Radio age research, manufacturing, communications, broadcasting, television (1941)

TELEVISION IN 1955 Prospects oi Video Industry Outlined by NIK! President in ^'ear-end Statement which also Analyzes Trends of Viewing Audience, Thearre Television and Sponsor Participation By Joseph H. McConnell President, National Broadcasiing Co. A itLt\isioN viewing auditnce of 84.000,000 people, more than half the total national population is envisaged for 1955 in a year-end statement by Joseph H. McConnell, President, National Broadcasting Com- pany. "By that time," he said, "we will think of tele- vision as we think of radio today; not in regional terms but as an instrument of mass communications for all of America." Mr. McConnell expressed his opinion that theatre television will keep abreast of home viewing. "I antici- pate that -4,100 theatres will be television equipped on our target date (1955). Each will accommodate an average audience of 1,000 bringing the theatre total to 4,100,000 viewers. "The economic graph for television will climb with .ill the speed of audience growth," he continued. "We now count television billings in the tens of millions; but 1955 should put us in figures several times as great. "Total national expenditures for advertising in 1951 were $1,''^5,000,000. With an expanding economy, with television vaulting toward maturity, with growing busi- ness awareness of the importance of all advertising media. 1 anticipate that the total annual income from all ad- vertising sources in 1955 will reach $8,000,000,000. "Considering the present leaping demand for tele- vision network time, it is probable that television in 1955 will achieve billings of $1,000,000,000; or one out of every eight dollars spent by American advertisers in all media. "At first glance, this sounds fantastic: one communi- cations medium, in three additional years, to achieve a gross income that represents more than 50 per cent of today's total advertising budget. But that is typical of television's history. A billion dollar industry has been created almost overnight. Hundreds of millions are being spent on new equipment, on scientific research, on programming and talent and on network expansion. "Despite the vast increases in revenue, tlie major networks will not record large profits. Income will be plowed into growth. It is possible, even probable, that networks will continue to show losses in this period of feverish expansion. "We who are custodians of the airwaves have an obligation to the American people to use this new medium for the benefit of all. We intend to fulfill it. By 1955. I expect to see television well entrenched as our foremost cultural instrument. Not since the printing press has any invention offered such opportunities for the enlightenment of everyone." David S. Rau Promorcd Election of David S. Rau as Vice President and Chief Engineer of RCA Cominunications, Inc., was an- nounced by H. C. Ingles, President on January 4. C. W. Latimer, formerly Vice President in Charge of Engineer- ing, was appointed Vice President and Chief Technical Consultant of RCA Communications. Mr. Rau, who joined RCA as a student engineer upon his graduation in 1922 from the United States Naval Academy at Annapolis, has served since 1950 as Assistant Vice President and Chief Engineer. Mr. Latimer has been with RCA since its formation in 1919, having begun his engineering career three years earlier with its predecessor, the Marconi Telegraph Com- pany of America. RADIO AGE J 5 Hwwr