Broadcasting (Oct - Dec 1950)

National Press Bldi;. Washington 4, D. C. DECEMBER 25, 1950 BROADCASTING, Telecasting S7 annually. 25c weekly NETWORKS m Gross Jumps to $45 Million; Time Scarce NETWORK TELEVISION grew so rapidly in 1950 that it almost burst out of its pants. From a gross volume of $12 million in 1949, the four TV networks jumped to an estimated gross S45 million in 1950. But network tele-vision, like a stripling who grows faster than Dad can buy clothes, needed bigger britches desperately at year's end. The trouble was that there were not enough stations to go around. The biggest problem an advertiser had in buying a television campaign (aside from finding the money to pay for it) was in getting availabilities. The biggest problem a network had was persuading stations to scuttle another network's shows in order to clear time for whatever program the first network was selling. The scarcity of outlets led to a iDitter inter-network row over the allocation of AT&T network facilities. Two networks, ABC and DuMont, wanted the facilities spilt even-steven among all four. CBS and NBC held out for a system which gave them the big shares, on the grounds they had more sponsors than the other two and thus their affiliates wanted to take more programs from them than from ABC or DuMont. Compromise Formula The wrangle finally was settled, at least temporarily, by a complicated compromise formula that gave ABC and DuMont more nearly equal first call on the cable, and at year's end the four networks were starting operations that way [Broadcasting • Telecasting, Dec. 181. The compromise settlement on the use of AT&T facilities was at best a temporary solution, however. Until the FCC opened for television station business again, the lack of enough outlets to go around would continue to plague network television. Despite the freeze on TV stations, which had been in force for more than two years, television grew big and lusty in 1950. With 107 stations on the air in 67 cities, the four networks increased their gross billings enormously. According to Broadcasting • Telecasting projections of Publishers Information Bureau figures (which are complete only through October, 1950), the gross billings Page 60 • December 25, 1950 for the entire year, network by network (and comparative PIB figures for 1949) were: 1950 1949 ABC $6,750,000 $1,391,991 CBS 12,750,000 3,446,893 DuMont 4,500,000* 955,525 NBC 21,000,000 6,500,104 Total 45,000,000 12,294,513 * DuMont 1950 total is DuMont's own estimate. The phenomenal growth of television is even more remarkably shown in a comparison with total gross billings of all television networks in 1948. A scant two years ago all four networks billed total of about $800,000. Except for the artifical limitations imposed by the FCC, 1950 was a year of uninhibited TV growth. But television executives feared that 1951 would bring even more severe limitations than the FCC freeze. Television seemed almost sure to suffer from the diversion of materials and production facilities to defense purposes. Production of television receivers was bound to be reduced. As of year's end, there were nearly 10 million TV sets in use in the 67 cities where television is available. NBC estimated there would be more than 14 million sets out by next October — but that was barring serious cutbacks in production. It was plain that unless the war crisis unexpectedly evaporated and the nation's defense effort slackened, the growth of TV circulation would be arrested in 1951. From the way things were going, it looked doubtful that FCC would reopen its doors for television station applications. With defensecreated shortages in sight, the pace of television expansion in 1951 seems destined to slow down. In a year-end statement, Comdr. Mortimer W. Loewi, director of the DuMont Television Network, the only network exclusively devoted to TV, said (for statements by other network presidents, see page 32) : "The DuMont Television Network, like the industry generally, hails 1950 as video's banner year. Our billings, like telecasters' generally, attained new peaks ; our list of sponsors doubled and our affiliates grew till our programs were seen regularly in every section of the country. "With network business alone up 350% over 1949, to reach $4.5 million, our gross billings, on network and local stations combined, during the year soared 1859'f above last year's totals, and the Mr. Loewi network's national advertisers rose from 14 to 26. "The network's expanded sponsor list helped to strengthen programming for both daytime and evening telecasts in 1950. Fiftyeight programs were being aired weekly by the end of November, compared with 56 in November 1949. Thirty-six and a half hours a week were served to network affiliates and 64 hours to WABD (TV) New York and the network combined. "DuMont scored on program •■ ming, too. It secured the telecasting rights to all Notre Dame home football games for the second successive year and serviced them to 46 stations covering 44 cities. This was the largest number of cities ever linked to air a program offered by a single sponsor (National ' Chevrolet Dealers). Eighty-three percent of all U. S. telesets were within range of transmitters offering these broadcasts. "Other memorable programs included the pickup of critical sessions of the United Nations when statesmen at Lake Success debated the problems of the Red Chinese in Korea. The exclusive telecast of Secretary of State Acheson's significant November speech on the Korean crisis also evoked widespread praise. "The year also saw accelerated (Continued on page 68) SARNOff TELEVISION in performance and growth during 1950 reached proportions that qualify it for major service in helping to speed the defense mobilization efforts of this nation. Brig. Gen. David Sarnoff, chairman of the board of RCA, declared in a year end statement issued in New York today. "At this time of national emergency, America is particularly fortunate in that since the end of World War II television has been developed to the extent that 40 million Americans now comprise the television audience," said Gen. Sarnoff. "This is Sees Major Defense Role for TV Gen. Sarnoff of tremendous importance to the country since it provides a new medium to supplement radio's vast audience in achieving fullest unity of purpose. President's Audience "When President Truman declared the existence of the national emergency, he was viewed by one of the largest audiences ever to see and hear a President of the United States at a single time. His audience surpassed in numbers the total population of the country in 1850. "The great effectiveness of television for service in training air raid wardens, for Red Cross work and direct appeals, for the spreading of visual information into the home, as well as the other classifications pertaining to defense, is a new and vital factor in the interest and welfare of this nation." Gen. Sarnoff asserted that as the year ends there are approximately' 10 million television sets in the United States and 107 television^ stations. He said that 1950 brought^ to fruition years of television research, engineering and planning, with the result that "the signpost on the road of progress is marked television — in both black-and-white and color." The year 1950 was the biggest in the history of RCA, with television accounting for approximately 75% of the gross income, declared Gen. Sarnoff. He reported that profits and dividends to stockholders were larger than ever be- Telecasting (Continued on page 69) BROADCASTING