Broadcasting Telecasting (Oct-Dec 1959)

BS5SSSSSSS AT DEADLINE LATE NEWSBREAKS ON THIS AND NEXT THREE PAGES • DETAILED COVERAGE OF THE WEEK BEGINS PAGE 35 CBS-TV DISCOUNTS CHANGED Revisions consider viewing pattern shifts Discount changes designed to take into account both seasonal and hourly (at night) variations in tv viewing patterns are being announced by CBS-TV, effective April 1, 1960. In letters sent Sept. 29-30 to clients and agencies, William H. Hylan, sales administration vice president, disclosed these adjustments: 1. Continuity discounts for summer (13 weeks starting first Sunday in June) will be "greatly" expanded, not only to encourage winter clients to stay on, but also to provide new incentive for heavier summertime buying. 2. Continuity discounts for winter (rest of year) will be reduced. 3. Top discounts for early evening time (6-8:30 p.m. New York time) will be increased; for heart of prime time (9-11 p.m.) will be reduced; for early prime time (8:30-9 p.m.) will be unchanged. Thus advertisers eligible for maximum discounts will pay less for 6-8:30 than in past, more for 9-11. "In this way," Mr. Hylan said, "the values for all evening time periods will be brought closer together." 4. For first time in five years, dollarvolume requirement for overall discount is going up. It rises from $100,000 weekly base to $130,000. This 30% hike, Mr. Hylan noted, compares with 43% rise in network time charges and 47% gain in national tv audience in Back to network same length of time, and "clearly ... is consistent with these other measures of television's rapid and continuing expansion." New time-period discounts, computed on largest amount of weekly gross billing that has run consecutively for 13 or more weeks, range as high as 45% on certain nighttime periods in summer; in winter, highest is 10% for 6-8 p.m. period and all other hours are computed at net. Overall discount is allowed in lieu of time-period and station-hour discounts to advertisers spending $130,000 or more (gross) per week over 52-week discount year. It ranges from 33.75% for 6-8 p.m. time down to 19.25% for Controversial contract executed between A.L. Guterma's Radio News Service Corp. and Dominican Republic came to light for first time Oct. 2 when Mr. Guterma filed motion to dismiss federal grand jury indictment against him. Indictment alleged Mr. Guterma and associates had pledged facilities of Radio News Service and of Mutual Broadcasting System as propaganda agents for Dominicans, and charged Ihey had failed to register as agents of foreign power under provisions of Foreign Agents Registration Act of 1938 (Broadcasting, Sept. 7). Pertinent provisions of contract are these: 1 . Radio News Service Corp. was wholly-owned subsidiary of Mutual Broadcasting System, operating as news and press service. 2. Mutual would be obligated to transmit releases from Radio News Service over its facilities and affiliate stations, in turn, would be obligated to broadcast them. 3. Radio News Service releases also would be offered to non-Mutual stations who also would be obligated to broadcast such releases. 4. News about Dominican Republic would be carried up to a maximum of 425 minutes per month. 5. Radio News Service reserved right to turn down news releases from Dominicans which it felt to be "inimical or 9-10:30, then swings up to 23.75% for 10:30-11 p.m. In addition, advertisers eligible for overall discount are entitled to special additional discounts, ranging from 50 to 60%, on summertime billings exceeding their average wintertime spending. TvB briefs investors Bankers in Los Angeles and San Francisco met last week with Television Bureau of Advertising officials on tv status report for financial community. TvB President Norman E. Cash and Walter McNiff, western division director, briefed bankers on growth of medium, comparative ad allocations, talent and program costs. TvB has received inquiries from both eastern and western bankers on value of tv stations as reflected in billings and management. Bankers are interested from investment standpoint. inconsistent" with best interests of U.S., as well as any news extolling communist cause. 6. By same token, Radio News Service would not carry news reports which Dominicans felt harmful to interests of their government. 7. Dominicans would have right to sell Radio News Service material, and to keep profits from such sales, in Dominican Republic, Cuba, Haiti, Spain and five other Spanish or Portuguese speaking countries of their choice. 8. As payment, Dominicans would pay $750,000 to Radio News Service upon signing of contract (Feb. 5, 1959, in Ciudad Trujillo). Of that amount, $500,000 was for first year of service, $250,000 was advance on second year of service. After that period Dominicans would pay Radio News Service $41,666.66 per month. (Contract makes no mention of lien on Mutual network which Mr. Guterma is said to have given Dominicans as performance guarantee.) Moves to Dismiss • In his motion to dismiss indictment, Mr. Guterma first challenged constitutionality of Foreign Agents Registration Act under which indictment was brought. Defense then cited various exemptions to Act which it contends fit the circumstances of Guterma group's negotiations with Dominicans. First of these is clause exempting 29 Stations wondering why Canada Dry chose to put its $2 million national tv budget this year in network instead of spot as in last few years can blame sponsor expansion. Besides moving more bottles, Canada Dry wants to seli corporate image of "America's First Family of Beverages" — 72item pop and mixer line — to 20,000 stockholders as well as mass consumer audience. As result, corporation's managers and their agency, J. M. Mathes, chose Walt Disney Presents (ABC-TV, Fri., 7:30-8:30 p.m.) as all-age, merchandisable vehicle. Canada Dry started on ABC-TV in 1949 and signed off in 1955, putting money into spot in interim. National budget allocation averages roughly 50% in tv. BROADCASTING, October 5, 1959 GUTERMA BARES MUTUAL PACT Dismissal move reveals affiliate obligations