A.B.C. Radio Service

Radio Record, Volume V, Issue 11, 25 September 1931, Page 5

A.B.C. Radio Service

Heavy Maintenance Costs AUSTRALIAN listeners apparently receive poor value for their money. According to the Melbourne "Herald": "Australia has a smaller proportion of wireless license revenue devoted to radio programme expenditure than any other country in the world. The British Broadcasting Company spends 73 per cent. of its £1,100,000 a year reyenue on programmes alone, compared with the 50 per cent. given to the Australian Broadcasting Company. ‘This comparison, however, is further aggravated by the fact that the A.B.C., from the 50 per cent. of the license fee money it receives, takes 10 per cent. for its profit, pays all the overhead expenses’ of its nation-wide organisation, all salaries and directors’ fees, a big contribution to the Postal Department for lines and mechanies for outside relays, and an enormous sum -about £25,000 a year-for copyright, Therefore, of the £160,000 which the A.B.C. receives from the 832,000 license fees in Australia, there is very little for payment of artists and entertainers at Australia’s nine A class. stations Last year the sum was only 25 per cent, of the total license revenue. "When only 6/- of every 24/- is paid out in programmes,'there seems room for reduction somewhere. From the listeners’ point of view, the two con tributions which could best be reduced are the 9/- taken by the Postal Departe ment and the payments for copyright, The remaining 3/- is paid to Amalgas mated Wireless for royalties, and is being used to build up a radio industry which in the future will be of immense yalue to the station. The Postal Dee partment’s contribution, however, is not all being used for the purpose for Which it was set aside. The bulk of it is going into consolidated revenue. Approximately 1/- a license is absorbed by the Radio Department’s administra» tion expenses, and another 2/- a license to operate the stations. That leaves 6/» a license for construction of relay sta tions. Only four have been built with the £150,000 collected from this source in the past two years. "In the country’s present condition, and in view of the number of B cla stations which have been licensed in, country towns and are serving the pure pose for which relay stations were in-~ tended, this contribution easily could be suspended, permitting a reduction in fees to 18/- a year."