Sponsor (Oct-Dec 1960)

What's happening in U. S. Government that affects sponsors, agencies, stations WASHINGTON WEEK Theatre owners were licked all along the line in their opposition tactics in the Hartford trial case and the FCC will devote all this week to pay tv. The defeat concerned having the RKO-Zenith trial run bid broadened in these respects: (1) let a trial examiner first hear the matter; (2) the FCC confine itself in assessing whether the Hartford application meets the trial standards already set up. The radio industry in the aggregate earned more money in 1959 than in 1958, according to FCC figures, but it was a very, very spotty picture. The networks and their 19 radio stations dropped from a $64.5 million gross in 1958 to $60.4 million in 1959, though cutting of expenses even more managed to hold losses down to $4.5 million in 1959, compared to $4.9 million in 1958. The 3,509 other am and fm stations raised their combined revenues by 9.3 percent to $499.6 million and profits rose by 11.9 percent to $46.9 million for these independents. Within this framework, there were vast differences between stations and between markets. Earning $500,000 or over in profits in 1959 were 26 stations (20 in 1958) but 13 stations lost over $150,000 (8 in 1958) . Of 3,064 am stations in 1958, 1,013 lost a median $7,500 each, or 34.6 percent losers. Of 3,248 am's in 1959, 1,074 lost a median $7,200 each, or 34.7 percent losers. The median of the 2,174 stations which made money in 1959 was also down, to $10,300 from the median of $10,600 for 2,053 stations in 1958. Fm continued to limp along with the radio networks. Gross of 148 stations not connected with am operations in 1959 did rise to $4.3 million from the $2.5 million grossed by 93 stations in 1958, but losses also rose, from $700,000 to $1.6 million. As to market differences, 30 stations in New York City area netted only $7,868,467 on a gross of $33,816,354, while 23 stations in the Chicago market netted almost as much, $7,696,981 on a gross of $22,122,627. On the other hand, Philadelphia's 20 could gross only $10,816,217 and net only $816,420. In Los Angeles, 29 stations grossed a total of $18,183,121, with the net at $3,074,737. More of a contrast still, the 18 San Francisco stations could manage a net of only $32,759 between them. For the radio industry as a whole, revenues were up in 1959 to $560.0 million, 7.1 percent more than in 1958, expenses were $517.6 million, up 6.5 percent, and profits were up 13.7 percent to $42.4 million. Combined with figures given by the FCC at the end of August for tv, total broadcast revenues hit $1.7 billion in 1959, up 11 percent, expenses were up 8.6 percent to $1.5 billion and profits were up 26.5 percent to $264.7 million. Come high water, or the other, the Federal Trade Commission will not slow down on its policing of advertising and business practices between now and the time Congress comes back into session. Although chairman Earl Kintner is practically in a lame-duck position due to the failure of Congress to confirm him and the likelihood that an incoming president will want his own man, he still breathes fire. And the other commissioners back him. Kintner has now embarked on a series of speeches to businessmen around the nation, warning both them and the media against consequences unless they cooperate to clean up malpractices on a voluntary basis. 'NSOR • 24 OCTOBER 1960 71