Television digest with electronic reports (Jan-Dec 1952)

■X Reprinted with permission from March-April edition of Broadcast News, published by RCA Engineering Products Dept. TV STATION OPERATING COSTS Predicted or estimated TV station operating costs are, perhaps, the most important factor in the early planning of any television station. Unfortunately, it is a subject on which little has been published. About the only successful way of collating such valuable information is to actually “operate” a TV station or gather data from existing stations. Therefore, the information on television station operating costs presented here is based on the author’s actual operating experience in television stations, plus data compiled from surveys and studies of operating stations. Considerations in Using Cost Estimates The detailed “cost” information given in the following tables is intended as a guide to the “TV Planner” in predicting his own costs of operation. All estimates represent well-equipped and adequately staffed operation for each category. Station categories are broken down into four groupings—Classes “A”, “B ”, “C”, and “D”, ("A” being the least complex and “D” representing a large independent station operation). Both overall and detailed cost analysis for groups “A”, “B”, and “C” are included in the following material. For group “D”, only the overall summary is given since this class of station will undoubtedly call upon consultants to assist in a detailed analysis. by J. HEROLD TV Station Planning Consultant Engineering Products Dept. Since these estimates are, at best, only typical figures, the TV “planner” should be cautioned to make the appropriate adjustments in such items as salaries, program expense, amortization, and rents. This will be necessary in order to conform with local conditions, as considerable variance is to be experienced. In compiling the cost estimates, certain factors, such as “daily program hours”, amortization time, etc. were established. In these tables, 12 hours of daily programming was assumed, and an amortization rate of ten years was selected. Several factors which can affect total predicted costs are discussed below, and the particular station’s predicted cost will depend on these considerations. Personnel In groups “A” and “B”, doubling of responsibilities will be possible to reduce personnel requirements. Such doubling should not lessen employee performance and efficiency. An example of practical doubling, where local labor agreements permit, is the use of operating engineers to operate projectors, control lighting and act as cameramen. Announcer-Salesman combinations may be very practical. Other possibilities will occur to the applicant depending on the capabilities and experience of the operating personnel. Technical Expense— Tube Costs There will be considerable variation in expenses in this classification due to different programming activities, transmitter power, and local salary levels. Estimated tube and power costs per hour are listed for convenience in arriving at estimates for different transmitter powers. Cost Transmitter per Hour TT-2AL (2 KW, chan. 2-6) $0.22 TT-2AH (2 KW, chan. 7-13) 34 TT-10AL (10 KW, chan. 2-6)... .88 TT-10AH (10 KW, chan. 7-13).. 1.00 TT-20BL (20 KW, chan. 2-6)... 1.86 TT-20BH (20 KW, chan. 7-13).. 2.03 TT-50AL (50 KW, chan. 2-6)... 4.70 TT-50AH (50 KW, chan. 7-13). . 4.70 TTU-1B (1 KW, UHF) 1.28 TTU-10A (10 KW, UHF) 4.90 Space Considerations It may be desirable to combine some of the office functions to reduce space requirements to a minimum. On the contrary, additional space may be required above the minimum due to expanded office activities ABOUT THE AUTHOR .1 OS El H HEROLD, whose broadcast experience dates back to 1930 when he joined the Engineering Staff at W OW, Omaha, Nebraska — studied at the Milwaukee School of Engineering. In 1935, Mr. Herold became Studic Engineering Supervisor and in 1945, Technical Director for WOW, Inc. (WOW, KODY). In 1947, he inaugurated W OW-TV Staff Training Program in cooperation with Creighton l niversity (see Broadcast News, May, 1948). This pioneering resulted in many I \ technical and programming techniques in use today. Responsible for building planning and equipment installation, Mr. Herold became Manager of Television and Technical Director for WOW, Inc. in 1949. At WOW, he established many firsts in microwave-links, “remotes”, educational programs and low-budget line commercials. He conducted detailed cost analysis through weekly surveys of TV station operating costs. In 1950, Mr. Herold was Television Consultant for Union Radio and Television (CMLR-TV) Havana, Cuba, where he supervised staff training and installation. In 1951, he supervised installation and staff training for Radio Televisao, Paulista, Sao Paulo, Brazil.