Marketing: An Introduction (12th Edition)
Marketing: An Introduction (12th Edition)
12th Edition
ISBN: 9780133451276
Author: Gary Armstrong, Philip Kotler
Publisher: PEARSON
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Chapter 9, Problem 9.11MA
Summary Introduction

Case summary: Several music artists are paid each time when their songs are played on the radio. In Country U 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: Whether artists and record labels be remunerated for royalties each time when music is played and the type of cost that represent for radio station.

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.

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Base Ethical dilemma teaser. ABC Plastics Co. contracts with NASA to manufacture component parts used in communications satellites. NASA reimburses ABC on the basis of the actual manufacturing costs it incurs, plus a fixed percentage. Prior to being awarded a contract, ABC must submit a bit that details the estimated costs associated with each project. An examination of ABC's job cost sheets reveals that actual costs consistently exceed cost estimates quoted during the bidding process. As a consequence, NASA ends up paying considerably more than the bids ABC submits. An ABC representative was recently quoted as saying, "We really aren't overcharging NASA for the work that we do. The actual costs shown on our job cost sheets seem high only because we are forced to understate our bid estimates in order to be awarded contracts. It's a common practice, and everybody does it. The truth of the matter is companies that quote realistic bid prices are not awarded contracts." Let us assume that…
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