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

5 S7, 900, OOP (before Federal taxes) as against $25,300,000 deficit in 1949 — mainly due to network losses. FCC auditors reported more than half these 54 had net profit of $100,000 or more before taxes, while 8 stations earned more than $400,000 each. All isn't gravy for the telecasters, however. Mr. Doherty's talk was based on his second annual TV cost study, just sent NARTB members, which covers 1950 operations. It starts by reporting "substantial and even remarkable increases" in individual station revenues. But it also notes total operating expenses per station have risen because of larger staffs, higher wages, added equipment, more hours on air, allocation of certain costs hitherto not charged to TV (presumably to radio). Biggest expense item was payroll, averaging 50-60% of revenues, says report. Depreciation ran some 16-17% of total expenses. Film & minor unclassified programs averaged 15-14%. Report doesn't identify stations, nor disclose extent of sampling, but breaks stations down into 5 categories of operating costs ranging from $200,000 & below to $800,000 & above. Lower group averages 32 employes (2 part time) and weekly payroll of $2169; latter averages 152 workers (8 part time), payroll $15,875. NARTB report conflicts with FCC's in that it says only 35% showed profit in 1950, FCC figures being before taxes. NARTB sample stations showed average perstation increase of 60% in revenues in 1950, or an average of $441,000 per station. Average operating cost per station was put at $552,000 — so that operating ratio was 121% for full year of 1950 as against 197% for 1949. IS TV LOSING ITS AUDIENCE? New York Herald Tribune Syndicate’s caustic John Crosby thinks it is, and he blames “the freeze in ideas,” which he calls “even more paralyzing than the FCC freeze.” In Sept. 19 column he advises telecasters to heed signs of restiveness among set owners, and — yes — even the current wave of anti-TV jokes. Says Crosby: “Just as did radio, TV is losing — or may already have irrevocably lost — ^the support of the most intelligent level of the American community, the most influential body of opinion in the country.” As a result of stereotyped programming and avoidance of new ideas, “TV has earned for itself, in 5 years, a popular contempt which it took radio 20 years to win — if that’s the word for it . . . TV is breaking the hearts of its own most able and imaginative creators— those who got into TV early, those who saw it as the greatest mass communications medium ever devised . . . “Broadcasting has always been more afflicted with taboos than any other medium. Today the timidity has reached an all-time high. Virtually everything from pregnancy to freedom of religion is considered a controversial subject, leaving almost nothing except homicide as a fit topic to enter our homes. You can’t hire a controversial figure, either, meaning anyone whose name has appeared in Red Channels. No one in broadcasting . . . will defend these taboos; all scrupulously observe them.” And New York Times’ Jack Gould same day takes a swipe at those half-hour filmed commercials which he says are shaping TV into “America’s flea circus.” “Fifty percent of the TV industry,” he says, “is now ardently embracing the commercial commercial” — those long sales talks, minus entertainment, which advertise vitamin pills, hair oil, etc. These pitchmen, says Gould, “are a breathless and tireless band of recruits from medicine shows, carnivals and auction galleries,” and names them as Sid Hassman, Richard Lewellyn, Charles Kasher, Paul Bedell and David Klein. “Their technique is simplicity itself: treat the customer as a consummate dope.” Baltimore ad agency, TV Advertising Associates Inc., is responsible for the epidemic, Gould says, observing that gen. mgr. Allen C. Kaye-Martin is “happily surprised by the advantages that come from the program not subject to the distractions of entertainment . . . Even in one-station towns, he doesn’t hesitate to repeat films: 300 showings in 14 months has been one community’s fate . . . “Fifty-five video stations out of a total of 107, as well as 750 radio outlets, are playing host to the medicine men. WOR-TV is in its twentieth month showing the same halfhour commercial 3 times a week. WJZ-TV [is] just beginning. ‘Our first network-owned station,’ Mr. KayeMartin said, with a touch of pride.” Neither press, radio nor TV has right to be in a courtroom, which “belongs to the litigants trying a case,” said ex-Federal Judge Simon H. Rif kin in opposing telecasting of criminal trials and Congressional hearings on American Bar Assn, convention panel in New York Sept. 19. Columnist Marquis Childs was opposed to “hippodroming” as incentive to prosecutors to go all out for prominence rather than justice. But Rudolph Halley, ex-Kefauver committee counsel, backed TV by noting “sobering eifect” it had on committee members and counsel during recent hearings. And New York Times’ Jack Gould said it’s better to use TV at real trial where justice is being dispensed than for gang operas and pseudo-crime thrillers. Electromagnetic radiation bill (Vol. 7:8, et seq) was reported Sept. 19 by House Interstate & Foreign Commerce Committee with only 2 amendments to Senatepassed version (S. 537). First would bring Canal Zone under provisions, second increase punishment to $20,000 and/or 20 years for violations intended to harm U. S. There’s little doubt Senate & House will agree quickly on measure, pass it. What bill would do is extend President’s power over stations to other devices capable of emitting radiations of navigational use to enemy. Govt, should buy TV-radio time for candidates for Federal office because of “frightening increase” in campaign costs. Thus Sen. Benton (D-Conn.) testified before Senate Elections subcommittee Sept. 14. Major parties would allocate time to their candidates, but minority parties would have to pay full rates if they poll less than 2% of vote. Sen. Benton would have stations continue offering free time and suggested FCC, in making grants, “give weight” to applicants proposing to offer free time. Resumption of hearings on Benton bills (Vol. 7:36-37) is still not scheduled, and probability grows that they won’t be concluded this session. NARTB says that when its turn comes to oppose bills — which propose setting up 11-man TV-radio program advisory board and encouraging box-office TV — testimony will be offered by station operators as well as headquarters spokesmen.