Evening star., 1935-02-03
BY THE RADIO EDITOR.

VOW muCu 10 CIlc U1S Iduio
programs cost the men who
foot the radio bill?
i j This question is often put
to persons identified with
radio by curious listeners who find 1t
hard to understand how so many pre-
tentious programs can be broadcast
with seemingly only a nebulouS return
to the sponsors. The question can pc
answered with degree Of exactitude
In the light of newly issued rates lor
network time which the major chains
have Just published.
These reveal that Henry Ford paid
for radio time alone at the rate OF
nearly $4,000 an hour for the after
noon broadcasts of last Autumn S
world series which he sponsored over
combined hook-upS of the three major
chains, taking in about ITS stations in
all. The sponsor of Rudy Vallee's
popular Thursday evening variety
show. heard over more than SO sta
tions of one of the networks, pays
approximately $4,000 for the hour OF
time on the air alone, not including
the cost of talent.
The available network figures cover
cost of radio facilities only. The cost
of the show itself varies with its pre-
tentiousness, ranging from a few hun
dred dollars per performance which
the current fair for amateur tryouts
involves to many thousands OF dollars
which the elaborate big-name per-
formances command.
Stars Highly Paid.
There are no figures available for
talent and production costs, which are
not included in the network rates and
which the sponsor must bear addition
ally. That program costs run into
enormous sums is very well known,
especially where stars like Jack Benny
Paul Whiteman, Eddie Cantor, Fred
Allen the the like command four
figure weekly salaries for themselves
alone, not counting their orchestras
and lesser satellites.
Consider the rates for network time
per Sc, and you have some index tc
the cost of radio programs. In radio
circles it is calculated that the cost OF
stellar programs generally runs from
half to equal the cost for radio time.
First it should be understood that
individual radio stations are linked
into networks for the so-called ma
tional programs by means of specially
ENGINEERED wire line connections
(hook-ups) from key studios, usually
situated in the major centers OF en-
tertainment, like New York, Chicago
and Hollywood. These stations, all
but about 20 Of them individually
owned, subscribe to network programs
in much the same manner that news
papers subscribe to press association
services of course, that the
stations are compensated for the
sponsored (advertising) programs they
carry.
In turn, the stations pay the net
works blanket fees for the sustaining
(non-commerciaD programs that are
offered. In other words, when PTeSi-
dent Roosevelt or a Senator or Rep
resentative speaks. or when non
revenue educational or religious pro-
gram Is carried, the networks assume
the cost, but get at least enough OF
1t back from its member stations to
defray a proportion of the $4,000
to $4,000, 900 annual bill they pay
the telephone company for their wire
line hook-ups.
Each Station Sells Time.
Each station sells its time locally
ut rates depending upon its impor-
tance, which Is gauged by its con-
sistent popularity within the area
covered by its wave length and power
Each station commands local rate
for locally staged programs, and these
range from perhaps $40 an hour in
the case of extremely low power
local outlets to $1,000 an hour which
one super-power station gets for its
night periods. Rates for daytime hours
generally are half the rates for the
periods from 6 to IL pm.
The national chains build their rate
structures on fixed charges for each
station linked. There are three such
chains-namely, the N. B. c. Red and
Blue networks and the c. B. S. net
work. Each has its basic group of
stations, covering the more thickly-
populated areas west to Kansas City,
but to these basic chains can be added
supplementary groups serving other
sections of the country. The addition
of the supplements is optional with the
buyer of network time.
Thus the N. B. c. Red network,
which has 81 basic station outlets,
under the new rate structure just an
nomced, somewhat higher than the
old rates, costs $7,120 an hour, $4,272
q half hour and $2,848 quarter hour
Add the A supplements to the Red
network and the rate becomes $15,200
an hour, $9,120 half hour and
sc 080 a quarter hour To these rates