Broadcasting Telecasting (Jan-Mar 1952)

1950 m-m REVENUl Up 7.1% Over '49, FCC Says TOTAL 1950 AM-FM revenues of $444.5 million, up 7.1% over 1949's $415.2 million, was announced last week by the FCC in its annual financial data report. Expenses for AM-FM stations totaled $376.3 million, compared with 1949's $362.6 million. Income before federal taxes added up to $68.2 million, 29.7% over 1949's $52.6 million. Total figures are for all networks and stations. The four national networks, including their 18 owned and operated stations, took in $106.0 million in 1950, compared with $105.3 million in 1949. Expenses amounted to $87.3 million in 1950 vs. $86.8 million the year before. Income totaled $18.7 million in 1950, compared with $18.5 million in 1949. Report issued last week contained final figures. They are more conservative than the FCC estimate last spring which looked for a $70.9 million revenue total for 1950 [B*T, April 23, 1951]. Significant is comparative report on revenues, expenses and income of 1,665 identical AM stations in markets with and without TV. Revenues in 1950 for 389 radio stations in TV maikets totaled $159.3 million, compared with $152.5 million in 1949 — an increase of 4.5%. Revenues for 1,276 radio stations in non-TV markets were $150.0 million, compared with $138.5 million in 1949— a gain of 8.3%. Income before federal taxes for the 389 radio stations in TV markets was $33.5 million, compared with $27.7 million in 1949— up 21%. Income for the 1,276 radio stations in non-TV markets totaled ALL NETWORKS AND STATIONS NATIONWIDE NETWORKS ONLY (Including Owned and Operated Stotions) Iten 1949 1950 Percent (increase or (decr'^ose) ($ millions) $550.4 444.5 105.9 22.4 7.1 208.7 491.4 376.3 115.1 16.4 3.8 93.1 59.0 68.2 '(9.2) 116.1 29.7 ($ millions) Total broadcast revenues $449.5 AM and FM 415.2 TV . 34.3 Total broadcast expenses 422.2 AM and FM 362.6 TV 59.6 Broadcast income (before Federal income tax) . 27.4 AM and FM 52.7 TV 1(25.3) 1 Deficit. BROADCAST REVENUES, EXPENSES AND INCOAAE OF FREQUENCY MODULATION (FM) STATIONS 1950 1949 Item Number of Number of stations Amount stations Amount (Millions (Millions FM stations operated by: of dollars) of dollars) FM BROADCAST REVENUES AM licensees: Reporting no FM revenues ' 420 . . . 452 Reporting FM revenues 163 $1.4 167 $1.2 Non-AM licensees 86 1.4 104 1.4 Total FM stations ' 669 ^8 723 2^6 FM BROADCAST EXPENSES FM stations operated by: Non-AM licenses 86 4.0 104 5.0 Industry total ... ... ^ TOTAL FM BROADCAST INCOME (Before Fed. Income Tax) FM stations operated by: Non-AM licensees 86 (2.6) 104 (3.6) Industry total ... i ... i ( ) Denotes loss. 1 In view of the difficulty in a joint AM-FM operation in allocating FM operation expense separately from AM station operation expense, licensees of such stations were not required to report FM station expense separately. As a result, FM industry totals for expense and income are not available. AM-FM licensees, however, were requested to report separately the revenues, if any, attributable to FM station operatiort if such data were readily available. In only a few instances did AM-FM licensees state they were unable to segregate the FM revenues. $20.6 million, compared with $13.9 million in 1949 — a gain of 48.2%). Only two TV cities showed a decrease in radio revenues for 1950 compared with 1949 — Cleveland and Chicago. Cleveland's aural revenues dropped 1.6% and Chicago's 0.1%. In the 63 TV were 518 AM and 107 TV stations revenues for 1950 000, TV revenues therefore was 26.2 cast revenues in 1949 (with 58 TV markets, there FM stations and in 1950. Radio totaled $264,469, $69,192,000. TV 7f of total broad 1950, 10.7% in cities) and 4.4% Item 1949 Revenues; ($ millions) ($ millions) AM $105. 3 $106.0 TV 19.3 55.5 Total 124.6 161.5 Expenses: AM 86.8 87.3 TV 31.4 65.5 Total 118.2 152.8 Income (before Federal income tax): AM 18.5 18.7 TV '(12.1) '(10.0) Total 6.4 8.7 ' Deficit. Note:— The 4 nation-wide AM networks (ABC, CBS, MBS and NBC) owned and operated a total of 18 stations in 1949 and 1950. The 4 TV networks (ABC, CBS, DuMont and NBC) owned and operated a total of 14 stations in 1949 and 1950. Some networks indicated that expense allocations between AM and TV operations were not complete to the extent that certain indirect operating expenses of TV are included under AM operations. in 1948 (with 18 TV areas). But in Los Angeles TV revenues were 42.3% of all broadcast revenues in 1950, Philadelphia 39.6%, Columbus, Ohio 38.9%, Baltimore 38.3%, New York 33.8%, Washington 33.4%, Cleveland 32.3%, Chicago 30.8%, Detroit 27.4%, San Francisco 20.1%, Cincinnati 18.1%. Standard (AM) broadcasting took in $443,057,845 in 1950, spent $372,314,583 and made a profit of $70,743,262 before federal taxes, according to the FCC. In 1949, total revenues were $413,784,633, expenditures $357,521,718 and income $56,262,915. These are for four national networks and their 18 owned and operated stations, three regional networks and eight owned (Continued on page 92) COMPARATIVE FINANCIAL DATA OF STANDARD (AM) NETWORKS AND STATIONS 1949-1950 NATION-WIDE & REGIONAL INDUSTRY TOTALS NETWORKS & THEIR OWNED STANDARD (AM) STATIONS & OPERATED STATIONS Item Percent of Percent of Percent of Amount increase Amount increase Amount increase (decrease) (decrease) (decrease) 1950 1950 1950 Number of networks '7 7 Number of stations =2,143 s 26 =2,117 A. Revenues from the sale of time: 1. Network time sales by: a. Nation-wide networks $126,044,560 (3.6) $80,881,835 (4.14) $45,162,725 (2.7) b. Regional networks 3,962,534 2.8 3,422,891 7.32 539,643 (18.8) c. Miscellaneous networks and stations 2,934,593 37.1 85,200 7.85 2,849,393 38.2 Total 132,941,687 (2.8) 84,389,926 (3.71) 48,551,761 (1.2) Deduct — Payments to foreign stations and elimination of miscellaneous duplications 1,411,471 (24.2) (1,664,460) 3,075,931 7.4 Revenues from network time sales 131,530,216 (2.5) 86,054,386 (2.92) 45,475,830 (1.7) 2. Non-network time sales to: a. National and regional advertisers and sponsors 118,823,880 9.7 18,980,209 2.26 99,843,671 11.2 b. local advertisers and sponsors 203,210,834 11.6 7,681,610 8.15 ' 195,529,224 11.7 Total revenues from non-network time sales 322,034,714 10.9 26,661,819 3.89 295,372,895 11.5 Total revenues from time sales 453,564,930 6.6 112,716,205 (1.39) 340,848,725 9.6 3. Deduct — Commissions to regularly established agencies, representatives, brokers and others 52,475,775 4.3 < 23,413,939 (2.13) 29,061,836 10.1 Net revenues from time sales 401,089,155 6.9 89,302,266 (1.20) 311,786,889 9.5 B. Revenues from incidental broadcast activities: Talent 25,202,721 14.6 13,340,481 24.67 11,862,240 5.0 Sundry broadcast revenues 16,765,969 0.2 7,835,711 (6.23) 8,930,258 6.6 Total revenues from incidental broadcast activities 41,968,690 8.3 21,176,192 11.12 20,792,498 5.7 Total broadcast revenues 443,057,845 7.1 110,478,458 0.95 332,579,387 9.3 C. Total broadcast expenses of networks and stations 372,314,583 4.1 91,494,116 (0.05) 280,820,467 5.6 D. Broadcast income (or loss) before Federal income tax 70,743,262 25.7 18,984,342 6.03 51,758,920 34.9 ' Includes 3 regional networks, the Yankee Network Inc., the Don lee Broadcasting System and the Texas State Network Inc. 2021 stations reported in 1949. ' 28 Stations reported in 1949. * Of this amount $18,973,521 it applicable to the total sale of network time. ' 1993 stations reported in 1949. ■ . j ■ . i j "Small amount of network and national non-network time soles may be included here since stations with less than $25,000 time sales for year do not report detailed revenue breakdown. BROADCASTING • Telecasting January 7, 1952 • Page 27