COMMERCIAL RADIO

Otago Daily Times, Issue 23354, 20 November 1937, Page 9

COMMERCIAL RADIO

SIX MONTHS’ OPERATION j THE FINANCIAL RESULTS EXPENDITURE EXCEEDS INCOME (From Our Parliamentary Reporter) WELLINGTON, Nov. 19. The financial results of the operation of the Commercial Broadcasting Service for , approximately six months to March 31 last are given in the report of the National Broadcasting Service, which was presented in the House of Representa- ' tives to-day. The revenue account : for the service shows that from October 2 of last year to March 31 of this year the expenditure amounted to £11,029 Os 5d and the income from sales of station time to £6462 6s Bd. The expenditure,

therefore, exceeded the income by £4566 13s 9d.

“ The broad basis of the Commercial Broadcasting Service is that it shall render community service to listeners of the Dominion as analternative selection to the programmes of the National BroadcastService,” states the report, “ and at the same time provide an avenue by which manufacturers and business houses generally can make known their commodities to the consuming public. The ■ underlying principle of the commercial service is that it shall ultimately be selfsupporting, the revenue to cover all operations being obtained from the advertiser in such measure as to ensure that the additional radio entertainment furnished to listeners by the commercial stations shall be without cost either to the listeners or to the State.”

The report states that starting with a weekly revenue of £IBB, station IZB had rapidly advanced so that at the end of five months’ commercial 'operation on March 31 the weekly revenue was in excess of £570. At that date the organisation of the Wellington unit (2ZB) had proceeded to a point where advertising schedules providing a commencing revenue of £2OOO per month could be projected for May. “ The funds for the establishment of the service have been provided by advances from the Broadcasting Account,” the report continues, “ and interest at 4 per cent, per annum on these advances has been taken into account. The amount expended from the Broadcasting Account in excess of the cash received and deposited was £11,270 14s 3d at March 31. This, of course, includes capital items and establishment costs such as the purchase of records and initial printing and stationery charges. The machinery and plant includes some £4400 expended on technical equipment for station 2ZB, the installation of which was commenced in March.”