Chapter 9, Problem 9.10MA

Summary Introduction

Case summary: Several music artists are paid each time when their songs are played on the radio. In Country U.S lyricists and music publishers receive royalties from radio when the song is played in a movie, any television channel's program, etc. Digital Performance Rights in Sound Recording Act of 1995 states that performers are entitled for songs that are played in digital format like Webcast on satellite radio where the listeners subscribe to the songs. PD a online company which claims that royalty payments are equal to 60% of the revenues are the chief reason the company being loss-making.

Characters in the case: Company PD.

To Determine: A report on music royalties on the cost and pricing of music.

Introduction: Royalty is an intermittent remuneration compensated to the legitimate proprietor for the utilization of his property particularly licenses, copyrighted works, establishments or assets (natural). They are the instalments made for the plan of another person. This royalty charge is typically some percent of the net sales acquired by utilizing proprietor's property and the instalment is made on the basis of every week, month to month or quarterly.