U. S. Radio (Jan-Dec 1960)

U. S. RAniO niRFRK Review of Current and Future Trends in Radio Broadcast Transmitting and Receiving Equipment, Including Stereo, Automation and Fm Radio Equipment A high level o£ sales, the development and marketing of new and improved products and a generally optimistic attitude towards the future. This would appear to be a fair description of the conditions to be found among the majority of manufacturers of radio broadcasting and receiving equipment. Set Production Rises Total set production for 1960, according to an estimate from the Electronic Industries Association, was about 17 million units. This represents the second highest total of radios produced since the EIA started gathering statistics in 1922. (In 1947, over 20 million sets were produced.) Production and sales of broadcasting equipment reflected the continuing large number of new am and fm stations going on the air. In addition, the growing number of existing stations that have been remodeling, modernizing their equipment and increasing their power has also contributed to the "firm" market in broadcasting equipment. BROADCASTING EQUIPMENT A profile of the broadcast equipment field was found in a study conducted by Industrial Marketing Studies for the Collins Radio Company, a manufacturer of am and fm broadcasting equipment. According to the study, "The expansion plans of broadcasters for the 60's show that the broadcasting industry is optimistic and vigorous." Describing current conditions, the report showed that the replacement market for radio broadcast equipment (excluding studio furniture and equipment) would probably average about $14.5 million per year. Interestingly, the study pointed out that the replacement outlay would "greatly exceed the purchases by new stations," and that the total annual expenditure for replacement and new stations would be more than $17 million. Going into more detail about new station and replacement requirements, the Collins study stated that the Federal Communications Commission estimates that 200 new radio stations will be added yearly for the next few years, eventually reaching about 5,500 radio stations. It was also pointed out that the greatest tendency for replacement of transmitters was found among 250w class stations. Most of these replacements, depending upon FCC approval, probably would be 1 kw transmitters "even though many of the 250-w stations say they plan to replace their present transmitters. After another four years, these replacement sales should increase about 10 percent each year over the previous year," according to the survey. Transmitter Replacement For all radio stations in the United States, the expected outlay for replacement of transmitters over the next five years was expected to average $2,630 per station, the study showed. Those stations located in a market area of under 100,000 population will average $1,756 per station; $2,771 per station in areas with a population of 100,000 to 500,000, and in areas with a population of 500,000 or more, the average will be $5,248. At the time the study was released it was estimated that in the next 12 uionths. am stations would spend U. S. RADIO AIRFAX 1961 99