Broadcasting Telecasting (Apr-Jun 1963)

measurement methodology (Broadcasting, April 1) and authorized President Bunker to seek to coordinate activities with the National Association of Broadcasters. Toward this end, the RAB and NAB met in Washington last week and plan another meeting tomorrow (May 14) in New York (see page 75). RAB's directors also approved the bureau's plans for (1) a division of services for large and small market stations and (2) expansion of the national sales staff to provide better coverage of advertising agency departments. Over 50 new stations have joined RAB since March 1, when Mr. Bunker took over as president, for a total of 1,200 members. This rise in membership, Mr. Bunker reported, represents industry support for the new RAB programs, including plans to provide market-by-market radio financial figures to agencies and national advertisers. RAB's budget is just over $1 million and over $120,000 in additional membership revenues have been brought in during the past two months. Labunski urges business not to restrict news The support of the U. S. business community for "maximum freedom" in the dissemination of information on radio and TV was urged by Stephen B. Labunski, vice president of the Straus Broadcasting Group, in a speech before the Commonwealth Club of California in San Francisco. Business should oppose the actions of those advertisers who "sometimes forget the basic purpose of mass advertising and attempt to use the power of their large expenditures to intimidate or penalize communications media which displease them," Mr. Labunski asserted. He contended that businessmen should be prepared to defend the media, even — FINANCIAL REPORTS when they voice opposition views. Mr. Labunski indicated that more responsible broadcasting can be achieved if higher standards are used to license stations. He added that once a license is granted to a qualified broadcaster, the FCC should leave him "alone as much as possible" to devise ways to discharge his obligations to the public and to "try to stay in the black." Rhode Island stations cited Rhode Island's three television and 19 radio stations have earned the praise of the Rhode Island Medical Society. The society cited the stations' efforts in an "End Polio Campaign" in drawing about 75% of the state's population, about 636,000 persons, for the first two types of oral vaccine on two Sundays in March and April. The campaign was termed the most successful health program in the state's history. The broadcasters will receive special awards next Monday (May 20). has initiated a quarterly review to shareholders this year (started last month). In his formal remarks, General Sarnoff noted that RCA has put into effect a cost reduction program throughout the organization, and formulated better corporate and marketing planning and controls. In addition to the Sarnoffs, RCA president Elmer W. Engstrom and group executive vice presidents Charles M. Odorizzi, Arthur L. Malcarney, and W. Walter Watts, reported on individual group operations. Robert Sarnoff, in noting that more than two-thirds of the TV network's night schedule has been colorcast, said that "perhaps it is NBC's pre-eminence in this field [color] that has prompted the other two television networks to begin edging into it." NBC's Mr. Sarnoff said that for the 1963-64 season, the TV network organized and committed its new programing earlier and sales began earlier than in past years. As a result a substantial volume of sales for the fall has already been closed. He said that 70% of the current night schedule is being retained for the new season, reviewing also NBC's emphasis on news and predicting: "There is every reason to believe that as overall advertising expenditures continue to rise, broadcasting — particularly television — will increasingly enlarge its share of the total." He said this year should set a new record for NBC in "service and profits." Color Sales ■ Mr. Watts reported THE ROSY PICTURE AT RCA Stockholders told 'rising curve' of income and profit will continue; NBC's earnings up 35% RCA emphasized a continuing rise in 2,000 stockholders were able to watch profits both for the parent company and the action. for its broadcast subsidiary, NBC, at General Sarnoff said he believed RCA its annual stockholders meeting held in stands on "a firmer footing than at any New York last week. time in its history." He noted that the Brigadier General David Sarnoff, first quarter of the year provided the RCA's board chairman, reported sales highest dollar earnings for any quarter and earnings for the first four months and that it was the eighth straight periat RCA are at a record high for any od in which sales and earnings topped similar period. He said they were ex the comparable quarter of the previous pected to continue on a "rising curve" year (Broadcasting, April 22). through 1963 The quarterly cash dividend on cornRobert Sarnoff, NBC's board chair mon stock was increased from 25 cents man and a member of RCA's board, to 35 cents, a 40% increase. RCA also said the network's sales in 1962 were 12% above those in 1961 and its earnings 35% higher. He said this momentum is carrying into the present year, that NBC's first quarter profits are well above last year's record first quarter, and that the "favorable trend" is continuing into the second quarter. Sales for the TV network and the TV stations division are ahead of second-quarter 1962, and anticipated "earnings (for NBC) for the period will be at a new all-time high," he stated. Colorcast ■ General Sarnoff presided at the meeting held at Studio 8-H in Rockefeller Center, also known as the "Peacock Theater" (converted to color last year). In an elaborate "production," the entire proceeding was colorcast and shown on color sets both in 8-H and adjoining studios. More than Brigadier General Sarnoff 76 BROADCASTING, May 13, 1963