Broadcasting (Jan - Mar 1950)

VoL 38, No. 4 WASHINGTON, D. C, JANUARY 23, 1950 I N G $7.00 A YEAR— 25<i A COPY TIME SALES RADIO TIME SALES reached an estimated S429 million in 1949, maintaining their consistent upward trend to reach a new record 3^c above the preceding year's totals, according to the 1950 Broadcasting Telecasting Yearbook, which will be mailed to subscribers this week. The Yearbook estimates television time sales at 824,750,000 and FM's at S6 to ST. 5 million, for overall AM-TV-FM time sales approximating S460 million. These fignres are before deductions of agency commissions, etc., which broadcasters count as an expense of sale. AM time sales were divided as follows, according to the Yearbook's 16th Annual Business Index, which is based upon extensive sampling of all types of broadcasting stations throughout the U. S.: # 42.2% local time sales # 29.8% national network time sales # 26.2% spot sales # 1.8% regional network time sales Local advertising remained the foundation of radio revenues but spot sales showed the largest gain — T':^c as against a GA'^c increase in local time sales. Network advertising showed its first decline: A loss of 4.6<''(' resulting from a bad summer despite fall and winter rallies. Regional network revenues gained about 2.3%. Radio at Record $429 Million— TV Tops $24 Million BROADCAST ADVERTISING 1935-49 MILLIONS OF DOLLARS 200 175 150 125 100 75 50 25 — ™™™» Local — ™ Network ^— Regionol ^fi 1 1 I 1 1 1 1 1 . 1935 1940 1945 1949 sales, S6.25 million. There seemed little doubt that a substantial portion of this sum was new money to broadcasting, surveys having shown that TV budgets for the most part are an additional appropriation rather than a deduction from AM budgets. Radio's S^'r gain in net revenues, which should be compared to 1948's 11.4'"f increase, was the smallest gain percentage-'ndse since the end of the war. But it should be remembered that 1949 was a year of business jitters. Other indices of prosperity dropped off sharply, especially during the summer and early fall. There was a general feeling of insecurity among the nation's businessmen. Thus radio's revenue picture at the end of 1949 — $12 million ahead of 1948 — was considered excellent. Radio's net time sales since 1940 have almost tripled. With the growth of television, they seem destined to reach the §500 million mark early in this new half of the century. TV Sales Triple The estimated $24,750,000 in television time sales in 1949 should be compared with $8.7 million in aggregate revenues for the visual medium in 1948, which means that TV's time sales revenues almost tripled in 12 months. Authorities thought it reasonable that this total could be nearly doubled if TV's problems with the FCC were removed quickly. Accurate FM revenue estimates are difficult to make in the absence of a complete division of revenues where AM and FM stations are operated jointly. In many such cases, of course, FM is sold as a bonus to AM. In these circumstances, any time sales figure is a rough estimate. Most experts, however, felt (Continued on page 57) HOOPER SALE? Has Had Talks With Nielsen Radio Receipts Up In terms of dollar volume, AM radio's 1949 time sales receipts ran some $12,270,000 ahead of 1948's. Local advertising was up $11 million; spot sales up S7.2 million; national netv^-ork down $6.1 million, and regional network up $170,700. (See Table I.) On the basis of past years' experience, the Yearbook estimates that radio's income from the sale of talent and from other sources totaled about S22 million in 1949'. bringing gross revenues up to $451 million aside from TV and F:\I time sales and without counting an estimated $77 million spent by advertisers for talent and programs on their own account. In television, network time sales were placed at $9.9 million; spot sales, $8.6 million, and local time BROADCASTING • Telecasting RESURGENT REPORTS that C. E. Hooper is about to sell his radio research organization to A. C. Xielsen were again denied last week by Mr. Hooper, who admitted, however, that he and Mr. Xielsen have discussed the sale of "certain portion s " of the Hooper Network Program Rating Service. Mr. Hooper insisted that any proposals which have been made by Mr. Nielsen "do not involve his reported absorption of our business or organization." He did not define the "certain portions" of his service which are under discussion, but it was be Mr. Hooper lieved that they are confined to the National Network Program Ratings commonly known as "Hoopers." The Hooper City Ratings Sei'vice, which measures the division of audience at various hours of the day and evening among the stations serving each city in a list of more than 100 U.S. markets, would presumably be retained by Hooper and continued by his organization. Mr. Hooper's statement said: "It is true that there have been discussions between A. C. Nielsen and me regarding his purchase of certain portions of our network audience rating services. Most emphatically the proposals do not involve his reported absorption of our business or organization. Such proposals are not firm or final and are contingent upon approval by Nielsen stockholders and directors. If and when I have received a firm proposal, the trade will learn of our reaction to it without delay." Despite Mr. Hooper's emphasis in denying that his conversations with Mr. Nielsen involve more than "certain portions of our network audience rating services," some observers believe that a deal for the sale of C. E. Hooper Inc. can and probably will be made in the months ahead. They recall that in June 1947, Mr. Hooper offered to sell his complete service to BMB i^or $1 million and believe that the offer would stand today if the industry were inclined to reconsider it. They argue that Mr. Hooper would prefer to sell to an industry group such as BMB, which presumably would conduct the audience research as a nonprofit industry service, rather than to another individual business con(Continued on page 56) January 23, 1950 • Page 13