Broadcasting Telecasting (Oct-Dec 1963)

mm^m broadcasting THE BUSINESS WEEKLY OF TELEVISION AND RADIO October 7, 1963, Vol. 65. No. 15 NETWORK RADIO SALES: $50 MILLION ■ Experts agree totals of four will be near that mark this year Three networks expect profit, fourth near break-even point ■ Are spot sales suffering? Salesmen argue the question Network radio, which less than a decade ago was held together more by fear than by hope, appeared last week to have a firm grip on what then seemed completely out of reach — not only survival, but profitability. A canvass of the four national radio networks showed that gradually accelerating sales over the past three years, combined with complete overhauls of their respective operations, have brought them to the point where three expect to show a distinct profit this year. The fourth. ABC Radio, reported business gains to match or exceed those of its rivals, and some sources — nonABC — speculated that red ink. to the extent that it still exists, may stem as much from the caprices of bookkeeping as from strict operating imbalances. Sales S50 Million ■ The consensus of authorities was that total radio network time sales this year may reach S50 million — not a lot when compared to the S134 million in sunlit 1948 and only a fraction of network television's S520.2 million last year, but still 25% above network radio's estimate for 1962. Individually, some experts thought the total would fall short of S50 million, while others thought it would ex ceed that mark. The comparable figures for 1962 have not yet been made public by FCC. but they are expected by most observers to total about S40 million. Broadcasting estimated last February that they would come to S39.4 million, or almost 10% higher than the FCC figure for 1961 ( Broadcasting. Feb. 18). The four networks' estimates of their respective sales gains, 1963 over 1962, average about 30%. ABC Radio officials say their sales in the first half of this year were up 24% from the same period a year ago and for the full year will run about 32% ahead. CBS Radio authorities say their first half was up 37% and that sales going into the final quarter are 47% ahead of the full year 1962. Mutual puts its current position 27% above this time a year ago and says the year ought to be up by 20 to 30%. NBC Radio says its first-half business was up 10%, its third quarter up 17% and its full vear should exceed 1962 bv about 15%'. Is Spot Suffering? « There are. as there always have been, complaints by spot radio salesmen that network's gains were acquired at the expense of spot radio. "We just can't compete with the cheap prices the networks offer," is a common protest by spot salesmen. "We're trying to sell time while the networks give it away" is another. The number of spot accounts that have defected to network — wholly or partly — is long and tends to get longer, they assert. DuPont antifreeze and Fisher Body are two cited as having switched completely from spot to network. The complaint is not unanimous among spot salesmen, however. At least some report — but ask that their names not be used — that dollar defections have not figured significantly in network radio's recent climb. The networks, of course, den}" that they're sharpshooting spot accounts. The standard answer of William K. McDaniel, executive vice president in charge of NBC Radio, for instance, is that the spot salesmen's complaints are out of date. "If all four networks were completely sold out at card rates." he asserts, "this would amount to less than 5% of all the dollars that are spent in radio." Business Booming ■ W herever network radio's business comes from, nobody denies that it's been coming fast and heaw. at least bv late1950 stand Mr. Pauley Heads of the four radio networks valjes," Ar:^ jr Hj! Hayes. CBS Ra ence 'n motion, William K, McDaniel agreed on the improvement in business last week and attributed it to the inherent value of the medium. ABC Radio President Robert Pauley pointed out that there's "been a swingback to the recognition of radio's dio president, said the same thing in different language — "we're back in vogue again." Mutual President Robert Hurleigh pointed out to a group of agency executives that radio is the only medium that can reach an audi executive vice president in charge of NBC Radio, told spot radio critics that if all four networks were completely sold out at card rates it "would amount to less than 5°0 of all the dollars that are spent in radio." BROADCASTING. October 7. 1 963 33