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ESTIMATED RECORDING ARTIST’S INCOME FROM A GOLD RECORD AND U.S. TOUR 1 Records sold Album list price Gross sales Artist royalty rate Production costs of $50,000 and advance of $30,000 withheld by company Royalties Song Writing and Publishing Income 2 500,000 $7.98 $3,990,000 .08 $319,200 $80,000 $239,200 $270,000 . ………. Records sold: 500,000 Mechanical license fee 3 to writer to publisher Performing rights royalties to writer to publisher Royalties $65,000 $65,000 $50,000 $50,000 $270,000 Tour and Personal Appearances 4 $500,000 Fee per show $10,000 Shows per year 50 Gross tour earnings $500,000 ExPenseil Publishing administration Tour agent’s fee Tour expenses Manager’s fee 1.A Gold Recordone that has achieved sales of 500,000 units. 2.It is presumed that the artist is the writer and publisher of all songs on the album. 3.The mechanical license fee is paid by the company to the publisher, who splits it 50/50 with the writer. A statutory rate of 22 cents is collected per song per record sold. 4.It is presumed that the artist is well established. 5.Total income before taxes and personal expenses are deducted. Gross Income $1,009,200 -4, $428,380 $27,000 $50,000 $200,000 $151,380 Total Income $580,820 Music business.. . from page 8 tists and public in Texas and elsewhere, though giantism poses barriers of its own to market entry for under-funded music-makers. What ought to be of more concern is that control over each sector of the industry is becoming concentrated in just a few corporate hands. In effect, a shared monopoly already dominates the production and promotion of records nationwide. This business bottleneck narrows the mutual access of artists and audiences to channels controlled by the big companies. Their market control is most pronounced at the marketing stage: only the industry giants can get adequate radio air time for their singles and LPs; and only they can get prime shelf space at the record counters. So competition is far from what it should be. Chains of radio stations, many of them fully automated and wed ded to Top 40 formats, are increasing their share of U.S. air time and con sequently limit the free flow of cultural Good books in every field JENKINS PUBLISHING CO. The Pemberton Press John H. Jenkins, Publisher Box 2085 \(11 Austin 78768 Personal Service Quality Insurance ALICE ANDERSON AGENCY INSURANCE & REAL ESTATE 1308A E. 48th, Austin, Texas 48941577 ANDERSON & COMPANY COFFEE TEA SPICES AUSTIN TEXAS 78731 453-1533 Send me your list. Name Street City Zip IF YOU ARE an occasional reader and would like to receive The Texas Observer regularlyor if you are a subscriber and would like to have a free sample copy or a one-year gift subscription sent to a friend here’s the order form: SEND THE OBSERVER TO name street city state zip O this subscription is for myself. 0 gift subscription; send card in my name. sample copy only; you may use my name. 0 $12 enclosed for a one-year sub. 0 bill me for $12. MY NAME & ADDRESS THE TEXAS OBSERVER 600 W. 7th, Austin, Texas 78701 THE TEXAS OBSERVER 21