Yearbook of radio and television (1947)

THE BUSIISS SIDE OF RADIO By M. H. SHAPIRO, Managing Editor, RADIO DAILY BUSINESS of commercial broadcasting while not in the position of bearing the brunt of any specific industry's recession due to various upheavals and uncertainties, managed to weather a strong backwash and temporary wave of resultant pessimism. The latter was especially true during the summer season of 1946 when what appeared to be a concentrated number of national accounts cancelled further commitments. Impact of the cancellations was not as great as some sources expected, yet one network was hit more so than others; actually the business of this network was off going into the first month of the year and continued until the final percentage was 8.6 per cent less gross revenue for 1946 than in 1945. Apart from this, each of the other major networks registered again. Thus National Broadcasting Co. passed the $66,000,000 mark for an increase of 3.1 per cent; American Broadcasting Co. reached the $40,604,000 mark for a gain of 1.4 per cent and Mutual Broadcasting System with gross billing of $25, 907,000 had an increase of 26.1 per cent. Adding the $60,063,905 of the Columbia Broadcasting System which was 8.6 off from the year previous, the total gross of the four major networks exceeded $193,000,000 for an overall increase of 1.2 per cent. August and December were the two months in each case in which three out of the four networks showed recessions. Due to absence of the excess profits tax, the net revenue for all webs was up. • Net times sales by the four major networks and ten key stations owned by some of the networks, totaled $70,008,962 after payments to affiliated stations. This was an increase of two per cent over that reported for 1945. Combined network and station net time sales including 751 individual stations showed an overall increase of 7 per cent. The 751 stations involved, accounted for 97.7 per cent of the net time sales of all stations. Reports from three out of five regional networks indicate a 10 per cent decrease in net time sales. The 751 stations mentioned above, on their own, indicate a possible increase of 9.2 per cent over net time sales in 1945. This according to the FCC, is attributed to a 4.9 per cent increase in time sales to the networks and a 8.1 increase in time sales to non-network advertisers. Also revealed was a decrease of 9.2 per cent in commissions paid to various agencies. Along with revenue from sale of talent, etc., these 751 stations indicate an increase in total revenue of 8.9 per cent over 1945. Radio talent bill for all types of broadcasting was close to the $60,000,000 mark. Spot business, both national and local, had its jittery times, both from the station and station representative angle. But this is conceded to have quieted down shortly after the turn of 1947. Labor situation is held to be comparatively good, and partly attributed to the fear of adverse labor legislation. Labor itself affected the stations indirectly as to strikes. Radio itself signed new agreements with AFRA and in some cases with the AFM. Most important thing is that the business of handling spot is past its day-to-day and month-to-month shadow-boxing with accounts. There are definitely more and firmer commitments. There were some gains and some decreases in spot business, but generally the gains were slight. It was not in the "grand manner" to which spot business had been accustomed in past years. • Expansion of the broadcasting industry however, continues apace, with hundreds of applications for construction permits having been granted the past year in the AM and FM fields. New outlets are springing up throughout the country. Television is still girding its loins for the final leap which shall once and for all place it on the map, literally. This is the year wherein it appears to be ''now or never." Manufacturers of radio equipment have a tremendous backlog to fill, one that will take years in seeking to supply the station equipment on order. Millions of receivers, both for the home and automobiles, have been manufactured and distributed to make up for the wartime deficiency when parts and repairs were not always available. By and large the industry as a whole is optimistic as usual. 129