Evening star., 1932-08-28
RADIO PROSPECTS
ARE MORE HOPEFUL
Broadcasting Business Now
Believed at Lowest Ebb
in Recent Years.
BY MARTIN GODEL.

- ROM a flourishing industry that
l. rode through the depression pc
riod without any serious set
i backs until last Spring, the busi-
ness of broadcasting appears to
have reached its lowest ebb in recent
years. Happily for the broadcasters,
however, and accordingly for the listen
ing public-which gets better programs
as more sponsors compete for its atten-
tion-the recession in the tide of radio
business seems to have halted. Unless
an unexpected new slump sets in, the
broadcasting business can look forward
to new era of prosperity this Autumn
and Winter
Definite prospects that old sponsors
will return to the air this Fall and that
many new sponsors will give radio a
fling have caused decided clearing of
the blue atmosphere that has pervaded
radio studios generally throughout the
Summer. Every time an advertiser
leaves the air it means just that much
more expense for the broadcaster, who
must then himself pay for sustaining
talent in order to maintain his pro-
gram schedule and hold listener in
terest.
Most Stations In Red.
The result has been rigorous curtail-
fnent OF stats and salaries in order to
make ends meet. If program quality
has fallen off during the Summer, 1t
Is simply because revenues have not
warranted expenditures for new fea-
lures. Only a handful of stations out
of the 600 in the United States have
operated in the black during the last
few months.
How seriously the slump has hit radio
in recent months Is well indicated by
network revenue figures, often regarded
as an index to the broadcasting busi-
ness as a whole. During July, the last
month for which figures are available,
the two Nationwide chain organiza-
tions suffered the severest curtailment
In income since September, 1880.
N B. c. and c. B. S. together crossed
So, ,406,2 ,208 during that month. which
compares with $2,764,294 during July,
1881. 1t was the lowest months reve-
nue. in % months, representing with
drawal. in many cases for the Summer
only, OF some of the leading sponsors
of some of the most popular programs
on the air 1t was particularly hard
for the networks to swallow, because
they started the year 1882 with bang,
hanging up revenue records from jan
uary through May. The slump came in
June.
Networks Show Gain.
Because Of the good start they got
during the first five months of this year
the two network organizations can nev-
ertheless show considerably higher
income so far this year than during the
same months of 1881. The figure for
the first seven months of 1882 is $25.-
214.835; for the same months of 1891
it was $20167532 But the Summer
slump has been so severe-it will be
shown also in the August figures, not
yet announced-that considerably more
business will have to be done to equal
last years record revenue of $35, ,791 999.
1t is conservatively estimated that
time sold by stations independently of
their network connections, for which no
tabulations are made runs about twice
that Of network time, 1. e., around $70,-
| 100000 a year, so that the gross time
turnover of American radio is well over
500 900 900 year. Local stations have
suffered business letdowns commensu-
rately with the networks-in many
cases, much more severely because of
| unusually depressed local industrial con-
ditions.
The evidence that business is on the
upgrade is furnished by the growing lists
OF new sponsors reported both by net
works and local stations, as well as by
the fact that many old sponsors are
definitely arranging to return. All
through the broadcasting industry, there
runs a note of optimism. If the busi-
ness of broadcasting can be regarded as
| an index to business conditions gener-
ally. then happier days are in store for
American industry.