The mechanical royalties depend on product and playing time. For a product with more than 20 minutes playing time, the mechanical royalties might be higher than the expected revenues. MES calculates the mechanical royalties for the US and Mexico per product and track and compares them to expected revenues. If the mechanical royalties may be higher than the expected revenues, MES shows a warning. If you want to avoid this, you will have to exclude the US and Mexico from distribution.

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What does it mean that the mechanical royalties may be higher than the turnover?