Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-08-02
NETWORKS REVEAL
IMPRESSIVE GAINS
Nearly 100 Million Yearly
Being Spent on Radio,
Advertising.
BY MARTIN CODEI.

Radio broadcasting as a business b
continuing to ride high and handsome
over the troublous economic seas, show
ing a dollars-and-cents advance that
probably cannot be equaled by any Off,
err industry of the same proportions.
Sale Of time on the air" alone dur
ing the first six months Of 1891 brought
in gross revenues to the two major
networks-the National Broadcasting
Co. and the Columbia Broadcasting
Systen--that exceeded by 37.2 per cent
the gross revenues from that source
during the same period Of 1880.
Total gross income from the sale Of
time by the two chains together
amounted to $17,399. 100 during the first
half of this year, which compares with
$12, 689 $50 during the first half Of last
year. This is exclusive OF revenues
from other sources, notably commissions
on talent booking, in which field the
two networks have taken commanding
positions.
Increase Is Significant.
This remarkable increase in the sale
Of time alone is significant not only
because it comes in the face Of the
business depression, but because it re-
way to a new record year. Their best
income producing months of the Fall
and Winter seasons are ahead of them
and contracts are outstanding which
will then take up by far the major
proportion of the evening hours re-
served for sponsored programs.
During the whole Of 1880 the two
network organizations alone showed q
combined gross income from the sale
of time Of $26,667, 39l. With wei over
half that figure already achieved, 1t Is
more than likely that the chain reye-
nues will exceed $35,000,0 900 for the
whole of this year.
During 1880, incidentally. the net
works increased their income from the
sale Of time by ~ per cent over 1929,
when the aggregate was $16,729.o1l.
That figure represented an 03 per cent
increase over 1928, when the aggresate
was slO,252,497. In 1927, when the
N. B. C. was alone In the field, network
time brought in 43.760010.
Figures are available only Tor net
work time sold. no agency making any
effort to collect figures for time sold
independently by the 600 chain and
non chain stations in the United States.
The proportion of increase by individual
broadcaSting stations-and most sta
lions devote far more hours to local
than to chain programS-is believed TO
be about the same. Broadcasters gen.
orally, including the little fellows, are
reported to be enjoying an unprecedent-
ed prosperity, despite the depression In
most other fields.
More Than 100 Millions.
With the two big chains doing
business of around SIS, 000, 900 this year,
it is perhaps conservative to estimate
I4& I'D iva ANy ind
vidual stations runs well over twice that
amount, or about $75,000,000. If this
estimate is anywhere near correct. 1t
reveals that advertisers are spending
substantially more than 500, 100000
per annllm for time alone on networks
and individual stations. Talent costs
and the cost OF maintaining radio sta
tons would build this figure IN con-
siderably-so that 1t L. pertApD fair
to reckon that American ra6o broad
casting on the sponsored pre- m side
alone represents on annual oDllars-and-
cents turnover of $50. 900, 900 or more.
Broken down by networks. the figures
for the first six months of 1881 are an
eloquent index of the fiscal progress
being made by both N. B. c and c. B. S.
The N. B. C,s income from the sale of
time during that period amounted to
$12,332,113, which is 33.5 per cent
aneaQ OF the $S,zo4,oI1 DuSlueSS uOnS
during the first six months Of 1890.
The figures for each Of the six months
Of this year are higher than those for
the same months Of any preceding year;
the N. B. C's January time-selling
business amounted to S2,026, $50; Feb
ruary, $1,924,778: March, $2,164,434;
April, $2,193,263 May, $2,101,525;
June, 1921 ,253.
Even greater was the pFoportion Of
increase in time sold by Columbia.
though its totals are considerably lower
than N. B. C.s because it has only a
single basic system to compete with the
N. B. C's two basic and various sup
Elementary nets. The C. B. 8. income
from the sale Of time during the first
six months of 1881 was $5,067 ,607. which
is 46.6 per cent increase over the
So, 455,039 figure for the same six
months Of 1880. Like N. B. c., the
c. B. s. reached record totals in each
Of the six months. the totals being:
January. s6l0.27o; February. $674.744;
March. $e76550: April. 1868, 1876; May,
1884, 0eS; June, $s03,750.