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SECTION ll.— NATIONAL COMMERCIAL BROADCASTING SERVICE. General. During the period under review the Commercial Service entered its fourth year of existence, and despite the intervention of war conditions during the latter half of the year and the consequent effect upon business generally, the Service was able to maintain its upward trend in sales, the revenue for the year 1939-40 being the highest on record even although other advertising media appeared to have suffered curtailment. The Service maintained a continuous transmission of eighteen hours daily at each of the four main stations (Auckland, Wellington, Ohristohurch, and Dunedin), and in addition attractive night programmes were provided for listeners in the Palmerston North area by the provincial station 2ZA. The mobile unit SZB, consisting of the specially equipped railway eoach, toured the main centres of the North Island and later operated in connection with the Centennial Exhibition. During the year ample evidence was received of the continued popularity of all the stations in the Commercial network. In this connection conspicuous success attended the major sales efforts undertaken by the Service, including campaigns for the marketing of the Dominion's products. A growing confidence in radio as a sales medium resulted in an increased number of advertisers, while an important factor also has been the increasing use of radio on the part of advertisers, who, starting with a relatively small proportion, spent considerably larger sums with the Service. Entertainment. Foremost among the important functions of the Service has been that of providing a bright, wellplanned, and diversified programme for listeners. The mainstay of the programmes has been many recorded serial features sponsored by advertisers. Attention was given to the question of producing local features, and progress was made in establishing suitable production and recording units. A pleasing feature has been the improvement, both in numbers and quality, of locally produced recordings, among which was a ventriloquist novelty which won popular and widespread listening. Complementary to the recorded features provided by the sponsors our studios have been in regular demand for the presentation of " flesh and blood " programmes, one centre alone toward the end of the year reporting twenty-two such presentations every week. In providing public entertainment over such long and continuous hours of transmission, while giving effective release to the sales messages of advertisers, the Service has operated a highly complicated technique in programme building, and to this end, in addition to the recorded plays and studio presentations already referred to, over two hundred standard gramophone recordings, designed to appeal to the diversified tastes of listeners, have been played daily at each of the main stations. The Service has produced its own scripts in presenting programmes of topical interest, including important anniversary and national occasions and the lives and music of the world's great masters. Special Maori sessions were also included under this heading. Wherever possible the use of local talent has been encouraged. At all the main stations there have been combinations of artists, both vocal and orchestral, who have found in the Service effective means for the use of their talent. Notable among these have been various children's efforts, including choirs, play-acting groups, musical armies, and other talented combinations involving in some cases, substantial memberships. Members of the staff, in association with artists from outside, have rendered splendid service by providing concerts for charitable objects. A Maori choir of forty members was a popular feature at one of the stations. Encouragement was given to local bands by the broadcasting of sessions featuring band music and information. The prominence of competitions, quests, and spelling-bees in our programmes served to maintain public interest and introduced an element of audience participation which is always a valued adjunct to Commercial radio. Utility Sessions. All stations report on the increased usefulness of the Service in projecting sessions of informative value to the public. These have included sporting broadcasts ; home-service sessions ; film excerpts ; gardening ; child psychology ; health lectures ; returned soldiers' sessions ; book reviews ; cultural,' travel, and topical talks. The women's broadcasts provided by Aunt Daisy and a team of competent lady announcers have commanded good listening and increased business for the advertisers. The presentation of these utility sessions for women has been greatly enhanced by the introduction of serial features at intervals in the daytime programmes. The Commercial Service has assisted from time to time in the work of other Government Departments and local bodies, both in their regular requirements and in exceptional and uncustomary fields. Broadcast reminders have proved most helpful in such matters as Social Security registrations, radio and motor registrations, income-tax returns, &c. Major campaigns have been undertaken to promote the disposal of a million extra cases of apples in the season, to assist in the development of New Zealand industries, Army recruiting, Patriotic, Fund appeals, and the Centennial Exhibition. In each of these fields radio advertising demonstrated its capacity to perform effective publicity work. The Service has been used by the Government to explain new legislation and various aspects of Governmental activities. A feature in this respect has been the talks by the Prime Minister, or his deputy, on Sunday evenings. Community Service. A comprehensive service has been rendered to the community in various sessions, announcements and programmes including broadcasts in connection with sickness and accident, losses of motorvehicles or missing persons, blood-transfusion service, safety-first propaganda, direct assistance in the raising of funds for ambulance services, children's health camps, charities, and public welfare assistance generally. Trips and outings have been organized for orphans.

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