Evening star., 1936-08-02

documents ever to come out of one OF
Uncle Sans agencies. Analysis OF
the Census Bureaus report on the
1885 dollar volume Of radio broad
casting as an industry discloses some
facts which mere official statement
tends to hide from the cursory glance.
For example, where the industry's
trade association statisticians esti-
mated the gross turnover from all
time sales" by the various American
networks and stations last year at
approximately $87,500,000. the Gen.
sus Bureaus findings would appear
to amplify this figure to 100000, 900
or more. The reason is that the Gen.
sus Bureaus revenue total for all
broadcast stations and networks,
amounting to approximately $50, $780,
900 for the year, represents net reve-
nues rather than gross-and it is
we'll known in the trade that COM
missions, generally running IS per
cent, are deducted before net can be
calculated.
THUS the following revenue break
downs reported by the Census
Bureau tell the story only of the
money that actually poured into the
Golfers of broadcasters last year and
omit the amounts that went to ad-
vertSting agencies, representatives,
talent agents and managers and the
miscellany Of others who got their cut
of radios business:
Revenues Of national and regional
networks, s39.737,S67.
Revenues Of stations from nation.
al non-network sources, $13,.
805,200.
Revenues of stations from local
sponsors, s26,074,476.
Revenues from sources other than
the sale of time, such as talent
bookings. program building, ETC.,
S6,875,110.
All these revenues comprised the
net receipts of the SCI broadcasting
stations in the United States which
sold time" and the eight national and
regional networks which did likewise.
The Census Bureau admits that three
small stations failed to make re-
turns but their effect on the total
would be small. 1t also points out
that as of the end of 1885 there were
625 licensed broadcasting stations in
the United States, but all the re-
mainder were inactive or non-com-
mercial stations which either were
not operating or did not sell time.
THESE fgues show that the net
works account for at least half
of the revenues of the broadcasting
industry, although the stations take
in more than half, in view Of the
networks obligations to pay the sta
tions for their time. The Census Bu-
reau report states that Of the $39.-
737,867 taken in by the networks
from time sales $27,216,035 or 68.5
per cent was retained by them to
cover the costs of programs, wires
and other facilities, while $12.521. .s32
was paid by them to the stations for
carrying network commercial pro-
grams. Thus the aggregate station
intake from time sales" amounted
to $50, ,508 against the networks
retention of s27.216,035.
OF the s6,875,110 item covering
revenue sources other than the sale
Of time, $2,s93,245 was taken in by
the networks and 1891 1865 by the
stations-largely from the sale Of
talent and production facilities. the
rental" Of artists for personal ap-
pearances and the like.
Significantly, the Census report also
shows the concentration Of radios
revenue intake in the populous CEN
ters of New York. California, Ohio.
Illinois and Pennsylvania. which ac-
counted for AZ per cent Of the total
station revenue.