Television digest with AM-FM reports (Jan-Dec 1951)

I PUBLISHED WEEKLY BY RADIO NEWS BUREAU, 1519 CONNEaiCUT AVE. N.W., WASHINGTON 6, D.C. TELEPHONE MICHIGAN 2020 • VOL. 7, NO. 15 i I In This Issue: I 1 CBS Springs Surprise AM Rate Cuts, page 1. Whys & Wherefores of CBS-Hytron Deal, page 2. FCC Eases Allocations Deadlines, page 3. Bridgeport Winning UHF ‘Converts’, page i. April 14, 1951 Crosley’s ‘Ultratuner’ Scores Hit, page 5. Tighter Nickel Means Fewer TV-Radios, page 8. NPA Pledges Action on Repair Parts, page 9. Topics & Trends, Financial Reports, pages 10-11. Editor’s Note: Netvs of Controlled Materials Plan, vitally affecting every phase of TV -radio -electronics manufacture, is included in special Mobilization Electronics Report (white) section herewith. ) CBS SPRINGS SURPRISE AN RATE CUTS: Oddly enough, am radio's league-leading CBS is I first to crack network rates — an out~of-the-blue announcement April 12 stating j that, effective July 1, rates for 8-10:30 p.m. network time will go down 15%, for 1-8 p.m. and 10:30-11 p.m. down 10%. It was tacit, though not expressed, capitulation to advertiser demands for ■ reductions on basis largely of TV inroads on audience. Decision followed disclosure of CBS-Hytron deal (see p. 2) by one day, came I as complete surprise to most affiliates right after special meeting of Affiliates I Advisory Board headed by "Ike” Lounsberry, WGR, Buffalo. Presumably board wasn't I unanimous in agreement, and CBS officials declined further comment. ! CBS affiliates contacted around country expressed astonishment in light of ' high level of both CBS and their own billings. Though NBC had "no comment,” there was irony in fact that network, more openly committed to TV, attempted to do same thing last December but backed down when affiliates howled (Vol. 6:50, 7:1). Sudden CBS move may have been precipitated by rumors ABC & MBS were about to cut rates and NBC is still bent on doing so. Their cuts are now deemed certain, but CBS wants to set pattern, standardize cuts, hold radio leadership. Ironical, too, is fact CBS continued first 2 months of 1951 to top rivals in network billings — Jan. -Feb. PIB figures showing CBS total of |12,972,841 vs. NBC * s $9,947,575, ABC's $5,754,166, MBS's $2,969,592 (p. 2, Vol. 7:13). All but CBS were down from same 1950 period — but apparently a general downward trend was betokened. During 1950, CBS led by far, with $70,744,669 to NBC's $61,397,651, ABC's $35,124,625, MBS's $16,091,977 (p. 5, Vol. 7:3). Better-positioned AM stations generally, with spot and local booming, say business is still at all-time high - and Detroit's powerful WJR, CBS affiliate, only this week reported first quarter sales far ahead of same 1950 quarter, profit down only because of higher taxes (see Financial & Trade Notes). Reasoning behind network rate-cut now, as stated by CBS sales v.p. Jack Van Volkenburg in April 13 interview, runs something like this: Advertisers are increasing resistance to radio. At present radio rates, it's hard to interest new advertisers in AM medium. ANA and individual sponsors have been pressing for rate cuts insistently during last year (Vol. 6:14-15,29-31; Vol. 7:11). Reduction should stimulate interest of old and new advertisers, maintain radio's position as "best buy in advertising." But that doesn't alter objections, freely expressed by CBS affiliates, to across-the-board rather than selective cuts in TV markets only; to fact that most of them are heavily booked, indeed hard put to it to clear time for more commercials. And many simply don't like idea of "capitulating” to claims made for TV. This much seems sure : AM network rate cuts, now-documented facts of TV APR 1 0 1951 Copyright 1851 by Radio News Bureau