Broadcasting Telecasting (Oct-Dec 1962)

___ SPECIAL REPORT Radio's '61 net slips to $29.4 million FCC FINANCIAL REPORT SHOWS ALSO THAT MORE STATIONS HAD LOSSES Radio took a beating in two categories last year. ■ Its net profit before federal income tax dropped to $29.4 million for 1961 (35.9% drop from 1960's $42.9 million), the lowest profit figure since 1939 when the radio industry slid to a total of $23.8 million. ■ More radio stations reported losses for 1961 than for any year since the FCC began compiling statistics on the financial health of the broadcast industry: Almost 40% of the 3,469 am and am-fm stations operating for the full year found outgo higher than income, the highest proportion of stations reporting losses in any year since 1937 when the FCC began publishing financial data. These are the two major conclusions to be drawn from the 1961 radio financial data published last week by the commission. Radio revenues slumped 1.2% and expenses rose 1.7%, which translates into a revenue drop of $7 million and an increase in expenses of $9.5 million — or a total deficit of $16.5 million from the figures in 1960. Revenue-Income ■ Overall, the total revenues for radio in 1961 reached $590.7 million, down 1.2% from 1960's $597.7 million. Expenses for radio moved up 1.7% —from $551.8 million in 1960 to $561.3 million in 1961. The FCC data, based on confidential financial reports submitted yearly to the government agency by all its licensees, shows that overall the broadcasting industry, including both radio and tv, almost reached the $2 billion mark in 1961. The whole panoply of broadcasting— am, fm, tv, program sales, time sales, and, for fm, subsidiary services—reached exactly $1,909,000,000, up 2.3% from 1960's $1,866,300,000. Income before federal tax for the entire industry was $266.4 million, down 8.1% from 1960's $290 million. Expenses were not only the villain in radio, but also in tv for 1961. Tv expenses moved up 5.5% in 1961, to $1,081,300,000, from 1960's $1,024,500,000. Tv figures were reported last August (Broadcasting, Aug. 20). Continued on page 80 Top 50 national spot radio markets 1961 FCC REPORT Dollars Dollars Rank Market (in millions) Rank Market (in millions) 1. New York $24.6 Top five 26. Portland (Ore.) 1.475 Top 30 2. Chicago 11.5 markets got 27. Indianapolis 1.463 markets got 3. Los Angeles-Long Beach 9.9 30% of total 28. Columbus (Ohio) 1.448 59.7% of total 4. Philadelphia 6.9 National 29. Albany-Schenectady-Troy 1.368 National 5. Detroit 6.2 Spot Dollars 30. San Diego 1.285 Spot Dollars 6. Boston 5.34 Top 10 7. San Francisco-Oakland 5.29 markets got 8. Cleveland 3.637 40.6% of total 9. St. Louis 3.631 National 10. Washington 3.2 Spot Dollars 11. Cincinnati 2.9 Top 15 12. Pittsburgh 2.6 markets got 13. Minneapolis-St. Paul 2.5 47.1% of total 14. Buffalo 2.4 National 15. Baltimore 2.3 Spot Dollars 16. Hartford 2.040 Top 20 17. Kansas City 2.012 markets got 18. Houston 1.937 52.1% of total 19. Miami 1.931 National 20. Dallas 1.909 Spot Dollars 21. Atlanta 1.855 Top 25 22. Seattle 1.648 markets got 23. Milwaukee 1.567 56.2% of total 24. Louisville 1.505 National 25. Des Moines 1.501 Spot Dollars 31. Denver 1.284 Top 35 32. Memphis 1.196 markets got 33. New Orleans 1.185 62.7% of total 34. San Antonio 1.156 National 35. Providence-Pawtucket 1.128 Spot Dollars 36. Sacramento 1.100 Top 40 37. Rochester (N. Y.)* 1.078 markets got 38. Omaha .994 65.3% of total 39. Fort Worth .935 National 40. Jacksonville .933 Spot Dollars 41. Tampa-St. Petersburg .926 Top 45 42. Syracuse .888 markets got 43. Richmond .869 67.5% of total 44. Dayton .859 National 45. Newark (N. J.) .837 Spot Dollars 46. Charlotte .826 Top 50 47. Cedar Rapids .805 markets got 48. Birmingham .788 69.5% of total 49. Oklahoma City .770 National 50. Shreveport .703 Spot Dollars 76 BROADCASTING, December 10, 1962