Broadcasting (July - Dec 1942)

FCC Asks Revenue Data From Locals 300 Stations Queried In Study to Halt Deficits IN ITS QUEST for accurate data on the status of smaller independent stations which are threatened with closure because of depleted incomes, the FCC last week sent to a list of some 300 stations a separate questionnaire on their operations for the 1942 calendar year, seeking returns by Jan. 8. This supplemented the questionnaire to licensees of broadcast stations, covering the customary annual "quick audit" for the calendar year, with returns due by Jan. 15. In collaboration with the Office of War Information, the FCC is seeking to procure annual data on the "losers" in the broadcasting field, in the hope of evolving some formula whereby such stations, particularly those in vital areas not: otherwise served, could be maintained for the war's duration. Local Revenue Declines Declines in local revenue, plus the fact that secondary stations in secondary markets do not share pmi ortionately in national busines:-, have contributed to the plight of Ihese smaller outlets. Moreover, manpower problems have become critical, with such outlets unable to bid successfully against larger stations able to pay higher wages. The list to which the questionnaire was sent Dec. 21 included some 175 stations which reported losses in revenue for the calendar year 1941, plus another 100-odd which were "borderline" operations last year and figure to lose during the current year by virtue of the tobogganing of local business. While thought has been given to some sort of subsidy for such stations, both industry and Government reaction preponderantly has been against such a move. FCC Chairman James Lawrence Fly, who is directing the preliminary study, has indicated he thought the solution would come through encouragement of national advertisers in placing business on such outlets and through network expansion, carrying the "little fellows" along for the duration. Gardner Cowles Jr., associate director of OWI in charge of domestic operations, has also taken cognizance of this situation, but is awaiting the result of the FCC's inquiry before pursuing a definite course of action. The actual number of "losers" last year, aggisgating 177. actually was substantially less than the number report/id in 19.'!8, when the total was about 240. It was pointed out that at Ifast » portion of the red ink stations actually did not lose money, because of their operations OS subsidiaries cf ether business enterprises, which use the radio facilities for promotion and exploitation. Moreover, in some cases, it is felt that the owners probably took sufficient salaries to absorb what ordinarily might show as profitable operation. Yet, in other cases, it is felt that stations licensed during the last two or three years could not properly expect to be money makers, based on past operations' history. Questions Cover 1942 In its covering letter to the "red ink" stations, the Commission said it wanted the data in connection with its current consideration of "financial problems of certain classes of broadcast stations". The summary of data requested will cover results of operations for 1942 and estimated net broadcasting income for 1943. Stations were told that the summary would be regarded as tentative, and that approximations may be made where specific figures are not available, all subject to correction in the regular annual report. Stations were also requested to make any comments they desired regarding the information transmitted and bring to the Commission's attention any facts "that would be helpful to it in its con AN EXPERIMENT that may ease somewhat the shortage of Vinylite and make more material available to the makers of transcriptions has been started by Union Carbide & Carbon Corp., producer of Vinylite. Last month this company shipped out to its clients in the transcription industry samples of trimmings from sheet stock and requested the recipients to try using these trimmings in place of virgin stock for making transcriptions. Results of the first tests were in the main satisfactory, George Miller, in charge of Vinylite sales for Union Carbide & Carbon, told Broadcasting. It takes a little longer to mold records from this material, which is used principally today for making aircraft instrument panels, and in times of peace is used for radio dials, slide rules and similar products, than to make transcriptions from virgin stock, he said, but there was no noticeable difference otherwise. Use Higher Pressure Mr. Miller said that it is possible that by using higher steam pressure and higher molding pressure the time taken in molding the discs from these sheet stock trimmings might be cut to same as when the regular transcription Vinylite is used. Queried as to the extent to which the use of these trimmings will augment the Vinylite available for transcriptions, he stated that the total volume of trimmings is not large, so that the difference to the transcription manufacturers might be described as "appreciable but not considerable." sideration of the contents of your report." The general letter, sent to ail standard broadcast stations along with the quick audit questionnaire, stated that the Commission desired to be informed on time sales by the industry for the year 1942 as soon as possible after the close of the year. The questionnaire covered Schedule 8 of the "Analysis of Station Broadcast Revenues", which constitutes page 11 of the Commission's annual report. The Commission stated that the filing of this schedule on or before Jan. 15 is only to give the Commission a preliminary report of the industry and that no licensee should wait for a final audit of his books before filing. Stalingrad Outstanding OUTSTAXDIXG EVENT of 1942 was Russia's defense of Stalingrad, according to a poll of 18 MBS commentators on the five biggest news stories of the year. Second in importance was the U. S. invasion of North Africa, followed by Wallace's speech May 8. The Battle of the Solomons, and The Beveridge Report, ranked fourth and fifth respectively. The trimmings of sheet stock Vinylite are also used in cloth coatings of dark colors, where the variations in color in the trimmings will be covered up, he said. While this material is not so critical as virgin Vinylite, he stated that the transcriptions will probably have to be of value to the war effort to be allotted much of either material. Firms Listed Among the companies receiving sample shipments of sheet stock Vinylite trimmings were World Broadcasting System, Muzak, Columbia Recording Corp., Scranfon Record Co. and Allied Record Mfg. Co., Mr. Miller said. Meanwhile, WPB in Washington indicated that small quantities of reclaimed Vinylite might be allotted for commercial use again in January. Although allocations were not complete as Broadcasting went to press, a WPB official said that returns of records have been so satisfactory under systems set up by transcription makers that the supply of reclaimed Vinylite has been sufficient to support some commercial work. Last week OPA exempted Government owned recordings from some of the rules involved in reaching price agreements for sale of Government property. The move is expected to return some of the Government-owned recordings to the scrap Vinylite pile, although WPB pointed out that many Government records could not be salvaged because they were overseas, and necessarily could not be brought back. NBC Reaches 412 Cities in Survey Analysis of Listening Habits Will Be Published FIRST of two preliminary reports on NBC's 1942 nationwide survey of radio listening habits, a 32-page booklet titled "A Tale of 412 Cities", was released last week by Charles Brown, director of Advertising and Promotion. Study was based on returns to postcard questionnaires mailed in March and April to 2,100,000 radio homes in the U. S., a continuation of NBC's first postcard all-county survey conducted in 1940. Survey, which NBC believes the most comprehensive study of radio listening ever undertaken, polled the preferences of more than 250,000 radio families, covering all of the 3,072 counties in the country. 47% of Listeners Reply Vividly illustrated in red and blue, the book graphically and in highly competitive fashion presents the results of tabulating the answers of approximately 65,000 radio families living in the 412 U. S. cities of more than 25,000 population to the question, "To What Radio Station do you Listen Most at Night After Dark"? Book does not go into the response to the other question asked in the survey, "To What Stations do You Listen to Regularly at Night after Dark?" The 412 cities covered in the booklet account for 13,674,000 radio families, 47% of the national total, whose nighttime listening habits are analyzed. Through charts and tables the book shows the relative popularity of stations in each city, with a special section comparing network coverage from a local station with that from an "outside" station. A second preliminary report, to be issued next month, will give similar data for daytime listening in the same cities. Comparing nighttime listening returns by cities, the book shows that when only NBC and the "second network" are considered, NBC wins; in 324 of the 412 cities, the "second network" wins in 85 and there are three ties. Of all radio families replying in those cities, 52% reported listening most to NBC stations and 24% to stations of the "second network." When all four networks and independent stations are considered, the book shows NBC taking first place in 73% of the cities and first or second place in 92%. Subsequently, NBC plans to publish two volumes giving the sui"vey's findings in detail for every county and radio station in the country. These data, NBC states, "will permit advertisers for the first time to evaluate the performance of every station on a uniform basis, and should prove a substantial contribution to the more scientific use of radio as an advertising medium." Plan to Use Vinylite Sheet Trimmings Tested in Hope of Easing Record Crisis Page 18 • December 28, 1942 BROADCASTING • Broadcast Advertising