Variety (December 1950)

Wednesday, December 13, 1950 P^^IETY NBC PLANS AM RATE CUT JAN. Big The bargain-hgisement philosophy that’s abounded In radio over the past few months is beginning to boomerang, on the medium. Radio executives are now beginning to question their wisdom in selling AM short, by inviting advertisers through mul- tiplicity of deals which finds all the networks, in varying degrees, plus many stations, guilty on numberless counts. It was the stability of radio through the years; the ‘‘think big” motif that characterized the NBC, CBS, ABC and Mutual opera- tions, that nurtured the medium and brought the blue chips advertisers into their folds'with millions to spend. Jhe Young & Rubicams, J. Walter Thompsons, Foote, Cone & Beldings, and other major advertising agencies banked on this stability and ehcouraged their clients to “buy radio” in appraising broad- casting over the printed medium.. with the advent of television came the first signs of a self- induced panic.. Networks and stations all of a sudden were will- ing to forget the legalities and true values. A wink here, a nod there, and clients were invited in on cutrate deals. Nighttiihe segments were sold in many cases at daytime rates. Webs were willing to pick up or help defray the tab for ^^^a show in return for a time sale, The bargain-basement philosophy asserted it- self, and still does, in other advertiser-network dealings, The situation is somewhat analogous to a major advertiser buying a Id-page spread in a top national magazine, if the pub- lisher is willing to defray the cost of the color engraving. Pub- lishers, however, don’t countenance such deals. The integrity of magazines still stands. But to the well-heeled client a^id the leading agency men, radio has become suspect. Because AM has been willing to sell Itself cheap, it has stripped itself of its onetime stature. At a time when all signs point to a radio resurgence in the wake of threatened TV production bottlenecks, and the likeli- hood of big business ready to dispose of excess profits through advertising, AM now realizes it haa been inviting its own down- fall. But it isn’t too late for radio to mend its fences. The sponsor takes broadcasting at its own evaluation. And if the networks and stations will once more think big and realize the still un- fulfilled potential of the medium, radio’s integrity can ©nce more be established.' Joe Katz: Man of Year Baltimore, Dec. 12. The Advertising Club of Balti- more is honoring Joe Katz, local ad agency biggie, at a special luncheon tomorrow (Wed.), during which he will be presented with a plaque as “The Man of the Year.” U. S. attorney general Philip Pearlman, another local newspaper guy who made good, will preside. AFIlfClC • • On ‘Ivy’ Mimans Hollywood, Dec. 12. American Federation of Musi- cians has warneu NBC that tooters will be pulled from all locally-origi- nating programs if the network goes through with its present plan to replace live musicians on “Halls of Ivy’’ with canned music. “Ivy” has used sidemen for two years, and union feels any attempt to change the setup constitutes a “lockout.” Schlitz, which sponsors the pro- gram, had refused to renew at the old $9,000 price tag. NBC then at- tempted to lower the budget by $1,500 by eliminating the wiridjam- mers and Schlitz inked for a firm 26 weeks. I Soapers; Nets In one of the major advertising re-allocations by a daytime radio spender, Babbitt has just ordered cancellation of its two daytime .soap operas, “David Harum” on NBC and “Nona From Nowhere” on CBS. It represents a two-net work loss in daytime billings of $2,000,000, the major amount coming out of the CBS till. Both cancellations are effective Jan. 5. “Harum” has been one of the standards among the longtime soap- ers in radio. “Nona” went on the air about a year ago* Move follows by a couple of months the switch of the Babbitt account from Duane Jones to Wein- traub. Latter agency is moving in a new direction, partially embrac- ing television, and principally to latch on to the stepped-up War news tempo. New advertising allocations will probably embrace buyi.ig Mutual in non-TV markets for a five-to- six-^times-a^day news coverage, with I daytime TV also on the upcoming j Bab^bitt agenda. However, final! decision will be forthcoming at a ' meeting later this week. i NBC is preparing-to cut' its rqj dio rate structure Jan. I. On the same day that the web’s television rates increase by jah approximate 35%, the AM structure moves into a new era cued to a“realistic re- appraisai” of changing conditions, which finds video occupying a more dominant role in the advertiser scheme of things. Thus NBC becomes the first among the major networks to ac- cede to advertiser demands for lower rates. It’s considereo just a question of time before CBS, ABC and Mutual will follow suit. One Columbia executive, however, as- serted that CBS, in the face Of near-record billings for 1950, con- templates no such action as of now. For months the Assn, of National Advertisers ,had been pressuring the webs to reduce its AM rate structure. Refusal of the webs up till now to yield to the demands, resulted in what some net officials maintained was an advertiser boy- cott, as reflected in the amount of open time segments now available and few sales involving consider- able coin. Some Resistance NB(^ has already made overtures to the affiliates in all the TV mar- kets, asking them to agree to rate cuts up to 25%. That will be the maximum cui imposed on the sta- tions, There’s reported to be some resistance to the move, al- though one web official asserted on Monday (11) that thus far but lit- tle difficulty has been encountered. NBC has been reapprai..ing the AM rate structure for some time. The Broadcast Measurement Bu- reau survey findings on station coverage will form the basis for the reduced rates, and it is said to approximate the amounts asked for by the ANA. NBC’s attitude is: instead of the networks indulging in bargain- basement deals, which cheapen the medium (see editorial), a recogni- tion that the rate structure re- quires reappraising will help sta- bilize radio. Carr dll Carroll reflects on The TV Winter of Our Discontent ♦ e. • one of the mony editorial features in the upcoming 45th Anniversary dumber ■of ' P^niETY LONCaNES ENDING ABC SATURATION ANGELING Longines is bringing its satura- tion sponsorship programming on ABC to an end. Intended primarily to spur Christmas buying, Longines’ bankrolling of the Symphonette on the network, on a fpur-nights-a- week basis, is winding up an eight- week run. Web had hoped that the w^ch company would stick with it beyond the holiday period. Sym^onette program has been heard in rtheT0:35 to 11 p.m. pe- riod. With Webster Now'that the Sunday evening “Big Show” is off to a flying start in the Nielsen sweepstakes, NBC is shooting for an equally ambitious radio parlay in the dramatic field. Network is negotiating a deal with Margaret Webster, the legit actress- dirpctor, to take over the produc- tion reins on “NBC Theatre,” which will be revitalized by the network as its major dramatic attraction. Show, previously known as “Uni- versity Theatre of the Air,” having a tie-in with colleges and univer- sities for on-the-air credits, has been a sustainer over a long pe- riod, emanating from the Coast. However, the payoff has been most- ly in prestige, rather than ratings; NBC program department now has the top echelon “go ahead” to splurge coin on the show in whip- ping it into a “Second Big Show.” Accent will be on adaptation of contemporary classics, such as Hemingway, Faulkner, etc., with top legit talent such as ReX Har- rison, Jose Ferrer, etc., to be used. In addition to producing, Miss Webster will also emcee and pos- sibly act in a few. Series under her aegis is scheduled for a Janu- ary teeoff, in the Wednesday night 10:^0 to 11:30 period. ^ It looks like Arturo Toscaniril ha? won-out on all points as result of his so-called “sit-out” during the first six weeks of the ’50 sym- phonic season. The famed maestro will return to the NBCli Symphony podium Jan. 27. Toscanini told the NBC network of his decision last week and immediately regis- tered an enthusiasm over the initial concert, which will be done fronti Carnegie HalL N. Y., as a special benefit. The perforinance Will be Verdi’s “Requiem.” In sharp contrast to the uncer- tainties that prevailed a coUple of months back as to the NBC Sym- phony time slot, point Of origina- tion, its incorporation in “Opera- tion Tandem,” etc. (factors which reportedly resulted in Toscy’s de- cision not to go on, although a knee condition was another fac- tor), it appears he can now call all the turns. When the maestro re- turns, he’ll presumably go into Carnegie Hall Saturday evenings^ which will take the symph broad- casts out of . the spot-selling “Tan- dem” operation as currently pre- vails in its Monday night 10 to 11 slot. Program is now broadcast from Manhattan Center, N. Y., which Toscy objected to because of the acoustics. If, again, Toscy is willing to re- cord the program on Saturdays and permit for a rebroadcast Mon-' days in “Tandem’J time, that’s all right with the wen, too. The final word will rest with Toscy. It's expected, too, that he’ll re- peat his cross-country junket with the symph next spring under aus- pices of RCA Victor, visiting cities not included in last spring’s itiner- ary. Hub Strike Averted Boston, Dec. 12. A strike skedded by disk jockeys and other AFRA personnel at Hub indie, WBMS, was narrowly averted when management’s offer was ac- cepted several miautes before the deadline last week. Readjustment in wages and working conditions resulted in can- celling the walkout. FM Pact Washington, Dec. 12. ; contract was filed with the I'GC last week for the first exclu- ^verpM station affiliation with the i iietwork. The affiliate is WLMA in Rocky Mount, N. C., i Owned by Josh Horn, who also has an AM daytlmer (WCEC) in. Rocky Mount. However, the CBS shows U'lJi be carried Only on the FM Station which Horn, one of FM’s ,,15,^nst boosters, advertises as WFMA; went on the air Sunday '10) as a CBS outlet following neavy promotion in Horn’s Rockj^ (Continued on page 52) The Of Forms closing shortly 9 Usual Advertising rates prevail Copy one/ space reservations may be sent to any Variety NEW YORK 19 154 W. 46rh St. HOLLYWOOD 28 43111 Yucca St. CHICAGO 11 612 N. Michigan Ave. LONDON. W. C. 2 8 St. Martin's Placa Trafalgar Square Share of WDSU - New Orleans, Dec. 12. Edgar B. Stem on Monday (11) asked-the FCC for permission to dispose of his 90% interest in the WDSU broadcasting properties here. Stern and his son, Edgar B. Stern, Jr., own and operate WDSU, WDSU-FM and WDSU-TV. Stern told the FCC his son is now on active duty with the Army and he desires to turn the operations over to a new corporation in which the younger Stern will hold the major- ity stock. The transfer is proposed to be made to WDSU Broadcasting Corp., at a price of $1,185,000. The new company will be owned 67% by Edgar B. Stern, Jr.; 20% by Robert D. Swezey, WDSU general man- ager; 10% by Louis Read, com- mercial manager; and 3% by Les- ter Kabacoff, executive assistant to the present Stern partnership. NBC Is Cuttiug Its New Mysterioso Show To Add More News Airers Although NBC has another mys- terioso program going into the Sun- . day 5:30 period when Wildroot switches “Charlie Wild” over to CBS, the new one will be cut to 25 minutes. This will permit a. week- ly five-minute news program for the 5:55 to 6 p. m! segment, point ing up anew the upbeat in new; coverage ih/the wake of the Korean^ crisis. Leon Pearson will be given the slot. That means he precedes his brother,, brew Pearson, on ABC, by five minutes. CBS' has also turned over the 5:45 to 6 Sunday time for an Eric Sevaried news show, sponsored by Chamberlain Lotion, shaving the Frank Sinatra program to 45 min- utes*