Evening star., 1935-01-27
RADIO BROADCASTS
NOW BIC BUSINESS
1894 Income of Stations
Expected to Gross
$75,OOO,OOO.

"ROM being mere Sidellne en-
- terprise of newspapers, music
| shops, department stores, COL
leges. electrical engineers, anna
teur lobbyists and miscellany
Of others, radio broadcasting as
business has grown to rather sizable
proportions.
With the passing of l934Ethe
eighth or ninth year of that peculiar
ly American institution of CONNER
cially sponsored broadcasting, and
only the 18th year since speech and
music by radio were introduced on
an everyday baSiS-it is apparent that
commercial radio will have done a
business of S7O,OOo,00O to $4,000, 900.
Representing a plant investment esti-
mated in trade circles at about $780,
100000, radio broadcasting thus ap-
proaches the New Year showing a
fiscal strength undreamed of decade
ago.
When it is recalled that the broad
casting of radio programs was start
receiving apparatus and to win good
will for those who broadcast, the
fact that it is now an industry that
stands on its own with pay roll of
10000 regular employees and some 25,-
900 occasional artists, becomes all
the more striking. Indeed, it accom-
plished its original end to the tune
it is estimated, of four to five billion
dollars worth of set, tube and parts
sales during the last IA years. Today
at least 100000 American homes
and 100000 automobiles are
equipped with radios.
Record Year for Network.
The year 1884 will be a record one
for the national networks. whose in
come figures alone are known for any
appreciable period OF time. Authori-
tative calculations of individual sta
ton incomes, in the aggregate, were
begun less than two years ago by q
University of Pennsylvania economist
DR.. Herman S. Hettinger, for the Ma
tional Association of Broadcasters.
During the first 10 months of 1894
gross revenues of networks and
stations aggregated about $50, 500, 900
If the same time sales" averages OF
the last few months are shown when
November and December are re-
ported, namely, about S7,500,000 per
month, the total will approach $75,-
100000. There is every reason tc
believe the averages will be main
tanned, for already the major net
works are known to have achieved
record November incomes.
When the final balance sheet Is
drawn, it is likely that the national
networks will have taken in about
$42,000,000. and the individual sta
tionS and the small regional networks
will account for the remainder.
National Is Largest.
BY national networks is meant the
two Nationwide chains of the Ma
tional Broadcasting Co., linking be-
tween 80 and 80 stations, and the
single big chain of the Columbia
Broadcasting System, linking more
than 100 stations. During 1888 these
companies showed combined incomes
of approximately $31, 100000; in 1882
s39,000,000; in 1881. s35, 900; in
1880. $4,000, 900; in 1929, $4,000, 900;
in 1928, $10,000,000.
The first year of network broadcast
ing was 1927, when the National
BroadcaSting Co., virtually alone in
the network field, sold only S3,750,-
900 worth of time.
Roughly, the ratio of income as be.
tween the N. B. C. and the c. B. S
organizations is running about to 4
This year the formers gross income
will be about S27,000,0O0 and the lat
ters about $15,000,00O.
The national network organizations
Of course, must share their revenue.
with the stations they link and feed
with programs out of New York, Chi.
cago, Los Angeles and the other cen.
tiers Of entertainment, most of which
are independently owned and sub.
scribe to network programs to tons
up their local schedules and to be
protected on national events broad.
casts in much the same manner thai
local newspapers subscribe to pres;
association services. The fact thai
network revenues have been going ur
progressively, except for a serious
slump in 1888, has impelled their
member stations to demand a larger
share Of the income being derived
from advertising sponsors.