The hypothetical models of revenue and costs for the creation of classical music pieces by Macedonian composers provide a suitable explanation for the behavior of Macedonian composers within the newly developed conditions of economic transition. Basically, by comparing the possible revenue of composers in such conditions to the need for composers to invest from their own resources, we can determine to which degree economic factors  influenced contemporary Macedonian music culture.
Therefore, we shall present the hypothetical models separately through:

- the revenue from the creation of a new composition
- the costs of the composer's labor.

Owing to the possibility of comparing revenue and costs, we separated four types of works according to:
- instrumentation
- duration

According to instrumentation we have used the classification:
- solo
- chamber
- symphonic
- choir and orchestra
 

  According to duration:
- up to 10 min.
- up to 20 min.
- up to 30 min.
- up to 40 min.

        We  have ignored the form since it plays a minor role in the composer's revenue. The only factors that are important are instrumentation and duration.
 

Hypothetical revenue models for the creation of a music piece

We determined the hypothetical models of revenue according to five types of yearly revenue attainable by a Macedonian composer after the creation of a composition. The revenue is based on:

1.1.1. copyright
1.1.2. mechanical rights
1.1.3. commissions
1.1.4. printing
1.1.5. other sources of revenue
 

        1.1.1. Revenue from copyright

        The starting point of calculation in copyright revenue is the value of the “point” according to the repartition classes of the ZAMP (Macedonian association of composers, authors and publishers). We shall take the value of 2001 as referential, as it is most recent.

        We shall use the ZAMP Internal rules for distribution of the royaltes (Sluzben vesnik br.2/1996)
 The other parameters we used in order to create these models were based on the assumptions of when and how often the hypothetical compositions would be performed.
        Thus, we began our research with the assumption that from all the radio stations in Macedonia, these compositions are broadcast only on the channels of the Macedonian Radio. These channels include the First Channel - Radio Skopje and the Third Channel. The Third Channel broadcasts contemporary Macedonian pieces on a  regular bases, whereas Radio Skopje does so sporadically. Hence the assumption is that one symphony written by a Macedonian composer can be broadcast two times in the course of the entire year.
         As far as Macedonian TV broadcasts are concerned, we have noted that the only channels that broadcast compositions by Macedonian composers are the Macedonian Television and TV Telma. The previous principle will lead to the conclusion that the broadcast of one symphony by a Macedonian composer is possible once per year.
 
 

        1.1.2. Revenue from mechanical rights

         The revenue received from mechanical rights is almost equal to 0, and thus will not be the subject or our study.

        1.1.3. Revenue from commissions

         We shall calculate this revenue according to the value of the SOKOM (Macedonian composers society) commissions. SOKOM pays Macedonian composers the following fees for pieces lasting up to 15 minutes:
 
 

-  choir and orchestra	58.500,00 denars
-  symphony	51.000,00 denars
-  large string orchestra	38.000,00 denars
-  string orchestra	18.000,00 denars
-  string orchestra,soloist and mixed choir	28.000,00 denars
-  quintet	21.000,00 denars
-  string quartet	12.000,00 denars
-  string trio	9.000,00 denars
-  duo	9.000,00 denars
-  solo performance  ( up to 12 min)	9.000,00 denars
-  choir	9.000,00 denars

 

        1.1.4. Revenue from printing

         For this type of revenue we estimated the sum of 3,100,00 denars.
 

        1.1.5. Other sources of revenue

         In this type of revenue, we shall calculate the possible revenue of the composer in selling the composition to performers. In that case, we shall use the following fees:
 

- solo piece	3.100,00 denars
- chamber piece	6.200,00 denars
- symphonic piece	9.300,00 denars
- choir and orchestra piece	12.400,00 denars

 

        1.2 Models according to categories of the composition

         Consequently we have calculated the four hypothetical revenue models for the creation of a music piece:

        1.2.1. Hypothetical revenue model for a solo piece up to 10 minute duration

        We calculated the revenue from the copyright of a solo piece up to 10 minute maximum duration according to the following number of performances:
 

- Macedonian Radio	- five broadcasts
- Macedonian Television	- two broadcasts
- Concert performances	- two performances
- Commercial TV	- one broadcast

        According to the value of the point in the repartition classes of the users of copyrighted pieces, we calculated the revenue from royalties:

        In table no.3  we shall present the hypothetical revenue model for the total amount the author can receive from a solo piece up to 10 minute duration:

        This model shows that the composer can receive 50% of the revenue only if the piece is commissioned by SOKOM. The remaining 50% is the revenue from copyright, printing, selling, etc.
 
 

        1.2.2. Hypothetical revenue model for a chamber music piece up to 20 minute duration

        In order to calculate the revenue from copyright for a chamber music piece up to 20 minute duration, we estimated the following number of performances:
 

- Macedonian Radio	- five broadcasts
- Macedonian Television	- two broadcasts
- concerts	- two performances per year
- commercial TV	- one broadcast

Therefore, the revenue from copyright is:

   Table no.5 exhibits the hypothetical model for the total revenue a composer can receive for a chamber music piece up to 20 minute duration:

        It is again evident that within the total revenue that can be received by the author for this category, commissions have the largest percentage - 46%, whereas copyright has 33%. The author can receive the remaining 21% by printing, selling directly to the performers, etc.
 

     1.2.3. Hypothetical revenue model for a symphonic piece up to 30 minute duration

        In order to calculate the revenue of copyright for a symphonic piece up to 30 minute duration, we estimated the following number of performances:
 

- Macedonian Radio	- two broadcasts
- Macedonian Television	- one broadcast
- concerts	- one performances
- commercial TV	- one broadcast

 

Therefore, the revenue from copyright is as follows:

 Table no.7 presents the hypothetical model of revenue the author can receive for a symphonic piece up to 30 minute duration:

   This is the graph of this model:

Graph no.3:

This hypothetical model also proves that the author can receive the largest percent - 65% - of revenue if the piece is commissioned by SOKOM. As opposed to the previous model, there is a decline in the percentage of the royalties from broadcasts. Namely, symphonic pieces are rarely broadcast on MRTV (with the exception of the Third Channel).
 

        1.2.4. Hypothetical revenue model for choir and orchestra pieces up to 40 minute maximum duration

        We shall estimate the following number of performances in calculating the revenue from copyright:
 

- Macedonian Radio	- one broadcast
- Macedonian Television	- one broadcast
- we assume one concert performance
- Commercial TV	- one broadcast per year

Hence the revenue from copyright:

In Table no.9 we shall present the hypothetical revenue model for choir and orchestra pieces up to 40 minute maximum duration:

This is the graph of the model:

Graph no.4:

The largest percentage of revenue is once again achieved by commissions of SOKOM (66%), whereas copyright from broadcasting brings 17%, equal to revenue from printing, selling, etc.
 

        Costs of labour

        In order to examine whether the revenue the composer receives from the creation of a piece corresponds to the costs of his resources (opportunity cost), we shall attempt to estimate the revenue of the author who would engage in other types of work.

In relation to the complexity and the duration of the composers work, we estimated the monthly labour of the composer in the following manner:
- the creation of a solo composition requires three months of work on behalf of the composer
- a chamber piece requires six months of work
- a symphonic piece requires one year of work
- a vocal-instrumental piece requires two years of work.

        Having in mind the highly specialised labour of the authors, we shall hypothetically even the monthly work of the author with the gross monthly salary of a UKIM professor (since most of the composers in this study are professors at UKIM - FMU), which roughly equals 49 000, 00 denars.

 We shall make this comparison by using the revenue from the previously mentioned hypothetical models based on categories of compositions:

        The results of this comparison prove that the revenue that a composer can receive from the creation of a piece does not correspond to the use  of the resources.
        Let us assume that this difference can be somewhat appeased if the piece is used several times - which rarely happens in Macedonia. The compositions are usually performed only in the first year. If they are performed later, they do not receive revenue from commission, i.e the largest percentage of generated revenue. Thus, even repeated performances of the same piece will not suffice to cover the difference discussed above.In fact, some classical composers are extremely productive and have written many compositions for large ensembles, but due to the small number of performances, they mainly do not participate in the distribution of ZAMP resources.Consequently, we can conclude that there is a great difference between the composer’s personal investments and the possibility of a suitable revenue. As seen in our data base, this has influenced and will influence the quantity of compositions written by Macedonian composers, as well as the choice of musical form.This conclusion should be employed in the future planning of cultural policy in Macedonia so as to avoid the disappearance of this important segment of Macedonian music culture.