NAB reports (Mar-Dec 1933)

The National Association of Broadcasters NATIONAL PRESS BUILDING . * * * . WASHINGTON, D. C. PHILIP G. LOUCKS, Managing Director NAB REPORTS ***** ^ 8 N^I Copyright, 1933, The National Association of Broadcasters NEW MEXICAN REGULATIONS On the eve of the opening of the North and Central American Radio Conference at Mexico City the Mexican Government issued new regulations governing the operation of broadcast stations in that country. The new regulations provide for two classes of stations — com¬ mercial and cultural. Commercial stations may be licensed to Mexicans or Mexican corporations, the period of the license not to exceed SO years. Advertising rates must be approved by the Secre¬ tary of Communications and all commercial stations are to be taxed five per cent of their gross revenue by the government in addition to inspection fees ranging from one hundred to seven hundred fifty pesos monthly. The new Mexican regulations pro¬ vide that all operators must be Mexican and that all programs must be in Spanish except where government permission is given to broadcast programs in other languages. Broadcasts relating to health and medicines must be approved by the government before being put on the air. One of the far-reaching regulations included prohibits the main¬ tenance of foreign studios and limits retransmission of programs to instances where government approval has been secured. The Conference is scheduled to open on Monday, July 10. The American delegation, headed by Judge Eugene 0. Sykes, Chairman of the Federal Radio Commission, has arrived in Mexico City prepared to present this country’s proposals. The National Association of Broadcasters will be represented at Mexico City during the Conference by James W. Baldwin, former secretary of the Federal Radio Commission, who had charge of preliminary work for the Association. TRADE STATISTICS TO BE COLLECTED BY NAB In line with the plans developed at the recent meeting of the Commercial Section of the NAB at Grand Rapids, immediate steps are being taken by the Association for the collection of fundamental trade statistics regarding broadcasting and broadcast advertising. The plan which is being put in operation will meet a long recognized need in the broadcasting field and will serve to put the industry in a better position to furnish its prospects with informa¬ tion of a nature similar to that supplied by newspapers, magazines, and other competing advertising media. The collection of trade statistics likewise will be of assistance to the industry in that they will form the basis for the forecasting of trends as to business volume, thus aiding in long-term planning on the part of the broadcasters. Another service rendered will be that of enabling the managers of individual stations to compare their performance with that of the broadcasting industry as a whole, as well as with the general trend of broadcast advertising business in their section of the country. At the present time the broadcasters are less equipped to furnish fundamental statistics regarding their industry to business men or government agencies desiring such data than is any other adver¬ tising medium. It is impossible at the present date even to estimate the total amount of money being spent by companies for broadcast advertising. Other than figures regarding total network revenue from the sale of time, nothing is available in this field. Since it is estimated that the national network revenue comprises no more than one-half of the total amount spent on broadcast advertising in this country, national network figures are utterly in¬ adequate as a measure of the trend of business in the radio field. It is highly necessary, therefore, that equally comprehensive in¬ formation be secured regarding the trend in national spot broadcast advertising and in the volume of advertising being carried on by local business organizations over stations. It is also important that a close check be kept on the trend of broadcasting advertising vol¬ ume in various industries, both as regards their general radio advertising and with respect to their use of network and spot broadcasting. Similarly it is necessary to have information as to the trend of broadcast advertising volume in different parts of the country, and to keep a close watch on the development of broadcast advertising as compared with the volume of business placed in newspapers, magazines, and other competing media. A plan covering these and other features has been developed for the NAB by Dr. Herman S. Hettinger, of the Wharton School of Finance and Commerce of the University of Pennsylvania. Dr. Hettinger has been active in broadcast advertising and general merchandising research for some years. His present plan is the result of several months’ investigation of the work being carried on by various trade associations and competing media. During the course of the investigation advertising agencies, market research experts, broadcasters, government officials and trade association executives were interviewed, while the records of leading organiza¬ tions were studied thoroughly. Dr. Hettinger will have supervision of the establishment of the trade statistics service of the Association, and has consented to act as consultant to the Association in this capacity during the next several months. The general principle underlying the collection of trade statistics by the NAB contemplates the securing of information regarding volume of business from various member stations on a monthly basis. A simple method of collecting this information has been developed which will require the minimum effort on the part of the station executives. In order to have the business statistics which are collected be representative of broadcast advertising as a whole it will be neces¬ sary to secure trade information from a representative group of stations accounting for a reasonably large proportion of the total volume of radio advertising. A sample representing roughly 50 per cent of the industry’s volume is being contemplated. An important aspect of the entire plan for the collection of trade statistics by the broadcasters is the fact that it constitutes a volun¬ tary step on the part of the industry to do what the rank and file of American business is being required to do by the national ad¬ ministration under the Industrial Recovery Act. Broadcasters again are showing their initiative and willingness to meet new problems without the force of governmental urging to make them do it. One thing, however, should be kept in mind, it was emphasized by Dr. Hettinger. Any system for the collection of trade informa¬ tion depends entirely upon the cooperation of the members of the industry, month in and month out, for its success. Only continued cooperation by all broadcasters can make the collection of trade information a worthwhile undertaking for the NAB. NAB TO ESTABLISH PROGRAM CLEARING HOUSE Following the approval of the general plan by both the Commer¬ cial Section and the Program Committee of the NAB, immediate steps have been taken for the establishment of a Program Clearing House by the Association. The theory prompting the recommendation and establishment of the clearing house is that there is a wealth of program material existing, either in use or in the files of stations which could be used with profit by other non-competing stations throughout the country. A station in one part of the country might have developed an especially effective manner of presenting a program to be sponsored by a local bank. Another station, situated in another part of the country, might have a bank as a potential customer. Its own ideas thus far might not have met with approval on the part of the • Page 8 1 •