Monday, May. 09, 1932
Dearer Radio
Advertisers seeking time on the air over N. B. C.'s WEAF and WJZ were told last week they would have to pay more than holders of old contracts. The new hourly rate (for 6 to .12 p. m.) is $900 against $730, half-hourly $562.50 against $468.75. N. B. C. explained that radio listeners have increased 120% in the metropolitan area since Feb. 1, 1929 without a corresponding change in rates. The means by which the rate of increase was ascertained were not divulged, nor was any statement made on whether there has been a similar increase throughout the U. S. so that other rate-raises may follow. Columbia Broadcasting System, last week denied any general rate raise but admitted "revisions and rearrangements of rates" would start June 1. While checks from advertisers will be fatter, checks to performers will be smaller this summer than any time since the early days of radio. George Engles, director of NBC's artists service, last week said salaries will be cut to "bring entertainment to the public at a price commensurate with present economic conditions."
Because newspapers have long resented radio, have had to lower advertising rates while radio rates are rising, bitter anti-radio feeling was expected at last week's convention of the American Newspaper Publishers Association in Manhattan. But no sharper attack on radio was forthcoming than the suggestion by Col. Frank Knox, publisher of the Chicago Daily News, that features whose goodwill has been built up through the Press (Joe Palooka, Walter Winchell, Orphan Annie, Emily Post et al.) should not be allowed to capitalize their popularity before the microphone. Newspapers' attitude toward radio is softening, changing from antagonism to alliance. Much advertising money spent in radio now finds its way to publishers' purses. The Columbia system estimates that 35 of its 90 stations are affiliated with newspapers. The Federal Radio Commission says "about 100 newspapers have stations or arrangements with stations." Last week Chain-Publisher Frank Ernest Gannett bought a small station at Elmira, N. Y., was reported in the market for more. Last week there were rumors that William Randolph Hearst was seeking a full day's time on N. B. C. or Columbia, that he sought to have his WINS station's power increased from 500 to 50,000 watts. These rumors were denied but it was learned that in addition to WINS at New York City, Hearst newspapers own or control WISM (Milwaukee) KYW (Chicago), WCAE (Pittsburgh) and rent time on more than 18 other stations.
No action was taken at newspaperdom's convention when Elzey Roberts of the St. Louis Star suggested that all papers follow the Montana daily papers, in lifting radio programs from news columns, publishing them only as paid advertisements.
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