Radio today (Sept 1935-Dec 1936)

©C1B 275044 Staff— Dakrell Bartee Franklin S. Irby Randall R. Irwin G. H. Mayorga M. H. Newton J. E. Osmun John F. Rider B. Spinetta V. K. Ulrich Lee Robinson Sales Manager RADIO TODAY Orestes H. Calhw ell Editor M. Clements Publisher ■180 Lexington Ave. New York City Tel. PLaza 3t-13-;0 y Vol. I, No. 1 Basic indexes up 17% * The September business indicator points upward 17%, compared with a year ago, judging by substantial increases in all the components which make up the basic business index. Conspicuous advances in key production figures for the month moved the general index upward to brightest levels since the leap which followed the temporary tonic of NRA two years ago. With estimated normal at 100, the index now stands at about 88 — several points over last month, and nearly 13 points above a year ago. Steel and construction soar * Iron and steel production rose 50% above figure for same period last year; meanwhile construction contracts show increased buildingactivity to the tune of some 20%. Money in circulation is up 4% over last year. Small in percentage, it means 215,000,000 in dollars, and that will buy a lot of 89-cent radio tubes ! Interesting luxury note is that number of Americans travelling to Europe is now at highest peak since '29. This shows tendency to spend, a healthy sign for radio — long considered a necessity item, though still in the semi-luxury group for a good many families. Radio folloivs basic trends * Keeping pace with basic conditions, radio-set sales and broadcast advertising also show satisfying increases. Preliminary figures so far for current quarter indicate 15 to 20% over last year for last half of 1935. Some manufacturers (they themselves state) have even had the temerity to schedule 60 to 100% production increases this Fall. Set makers report sales for first half '35 around 2,453,382 units, com pared with 2,027,032 same period last year, with average price considerably higher. This ups 1935 half some 425,000 units, or about 21%. Broadcast billings mount 20% * Sale of time shows broadcasting also following same upward swing. Broadcast billings in IT. S. for September will top 1934 figures at least 20%. Total for sale of time local and network will reach $6,166,770 this month, compared with $5,121,314 September, '34. NBC will hike September income some $223,000 over same month last year, while CBS figure is reported as $299,000 up, an increase of 43% over September, '34. Billings at NBC this month are reported as over $2,000,000, with CBS expecting at least $1,000,000. Network figures for 12 months ending August 31st are impressive. NBC reports total time sales $30,887,415 ; CBS, $16,843,144, total increase of some 23% over previous 12-month period ('33-'34). I ALL BROADCASTING UP —TO SPEND $100,000,000 THIS SEASON . I $ 16.800,000 £ 20.I6O.OOO $30,800,000 £3S,+iO,000 OTHER STATIONS H 4+0,000,000 ^+5,000,000 Metal-tube shortage * While the production of metal tubes is still behind the demand, and undoubtedly will continue so for some time to come, factory executives feel that they are making good progress in catching up, so that by the end of the season, at least, metal-tube manufacture will meet all requirements. "Shrinkage" has been reduced, and air-leakage controlled, factory men declare. Some radio-set manufacturers report that they are getting all the metal tubes they need; others have substituted octal-base glass tubes, or standard glass tubes in sets beingshipped out during recent weeks for the 1935-36 season. Retailers on upgrade + Retailing, after usual Summer lull, has again turned up, showing more than seasonal advance ; expectation in most lines is for larger than normal increases this Fall and Winter, with possibility of slightly more than seasonal recession next Spring and Summer. Retail sales, according to the National Industrial Conference Board, showed a tendency during the Summer to decline more than the usual seasonal amount, but are still well above 1934. Department-store sales show a gain of 7.8% over last year, while rural sales (including mail order) are up 28.6%. Automobile sales form a bright spot in the picture, sales of passenger cars running consistently 25% higher than '34, while commercial car sales show an even greater increase. Situation in radio trade is still somewhat unsettled due to indecision caused by metal tubes. Retailers and wholesalers alike are waiting for public to indicate its own choice, with opinion tending toward belief that September, 1935