Broadcasting (July - Sep 1950)

ANA's Rate Putsch (Continued from page 30) reduced in this fashion, the overall reduction in total full network gross night hourly costs is 14.9% for NBC and (purely a coincidence) 14.9% for CBS. "By January 1951 we anticipate that there will be over 9 million TV homes in the U.S. as compared with 40,700,000 AM homes. This would seem to indicate that AM rates should be reduced by almost 25%. The arithmetic comes out lower because, by and large, TV stations are located in the larger and more economical AM markets." The committee then listed its proposed changes of radio rates on CBS radio affiliates in 51 TV cities and NBC radio affiliates in 53. Some comparative situations may be selected from the ANA lists to show how the ANA committee did its figuring: Minneapolis: 126,000 TV homes, constituting 14% of the 902,120 radio homes claimed by the CBS AM station, WCCO, and 28% of the 447,090 radio homes claimed by NBC's KSTP. ANA proposed a 10% reduction in WCCO's gross night hour rate and a 25% cut in KSTP's. Los Angeles : 686,000 TV homes, constituting 45% of the 1,525,060 radio homes covered by CBS's KNX and 38% of the 1,799,000 radio homes covered by NBC's KFI. ANA proposed a 45% cut in KNX's night hour rate and a 35% cut in KPI's. Detroit Data Detroit: 374,000 TV homes, constituting 20% of the 1,902,670 radio homes covered by CBS's WJR and 37% of the 1,005,850 radio homes covered by NBC's WWJ. ANA proposed a 20% cut in the WJR gross night hour rate and a 35% reduction in WWJ's. Atlanta: 75,000 TV homes, constituting 30% of the 170,840 radio homes covered by CBS's WAGA and 10% of radio homes covered by NBC's WSB. ANA suggested a 30% reduction in WAGA's gross night hour rate and 10% in WSB's. New York: 2,079,000 TV homes, constituting 50% of the 4,165,200 radio homes covered by CBS's WCBS and 56% of the 3,424,360 radio homes covered by NBC's WNBC. ANA recommended a 50% cut in WCBS's gross night hour rate and a 55% cut in WNBC's. Using this method to adjust radio rates in TV markets, the ANA committee came up with a "revaluation of two networks based on television displacement of AM as of Jan. 1, 1951, the mid-point of the coming broadcast year." NBC CBS li Current gross night hour costs in TV cities $18,295 $17,470 2. Adjusted gross night hour costs in TV cities 14,194 13,097 3. Net reduction (1 minus 2) 4,101 4,373 4. Current full network night hour cost 27,465 29,360 5. Reduced full network night hour cost (4 minus 3) 23,364 24,987 6. Percent of reduction 14.9 14.9 In summary the ANA committee said the problem of TV influence on the radio audience "will become more acute with the growth of TV and cannot be offset by claimed additional AM homes. . . . Nighttime radio rates need to be adjusted downward right now and will need further adjustment as TV grows." CROSSLEY STUDY MBS Tops in 116 Markets MBS last week released results of a Crossley Inc. coincidental survey of 116 markets in 42 states where Mutual has the only network affiliate, showing Mutual's share of audience is more than that of all other stations combined. Mutual's share of audience was 58% daytime and 53% at night in the 116 single network localities. Mutual's average quarter-hour rating was 12.6 daytime and 13.7 at night, as compared with 2.9 and 4.7 for the next network. The top 10 Mutual programs averaged a 15.8 rating, 4.8 times higher than the highest-rated competing network programs, according to Richard J. Puff, MBS director of research. ST. LOUIS NETWORK City System Starts Today OPERATION as a network entity of The Greater St. Louis Broadcasting System, St. Louis' own city network, were scheduled to begin today (July 31). First program to be aired is Myron J. Bennett's MJB Show (Mon.-Fri. 10-11 a.m.), originating from KXLW. In addition to KXLW, The Greater St. Louis Broadcasting System is composed of KSTL WEW WTMV. ZIV ADDS FOUR To Sales Staff FOUR additions to the Frederic W. Ziv Co. sales staff were announced last week. Donald Donahue, from the sales department of WKBW Buffalo, will be located at Bradford, Pa., and will cover Western Pennsylvania. Al Godwin, recently with KFPW Fort Smith, Ark., will cover Louisiana out of New Orleans. Victor J. Rickey, who has headed his own advertising and talent agency in Milwaukee, will be stationed at Appleton, Wis., and -will cover the northern part of that state. C. E. (Doc) Hoffman Jr., former sales manager of the Clastic Corp., Kansas City, will cover Western Missouri and all of Kansas /rom Kansas City. CHICAGO'S International Square Dance Festival, scheduled to be staged Oct. 28, is discussed by Harold A. Sofford (I), program director of WLS Chicago, and O. C. (Terry) Rose of the Chicago Park District, general chairman of the Chicago Area Festival. WLS has been promoting the project with an average of seven spots daily, in addition to mentions on programs. The station is sponsoring the national promotion and will conduct an institute the same day for square dance leaders. NETWORK PROBE Sheppard Hints Further Action REP. HARRY R. SHEPPARD (DCalif.) said last week he may take further action if the Justice Dept. fails to acknowledge his request for an investigation of alleged violation of the Communications Act and anti-monopoly laws by the four major radio networks [Broadcasting, July 24]. What form of action the Congressman would take was not divulged. Usual procedure is for legislator to write or personally contact officials in the government agency directing them to his request. Rep. Sheppard, who had admitted his pending bill (HR 7310) to require FCC licensing of networks stood slim chances of passage this session, called for a report of the Justice Dept. and the Federal Trade Commission to Congress and for the agencies to take "corrective" action. He charged the networks as "monopolistic" and "dictatorial." MORROW FOR TIDE P&G Buys New Show PROCTER & GAMBLE'S Tide, a detergent, is reportedly one of the first advertisers to be influenced in its selection of a radio program by the Korean war. The firm has signed to sponsor Edward R. Murrow, 7 :45-8 p.m., five-times weekly on 31 midwestern CBS stations starting today (July 31). Benton & Bowles, New York, is the agency. Mr. Murrow is sponsored in the East by American Oil Co. (Amoco) and in the West by Quaker State Oil Refining Corp. Joseph Katz Co., Baltimore, is the agency for American Oil and Kenyon & Eckhardt, New York, for Quaker State. ATLASS EXPANDS Seeks Approval To Buy KIO> RALPH ATLASS added anothe station to his broadcast interest Wednesday when he purchase ■ KIOA Des Moines, Iowa, from In dependent Broadcasting Co., sub ject to FCC approval. i Mr. Atlass, who is general man ager of WIND Chicago, consultan i to WMCA New York and chie i owner, vice president and treas i urer of WLOL Minneapolis, per \ sonally owns 67% of KIOA stock He declined to disclose the purchas ' price. KIOA stockholders with him ar ; the same men who own WLOL— i David and Charles Winton of Min ; neapolis, John Carey, commercia manager of WIND, and Arthu F. Harre, general manager o WJJD Chicago. Mr. Atlass said he has no plan to change the station's affiliatioi (Mutual) at present. He vdll tak active part in management of th ; station, he said. H. E. Baker i former president of KIOA, whicl began operations two years age Station operates on 940 kc wit! : 10 kw day and 5 kw night. | HAMANN NAMED Manager of WBRC-AM-T> APPOINTMENT of G. P. Hamani as general manager of WBRC-AM TV Birmingham, Ala., has been an nounced by Eloise Smith Hanna president of Birmingham Broad casting Co. He succeeds Mrs Hanna, who continues as presiden of the organization. Mr. Hamann got his first radii experience in 1930 as a wireles operator in the Maritime Service He also has served with Radioma rine Corp. of America, Page & Davis, consultant engineers o: Washington, has instructed in sev eral colleges in the South and prio to joining WBRC in 1940, was con nected with WSMB New Orleans At WBRC he has served as tech nical director and manager of FIV and TV operations. NBC's Pitch (Continued from page 21) Hofstra study found out was tha network radio had the lowest cost per-thousand circulation of anj medium in Boston. To reach 1,000 listeners to a pro gram or noters of a printed ad ii Boston costs the advertiser: $1.9S for network radio (NBC); $3.3; for television (NBC-TV); $3.43 fo: Life magazine; $3.59 for This Wee) magazine, and $3.95 for the Bos ton Post. "To summarize," in the word; of the NBC presentation, "networl radio is big, dramatic, exciting fast and flexible, more powerful ii its impact, the biggest salesman o: all time, and lowest in cost." Page 32 • July 31, 1950 B R O A D-C ASTING • Telecastinj