Broadcasting Telecasting (Apr-Jun 1959)

Network tv billing in 9.2% climb The continuing climb of network tv gross billing brought in 9.2% more in time charges in April over the mark reached for the month a year ago. The networks grossed more than $52 million last April compared to over $47.6 million in April 1958. For the January-April period the total billing came to $208.5 millionplus, or 9% above the same months of last year. Each of the networks scored gains for both the April and JanuaryApril periods; CBS-TV and NBC-TV both chalking up increases at about the same rates in April and for the four months. ABC-TV strode ahead with a 16.6% pickup in April and 18.7% in the four-month period. The compilation by Leading National Advertisers and Broadcast Advertisers reports was reported today (June 8) by Television Bureau of Advertising. The full report: Network TV Gross Time Billings April January-April % % 1958 1959 Change 1958 1959 Change ABC $ 8,739,456 $10,193,663 16.6 $35,752,460 $42,430,232 18.7 CBS 20,628,511 22,093,785 7.1 83,344,337 88,255,638 5.9 NBC 18,283,379 19,753,172 8.0 72,287,402 77,835,168 7.7 TOTAL $47,651,346 $52,040,620 9.2 $191,384,199 $208,521/038 9.0 January February March April ABC $10,647,078 10,024,460 11,565,031 10,193,663 Month by Month — 1959 CBS $22,129,248 20,806,220 23,226,385 22,093,785 NBC $19,299,853 18,053,828 20,728,315 19,753,172 TOTAL $52,076,179 48,884,508 55,519,731 52,040,620 Gross Time Costs Only Richmond, Va. The results were reviewed at the FM Multiplexing Seminar held June 4-5 at Old Point Comfort, Va. (see main story this page). "We operate in an fm void," Mr. Acree said Friday at a panel session. The survey revealed that only nine of the 35 agencies returning questionnaires were using fm for clients; 26 aren't using fm. Asked what would make fm more valuable to their clients, seven agencies said more sets were needed in their markets; 12 needed more station promotion and more program information. One objected to the practice of charging listeners for station program logs; six thought programs needed improvement; ten desired audience studies. "Some agencies reported they had never been contacted by fm stations," Mr. Acree said. "I have been at Cargill, Wilson & Acree four years and have been approached only once; one fm station for one client. We need a steady flow of information of the type other media provide. High Potential o "Fm has a terrific potential for a quality audience. It should provide availabilities, success stories and sets-in-use information similar to the Pulse survey in San Diego. Fm should sell test schedules, with mail-in and similar devices to show audience response." The survey covered large and small cities in all parts of the country. Cargill, Wilson & Acree places business nationally, principally in the Northeast and Southeast. Many agencies don't understand fm broadcasting, Esther Rauch, midwest sales development director of John Blair & Co., agreed, quoting from an agency's presentation to a client that defined fm as "classical music without commercials." Miss Rauch told fm broadcasters they must create an fm demand by the public. "We have a media child 19 years old that hasn't learned how to walk" she said. Emphasizing the quality of fm transmission, she said, "sound is worth a thousand pictures." The Blair firm has 15 radio stations broadcasting am-fm stereo, she said, adding, "stereo will bring radio back to the living room." She added, "Radio lost more listeners to hi-fi than to television." Nafi buys KPTV (TV) in $3.75 million deal Sale of KPTV (TV) Portland, Ore., bv George Haggartv to Nafi Corp. for $3,750,000 was announced last week jointly bv Mr. Haggarty and Kenyon Brown, broadcast industry executive, who handled the negotiations for Nafi. Transfer is subject to FCC approval. It also was announced that Mr. Brown has been appointed head of the newly-formed broadcast division of Nafi. Mr. Brown continues as president of KCOP (TV) Los Angeles, which he owns jointly with Bing Cros by, George L. Coleman and Joseph A. Thomas. Nafi (pronounced naf-fee) Corp., whose principal offices are in Oakland, Calif., was formerly National Automotive Fibers Inc., the name adopted in 1928 when the company's only business was the manufacture of automotive interior trims. Today, Nafi also produces foam rubber and wool and synthetic carpeting and is embarking on a program of diversification. The company's annual report for 1958 shows that Nafi suffered a net loss of $382,951, compared to a profit of $1,018,052 in 1957. Gross revenues fell from $47,375,065 in 1957 to $21,555,243 in 1958 as a rseult of the sharp drop in automotive production and sales last year. The Nafi balance sheet as of Dec. 31, 1958 shows total assets of $25,931,642, including nearly $6 million in cash and negotiable securities plus another $5 million set aside for "the acquisition of other companies and diversification." The Nafi annual report shows 108,105 shares of stock in the company treasury valued at $23,481,231, a book value per share considerably in excess of the market quotation of 1714 closing price on the New York Exchange last Tuesday (June 2). Board chairman of Nafi is Paul V. Shields, head of the Wall St. firm of Shields & Co. and, incidentally, Gary Cooper's father-in-law. John G. Bannister is the firm's president and KCOP principal Coleman is a director. Mr. Haggarty bought what was then ch. 27 KPTV from Storer Broadcasting Co. in 1957, paying $1.89 million. He also, in the same year, bought ch. 12 KLOR-TV Portland from Henry A. White and associates for $1.8 million, changing KPTV to the vhf channel and dropping KLOR-TV. ABC plans $65 million facilities expansion ABC will spend $65 million "in the next few years" in expanded facilities in New York and Hollywood as well as in other cities in which the network owns and operates stations. So said Leonard H. Goldenson, ABPT president, last Thursday in dedicating the new $4 million facilities of WXYZ-AM-FM-TV in Detroit. Mr. Goldenson told Broadcasting that the additional funds will be spent, probably in the next five years, in expanding existing headquarters in New York where adjacent property has been purchased. Two new color tv studios will be included for live production. In Los Angeles, about $1 million similarly will be spent in expanding considerably the network's present lot — the old Vitagraph movie lot. 68 (THE MEDIA) BROADCASTING, June 8, 1959