Television digest with electronic reports (Jan-Dec 1959)

2 = JUSTICE DEPT. STILL ADAMANT ON OPTION-TINE: Justice Dept, won’t relent in its drive to eliminate network option-time practice, regardless what FCC does. That position was stated emphatically to us this week by Justice spokesman, even as Commission again debated position it should take on option-time. Justice Dept, believes option-time is an illegal "monopoly" practice, and that’s that. When FCC submits its findings to Justice, for its official legal opinion, Justice will reiterate its frequently stated conclusions (Vol. 14:25). Justice spokesman assumes that some party to network hearing, such as option-time opponent KTTV, Los Angeles (Richard Moore), would challenge in the Court of Appeals any pro-option-time ruling which FCC may issue, using Justice's opinion to buttress its case. He believes Court of Appeals would favor Justice's position. And, if Commission goes to Congress to seek exemption of option-time from anti-trust laws, he predicts a most indifferent reception. As you can see, he can visualize no fate for option-time other than eventual demise. Fact that all networks have dropped must-buy, which Justice had also termed illegal, cuts little ice with top Justice officials — scarcely a "compromise" big enough to preserve option-time. There's no disposition, on other hand, to move against multiple-ownership of TV stations — networks' most valued possession. * * * FCC hasn't finished option-time discussions yet — to determine what to say to Justice Dept. — but it's understood to have agreed by 4-3 vote to state that option-time is essential & legal — Comrs. Hyde, Bartley & Ford disagreeing. Commission discussed it further Jan. 9, didn't end work (Lee absent), meets Jan. 14. Some network affiliates decided to take bull by horns last week, go directly to Attorney General Wm. Rogers, state the non-legal case for option-time. However, both the affiliates and Rogers had second thoughts on it, and current plan is for them to meet with anti-trust chief Victor Hansen and his asst. Robert Bicks on Jan. 13. Due for conference; C. Wrede Petersmeyer, Corinthian stations; Jack Harris, KPRC-TV, Houston; Lawrence Rogers, WSAZ-TV, Huntington; John Hayes, WTOP-TV, Washington & WJXT, Jacksonville; Alex Keese, WFAA-TV, Dallas. All were active in defense of networks during FCC hearing. NBC's abandonment of must-buy was foreshadowed by CBS's recent dropping of the practice (Vol. 14:49). Like ABC & CBS, NBC adopts "minimum-buy." It requires advertisers to take stations whose aggregate Class A rate is at least $95,000; Class C, $42,500. Like others, it will take smaller lineups on case-to-case basis of "program & advertising suitability and other public-interest considerations." The new minimum-buy policy goes into effect March 15. NBC makes point of fact that during FCC network hearings chairman Robert W. Sarnoff testified that abandonment of must-buy "would not raise any major problem in NBC's network operation." TV network sales v.p. Walter D. Scott noted that all current nighttime advertisers buy lineups whose Class A total is more than $100,000 and that "typical" daytime sponsor takes more than the Class C minimum. COX ATTACKS FCC FOR DRIFT' & CONFUSION': The expected criticism of FCC's handling of small-town TV growth came this week in "Cox Report," a document written by Kenneth Cox, special counsel to Senate Commerce Committee. Touchstone of report is assertion that Commission is lax in protecting local TV stations by failing to regulate community antenna systems and set limits to translator-booster development. Report also urges legitimization of unauthorized boosters, but it was written before FCC finally outlawed them last week (Vol. 15:1). Though Cox's report on vhf-uhf allocations is due some time in future, current report touches on that subject briefly & importantly — by urging drop-ins of vhf channels at substandard spacings, as committee recommended once before. It should be remembered that this is a staff report, doesn't have imprimatur of Committee. Chairman Magnuson (D-Wash. ) , transmitting report to FCC for comment.