Broadcasting (Oct - Dec 1950)

editorial Increase Rates Now BROADCASTERS, like their counterparts of the printed page, are pondering rate structures in these days of skyrocketing costs and inflationary trends. The difference is that broadcasters are doing very little about it — except in rare instances and for those in TV who are enjoying dizzily expanding circulation and unequalled popularity. Newspapers and magazines romp along increasing their rates on a what-the-traffic -willbear basis, with little or no retaliation from advertisers. Yet advertisers demand more and more research and measurement material from radio and TV, which they can turn against these media in pai'rying rate adjustments. It isn't hard to discern what the Assn. of National Advertisers is attempting to do since its project for across-the-board rate reductions in TV markets was nipped a few months ago. They've embarked upon a temporary boycott. There's little activity on new and renewal network business, although national spot and local are breaking records. ANA obviously is trying to sweat the networks out on rate adjustments. There are individual broadcasters who are increasing rates. We know of no instance where such increases, discreetly and soundly evolved, have brought serious loss of revenue. The rub has been the differential in network rates as compared to spot. There hasn't been an over-all increase in network rates for more than a decade. Yet in the last dozen years operating costs have more than doubled. It's no longer a matter of holding the line. To do so, in effect, is to reduce rates, since the dollar buys less and less. Radio time is practically the only commodity extant that hasn't increased in cost in the last 10 years. This is in spite of the virtual saturation of the nation in set ownership and of unprecedented tune-in. Networks should heed the pleas of their affiliates for horizontal rate increases. Excess profits taxes are in sight. Institutional spending will increase. Paper rationing looms, and newspapers are making their second round of increases in a year, in anticipation of what might amount to rationed advei-tising. If rate increases aren't invoked now, to become effective in six months or so, stations and networks alike might find themselves doing an unprecedented volume of business, but with not enough return to meet increased overhead. Help Wanted! IT'S NO SECRET that BAB is looking for a fop executive in the $35,000-$50,000 bracket. Several able and experienced radio men have been considered but each has declined for good personal reasons. The job is still open. Plans for a more vital organization have been taking shape under the guidance of the selfless and intelligent BAB committee headed by Robert D. Swezey, WDSU-AM-FM-TV New Orleans, and composed of Edgar Kobak, consultant and owner of WTWA Thomson, Ga.; Charles C. Caley, WMBD Peoria; William B. Quarton, WMT Cedar Rapids, and Allen B. Woodall, WDAK Columbus, Ga. No ordinary task faces BAB. First is the overall job of selling radio in competition with every o!;her medium. That task has taken on new stature in the past few months with the continued growth of television, new fax burdens and the spectre of preparedness shortages of men and materials. Second, an integral part of the first, is the task of raising a sizable war chest for the group. The ANPA Bureau of Advertising carries a million-dollar budget. The magazine publishers promote their medium on a similar scale. If radio is to battle for the advertisers' dollar on an equal footing it will need a like amount. That war chest will be a primary responsibility of the new BAB president. Add it up. The task needs a man of considerable talents. Events of the past few years have aroused broadcasters to the necessity of promoting their medium as competition becomes tougher and rougher. Developments in the foreseeable future indicate an increase in this necessity rather than a decline. This quickening of interest should make raising money for this essential purpose easier than it would have been last year or the year before. The challenge is inescapable. Radio, that healthy giant, is not likely to ignore it. The job calls for a good man. Any suggestions? War-Time Folly NOT SINCE the days of the infamous Blue Book have broadcasters been so aroused against the FCC. The resurgence of mailed fist rule, veering in the direction of control of the economy of the broadcast media, is the cause. This was apparent at the NBC convention a week ago at White Sulphur Springs. At district meetings of the NAB and at state association sessions, anti-FCC fervor has become evident. The feeling is that the Commission's lawyers are riding high again, on the crest of the violence of the color TV fight. FCC Chairman Coy has made no bones about his displeasure over the opposition to the new color standards. His dander is up. The color decision is the more spectacular issue, but from the broadcaster's standpoint — whether or not he is in TV — the real threat lies in the proposed rules to control TV network competition. That battle will be fought largely behind the scenes, whereas the color battle will be on the air and in the headlines for months ahead. These are not the times to have another industry-government finish fight. Under Coy direction these past three years,, the FCC has moved toward reasonable cooperation with licensees. The Commission had retrieved much lost prestige. Now, in a war-time economy, warnings are up. They come at a time when the resources of radio and TV should be turned against the enemies of democracy, and not in intramural conflict. Another Korea, or worse, could stop most of our radio and TV production overnight. The color issue then could become academic. So would a lot of others. Energy, time and money — taxpayers' as well as corporate — will be wasted in the strife that has been provoked. Licensees cannot afford to let any issue which threatens to touch ever so lightly upon the basic freedom of the broadcast arts, go by default. So they must and will fight. To do otherwise is to invite disaster. Before the conflict gets out of hand, we hope that higher authorities — even the President — will step in, to the end that the resources of radio and TV can be utilized to the maximum in preserving the freedoms of democracy in a sorely troubled world. jfour respects lo: THOMAS BERNARD McFADDEN WHEN 17-year-old Thomas Bernard McFadden filled out his application for employment as page boy at NBC New York, one question on the form gave him a moment's pause. It read: "What position would you eventually like to fill if you are employed by NBC?" Young McFadden finally, after considerable deliberation, wrote "President." Although Mr. McFadden has not as yet realized that ambition, he is a young man who has come a long way since Sept. 13, 1934, when he first donned the gold braid of a Radio City page. Since April 1950 he has been manager of NBC's Hollywood television station, KNBH — a position he assumed after three years as manager of the network's WNBC-AM-FM and WNBT (TV) New York. That number 13, the date he went to work for NBC, has been a significant one in the McFadden career. In high school sports, his (Continued on page 5 A) Static and Snow By AWFREY QUINCY ONE of the big national agencies is being sued by a script writer because the agency failed to use a program idea he had submitted. Now, he seeks to collect the compensation he would have received if his idea had been used. We are watching this one carefully, because if this writer collects, we're IN. At one time or another, we've had ideas on how to double the profits of Standard Oil, how to quadruple CocaCola's production, how to vastly expand the market for U. S. Steel. We'll just sue and sue, collect and collect, then dream up new ideas leading to more suits. With all that wealth, we'll line the padding in our cell with damask and brocade. Might even build a new asylum. Now Transit Radio is raising rates. If anyone asks why, they can always say, "We were waiting for another street-car." Life gets tougher every day, more complex in every way; Wise guys scheme and cook up strife just to complicate my life. Tuning in a TV set causes me to stew and fret, And it's just an even bet that a picture I can get. So to really put me down, make me grit my teeth and frown. Make me kick my set and smack it, now it's gonna have a bracket. Page 46 • October 30, 1950 BROADCASTING • Telecasting