Eighteen months before this article appeared, Radio Broadcast held a contest exploring ideas about how U.S. radio should be financed, at that time concentrating on plans which avoided on-air commercials. In a major turnabout, in this article the new conclusion was that "the sponsored program is the solution".

Four years earlier, in his book, Radio for Everybody, Austin Lescarboura had said it was inevitable that stations would eventually charge for airtime, so this article was a chronicle of his prediction coming true. As recounted this article, Lescarboura's original 1921 talk had been broadcast by Westinghouse's WJZ, then in Newark, New Jersey, which a year-and-a-half later had moved to New York City, and been taken over by the Radio Corporation of America. The other station, in the presumably fictionalized account of what would have transpired in 1926 if Lescarboura had contacted a commercial station about giving a similar talk, was based on AT&T's WEAF in New York City. (AT&T had recently formed a subsidiary, the Broadcasting Company of America, to handle its commercial radio and network operations). WEAF today is WFAN, and WJZ has become WABC, both still in New York City, at 660 and 770 kilohertz, respectively, on the AM band.

 
Radio Broadcast, September, 1926, Page 367-371:

How  Much  It  Costs  to  Broadcast
The  Good-Will  Program  Is  Solving  the  Problem  of  Who  Is  to  Pay  for  Broadcasting--In  1921  and  1926--Looking  at  Programs  from  the  Other  Side  of  the  Microphone
By  AUSTIN  C.  LESCARBOURA


IN MARCH, 1925, RADIO BROADCAST awarded a price of $500 for the best answer to the question, "Who is to Pay for Broadcasting?". The winning plan provided for an indirect tax on the listener administered by the Government. But it was not genuinely practical because listeners feel, rightly or wrongly, that when they buy their equipment, their obligation to pay for anything is ended. The broadcasters were wondering about it all, too, but while speculation was rife, they quietly realized that they had something immensely valuable to sell, and that was their audience. They are selling it, and so wisely is "time on the air" being vended that not a complaint does one hear from listeners. RADIO BROADCAST commissioned Mr. Lescarboura, formerly managing editor of the Scientific American, to find out what broadcasters were charging for their time and how commercialism was working with station and listener. This interesting article is the result. Facts gathered from every station in the United States are the basis for this story, which is, as far as we know, the first authoritative presentation of how broadcasting is paying for itself.--THE EDITOR.

IT WAS a most pleasant evening after all. True, the trip to Newark, on the other side of the renowned Jersey Meadows, was somewhat tiresome for one residing up and across the Hudson River. Yet, to compensate for all that, I was met at the Tube Terminal by a private limousine, swiftly borne to the best hotel, entertained and dined by the cordial staff of mine host, motored to the broadcasting station located in a corner of a vast factory building, and introduced to an invisible audience with much flourish of vocal trumpets. The thing addressed seemed like nothing so much as a tomato can dangling from an adjustable support. I was given all the time in the world to say what I had to say--there was nothing else to fill out the allotted time of the station that evening except the hard working automatic piano--and complimented, given an opportunity of calling my home and various friends to learn how my voice had gone over, offered refreshments, and then conveyed in regal state back to the Tube Terminal amid a shower of thanks. The next and for several days thereafter, I was veritably deluged with letters, telephone calls, telegrams, and personal congratulating me on my radio talk and urging me to go before the microphone again at an early date!
The 'Happiness Boys'
"GOOD  WILL  FEATURES"
The "Happiness Boys," Billy Jones and Ernest Hare, who are heard from WEAF "every Friday night at eight." These two excellent popular singers have been a feature of an indirect advertising program with this station for a long time and are an excellent example of well presented, frank advertising.

    And now, as the novelists say, six years have elapsed since the foregoing mentioned experience, which took place late in 1921, when broadcasting was in its very infancy.
    Once more I feel a radio talk coming on, and so I hasten to one of the largest local broadcasting stations to seek a place on the air. I am met by a bright young lady--the assistant program director, so I am told. I state my purpose. She smiles pleasantly despite her serious tortoise shell glasses. "It's a very good subject," she says, "and well worth putting on the air. Now let's see, we could book you for September 15th, just about nine weeks away at 11:25 in the morning, between the Mixum Soup Kiddies feature and Professor Bedingus's talk on the food values in noodles. Or if you prefer the afternoon, we have an opening still left in our October schedule--yes, here it is, October 23rd, at 3:15. If you prefer the evening, we have an opening still left in our January schedule, yes, January 17th, at 7:15. No doubt you already know our rates, but here is a rate card and our short form contract. You will note, the morning talk is $100.00 for ten minutes. The afternoon talk is $150 for ten minutes. The evening talk is $200 for ten minutes. Of course we must have a copy of your speech a week in advance. What's that? Do we pay you for the talk? Oh, you jollier! No indeed, you pay us for the privilege of speaking to our invisible audience. But getting back to all seriousness, I may put you down for--?"
    The conversation terminated then and there. We simply fled from the palatial studio office and sought solace in the big crowds milling about the busiest thoroughfare of Old Gotham, gradually regaining our normal senses once more. That experience, however, aroused our curiosity. Was this station typical of the policy now pursued by the five hundred or so other stations scattered from one end of the country to the other? That we determined to find out at first hand; and accordingly, we launched into an extensive investigation of the broadcasting situation, addressing questionnaires to large and small stations alike, calling in person on many broadcasting directors, and listening-in on the programs of stations both near and far. All of which has resulted in a vast fund of information which, boiled down, predigested, and seasoned with personal opinions and deductions, constitutes the following essay.
WEAF Correspondence Department
THE  CORRESPONDENCE  DEPARTMENT  OF  WEAF
At this station, from 2000 to 3000 letters are received daily and sorted into the following groups: departmental, addressed to client, addressed to artist, addressed to WEAF. The first three groups are forwarded unopened, the fourth being opened, analyzed, and charted and excerpts made for the commercial client. Every letter is carefully read and the suggestions and praise noticed

BROADCASTING  IS  PAYING  ITS  OWN  WAY
 
THE sum total of the survey is simply this; broadcasters have found a ready means out of their economic difficulties. Broadcasting is no longer a free service. While it may seem quite bizarre for twenty-five to thirty million persons to be served royally in their homes, day in and day out with a procession of entertainment such as would make even old King Solomon turn green with envy, there is nevertheless nothing free about it. Someone is footing the bill in order to place certain ideas before the public in their very homes, while the public, in turn, is expected to repay for the programs by patronizing certain products in preference to all others. Broadcasters, in the main, have ceased to be philanthropists and, if anything, are fast becoming prosperous purveyors of sugar coated publicity served in a most palatable style at the home fireside. Perhaps no better proof of all this is to be found than in the fact that six hundred or more applications are pending for broadcast licenses. They are likely to be pending for a long while, since the air is already crowded with the voices of well over 500 broadcasters. And when have we heard of a waiting list for a philanthropic service!
    Rising costs and strenuous competition have been responsible for the advent of commercialism in broadcasting. It costs plenty of money to keep the air filled with programs, especially on a daily basis. Figures? Well, there is a leading broadcasting station, covering a large section of the country, which operates at a monthly cost of close to $30,000, including the bills of the musicians, staff, electric service, and plant. Multiply that by twelve and you have $360,000 for the year! department store, operating a powerful broadcasting station, estimates its yearly operating costs at close on to $60,000! Even the modest broadcasting station, of limited power and mediocre programs, must cost upward of $25,000 a year. And then there is the heavy investment for the equipment which may run anywhere from $10,000 to a $1,000,000 or more for the latest high-power stations, at a rate of obsolescence which is positively appalling.
Phillips Carlin and Graham McNamee
ANNOUNCERS  WHO  ARE  KNOWN  TO  HALF  THE  COUNTRY
Graham McNamee, right, and Phillips Carlin. Mr. McNamee usually announces the Eveready Hour, broadcast by WEAF and many other stations every Tuesday at nine P.M., eastern time. Mr. Carlin officiates during the Silvertown hour. These two excellent announcers have probably given the necessary details for more of the conventional commercial programs than any other two announcers in the country.

    Little wonder, therefore, that broadcasters, realizing the futility of collecting funds from the radio audience, despite several pleas at spasmodic intervals in the past, have sought to solve their economic problem by collecting at the microphone end. At first it was the general belief that the operating expenses of broadcasting stations could be derived from the sale of radio equipment, but unfortunately, no manufacturer and not even a group of manufacturers could afford to broadcast throughout the entire country day in and day out in return for the sale of radio receivers and radio accessories. Existing receivers, some of them several years old, have long since received their quota of broadcasting many times over. The situation is quite like that which would result if automobile manufacturers sold their cars at the usual prices, and then offered to build more and more roads and maintain them in the best condition as a perpetual obligation to the purchasers. But automobile manufacturers make no promises regarding roads and do not support the cost of the roads. Others pay for the roads. And so with broadcasting; others pay for the programs, so that the public may ride the air waves.

YOU  CAN'T  ORDER  'EM  TO  BUY--ON  THE  AIR
 
WEAF Sales Staff
THE  SALES  STAFF  OF  WEAF
Holding one of their weekly conferences. A large sales staff has been built up by this station, whose activities are similar to those of advertising salesmen. They really sell "time on the air." Payment for this time is helping to solve the often-asked question, "Who is to pay for broadcasting?"
NOW, the regulations of the Department of Commerce, as applied to radio broadcasting, prohibit direct advertising of any kind. However, genteel publicity is by no means prohibited, hence we have many shades of publicity, ranging all the way from the mere sponsoring of an excellent musical program, to that very naked publicity talk which borders so close on direct advertising that a jury must be sworn in to pass upon the evidence, while a judge must interpret the findings and render a final verdict. In fact, it may be said that advertising is not advertising when it is broadcast, for it now becomes "good will publicity!" A very flexible term, that! It seems to cover a multitude of sins.
    Good will publicity, as interpreted by the leading broadcasting stations of the country, is by no means objectionable to the public, even to those who abhor that very necessary phase of modern commerce called advertising. Thus, good will publicity takes the form of excellent musical programs, rendered by highly paid musicians, preceded and followed by announcements to the effect that they are sponsored by such-and-such firm, who are the manufacturers of such-and-such product. Sometimes the announcement is worded in some other manner, such as "through the courtesy of"; but in any event, the public is told in no uncertain terms who is footing the bill and to whom it is obligated.
    An analysis of the broadcasting stations of the country indicates seven broad classifications, according to their avowed purpose:
    (1) Commercial or toll broadcasting stations, which are in business to make such money out broadcasting as there is to be made. (2) Individual publicity stations operated by department stores, newspapers, radio companies, and other commercial institutions for the purpose of building good will for the owner, but not accepting outside pay for broadcasting. (3) Educational broadcasting stations, operated by colleges and schools as a means of extension study and lectures to the radio audience. (4) Agricultural broadcasting stations, operated by agricultural colleges and other institutions for the purpose of disseminating agricultural talks, crop reports, weather forecasts and so on, to rural audiences. (5) Religious broadcasting stations, operated by churches and religious societies and organizations for the purpose of spreading religious ideas. (6) Private broadcasting stations operated by individuals for the sheer pleasure of broadcasting. (7) Experimental broadcasting stations, the purpose of which is self-explanatory. (8) Government broadcasting stations, operated by Federal, State, or municipal government for the purpose of providing citizens with civic information, police reports, local entertainment and so on.

WEAF Chain Stations
HOW  COMMERCIAL  PROGRAMS  REACH  A  PART  OF  THE  NATION
Many well established commercial "courtesy programs" are broadcast, originating from WEAF, in New York, and furnished to the broadcasting stations indicated in this outline map. Officials of WEAF assert that these programs reach 52.2 per cent. of the population of the United States. The chart shows the main telephone "repeater stations" through which the telephone lines pass. The programs are stepped up in volume before delivery to the tubes at each distant broadcasting station


    Despite the divergent purposes of these eight classifications, they have one point in common: they are all bent on selling something, whether it be a product or a religion, agricultural idea or interest in economics, better voice transmission or the name of the owner. All broadcasting stations are operated for pay, but it is just a question as to who foots the bill. In some instances, the owner of the station assumes the burden of the cost; in others, the owner lease part of his broadcast facilities in return for pay with which to support the operating and maintenance cost, as well as the cost of suitable program features.
    Broadcasters are not entirely agreed upon the matter of who is to pay for their services. Some broadcasters deride the idea of paid programs or sponsored features. Others are keenly in favor of paid programs. Yet, if we read between the lines, we note that it is simply a matter of whether the owner of the station derives sufficient publicity value or educational value from the broadcasting foot the bill himself, or whether he must go out and get help from others not only to foot the bill but also fill his programs with worthy material. One thing is certain; the sponsored program is the solution of the old, old question, "Who is to pay for broadcasting?"

HOW  PROFESSIONAL  PROGRAMS  CAME  TO  RADIO
 
Sponsored programs provide the professional talent, since there money available to attract such talent. No longer is the broadcaster obliged to beg, coax, and promise the world to singers and musicians. Also no longer need the broadcasting studio be an amateur theatrical proposition, with a never-ending procession of well-meaning amateurs whose musical efforts are a severe strain upon the nerves of the radio listeners.
    The transition from amateur programs to professional programs has been so gradual that radio audiences have failed to realize the vast change that has taken place in the services of the leading broadcasting stations. Yet to-day, the typical leading stations have mostly professional talent appearing before their microphones, with just a sprinkling of carefully selected amateur talent. In fact, to be permitted to appear before the microphone of a good station is as much as an endorsement of one's musical ability, these days. And the event of professional talent on the programs of the leading stations has caused those stations to command more and more attention from the radio audience, with the result that the amateur efforts of the smaller stations are becoming increasingly neglected. If, indeed, broadcasting is a question of the survival of the fittest, the professional programs of the leading stations, as contrasted with the amateur and crude programs of most of the smaller stations, will be the determining factor, although the writer is of the opinion that there will always be room for both extremes, just as in everything else.

BROADCASTING  COMPANY  OF  AMERICA
CHARGES  FOR  STATION  WEAF  FOR  HOURS  AFTER  6 P. M.
 CHARGE
 PER  HOUR 
CHARGE
 HALF  HOUR 
CHARGE
  QUARTER  
 HOUR
CHARGE
 FOR
 10  MIN. 
 $600.00$375.00$234.38$300.00
NOTE:The daytime charge--before 6 P. M.--for station WEAF is one half of the evening charge for a like period of time. The ten-minute periods are for talks only.
DISCOUNTS  FOR  WEEKLY  USAGE
Less than 13 consecutive weeksNet
13 to 25""
26 to 38""10
39 to 51""12½
52""15
    Charges subject to change without notice.


    It is reported that the typical leading stations have 80 per cent. of their programs devoted to good will publicity features--paid features, other words. Yet no direct advertising is permitted. The broadcasters are not permitted to quote prices or anything of a definite advertising nature. Short talks are permitted, but these must be of an exceptionally interesting nature, with only a very general bearing on the business of he who foots the bill. Often the only tie-up is in the title of the speaker and the general trend of his talk. Such talks are limited to 15 minutes at the most. Experience has proved that longer talks will not hold the average radio listener. Of prime importance is the fact that the radio listener has a wide choice of radio programs at his disposal, and the mere flip of a dial will shut off any undesirable matter. Not only is this fact of importance to the sponsor of a given program feature, but also to the station itself, since that station must cultivate a steady audience if it is going to maintain its position in broadcasting. The situation is quite analogous to the publishing business, where circulation is one of the supreme tests of goodness.
    So it is that the sponsored musical program is to be preferred to talks. In the case of the leading broadcasting stations, the musical features must be of the very best. The announcements give just a brief mention of the sponsor and the sponsor's product. Sometimes, and quite effectively, the musical programs are identified with the sponsor and the product by an ingenious play of names. Again, the nature of the musical programs may have a special bearing on the product. All of which is quite obvious to all who listen-in to the present-day offerings.

BROADCASTING  COSTS  MONEY
 
NOW, there are two factors involved in good will publicity programs; first, the musical feature itself; secondly, the time or space on the broadcast program. In the case of commercial or toll broadcasting stations, the client is expected to pay for the musical feature in the first place, and pay again for the allotted time on the broadcast program. On the other hand, there are leading broadcasting stations to-day which do not charge for the allotted time but insist on the very finest musical features being supplied by those seeking good-will publicity. "What, a female quartette!" exclaimed the program director over the telephone, while we were sitting in his office. "Nothing doing! You will have to put on at least a seven-piece orchestra that night, if you want to get in on our program. It wouldn't be fair to our other clients. No sir! Nothing doing on that female quartette! If you wish, I can fix you up with a good male quartette--that always pulls well with our audience. But that will have to be on a regular schedule."
                            

BROADCASTING  COMPANY  OF  AMERICA
CHARGES  FOR  NETWORK  STATIONS  FOR  HOURS  AFTER  6  P. M.
The individual charges apply only when all the stations available in the network are taken

 CHARGE
PER  HOUR
CHARGE
HALF  HOUR
CHARGE
QUARTER  HOUR
CHARGE
FOR
 10 MIN.
WEAF, New York$480.00$300.00$187.50$240.00
WEEI, Boston  350.00  218.75  136.72  175.00
WCSH, Portland  170.00  106.25    66.41    85.00
WTAG, Worcester  170.00  106.25    66.41    85.00
WJAR, Providence  170.00  106.25    66.41    85.00
WGR, Buffalo  230.00  143.75    89.84  115.00
WFI or WOO, Philadelphia  210.00  131.25    82.03  105.00
WCAP, Washington  200.00  125.00    78.13  100.00
WCAE, Pittsburgh  210.00  131.25    82.03  105.00
WTAM, Cleveland  180.00  112.50    70.31    90.00
WWJ, Detroit  230.00  143.75    89.84  115.00
WSAI, Cincinnati  240.00  150.00    93.75  120.00
WLIB or WGN, Chicago  350.00  218.75  136.72  175.00
WOC, Davenport  170.00  106.25    66.41    85.00
WCCO, Minneapolis  250.00  156.25    97.66  125.00
KSD, St. Louis  250.00  156.25    97.66  125.00
WDAF, Kansas City  220.00  137.50    85.94  110.00
 $4,080.00   $2,550.00   $1,593.77   $2,040.00   

NOTE:

The daytime charge--before 6 P. M.--for groups of stations is one-half of the evening charge for a like period of time. The ten-minute periods are for talks only.

DISCOUNTS  FOR  DURATION  OF  CONTACT  BASED  ON  WEEKLY  USAGE
  6 months5%
  9 months10%
12 months15%


    And we learned, during that visit which had been interrupted by the phone call, that program directors are particular folk. It seems that in the case of stations that do not charge for their time, but enjoy the highest reputation, that they are even more fussy as to what they'll accept. In this particular case, the program director has a card index of musical talent available at any time. The same artists are used by different organizations, for that matter, although to the radio audience they are the Dixie Boys for this hour, the Arctic Babies for the next, the Coal Miners' Quartette for another hour, and the Spanish Serenaders for still another hour. These appelations are purely fanciful, of course, but serve to convey the idea. To cite an actual example, a well-known group of versatile musicians was serving a musical concern in an hour's broadcasting feature once a week. Then the musical concern decided the bill was too high, and forthwith departed for another station where the musical standards were of a far lower order, substituting a much cheaper musical talent. Meanwhile, the well-known group of musicians became the such-and-such railroad boys so far as the radio audience was concerned, bringing just as much fame on the new sponsor as for the old. Just a little inside stuff, that!
    Smaller broadcasting stations do not seem to be so particular as regards their broadcasting features--but then, they have less at stake. There are some small broadcasters now handling publicity talks which border closely on direct advertising, so much so, in fact, that one knows not whether to call it advertising or publicity. One Western station, for instance, broadcasts a shopping service in the morning and evening, mentioning definite stores, articles, qualities--well, everything but the price. And that is typical of the extent to which some broadcasters have gone in the way of collecting pay for their efforts. Unfortunately, it is a fact that only the largest concerns can see the value of genteel publicity, while the smaller firms will insist on inserting everything, even down to the names of the firm members, where they were born, the size of the plant, the amount of business done and other details of interest to no one else but themselves.
    If there is any danger threatening the good will publicity activities of broadcasters, it is in the efforts of some of the lesser broadcasters, who, soliciting the smaller advertisers, are only too willing to promise everything in the way of microphone freedom. However, the radio public, no doubt, can well differentiate between good stations and poor stations, so that in the long run those who abuse good will publicity may only be signing their own death warrant, thereby conferring a benefit on the radio broadcasting field as a whole.
The Bonnie Lads
THE  BONNIE  LADDIES
Who broadcast over the WJZ group of stations. WJZ, unlike the WEAF group does not now accept pay for the indirect advertising programs they broadcast. In essence, the programs from the Radio Corporation group are quite similar to those presented over the A. T. & T. chain, except that no charge is made by these stations for their time

    Successful good will publicity via radio is an art, and should accordingly be left to artists. Broadcasters tell us that their experience has taught them that programs prepared by advertising counsellors or even stage directors, and then submitted to the studio staff for censoring and suggestions, are generally successful and fruitful of results for their sponsors. On the other hand, hit-or-miss, hurried-up, crudely prepared stunts are usually wasted effort before the microphone.
    Hoggishness is fatal in good will publicity over the radio. Typical of this point is the case of a contracting firm which had arranged to sponsor the initial appearance of a well-known operatic star before the microphone. Instead of the usual sponsoring introduction, the president of the contracting firm spoke for almost half an hour, telling the invisible audience of the size of his firm, how many jobs they handled, the number of men on their pay roll, how much lumber they employed in the course of a year, how many nails, and so on, almost without end, finally stepping aside most graciously so that the prima donna might do her bit. Needless to say, most of the audience, long since disgusted, had gone on to other programs The sum total was, in the vernacular "a flop!"
    In radio good will publicity, as in other forms of advertising, the well-known saying "Keeping everlastingly at it brings success," holds true. Thus the most successful radio publicists are those who come back week after week, at the same time and day, with a distinctive program. The radio audience is thus trained to look forward to a given program time after time, and a close bond of friendship is established between the public and the sponsors of that program.
    As for the tangible results of broadcast publicity, they are not altogether so vague as to be questionable. In fact, the regular radio publicists have had excellent results, not only in the widespread response to their efforts but also in the increased sale of their products or services. Some radio publicists report that their salesmen have received a far more cordial reception when calling on the trade or the public, as the result of the personification of their products over the radio. Well, be that as it may, it must pay; otherwise, we should not be hearing the same sponsors with their excellent programs week after week.
    When something is given away, even if it is only a booklet, let alone samples, the broadcasters are virtually flooded with requests, attesting to the widespread influence of radio.
WJZ Chain
THE  RADIO  CORPORATION  "CHAIN"
Programs which originate from the WJZ studio are frequently distributed to other stations indicated on the map. Repeater, or stepping up, stations are indicated where the program, forwarded by wire, is increased in volume by amplifiers. In addition to WGY and WRC, WCAD, WBZ, KDKA, and KYW are sometimes included in this group

    The two greatest factors in the furtherance of radio good will publicity are the chain system of broadcasting and the high-power broadcasting stations. On the one hand, the radio publicist is offered a number of different groups of radio listeners, reached through an equal number of broadcasting stations tied into one studio by means of telephone lines, while on the other, the radio publicist is offered one vast audience by means of high-power broadcasting. The Broadcasting Company of America chain, for instance, represents the leading exponent of the chain system of broadcasting. Upward off fifteen stations are included in this chain if desired, reaching all the way from New York to Boston to Minneapolis and to St. Louis, with many points between. The Radio Corporation of America, on the other hand, operates the powerful WJZ station at Bound Brook, New Jersey, some forty miles west of New York City, by direct wire from the studio in the metropolis. High-power WJZ delivers reliable signals as far as the Mississippi River, thus covering a goodly part of the same area covered by a number of moderate-power stations of the chain system. Furthermore, WJZ is connected by wire with the high-power station at Schenectady, and several other stations throughout the country, thus ensuring nation-wide distribution of programs when so desired.
    The reason why chain systems and high power stations have a marked influence on radio publicity is simply due to the millions upon millions of listeners reached through such a medium. Imagine an audience of ten millions! Fantastic, to be sure, yet a nightly occurrence in chain work and high-power work. Little wonder, then, that the radio publicist can afford the highest kind of talent, since pro rata, on the basis of broadcasting stations participating or per listener, the cost is even less than is the case with the individual, low-power broadcaster. And here is the explanation of the appearance of the world's leading artists before the microphone: never before have they performed for such audiences--and incidentally, never before has the sponsor got his name before such a large and appreciative audience.

HOW  MUCH  DOES  IT  COST?
 
SO FAR, so good. But how about the dollars and cents involved? It is a matter of interest to note what the sponsors pay for broadcasting our musical programs.
    The rates charged vary largely, depending on the power of the station, the importance of the area, the time of day, the day of the week, whether it is a single feature or a regular series, whether it is good music or simply talk, and soon. Let us not forget to mention, once more, that many leading stations do not charge for the allotted time, but insist on the best musical programs sponsored by others. At present we are dealing with the toll charges for the allotted time, with whatever charges there may be for the musicians.
    New York rates lead the rest. It costs $600.00 per hour to broadcast a sponsored program from one of the leading stations in that city, or $375.00 for half an hour, during the late afternoon and evening, which constitute the best part of the day so far as the largest and most attentive audience is concerned. The morning charges are $300.00 for an hour, $117.19 for half an hour. A ten-minute talk costs $150.00.
    Chicago follows close on the heels of New York, with $350.00 for an hour and $218.75 for half an hour, with a wire connection from the New York studio. Most of the other large cities command $200.00 or $250.00 for an hour, and $125.00 or so for half an hour. The smaller cities drop down to $150.00 for an hour, and $93.75 for half an hour. All these rates are based on chain broadcasting, operating from the New York studio. The rates of the individual stations, broadcasting from their own studios, are considerably less. Take, for instance, a Buffalo station, whose chain rate is $200.00 for an hour and $125.00 for half an hour. The individual rate becomes $120 per hour and $60 per half hour, thus indicating the additional expenses involved in the chain operation. On the other hand, some stations charge the same rate whether engaged in chain work or individually. All these rates are, of course, exclusive of talent.
WJZ Coverage
HOW  WJZ  REACHES  OUT
Special tests were conducted last February to determine how the signals of this station were received. The dots on the map indicate the points from which letters were received from those hearing WJZ. Engineers designed this station so that under favorable conditions, signals from it could be heard as far west as the Mississippi River

    Getting down to some of the smaller stations of modest power, it is interesting to note that the prices are as low as $12.50 per hour. In fact, the rate cards--yes, they have rate cards, just like publications!--disclose an interesting analysis of the relative importance of the radio audience from early morning till late night, with corresponding charges. Thus, in the case of a Western broadcaster, his rates are; from 9-12 in the morning, $12.50 per hour; 12-3 P.M., $16.00; 3-6, $18.00; 6-8, $30.00; 8-11 (the cream of the program) $36.00; 11-12 M. $28.00.
    Most broadcasters undertake to furnish the musical talent at what is purported to be cost. One broadcaster, for instance, on his very explicit rate card, charges $250.00 per hour from 6-8 P.M., $400.00 per hour from 8-11; and $200.00 from 11 to 1 A.M., including the music. The choice of the following is offered:
    1.--Classical or semi-classical musical programs by string quintette. 2.--Popular or semi-classical program by 4-piece concert orchestra and 2 singers. 3.--Musical program by male quartette and pianist. 4.--Musical program by quartette and solo numbers by mixed quartette and pianist. 5.--Dance program by 6-piece jazz orchestra. Remote programs cost $35.00 more for the first hour.
    As a general thing, the day rate runs about 40 per cent. less than that of the evening.
    All in all, the business end of radio publicity seems very well organized, following closely that of the periodicals in soliciting advertising. We have seen elaborate charts prepared by broadcasters, indicating just what territories are covered by strong, reliable signals, secondary territories covered by fair signals most of the time, and tertiary territories covered under the best possible conditions.
    Paid broadcasting is here to stay, if we read all signs correctly. It is the logical way to pay for broadcasting under our present system. For the most part the public seems well satisfied to accept sponsored programs and to reciprocate by extending its good will to those who make possible the wonderful programs of to-day.