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What's happening in U. S. Government that affects sponsors, agencies, stations
^ WASHINGTON WEEK
6 SEPTEMBER 1958
Copyright l»58 SPONSOR PUBLICATIONS INC.
Congress may be gone, but some of its activities linger. At least as to their effects.
Nothing firm in the way of plans as yet, but the Senate Commerce Committee may have some reports of more than passing interest. Probably not Committee reports, but rather staff documents.
That committee looked into tv allocations problems, rating services, and has kept a continuing eye on network operations. It has also been following the FCC's progress with its own Barrow report on network practices, and very closely. In addition, there were hearings on the ASCAP-BMI embroglio.
Of all of the fields in which the Committee has been interested during this session just closed, allocations and rating services seem the likeliest candidates for pungent comments.
There is still some chance of New York hearings on ratings, in which case even a staff report would be unlikely this year. The report is likely to be less critical of the rating services than it will be with respect to the heavy dependence on them by networks and sponsors.
In the field of allocations, the Committee will likely be much less interested in uhf than it has been in the past. The FCC will probably be exhorted to continue its efforts to try to put more vhf stations on the iar.
The Commerce Committee appeared to be impressed, both with the ABC plan for "dropins" on new vhf stations on present channels, and also with the Craven plan for securing more spectrum space through a trade with the military.
The Senate Commerce Committee, although it frequently disagrees with its staff on methods, still remains anxious to make provision for more tv stations.
The FCC's report on tv industry finances in 1957 adds more proof that new stations, except in highly selective areas such as would be served under the ABC drop-in plan, run into stiff going.
Uhf is an old story. But the report shows uhf losses climbed from $1.9 million in 1956 to $3.5 million in 1957, with 11 going dark during the year. Only 23 of 95 operating all or a part of '57 reported profits, and the year wound up with only 88 in operation.
More significant, of the post-freeze vhf stations, 303 of them, just 162 reported profitable operation. Of 28 which went on the air in 1957, 25 reported their experiences and 20 of these showed losses.
The story is even clearer when viewed against the overall tv picture. Total tv industry broadcast revenues rose 5.2 percent in 1957 to $943.2 million. Total expenses increased even more, 10.7 percent to $783.2 million. Profits before Federal taxes, therefore, fell 15.6 percent to $160 million.
Network share of the revenues was $467.9 million, 95 pre-freeze vhfs accounted for $261.3 million, but the best the 302 post-freeze v's could do was $187.3 million, with the uhf's accounting for a negligible $26.7 million.
Web expenses were $397.2 million, those of the 95 pre-freeze v's were $179.3 million, the 302 post-freeze v's disbursed $176.5 million, and the u's spent $30.2 million.
Web profits were $70.7 million, the 95 pre-freeze v's took down $82 million and all 302 post-freeze v's between them shared only $10.8 million.
SPONSOR • 6 SEPTEMBER 1958