Broadcasting (Oct 1931-Dec 1932)

Broadcasting Monopolies and License Fees By LAWRENCE D. BATSON Electrical Equipment Division, U. S. Department of Commerce Program Standardization Noted in Centralized Systems; Returns From Set Taxes Estimated at $60,000,000 ONE HEARS much nowadays about broadcasting monopolies abroad, particularly those that are government-controlled, but most of the statements are based on unverified reports. Here are some actual statistics and observations, with a minimum of editorial comment, on the status and extent of monopolized broadcasting and the licensing of receiving sets. The tables alone provide a wealth of information regarding the distribution of radio sets and stations over the world. And, despite the world wide depression, the sale of receivers increased 25% over last year, the author reveals. SINCE the inception of broadcasting there has been much interest from both practical and theoretical angles in the problem of broadcast economics. This interest arises impossibility of billing the conumer for the actual service rendered and from the necessity of Jnding means of paying the costs f broadcasting. Since 1924 this : ureau has interested itself in foreign broadcasting systems because p their bearing on the principal adio set market factor — programs, -fhe development and adjustment n the monopoly system, and its daptation to national peculiari•:es, has proved an interesting and : if ormative study. 11 It is impossible here to tell the ji'hole colorful history of foreign Monopoly broadcasting, which is s replete with examples of good •aith and ingenuity as the commercial system, albeit, if not be,ause, its problems have been nore clearly defined and apparent• 7 more nearly insurmountable, ome of these problems remain to solved and still appear unsolvae, though, like those of the comlercial system, there is ground d precedent for expecting their timate capitulation before one or other ingenius device which exerience may yet develop. Of 30,000,000 receiving sets inlled in homes throughout the orld, over half, or some 17,000,30, are operated under licenses, ^cording to the latest statistics mailable. Subscription licenses, by hich part or all of the fees are located to the support of broadisting, are paid by 13,500,000 .vners. The total population of idio licensing countries is 370,1 30,000, approximately three times mat of the United States. These :ations have one-half as many sta:0ns as the United States and oneAiird of them are operated under |ctra-monopoly arrangements. i ' Market Grows Steadily ROADCASTING countries number 73. Broadcasting is supported i whole or in part from license ■ ;es in 31. Twenty-four of the 55 mntries requiring licenses and le 18 non-licensing countries alike ave broadcasters to find their vn means of carrying on. About ,ie same proportion of non-broadisting as of broadcasting counles collect annual receiver fees, ch average approximately the me in specified amount. During the last year, an increase approximately 25 per cent in the number of receivers in use has been indicated by the figures available. The increase is world-wide; few countries show decreases — none of any importance. The method of supporting broadcasting stations seems to have had little effect on this result. Every continent, almost every country, participated, as is shown by the accompanying tabulation. The table does not take into ac count the number of unlicensed sets used in any country where licenses are required. In general estimates are indefinite, and it is obviously impossible to make any count. Five countries have presented official estimates, however. Belgium reports that not over 60 per cent of its sets are licensed; Poland estimates 100,000 illegally operated; in Hongkong "pirates" number as many as or more than the licensees; Canada reports 20 per cent unlicensed, and the United Kingdom a similar percentage. The same condition is reported to exist in practically every licensing country, including Italy, Peru, Japan, South Africa, Turkey, New Zealand. The only exception — if there is an exception — is Bulgaria, where not only a fine but a year's solitary confinement can be meted out for the offense. Return From Licenses EFFORTS have been made to estimate the total amount paid in license fees and the income of broadcasting monopolies throughout the world, but with only very general and hardly dependable results. The sum of licenses paid totals between $60,000,000 and $70,000,000 a year — a largely assumptive estimate but as near as can be obtained. Not only do licenses vary within the country as to cost, dependent upon distances and licensees' income; but large numbers of free licenses are issued to schools, hospitals and the disabled. Only rarely are the fiscal affairs of monopolies made public, and because of their lack of vital importance to radio sales these data have not been aggressively sought by this bureau. That in 1930 the British Broadcasting Corporation received from licenses 1,043,023 pounds is shown by its yearbook. This is an average of 6 shillings, 8 pence per license, of which 3 shilling, 8 pence per license was expended on programs. British experience may or may not be near the average. No practical method of administering license funds and their metamorphosis into radio programs has been evolved other than through some form of monopoly control, either by some government agency or under immediate government supervision. To conserve the greater funds for expenditures on programs, it is necessary to keep other costs at a minimum, and this naturally involves the operation of the fewest stations consistent with national service and the limitation of presentations suitable for national distribution to single performances. Further, since only the government can enforce the collection of fees, and thereby assumes the responsibility for the production of suitable programs, it is essential that the broadcasting organization be unified for the application of the necessary control. The greatest benefits and fewest difficulties appear to attend operation of the system as a chain. Monopoly organizations in existence are not identical but fall into various classes. Most monopolies are national, a few regional, and some are limited to favored facilities and participation in licenses. Peru, Denmark, and the Irish Free State have absolute governmental monopolies. New Zealand has a limited government monopoly, independent local commercial stations being provided for. Govern Receiving Set License Fees Abroad Country 4 Bahamas 1.22 British Honduras 5.00 Canada 1.00 Trinidad 2.43 Bolivia 12.28 Peru 4.00 Venezuela 11.58 Austria 3.39 Bulgaria 1.44 Czechoslovakia 3.60 Danzig 3.37 Denmark 2.68 Estonia 2.40 Finland 2.00 France .39 Germany 5.71 Gibraltar 2.43 Greece 6.50 Hungary 5.40 Irish Free State 2.43 Italy 3.95 .£ 3 3 « T3 o am 1.22 none Country 5.00 1.00 4.87 12.28 4.00 11.58 10.16 1.44 3.60 3.37 2.68 4.00 2.00 .39 5.71 2.43 6.50 5.40 2.43 3.95 none 85 none 1 3 3 6 none 5 1 4 3 7 31 29 none none 2 2 12 C T3 0J 3 U "3 o u S.S-2 S.S-2 Latvia 4.83 4.83 Lithuania 11.20 16.00 Malta 2.43 2.43 Norway 5.36 5.36 Poland 3.36 3.36 Rumania 3.60 3.60 Spain .97 .97 Sweden 2.68 2.68 Switzerland ___ 3.00 3.00 United Kingdom 2.43 2.43 Yugoslavia ___ 3.96 3.96 Turkey 4.76 4.76 Hongkong 2.20 2.20 India 3.65 3.65 •Japan 6.47 6.47 Australia 4.25 5.84 New Zealand __ 7.29 7.29 Canary Islands .97 .97 Tunis .78 .78 Union of South Africa 4.87 8.52 21 Kw 1 1 none 13 6 1 15 33 6 21 3 2 1 4 20 51 36 2 3 (a) Including short-wave broadcasters and television stations where data is available. No television stations listed except in Canada. Mimeographed lists of foreign stations are available upon request addressed to the Electrical Equipment Division, Bureau of Foreign and Domestic Commerce, Department of Commerce, Washington. ay 1, 1932 • BROADCASTING Page 11