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shelved in the reference room in alphabetical order by call letters. A search was made of each of the station files for a renewal application for the period in question. If a file for a particular station did not contain a renewal application pertinent to the study, a search was also made of the files in which still pending renewal applications are maintained.

An attempt was made to secure programming data from every renewal application for all radio stations filed during 1963, 1964 and 1965. In the absence of disciplinary action, each licensed station files a renewal application every three years. The due date for renewals is determined by a station's location becanse the applications are filed on a statewide basis. During any consecutive threeyear period, theoretically, every licensed station would file a renewal application. Files were, however, unavailable for a number of the stations and usable information was not obtained from some of the files. Several operating (but unlicensed) stations were not required to file renewals. Therefore, programming data for every operating station was not available.

To the extent usable information was obtained, it was utilized in this study where called for; that is, there has been no attempt to edit the material and use only data which supports RIAA's position. Moreover, there is no reason to believe that the stations for which data was obtained do not represent typical operations.

In the renewal applications which were the subject of the analysis, the licensees provided, inter alia, "composite week” analyses showing, in percentages, the sources of all programming presented during the composite week. There are eight programming sources utilized by licensees in the reports: (1) network commercial; (2) network sustaining; (3) recorded commercial; (4) recorded sustaining; (5) wire commercial; (6) wire sustaining; (7) live commercial; (8) live sustaining. All programs are classified as either network, recorded, wire (news service such as AP or UPI), or live; all programs are also classified as either commercial or sustaining. Generally speaking, a sustaining program is one either not paid for by a sponsor or which is not interrupted by a commercial announcement for a 14-1/2 minute period. All other programs, as explained fully below, are commercial.

This analysis is concentrated on commercial programs, whether of the network, recorded, wire, or live variety, and recorded programs, whether of the commercial or sustaining variety. To a lesser extent attention is given network commercial programs.

A recorded program, as defined by the Federal Communications Commission, is any program which uses phonograph records, electrical transcriptions, or other means of mechanical reproduction in whole or in part-except where the recording is wholly incidental to the program and is limited to background sounds, sound effects, identifying themes, musical "bridges," or the like. A program which is part recorded and part live is classified as recorded, unless the recordings are wholly incidental as above. A recorded delayed broadcast of a network program, however, is not classified as recorded but as network. A local live program produced by the station and recorded for later broadcast by the station is classified local live.

Virtually all (in excess of 99 percent, we estimate) radio programs which are classified as "recorded" feature recorded music. This does not necessarily mean that a programming segment which is classified as recorded in a station's composite week analysis, consisted of nothing more than recorded music. It does mean that recorded music was the essential theme of that particular program

7 Some stations filing renewals in 1966 would not submit the data on which reliance has been placed owing to a change in the programing portions of the application form which became fully effective in November of 1966.

8 A new station may commence operations upon grant of program test authority which, barring problems, occurs within 10 days after the initial application for license is filed. The license application itself, however, will not be acted upon for several months after it has been filed. If a station were not licensed at the time renewals for its state were filed. no application would be required and it would be 3 years later before its first renewal application would be filed.

The composite week is selected by the Commission and contains one of each of the 7 days falling at different times throughout, usually, a 2-year period.

io The figures contained herein support this assertion since a Billboard Market Research Report, undated but using 1962 data. determined that of a typical station's 122.7 bours per week on the air, 97.8 hours, or 79.7 percent, were devoted to record shows.

ming segment-also included may be the customary disc jockey “patter" and commercial and noncommercial announcements."1

A commercial program, the other category of major importance which was utilized, is any program, the time for which is paid for by a sponsor, or any program which is interrupted by a spot announcement at intervals of less than 144 minute periods. Any 1442 minute segment of a program which is interrupted by a commercial announcement is classified as a commercial program even though the purchaser of the interrupting announcement has not also purchased the time preceding and following. The result is to classify so-called “participating" programs as commercial. Without such a standard, a 15-minute program could contain five (or eren more) minutes of advertising and still be classified as sustaining. Under the definition, however, a program may be classified as sustaining, although preceded and followed by spot announcements, but if a spot announcement interrupts a program, the 1442 segment so interrupted must be classified as commercial.

To a lesser extent consideration has been given to programming classified by a station as network commercial. As heretofore noted, in their renewal applications stations classify network programming either as commercial or sustaining. A network program is classified by the station as "commercial" if it is commercially sponsored on the network, even though the particular station is not paid for carrying it unless all commercial announcements have been deleted from the program by the station.

Using the foregoing definitions, the analysis shows (1) the percentage of a typical broadcast day which involves principally the use of recorded music; and (2) the percentage of such recorded time which is classified as commercial. C. Analysis

1. Introduction.-In the succeeding portions of this study, an analysis is made of the programming of 1,108 stations grouped as follows:

(a) 212 stations operating in the ten metropolitan areas reporting the largest radio revenues ;

(b) 229 stations operating in 30 other metropolitan areas;

(c) 92 stations operating in nonmetropolitan markets for which the Federal Communications Commission reported financial figures;

(d) 120 stations operating in one-station markets; and

(e) 455 stations selected at random. During the composite weeks analyzed by the 1,108 stations for which data was obtained, a total of 129,547 hours were broadcast, 94,743 (or 73.13 percent of all hours) of which were of the recorded variety. There were 83,703 commercial hours broadcast, of which 63,092 (or 75.37 percent of all commercial hours) were of the recorded variety. These stations also reported broadcasting a total of 8,310 network commercial hours which represented 9.92 percent of all commercial time. On an industry-wide basis, however, network sales to stations accounted for only 1.39 percent of total time sales. Assuming, except for network programming, a direct relationship between commercial hours and time sales, the 63,092 recorded commercial hours accounted for 81.81 percent of sales, while the 8,310 network commercial hours accounted for only 1.39 percent of sales."

2. Top 10 Markets. There were 224 stations in the ten metropolitan areas with the largest broadcast revenues—New York, Los Angeles, Chicago, Philadelphia, San Francisco, Detroit, Washington, Boston, Pittsburgh, and Baltimore--which filed the required financial data.

u On the other hand, some classical, religious or album music programs may indeed fill an uninterrupted quarter hour or longer segment.

12 The analysis is prepared by dividing the broadcast day into quarter hourly segments so that the entire day is accounted for. Thus, if a 14 42-minute segment of recorded music, without commercials, is followed by a 30-second commercial, the entire 15 minutes is reflected in the composite week analysis as recorded sustaining programing. A station may use less than a 15-minute period if an identifiable program segment of less duratione.g., a 5-minute newscast-is carried.

13 A sustaining program is any program which is neither paid for by a sponsor nor interrupted by a spot announcement.

14 The 81.81 percent figure is obtained by subtracting from the network commercial time 1,163 hours (representing 1.39 percent of total commercial hours) and crediting recorded commercial with 75.37 percent of the balance of network commercial hours.

Usable programming data from the renewal application of 212 stations operating in these metropolitan areas were obtained. During the composite weeks analyzed, these 212 stations reported broadcasting a total of 28,019 hours, 21,161 (or 75.52 percent of all hours) of which were of the recorded variety. There were 17,788 commercial (or revenue producing) hours broadcast, of which 13,769 (or 77.40 percent) were of the recorded variety.

Following is an analysis of each of the ten markets showing the extent to which recorded music is utilized, particularly in the revenue producing end of the broadcasters' operations :

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212

Total..

32, 471, 883

28, 019

21, 161

75. 52

17,788

1 13,769

77.40

1 One should not be misled by the extent to which recorded programing was not classified as “commer. cial" for the use of records is what holds the listeners. Moreover, the figures actually understate the extent to which records are responsible for revenues. Stations reporting comparatively high percentages of commercial time are frequently questioned by the Commission. Accordingly, stations will schedule spot announcements, particularly in late hours, around 1492-minute segments so that the programing may be classified as "sustaining."

Thus, the figures show that the 13 stations in the Baltimore metropolitan area devoted 82.15 percent of all the hours to recorded programming and that 88.25 percent of all the commercial hours were of the recorded variety. Similarly, in the Pittsburgh market 14 stations reported that 73.55 precent of all hours were of the recorded variety and 74.68 percent of all clearly revenue-producing hours (commercial) utilized recordings.

The 16 stations in the Boston metropolitan area which were the subject of analysis utilized recorded music somewhat less than their counterparts in the other major metropolitan areas. In Boston, 67.68 percent of all hours analyzed were recorded and 65.61 percent of all commercial hours were recorded.

The 20 stations analyzed from the Washington, D.C. area reported that 79.39 percent of all hours were devoted to recordings and 73.32 percent of all of the hours classified as commercial utilized recorded music.

In Detroit, where 17 stations were analyzed, 77.29 percent of the broadcast time was devoted to recorded music and 76.17 percent of the commercial hours were classified as recorded.

15 In some instances data is provided herein for more stations than the Commission reports as operating in the market. This is attributable to the fact that in the financial data for individual markets, the Commission reports commonly owned AM and FM stations in the same community as one unit although this study includes data for each unless there was total duplication of programming. Additionally, the Commission does not include in its market analyses figures for independently owned FM while we have not attempted to trace ownership in selecting stations herein. Finally, the Commission provides financial data for stations by metropolitan areas but it does not list the stations included in the market. In assigning stations to particular markets we have utilized Broadcasting Year. book and Standard Rate and Data.

In the San Francisco-Oakland market where, as reflected above, profits were not as substantial as those found in other markets, the 18 stations which were analyzed reported that 75.53 percent of all broadcast time was recorded and that 78.91 percent of all commercial time was of the recorded variety.

The 23 Philadephia area stations which were analyzed showed a somewhat higher degree of dependency upon recorded programming than stations in most of the other major markets; they devoted 79.87 percent of all hours to recorded programming and 82.93 percent of commercial time to recorded programming.

The 27 Chicago stations for which usable data was obtained reported that 73.15 percent of their total broadcast time featured recordings, as did 77.18 percent of their commercial time.

Data for 31 stations in the Los Angeles-Long Beach market shows that 77.02 percent of their broadcast days utilized recorded music and that recorded music was used in 78.19 percent of their commercial time.

The 33 stations in the New York City market for which data was obtained reported that 72.21 percent of their programming was recorded and that 78.91 percent of this commercial time was recorded.16

3. Other Metropolitan Markets.-Data has also been obtained for 30 other metropolitan areas for which market financial data is released by the Commission. These markets range in size from St. Louis, Missouri, which is the tenth market based on population, to Tyler, Texas, which is the 230th market based on population.

Usable programming data was obtained from the renewal applications of 229 stations operating in these 30 markets. During the composite weeks analyzed, the 229 stations reported broadcasting a total of 27,202 hours, 20,505 (or 75.38 percent of all hours) of which were of the recorded variety. There were 17,586 commercial hours broadcast, of which 13,386 (or 76.11 percent) were of the recorded variety.

Dependency upon recorded music as a source of programming ranged from 86.86 percent of all hours for the three stations in Tyler, Texas, to 65.32 percent of all hours for the four stations for which data was obtained operating in Waterbury, Connecticut. The percentage of recorded programming to all commercial hours ranged from 86.26 percent for 12 stations in the MinneapolisSt. Paul market to 58.44 percent for the seven stations for which programming data was available operating in Springfield, Missouri.

The 229 stations also carried a total of 2,019 network commercial hours which represented 11.48 percent of all commercial hours, although network time sales totaled only $1,091,655, or 1.45 percent of the markets' total time sales. Thus, network and recorded programming accounted for 15,405 hours (87.59 percent of all commercial hours). Assuming, except for network programming, a direct relationship between commercial hours and time sales, the 13,386 (76.11 percent) recorded commercial hours accounted for 83.75 percent of sales while the 2,019 (11.48 percent) network commercial hours accounted for only 1.45 percent of sales."

The following table contains detailed figures for the 229 stations in the 30 additional metropolitan market areas analyzed, exclusive of figures for network programming:

is Stations operating in these 10 markets also broadcast a total of 1,013 network commercial hours (5.69 percent of all commercial hours), although network sales accounted for only 1.16 percent of time sales in the market. Giving appropriate weight to this factor and assuming, apart from network programing, a direct relationship between commercial hours and time sales, the recorded commercial hours accounted for 80.82 percent of sales in the markets.

1. The 83.75 percent figure is obtained by subtracting from the network commercial time 255 hours (representing 1.45 percent of total commercial hours) and crediting recorded commercials with 76.11 percent of the balance of network commercial hours.

Total hours

Recorded

hours

Perce recorded

hours

Commercial

hours

Recorded commercial

hours

Percent of recorded commercial

hours

11
12
17
12
9

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1,386
1, 470
2,065
1,734
1, 181
2,033

437
866
763
961

899
1.381
1, 208

515
791
711

903
1, 246

691
602
473
434
456
542
555
867
405
494
798
335

977
1, 209
1, 508
1, 304

939
1, 534

325
757
570
737

709
1, 061

831
368
584
552
715
975
484
446
309
326
373
366
403
605
322
364
561
291

887

983
1, 287
1, 130

832
1,388

311
757
538
574
600
788
706
290
555
426
647
728
502

7
6
7
11
5
5
4
4
4
4

70. 49
82. 24
73. 02
75. 20
79. 50
75. 45
74. 37
81.08
74. 70
76. 79
78. 68
76.87
68. 79
71. 45
73. 83
77. 63
79. 18
78. 25
70.04
74. 08
65. 32
75. 11
81. 79
67.52
72. 61
69. 78
79.50
73. 68
70. 30
86. 86

600
848
955
858

690
1, 0188

233
660
420
434
513
592
472
202
419
345
528
562
371
319
187
198
210
176
309
294
187
273
385
128

67. 64
86. 26
74. 20
75.92
82.93
76. 08
74.91
87. 18
78. 06
75. 60
85. 50
75. 12
66.85
69. 65
75. 49
80.98
81. 14
77. 19
73.90
76. 49
64. 70
73. 88
80. 45
59. 06
73. 22
58. 44
82. 01
83. 48
71.42
82. 56

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Market

Rank

Markets,

pretax profits

Number

stations
analyzed

St. Louis, Mo.
Minneapolis-St. Paul, Minn
Dallas, Tex.
Miami, Fla.
Indianapolis, Ind.
Phoenix, Ariz.
Dayton, Ohio.
Birmingham, Ala.
Syracuse, NY
Youngstown-Warren, Ohio
Jacksonville, Fla.
Grand Rapids, Mich.
Wichita, Kans
Worcester, Mass
Shreveport, La..
Corpus Christi, Tex.
Little Rock, Ark.
Greensboro-High Point, N.C.
Columbus, Ga.
Evansville, Ind.
Waterbury, Conn
Kalamazoo, Mich
Terre Haute, Ind.
Springfield, m.
Wichita Falls, Tex
Springfield, Mo.
Lynchburg, Va.
Monroe, La.
Boise City, Idaho
Tyler, Tex

Total (30 markets).

10
15
20
26
30
35
40
45
50
55
60
65
70
85
90
95
100
110
120
130
140
151
159
170
180
190
200
209
221
230

$1,062, 210
1,358, 460
1,076, 180

855, 867
369, 276
(319,557)
870, 753
101,518
253, 504
240, 162
86, 429
35, 169
308, 748
70, 748
95, 501
214, 587
(21,353)
154, 529
74, 450
59,919
(12, 613)
107, 241
16, 091
44, 279
(4, 276)
68, 065
(6, 710)
44,514
(68, 238)

7,500

7, 143, 353

229

27, 202

20, 505

75. 38

17, 586

13, 386

76. 11

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