Broadcasting Telecasting (Apr - Jun 1952)

Affiliates Committee (Continued from page 23) Thomson, Ga.; Clair R. McCollough, of the Steinman Stations; G. Richard Shafto, WIS Columbia and WSPA Spartanburg, S.C., and WIST Charlotte, N.C.; Hugh B. Terry, KLZ Denver; Kenyon Brown, KWFT Wichita Falls; John Patt, the Goodwill Stations; George B. Storer, Fort Industry Co.; Leonard Kapner, WCAE Pittsburgh; Richard M. Fairbanks, WIBC Indianapolis; Walter J. Damm, WTMJ Milwaukee; Ben Strouse, WWDC Washington, and Robert D. Swezey, WDSU New Orleans. In his report, which he said represented the views of the full committee, Chairman Morency noted that the group had opposed NBC's late-1951 economic study for "several basic reasons," and said "there can be no question" that the committee's analysis of it, plus "the determined and concerted efforts" of NBC affiliates, "prevented its adoption." Notes Committee's Objections He felt that "no one can tell just what effect the adoption of this plan, which has since been shown to be unworkable and unsound, would have had." Committee's objections, he noted, as: "1. Radio's effectiveness was to be measured on the basis of the presence, or non-presence, of another medium — namely, television. "2. The reappraisal was based on BMB studies which were acknowledged by most people to be out of date and obsolete at the time they were used. "3. The study envisioned an eventual cut in radio rates of as much as 50%, a basis, we can all agree, which if put into effect would destroy the industry, at least as we now know it." Referring presumably to NBC's subscription to the new Nielsen survey, Mr. Morency pointed out that the network has said a new study will be made this spring "on an entirely different basis," and expressed hope that details would be given to the network's affiliates in advance. He noted, however, that the study already is "in the works," without the affiliates hav 1"< ' k PANELISTS at the audience promotion meeting outlining "The Tale of Three Cities" included (back, I and r) John Esau, KTUL Tulsa, and Richard M. Allerton, NARTB; front. Jack Knabb, of agency of same name in RochesterWorth Kramer, WJR Detroit, and Lee Little, KTUC Tucson, keynoter. ing been acquainted with it. Although he did not mention any network by name at any time, it was obvious he was referring to CBS Radio when he pointed out that a network "is currently attempting a change in its contracts with its affiliates that would permit the network arbitrarily to change rates practically without notice." He added: "It is the opinion of the committee that this is a very weak position from the point of view of the affiliated station and also from that of the network. Such a condition could have the direct effect of bringing increased pressures from the advertisers on the network to decrease rates, the advertiser knowing that the network has the power to decrease rates at will and without further consent or consultation with its affiliates. "We think this is the worst position in which a network could place itself. It would invite hasty and ill-considered action. The committee strongly urges that each affiliate carefully examine the effect of any suggested modification of its network contract which might weaken his station's position and work to the detriment of the entire industry." In its work, Mr. Morency reported, the committee has "constantly borne in mind that our WARD PROGRAMS $OLD— ALL NEW FOR '52 SHOW Your Esso Reporter I Was A Communist The Fashion Reporter Voice of the Turtle The Admiral Hour Milkman's Matinee SPONSOR $ Esso Standard Oil Co. $ Tru-Ade Bottling Co. $ Kline's Department Store $ RCA-Victor Records $ Gateway Television Co. $ Carling's Beer & Ale BUT, THERE'S ROOM FOR YOU, TOO! RATINGS RESULTS RENEWALS CBS RADIO NETWORK WEED & CO., Representative MARKET IN WESTERN PENNSYLVANIA BROADCASTING • Telecasting end objective was to attain for radio a high degree of acceptance, stability and a real appreciation of its worth as an advertising medium. We have tried to avoid winning arguments and permanently losing friends to the industry. "At the same time, we have been forthright, we have called a spade a spade, and we have not deviated from basic principle." He recalled committee conferences with representatives of the Assn. of National Advertisers, which launched the attack on radio rates with its TV penetration studies approximately a year and a half ago, and said that as a result "we are quite certain that a different viewpoint is now held" by the advertiser group. He cited ANA's present insistence upon better facts on all media [B«T, March 24], and added: "Note that a year ago all of the emphasis was placed on the effect that TV would have on only one other medium, not all." Research, Rates Stressed He reported that the committee's deliberations had indicated "two major fields of greatest importance"— research, and rates. "Radio still sells merchandise at the lowest cost per dollar of sales," he asserted, "but the advertiser and the broadcaster have become so confused with the mass of contradictory research studies that both have forgotten all about sales, the only reason for the use of any medium." He commended the ARBI studies as a good step toward measuring radio's selling power, as opposed to the "trap" of using ratings as a precise measurement. The "popularity rating concept," he asserted, should be discarded. "Radio should also discard the concept of radio homes and start measuring the number of people who listen to radio," he said. He singled out recent Nielsen measurements as containing "inaccuracies or distortions which are costly to radio," in that they do not, he felt, give a complete picture of listening. Nielsen was mentioned specif ically, he said, "because it is the only national rating service now available and is the one most relied upon by advertisers, agencies and networks." He added that local rating services have "important weaknesses." Of rates and rate cutting, Mr. Morency said "what really hurts the industry are the rate cuts — package deals — the absorbing of costs and things of that nature. They are the real menace to your operation and to the health of the entire industry." Presumably referring to General Mills' current summer saturation spot campaign, he said: "Recently one of our largest advertisers has been offering business to stations on a basis which would mean a rate cut of about 75%. Acceptance of business on such a basis could be the most expensive dollars a station ever took in. It would seem that a broad acceptance of such terms by broadcasters might well permanently set new rates on approximately the level of that acceptance. "This rate cutting is an insidious thing — there is no end to it — it is particularly disturbing to the users of the medium . . . Just imagine the time that could be spent on really selling radio rather than discussing just what the rate cut would be. . . . "The networks have not a good (Continued on page 108) FIRST! WHLI 27.5 "A" Network— 50 Kw "B" Network— 50 Kw "C" Network— 50 Kw "D" Network— 50 Kw All others combined 21.8 18.1 i 14.2 ] 8.3 10.1 J ONE STATION WHLI DOMINATES THE MAJOR LONG ISLAND MARKET CONLAN LATEST SHARE OF AUDIENCE: Daytime, February, 1952 Hempstead, Long Island, N. Y. Mill HEMPSTEAD LONG ISLAND, N.Y. PAUL GODOFSKY, AM 1100 FM 98.3 PRES. REPRESENTED BY RAM BEAU April 7, 1952 • Page 71