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

/ AM FM its WITH PUBLISHED MARTIN CODECS AUTHORITATIVE NEWS SERVICE OP THE VISUAl BROADCASTING ARTS AND INDUSTRY REPORTS BUREAU, 1519 CONNECTICUT AVE. N.W., WASHINGTON 6, D.C. TELEPHONE MICHIGAN 2020 • VOL. 7, NO. 32 August 11, 1951 In this Issue: Business of Telecasting — Dollar Signs, page 1. Complexes in Coast-to-Coast Hookups, page 2. Nice Lift Reported from Power Boosts, page 3. New Curbs Won’t End Station Building, page U. Big Omaha & Havana Station Sale Deals, page 5. Final Industry Color System Emerging, page 5. Trade ‘Climate’ Is Turning Better, page 9. 4th Quarter Under CMP — Fewer Sets? page 9. Outlook for CBS Color Set Production, page 10. Trade, Financial, Mobilization Notes, page 11-13. MEXICO PUSHING NEW TV STATIONS: You can expect Mexico to go forward with TV station construction faster than we "unfreeze" — with border stations prominent. Aside from the one in Matamoros , opposite Brownsville, Tex., promised in September (Vol. 7:31), there are informal reports one or 2 will soon be constructed in Tiajuana. near San Diego, and one in Mexicali , opposite Calexico, Cal., in the Imperial Valley. Mexico *s director-general of telecommunications, Miguel Fereyra. while in Washington this week to consult with State Dept, and FCC for agreements on stations 250 mi. on either side of border, said "20 or 22 grants” have already been made to Mexican enterprisers for stations to be built within a year. He would mention only a few in the works, however — notably wide-coverage transmitters planned atop mountains near Mexico City by Romulo 0* Farr ill, already operating a station in Mexico City and builder of the one in Matamoros ; and by radio tycoon Emilio Azcarraga, operating Mexico City's other TV. Also, XEW chief engineer Guillermo Gonzales Camarena plans one there to use his "sequency" system of color (Vol. 5:52), apparently same as CBS system. Another station is on tap for Monterrey and one for Guanajuato, latter in geographical center of Mexico, 170 ml. from capital. They may be ready "very soon." List of applications and grants hasn't been officially released, said Senor Pereyra. BUSINESS OF TELECASTING — DOLLAR SIGNS: You can count on one hand the telecasting stations that haven't at least pulled out of the operating red by now. Many may not yet be showing much net profit, due to depreciation charges on big investment and the amortization of heavy early losses — to say nothing of their very unfavorable excess profits base. But simple fact is that the business of telecasting, even now during summer doldrums, is booming. And it's going to enjoy a huge fall-winter business, with time sellouts on books for some networks and many stations. This year's gross time sales of the 4 networks and 107 TV stations will far more than double the industry's aggregate revenues of $105,800,000 of 1950. which compared with $54,500,000 in 1949 (see Vol. 7:13 for official FCC figures). Indeed, we'll go out on limb once again — pretty strong limb, we hope, as was our calculation of $100,000,000 for 1950 (Vol. 6:52) — and forecast that TV time sales for 1951 will equal or exceed $250,000,0001 It's impossible to forecast profits — FCC will report these in spring of 1952 — but it's reasonable to assume huge upsurge in time sales mean that the 1950 deficit of $7,900,000 and 1949 's deficit of $23,300,000 are things of the past. During 1950, according to official FCC report (No. 51-308), 54 stations enjoyed operating profits, mostly $100,000 or less each — a few showing $400,000 or more. Networks and their 14 stations accounted for $55,000,000 sales, 93 reporting stations for $50,800,000. Telecasting as whole had operating loss of $7,900,000 largely because nets lost $10,500,000 while their stations showed $1,500,000 profit. Only ABC and CBS, listed on New York Stock Exchange, release P&L statements Copyright 1951 by Radio News Bureau AUG : 3 1851'