NAB reports (Jan-Dec 1948)

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House Hearing on Petrillo Set Tuesday The Labor and Education Committee, U. S. House of Representatives, will begin a hearing on Tuesday (13) which is expected to give special attention to several phases of the ban on recording by James C. Petrillo, president of the AFM. A number of representatives of the broadcasting industry, headed by Justin Miller, NAB president, and including Bond Geddes, RMA executive vice-president, will testify at the hearing. The list of witnesses was not complete last week. Rep. Fred A. Hartley (R-N. J.) is chairman of the committee. Research Study Shows Half Revenue Dollar Spent for Salaries and Wages by Stations (Continued from jmge 17) talent fees, royalty and license fees, transcription and recording fees, wire service, and other miscellaneous costs. Net Revenues Used. All the statistical summaries in the study represent percentages of net revenue, the NAB Reseai’ch Department pointed out. The study did not include operations of ten key stations of nation¬ wide networks. Based on dollar volume figures to be published by the Federal Communications Commission in March, the NAB study converted the FCC totals into per¬ centages, for the guidance of member station mana¬ gers, who last week received copies of those parts of the study pertinent to their respective types of stations. The study divided the figures for 50 kilowatt clear channel, 5 to 20 kilowatt clear channel, regional, and local channel stations, part time and full time. It also summarized the percentage figures by industry totals, for network stations and for non-affiliated sta¬ tions. Total technical expenses in 1946 on an industry-wide basis, including salaries and wages, repairs, power cost, and other expenditures, took 12.1 cents of every dollar, as compared with 10.7 in 1945. Program expenses in 1946, including salaries and wages, talent, royalties and licenses, transcriptions and recordings, wire services and other expenditures, accounted for 26.6 cents of each dollar, as compared with 24.8 in 1945. Selling expenses, including salaries, wages and com¬ missions, advertising, promotion and publicity, and other expenses, took 11 cents on the dollar, an increase over 1945’s 10.6 cents. Total direct expense, a sub-total of these three cate¬ gories connected with direct broadcast costs, accounted for 49.7 cents on the dollar. General and administra¬ tive expenses totalled 23.8 cents, a rise from 1945’s 22.9 cents. The tables reproduced below are drawn from the full sheets sent to stations last week, and arranged to compare the percentages for four types of stations, in four categories: technical, programs, sales, and general and administrative expenses. All figures are percentages of net revenue, which equals 100%. The figures are also arranged to show comparisons between network affiliates and independ¬ ent stations, as well as full time and part time stations. Advance "Freedom Train" Schedule The “Freedom Train” today is at Jackson, Miss. Following is the schedule of the train for the week of February 2 : Monday (2) — Open date, Waco, Tex. Tuesday (3) — -Tyler, Tex. Wednesday (4) — Beaumont, Tex. Thursday (5) — Houston, Tex. Friday (6) — Houston, Tex. Saturday (7) — Galveston, Tex. Sunday (8) — Harlingen, Tex. FULL TIME ST.4TIONS' EXPENSES BY DEPARTMENTS (% of Net Revenue) 50 kw 5-20 kw Regional Local Net. I ml. Net. Ind. Net. Ind. Net. Ind. Tech. 1945 1946 10.8 12.0 22.4 11.0 12.8 13.5 15.3 9.9 11.2 11.8 13.9 11.6 12.5 12.1 12.7 Prog. 1945 26.3 25.6 30.4 23.0 32.6 22.9 28.0 1946 29.1 19.6 .30.0 35 . 6 24.8 32.4 24.0 28.8 Sales 1945 8.1 11.9 15.3 10.5 12.9 11.6 14.8 1946 8.2 13.0 12.1 18.2 10.7 13.3 11.4 16.0 Admin. 1945 17.2 23.2 28.7 22.6 27.0 28.2 29.2 1946 18.1 41.8 24.3 30.6 23.3 25.8 28.3 28.5 Total 1945 62.4 71.7 87.9 66.0 84.3 74.3 84.1 1946 67.4 96.8 79.2 99.7 70.0 85.4 76.2 86.0 Net 1945 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 Rev. 1946 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 PART TIME STATIONS’ EXPENSES BY DEPARTMENTS (% of Net Revenue) 50 kw 5-20 kw Regional Local Net. Ind. Net. Ind. Net. Ind. Net. Ind. Tech. 1945 1946 10.3 12.1 10.5 11.7 11.3 12.9 11.1 14.3 22.2 12.4 10.8 13.7 Prog. 1945 1946 38.2 38.9 29.4 31.3 24.2 25. 1 24.8 25.2 24.1 25.3 21.1 23.7 Sales 1945 1946 6.4 7.4 12.4 13.9 15.8 15 . 5 14.7 15.1 4.6 5.0 14.6 12.1 Admin. 1945 1946 19.0 19.0 19.7 23.1 26.2 26.6 26.0 28.6 33.6 23.8 30.8 32.4 Total 1945 1946 73.9 77.4 72.0 80.0 77.5 80.2 76.6 83.2 84.5 66.5 77.3 81.9 Net Rev. 1945 1946 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 JANUARY 12, 1948-19