• Get involved.
    We want your input!
    Apply for Membership and join the conversations about everything related to broadcasting.

    After we receive your registration, a moderator will review it. After your registration is approved, you will be permitted to post.
    If you use a disposable or false email address, your registration will be rejected.

    After your membership is approved, please take a minute to tell us a little bit about yourself.
    https://www.radiodiscussions.com/forums/introduce-yourself.1088/

    Thanks in advance and have fun!
    RadioDiscussions Administrators

Stations Report Lower Earnings After Expenses

davideduardo

Moderator/Administrator
Staff member
Here is a report from the Heinl Radio News Service broadcaster newsletter...

... note that it is from 1941.

BROADCAST STATION OPERATING EXPENSES ZOOM; INCOME DROPS
Operating expenses of American broadcasters rose to 79 cents out of every dollar of total revenue in 1947, and broadcast income before Federal taxes dropped from 26o5 cents to 21 cents, a calculation of expense ratios by the National Association of Broad¬ casters showed yostorday (Tuesday, Jan, 4),

The study, based on Federal Communications Commission figures to be published later. Dr, Kenneth H, Baker, NAB Research Director, stated, showed a continuing trend upward in costs of mater¬ ials and services in every category. The increase in total expenses v/as 5,5^ over the 1946 ratio of 73,5^ of the total revenue.
Salaries and wages for the broadcasting industry, includ¬ ing talent fees, rose to a total of 46,1 cents of overy dollar of broadcast revenue in 1947 (or 58^ of the industry's total operating expenses), from the 1946 total of 43,2 cents.

All figures in the ratio calculations are expressed as per¬ centages of station net revenue for all commercial stations. Eight other sheets in the report show ratios for specific types of sta¬ tions; full-time and part-time, network affiliates and non-affili¬ ates, 50,000 watt, 5,000 to 20,000 watt, regional and local stations.
The study did not include the operations of 11 key stations of nation-wide networks. Dr, Baker said, since the reports filed by them with the Commission do not show adequate segregations of expenses between station and network operation.

Typical breakdowns of the total study showed the following increases in operating expenses for the entire industry;
Technical expenses, including salaries and wages, repairs, and other technical costs, up to 13,5^o of total broadcast revenue from 12,1^0 in 1946,
Program expenses, including salaries and wages, talent, royalties and license vees, transcriptions and recordings, wire ser¬ vices and other costs, up to 28,2^ from 26,6^ in 1946,
Selling expenses, including salaries and wages, commissions and other costs, up to 11,3^ from 11^ in 1946, (Since the ratios are based upon total net revenue from the sale of time and incidental services, the commissions to agencies and station representatives have already been deducted from the base figure, )
Total direct expenses connected with the broadcast and sale of radio programs, including all items above, up to 55% from 49,7^ in 1946.
General and administrative expenses up to 26^ from 23,8^ in 1946, This category included salaries and wages, legal service, insurance, experimental and developmental expenses, depreciation and amortization, rent, taxes (except Federal), losses on notes, accounts, etc., and other general costs,
 
Status
This thread has been closed due to inactivity. You can create a new thread to discuss this topic.


Back
Top Bottom