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7
DIGEST OF REPORT OF ERG (Continued)
"It should he home in mind that if restriction permitting sponsorship hy n^nne only should cause a number of advertisers to discontinue the use of radio facilities as a medirm for coraraercial advertising, such non-use would iimnediately ■^nd inevitably he reflected in a decrease both in the quantity and quality of pro¬ grams available to the public.
"As a matter of fp.ct, the situation should have its own cure within its self. There should be a keener appreciation by both the broadcaster and the ad¬ vertiser that radio facilities not only offer perhaps the greatest opportunity for ree-chino’ the greatest number of people but that their use imposes upon them a very grc-^t responsibility for the manner in which prorrams are presented.
"The employment of national surveys of pre.-’-ram and station popularity, better shcwmanship °nd ta.ct by advertisers, aud a strict supervision of all pro¬ grams by the licensees of stations should develop a technique that would be more satisfactory to the listening public and beneficial to the industry."
The Commission's answer to this question was supported by information re¬ ceived from numerous advertisers, advertising agencies and the American Associa¬ tion of Advertising Agencies.
7. AEY imommioii available concerniug the investments and net income of
A NUI'ffiSR OF REPR33ENTATIVE BROADCASTING COIVIPANIES OR STATIONS.
The capital actually invested by 55S stations w^s ;'iven by the Commis¬ sion in the following table:
ZONE
1
2
3
4
5
NO. OF STATIONS REPORTED
97
S8
119
139
n3
593
INVESTMENT
$7,375,270.67
5,639,692.33
6,329,103.82
10,690,437.88
6,260.490.74
$36,345,045.94
APPROXIMATE PER' GENT
21
16
17 29 1I
100
The approximate average capital investment of stations of various classes wa,s miven as follows:
Under 100 watts, $8,700: 100 watts, $21,500: over 100 and under 5OO watts,
$44,400: 500 watts, $54,100: 75O watts, $20,500: 1000 watts, $104,100: over
1000 v/a,tts, $50,100: 5*100 watts, $l68,400: over 5,000 wa.tts, $310,000.
For the network companies the following was shovra to be the capital in¬
vestment :
(continued next pa^ge)