we were requested by MPAA to prepare an analysis of copyright fee liability under H.R. 2223 and the TPT proposal for systems located within the Congressional Districts of members of the House Judiciary Subcommittee on the Courts, Civil Liberties, and the Administration of Justice. Pursuant

to this analysis, MPAA furnished us with a list of those cable systems which they determined to lie within each such Congressional District. Time constraints did not permit verification of these data; accordingly, the results of this analysis necessarily reflect the data provided by MPAA.

I.

COPYRIGHT FEE IMPACT OF H.R. 2223 ON CONGRESSIONAL DISTRICT
SYSTEMS

Liability

Table 1 summarizes copyright liability under the H.R. 2223 fee schedule for the 23 cable systems in the six Congressional Districts selected for analysis. amounts to less than nine-tenths of 1 percent (0.84 percent) of total system revenues, or 4.9 cents per subscriber per month as in Columns (6) and (7). The range is from a high of 0.96 percent and 5.6 cents for the eight systems in the Illinois 19th, to a low of 0.50 percent and 2.5 cents for the single system in the New York 21st. Tables 1-a through 1-f

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A-2

present data for each cable system in each Congressional District by revenue classification.

Three systems, with 28

As a group, the 23 systems in the Congressional Districts are located predominantly within the lower revenue classifications. Nineteen systems, accounting for more than one-half of the subscribers, are in the two lowest revenue classes (annual revenues under $320,000), with fee impacts of 0.5 percent and 3 cents per subscriber per month, and 0.64 percent and 3.6 cents, respectively. percent of the subscribers, fall into the mid-range revenue class ($320,000-$480,000), with a fee impact of 0.91 percent and 5.6 cents per subscriber per month. Only one system, in the Illinois 19th, falls into the highest (over $640,000) revenue class with impacts of 1.43 percent and 8.5 cents per subscriber per month. Overall, as indicated above, copyright fees per H.R. 2223 for the 23 Congressional District systems work out to less than 1 percent of annual revenues and less than a nickel per subscriber per month.

II.

EXEMPTION EFFECT OF PROPOSAL ON CONGRESSIONAL DISTRICT
SYSTEMS

Applying our definitions of signal qualification and "popularity" from the TPT proposal to the 23 Congressional District cable systems results in outright exemption from copyright liability for 11 systems, accounting for 32.5 percent of total revenues. The data for each Congressional District are presented in Table 2, Column (6). The effect on

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