Broadcasting (Jan - Mar 1950)

HOW TO TURN RED INK BLACK Main Topic at TBA Clinic By BRUCE ROBERTSON VIDEO ECONOMICS, methi ods of TV station operation, ! sales and programming leadI ing to increased revenue and decreased expenses, held the I center of the stage WednesI day at the Television Clinic iconducted by Television i Broadcasters Assn. at New York's Waldorf-Astoria Hotel. Other current TV issues, such as union jurisdictional disputes, network affiliation on an interconnected or non-interconnected basis, and the place of sports in the program schedule, got their due share of time in the day-long agenda, which clicked off on schedule under j'i the sharp eye of Charles C. Barry, ABC program vice president, who IN THIS TELECASTING . . . Video Economics Main TBA Ciinic Topic 3 TBA Releases Sample Rate Card 6 Phonevision Gets Tests Authorized 8 TV Drama Rights — By Joseph A. McDonald 11 DuMont Appeal Increases 'Lift Freeze' Tempo 14 RCA Color Shown 14 ■< DEPARTMENTS I 1 Film Report . 16 Telefile ' Telestatus .12 served as clinic chairman. But the main interest of the more than 400 TBA members and guests at the session was focused on the all-important question of how to turn the red ink on their monthly balance sheets to black. How one TV operator has done that trick was described by Edward Lamb, owner of WICU (TV) Erie, Pa., and WTVN (TV) Columbus, Ohio, who stated that "both stations have been in the black since the day they opened. "There is nothing unusual about this," Mr. Lamb continued. "I say that any TV station in the United States can be operated at a profit." Mr. Lamb's secret is a simple one — "don't buy anything you don't need. Use what you have to the limit. Where other stations say 'one show, one camera,' " he stated, "we say 'one camera for all shows.' " He admitted that with increasing programming he is now getting a second camera for each station, but, he declared, "We don't have a lot of fancy-pants equipment lying around in the garage." Despite the dependence on network and film programs implicit in single-camera operation, Mr. Lamb stressed his stations' emphasis on local and public service programming, which, he declared, "pays off at the box office. You IN THIS GROUP gathered at TBA Clinic are (I to r): Standing — Paul H. Raymer, president, Paul H. Raymer Co.; Paul Diamond, Associated Artists Productions; George Cranston, general manager, WBAP-AM-FM-TV Fort Worth; seated — Paul Mowrey, ABC national director of TV program sales; Eugene Katz, executive vice president. The Katz Agency, and Frank Silvernail, chief timebuyer, BBDO. know," he added, "that in local programming you receive your full rate card and do not give the network 70% of the amount of the sponsor's payment." Detailing his stations' finances, Mr. Lamb reported: "The income of one station is roughly $30,000 a month, but is rapidly increasing as we go into more and more afternoon programming. Our expenses are approximately $17,500 a month, including wages of $4,500, depreciation in the amount of $4,000 a month, films, promotion, taxes, maintenance and miscellaneous costs totaling $9,000 a month. We depreciate our mechanical equipment at the rate of 20 Tc a year and buildings, as well as other equipment in accordance with the schedule set by the Internal Revenue Bureau. Outlines Stafif "We have 17 employes at each plant. These include a general manager, three salesmen, a program director, three studio technicians (including cameramen and film editor), a chief engineer and five engineers and three office girls, one of whom handles program and traffic matters, another bookkeeping and the third stenographic matters." Mr. Lamb asked why TV, even as a "blue chip big business" needs "such elaborate but unused plants. The viewer is impressed only in what appears on the screen and not with the chromium in the studio. . . . The viewer is not impressed when a telacaster proudly boasts of losses running as high as $100,000 a month. Hooperatings do not follow the telecastar's profit and loss statement." John H. Boyle, director of television at WAVE-TV Louisville, a non-interconnected station at present, said he has "a few shudders whenever I think about the cable coming through in October." Reporting that WAVE-TV now gets 30% of its card rate for network commercials, he said that when it becomes an interconnected (Continued on Telecasting 18) DR. ALLEN B. DuMONT, president, Allen B. DuMont Labs, chats during TBA Clinic lull with Maurice Rifkin (standing), in charge of TV sales for Frederic W. Ziv Co., and Herbert L. Taylor, in charge of DuMont transmitter division. TELEVISION Broadcasters Assn. board of directors elected last Wednesday include (I to r): Standing — Will Baltin, secretary-treasurer, TBA; F. M. Russell, vice president, NBC; George Storer, Fort Industry Co.; Dr. Allen B. DuMont, president, Allen B. DuMont Labs.; Seated — Joseph McDonald, vice president, ABC; Lawrence Lowman, vice president, CBS; J. R. Poppele, WOR New York, TBA president; Ernest Loveman, vice president, Phileo, and Paul Raibourn, vice president, ParamoMnt. Not shown is Director R. A. Borel who did not attend the clinic. (See story, Telecasting 18). Page 53 • BROADCASTING February 13, 1950 TELECASTING • Page 3 1