The Washington times., 1924-02-05
MUST
SOON PAY
STUDIOS
Expense Of Broadcasting
Cannot Go On As At Pres
q ent, Experts Say.

Who is going to pay for broad
casting in the future? This
potent question is in the minds
Of many fans because it is OBJ
vious that broadcasting cannot
continue on the non-economic
basis upon which it now operates.
Many plans have been suggested
and a few tried out, but at this
time the majority Of stations are
operating for one Of three rea-
sons-to create good viii, to push
the sales Of receiving sets, and
for experimental purposes.
Solid Support Needed.
Most electrical companies oper.
ating stations do 80 to develop
trade, which IL based upon the
quality Of the programs broadcast;
and for experimental purposes.
Other stations almost universally
operate at a loss to the owners for
advertising and good win purposes.
So the fact remains that some
means OF solid support must be
found. Many stations are ceaaing
operations every month because
they find the expense too great to
warrant continuing.
That is one OF the most evident
OF the present-day movements in
radio. The number Of broadcasting
stations is decreasing steadily and
probably viii continue to do 80 for
some time.
There are now about fifty first.
class stations in the United States.
Experts predict that before many
months have passed this number
will have decreased to about ten,
with these ten furnishing q brand
OF entertainment and instruction un-
dreamed Of today.
Curtallment Is Result.
This will lessen but not eliminate
the problem. Unless some solu-
tion is found to check the move
ment a serious curtailment my be
expected in the amount Of broad.
casting. Some stations, realizing
the inevitable fact. have attempted
to establish themselves more firmly.
OAiO VI ILO 11AO0G VI
these is WLAG, at Minneapolis and
st. Paul, which has established H.
nancial relations. with the business
bodies of the cities.
Broadminded business men In the
Twin Cities realizing the great ad-
vertising possibilities of the station,
in promotion Of the best interests Of
the cities, have taken over the sta
ton financially, through various
trade bodies and associations to in
sure its permanency.
Even here though, the income OF
the station is apt to vary accord
ing to the policies of the men in
control Of the business interests and
trade bodies of the city.
Some stations, notably those in
New York, are making a profit
today, by charging a heavy rate
to broadcast through their studios.
Economically this is a sound method.
because radio advertising has
proved its worth beyond a doubt.
Direct and complete advertising
such as is now practised in maga-
zines and newspapers. will never be
possible over the radio, but names
alone can be advertised through
this means better than in any other
way.
The number Of orchestras and
quartets broadcasting under the
name Of commercial enterprises is
increasing daily. Stores, national
industries, and even non-commer.
cial organizations are paying or
chestras to play under their names
and in addition paying a premium
to the broadcasting station. This
seems to be the most logical and
practicable solution to the problem,
yet offered.
The suggestion has been made
that the Government operate all
stations, thus throwing the cost
back upon the taxpayer. This may
come some day, but certainly not
until the use Of radio is far more
ponorq1 than a. In foNaw