F. —3

During the year a novel broadcasting-station was designed and built by this Service, in co-operation with the Railways Department—namely, SZB mobile station. This is a complete broadcasting-station built into a railway unit, which was designed for the purpose of obtaining additional technical a,nd programme data for the main provincial towns of the North Island. The revenue from this station will exceed the cost of its construction and operation. During the year, Station 3ZB, Christchurch, was completely rebuilt, following a disastrous fire, and is now acknowledged as ranking with the finest broadcasting-stations in the Southern Hemisphere. Staff. As a result of the experience gained and a plan of staff training, the staff of all departments were enabled to efficiently discharge their respective duties, many of which were of a highly specialized nature. Outstanding evidence of this was the fact that in the emergency caused by the destruction by fire of Station 3ZB, Christchurch, broadcasting operations were continued without interruption to either programme or advertising schedules. Technical. During the year, Station IZB was re-equipped with a new 1 kilowatt transmitter, and a new type of aerial radiator was opened at Waterview, resulting in improved coverage for this station. A new transmitter was built by our own staff for Station 2ZA, Palmerston North, and new equipment installed at 3ZB, Christchurch, following the loss of the original equipment by fire ; All equipment installed has operated as near perfection as can be expected, and despite the long and continuous hours of operation no major breakdown was experienced. Service. A policy of giving listeners a maximum service over the widest possible spread of hours was maintained throughout the year by an uninterrupted eighteen hours of broadcasting daily, with extensions on special occasions. A full service for listeners was maintained by the stations of the Service on fifty-five days of the year when no revenue was obtained from advertising—Sundays, Christmas Day, Good Friday, and Anzac Day. Advertising " Copy." A most rigid censorship has been imposed by the Service on all advertising " copy " to eliminate extravagant claims and misleading statements regarding products or services. Advertising is not accepted for a number of products and services which are not deemed to be in the public interest. Advertising Revenue. Advertising revenue during the year has continued its upward trend, and the following table sets out the figures for the year as compared with those for the previous year. Steadily increasing revenue establishes beyond doubt the sales effectiveness of radio advertising. In connection with the following table it must be noted that the rates charged for advertising are progressively lower reading from IZB to 4ZB, as the rates are based on the difference in population. In the case of Station 2ZA, Palmerston North, no comparative figures are available, as this station was not opened until 10th October, 1938.

Financial Statement. Revenue Account for the year and Balance-sheet as at 31st March, 1939, are submitted with this report. An excess of revenue over expenditure of £10,598 is shown, compared with an excess of expenditure over revenue of £7,387 in the previous year. A proportion of the copyright fees paid from Broadcasting Account was allocated to this Service, and a charge of £5,949 is included in the Revenue Account in respect of this item. Interest at 4 per cent, per annum, amounting to £3,463, was charged to this Service on advances from Broadcasting Account, and is included in the Revenue Account. C. G. Scrimgeour, Controller.

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Year ended Year ended 31st March, 31st March, 1938. 1939. £ £ Station 1ZB •• •• •• •• 39,055 51,816 Station 2ZB .. •• 33,663 45,291 •Station 3ZB 15,524 36,287 *Station 4ZB .. .. • ■ • • ■ • 10,165 25,287 Station 2ZA .. .. .. .. ■■ •• 2,624 Total revenue .. .. ... 98,407 161,305 * Attention is also drawn to the fact that in the case of Stations 3ZB and 4ZB the previous year is not a comparative figure as the stations did not operate for the full year ended 31st March, 1938. The comparative progress of the Service is best illustrated by the Auckland figures.