WILL B CLASS STATIONS HELP RADIO ECONOMICALLY?

Radio Record, Volume II, Issue 27, 18 January 1929, Page 6

WILL B CLASS STATIONS HELP RADIO ECONOMICALLY?

IN another column we publish a number of letters on the question of the establishment of "B" class stations, to be assisted by subsidy from the funds provided by listeners. Views both pro and con are expressed, and may be left to speak for themselves. In addition, we publish a letter from Mr. L. E. Strachan, director of 3ZC, urging the special scheme he has advanced for the development of an independent B station service. This is conceived on an entirely different foundation from that advanced by his Dunedin confreres. Mr. Strachan completely and emphatically repudiates the idea of ever, either now or in the future, asking for subsidy from the Government or listeners, but proposes that such B stations as may be approved by a special board to be established shall be allowed to operate on the revenue to be secured from the sale of publicity. This is a proposal, in effect, that the American system shall be grafted on to our own unified system, which is based upon that of Britain. The question is, would the two systems operate effectively and efficiently side by side, and be to the advantage of radio and the benefit of listeners ? WE do not think they would, and in fairness will advance reasons , for our belief. Mr. Strachan’s scheme is free of the objection that it would make direct inroads upon the central fund provided by listeners. It would, however, immediately intensify the costliness of the present service by creating competition for artistic talent, as on the indication given, to secure an audience for the entertainment to be given by grace of Messrs. So-and-So money would necessarily be spent freely for the best talent procurable. Artists naturally would welcome such competition, but obviously listeners’ funds would not go so far. Further, Mr, Strachan would seern to recognise that if this extra right of selling time is given to one it must be given to another, for he proposes a board to adjudicate on the applications to be made. Such a board would be open to pressure, and would find it hard to refuse to one what it had granted to another. The tendency, therefore, would be for more and more to enter the field to compete for the limited revenue available, and thus clutter up the ether to the disadvantage of listeners. These points are made regardless of the fact that the right of selling time is not negotiable as it is included

in the existing contract of the Radio Broadcasting Company, arta obviously the Government cannot sell the same thing twice ° 20 4 WE are, however, quite prepared to discuss the theoretical case on its merits. For B class stations to be effective as revenue earners they must be situated in the centres of population in order to reach the largest possible audiences with their clients’ announcements. They must also be able to operate at the popular’ hours in order to secure their audience. Jor these two reasons, therefore, they will necessarily be placed in the four centres, and operate at the same hours in the main as the YA stations. This will certainly _ give listeners with selective sets a range of choice, but would impose difficulties upon the owners of non-selective crystal sets. We imagine. that in spite of what Mr. Strachan says overseas experience is avai!able which will definitely discount his case. The Chief Telegraph Engineer (Mr. A. Gibbs) returned comparatively recently from an important tour of the world, on which he collected much data of val It is significant to our mind that, although permission for a certain in pendent station in Auckland had been given by the Departinent before his return, erection has not been undertaken. We venture the view that it was because of the lessons acquired from overseas experience ; and the same lessons will operate in regard to further proposed stations of a competitive nature. ANOTHER factor of a rather far-reaching nature is involved in the question of exploiting the air for advertising purposes. That is, competition with existing advertising mediums, such as the daily Press. In New Zealand the daily Press is highly organised, very efficiently conducted, and renders a very valuable public service. It derives much of its revenue from the sale of advertising space. If the daily Press found radio an active competitor for advertising revenue, its attitude to radio would certainly become less tolerant than it is. Radio benefits greatly by the liberal manner in which the Press informs its readers of forthcoming programmes. No sum within the capacity of listeners to pay would compensate for that service. The success of any station selling publicity on the air would be largely determined by its capacity to give a large public priow’" ° knowledge of forthcoming programmes. We do not imagine the Press would welcome a system which could be successful only at the expense of its own advertising revenue. . SO far we have looked at this question apart from the immediate angle of the listener? How will he benefit by extra stations in areas already fairly well served? Those already enjoying a wireless service will certainly benefit by a capacity to select (provided their sets are selective); they will suffer if their sets are not selective. The big problem of radio in New Zealand is left unsolved by this proposal to establish B class stations dependent for revenue on the sale of time. That major problem is the extension of effective radio reception over new areas of population; not the duplication of stations and services already existent. Would radio not be advanced better by extension than by intensification? We think it would. A BETTER radio service can be given in two ways-(1) By longer hours of operation of existing stations, and (2) by satisfacto points for relay to reach new centres of population. Both in our view will be most effectively handled by concentration on the expansion of the existing central organisation. More revenue will permit longer hours of operation; more revenue will permit the pro- vision of relay points for more people. If the present rate of progress is not satisfactory, would it be desirable for the Broadcasting Company, with the Department’s permission, to make effective its existing right of selling time for advertising purposes and with the revenue thus secured expand the present service? Frankly, keen as we are to see radio progress, the number of listeners expand and dealers prosper, we would be reluctant to see a vigorous development of com‘nercialism in our entertainment programmes. The revenue so secured would, we feel, be dearly bought for reasons indicated in this article. It is natural for rapid expansion to be desired. It is; how: ever, wiser, we think, for all expansion made to be won solidly. andy. effectively and without possible reactions to the detriment of radio. For these reasons we do not think it would be economically sound either now, or in the future, for radio to rely for development upon’ the scheme advanced by Mr. Strachan.