Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-11-12
RADIO INDUSTRY
PROFIT IS SEEN
Halt Of Big Stations Of U. S.
Are Emerging From Red
Ink Status.

Slowly but surely broadcasting, as an
industry, is emerging from the red ink,
and now about one-half OF thu country's
big stations are reaping profits.
Twenty CT the Nations leading
stations are evenly divided as between
urofits and losses on broadcasting's
balance sheet, according to figures
computed from ofIlcial records Of the
Federal Radio Commission. Statistics
showing the average cost Of operating
q 5,000-watt station on q cleared cham
mel, average income and other nScai
data have been sifted from statements
of officials of these stations made at
the commission.
Profits Begin TO Show.
Whereas in the past the vast
majority of the big stations were losing
thousands of dollars in operation, but
cleaning profits in good will, the figures
show that 10 of the 20 big stations now
have an annual average profit OF $29,-
600. The other 10 figured In the
analysis showed annual losses of $54,-
600, which for the most part represented
decreases in losses as compared with
last year.
The average investment in a 5000
watt station, like WMAG. In chicago;
wOR, in Newark. or WSB, in Atlanta,
is 1880 This figure was reached
by adding investments of the 20 stations
and dividing that figure by 20. Since
all of these stations seek increases In
power tc make the present maximum
of $4,000 watts, thsy will have to- put
something like $250,000 additional IN
new transmitters II their requests are
granted. These figures do not INCLUDE
costs of talent, programs or operation.
They are simply average expenditures
for equipment and station facilities.
Seventy per cent of the program service
over these 20 stations Is free or un-
sponsored.
Tne remaining 80 per cent constitute
paid programs or those sponsored by
advertisers, by which means stations
derive their incomes. Music makes up
So per cent of all programs broadcast.
Cost Is $50 Per Hour.
On the average these stations charge
1910 per hour in the evenings for time
on the air, The monthly income from
advertising averages $2l 500 per station.
with the aggregate monthly income
23.5o0. The average total monthly
operating cost Of 5,0O0-watt station Is
$4,000 But. the station pays out for
talent each month about $l2.5O0. while
the average monthly pay roll for other
employees is Sc. 400.
with 5000 watts power the average
high-uuality service area Of q station Is
IS miles That means that listeners
within 35-mile radius Of station get
good. consistent reception. unmarried by
static or fading. The reasonable" serve
ice area Of a 5,00O-watt cleared channel
station is placed at So miles.
Greater Power Is Asked.
3 All stations figured in the analysis
were applicants for the maximum 30,
0Oo-watt power. claiming that vastly
Improved service could be rendered
With It to listeners the country over.
The commission heard these arguments,
and heard itself criticized, at formal
hearings which covered five-week
,,eriod from September Is. In all,
3e stations applied for increases to the
maximum power
These hearings grew out Of the CONF
missions ruling that only one-hasf
az the 40 cleared channels which ac-
comodate stations Of minimum power
of 5000 watts, should be allowed to
have stations Of the maximum power.
fcopyrisht. 1851 BY the Consolidated Press)