Broadcasting (Jan - June 1936)

cuxcl Broadcast Advertisingr Vol. 10 No. 1 WASHINGTON, D. C, JANUARY 1, 1936 $3.00 A YEAR — 15c A COPY ASCAP Temporarily Extends All Licenses By SOL TAISHOFF Catalog Is Minus Warner Music, However, With Movie Firm Offering Flat Fee Basis Which Is Rejected by Networks RELIEVING, temporarily at least, the most critical program situation that has confronted broadcasting since its inception, a blanket extension of copyright licenses to individual broadcasting stations for performance of the Warner-less catalog after Dec. 31, at current rates, was issued Dec. 30 by ASCAP. fi Simultaneously, arrangements were made with Warner Brothers publishing houses for a flat-rate method of compensation, amounting in the case of full-time stations to four times the highest hour rate for the music — the arrangement with Warner being for a three-month temporary period. During that period an effort will be made to work out the mooted "per piece" plan, whereby stations will pay for each composition broadcast at the price stipulated by the copyright owners. ! Networks Won't Play Warner AS Broadcasting went to press Dec. 30, the networks adhered steadfastly to their decision to go without Warner music because of their inability to reach mutually satisfactory terms. Despite this, however, the report persists that this situation might change in one or two ways. The first was that arrangements would be made by the major networks with Warner, and the second that Warner would reenter ASCAP. Promptly after working out of the Warner arrangement, many stations notified James W. Baldwin NAB managing director, who was in New York directing the negotiations, that they would accept the Warner revision. The revised contract was worked out by Mr. Baldwin with his "advisory committee" of independent broadcasters in conferences with Hennan Starr and A. M. Wattenburg, Warner executive and general counsel, respectively. The advisory committee, on the ground since Dec. 27 at the call of Mr. Baldwin, comprised Walter Damm, WTMJ, Milwaukee; Philip G. Loucks, former NAB man^sring director; Louis G. Caldwell, Washington attorney; John L. Clark, WLW general manager, and H. Dean Fitzer, WDAF Kansas City. There also appeared on the scene Dec. 30 NAB President Leo J. Fitzpatrick, WJR, Detroit, and NAB Vice President Edward Allen, WLVA, Lynchburg Va. The ASCAP extension and the Warner revision were obtained only after gruelling negotiations. They broke an impasse that threatened chaos in the industry. As matters stand at this writing [Dec. 30], hundreds of popular tunes in the Warner repertory are banned from the networks. Changes in scores of theme songs are expected forthwith because of their Warner owmership or because title is clouded by Warner claims. ASCAP Extension Indefinite THE individual station extensions of ASCAP licenses were obtained by Mr. Baldwin, who was armed with powers of attorney from more than 300 stations to negotiate in their behalf. Subject to subsequent approval, the extensions permit all stations to perform ASCAP music without the necessity of signing new contracts, for a temporary indefinite period. Both stations" and ASCAP have the right to cancel on two days notice. The understanding reached by Mr. Baldwin, Nathan Burkan, ASCAP general manager, and Gene Buck, ASCAP president, was that a joint committee, representing all elements in the industry, would be convened shortly after Jan. 1 to work out a permanent solution. This understanding was procured only verbally, however, despite Mr. Baldwin's insistence that it be placed in the letter of extension. Great significance attaches to the Warner arrangement since it is the first direct move toward introduction of per-piece as a means of compensation for music. Opposed by the networks on the ground it is unworkable and would entail vastly increased tribute to the copyright owners, this method nevertheless was espoused by the last (Continued on page 5i) Major Networks Decide Against Using Warner Music . . . Following are the letters sent by NBC and CBS on Dec. 2U to their respective clients and agencies, and to the clients and agencies of their owned and operated stations, notifying them that, effective Dec. 31 and until further notice, no music controlled by the Warner Bros, music publishing houses will be performed; the NBC letter bore the signature of Edgar Kobak, sales vice presideyit, and the CBS letter was signed by Edward Klauber, executive vice president: NBC Letter to Clients and Agencies CBS Letter to Clients and Agencies THIS LETTER announces to you the change of program policy which is necessitated by the announcement of the so-called Warner Bros. Group of publishers that they have resigned from the American Society of Composers. Authors and Publishers as of December 31, 1935. The publishing houses which have joined in this announcement are: Harms Inc., M. Witmark & Sons. Remick Music Corp., T. B. Harms Co., New World Music Corp. On June 4, 1935, after long negotiation, the Columbia Broadcasting System, made a new contract with the American Society of Composers, Authors and Publishers, and under this contract we were licensed for a period of five years, ending December 31, 1940, to play all of the compositions in the catalog of the Society as it was then constituted. At the time that this contract was negotiated, signed and ratified by the American Society of Composers, Authors and Publishers, the so-called Warner Group were members of the Society and were represented on its Board of Directors. The terms of this contract were jjredicated upon the basic assumption that the Warner Brothers music would continue to be available to us, and we felt that such terms, so far as we could look ahead, made it economically feasible for us to continue to absorb the costs of playing these copyrighted compositions as part of our operating expenses and not to pass them on. After this contract was signed, the Warner Brothers Group of publishers informed the Society and us that they were terminating their membership as of December 31, 1935, and would thereupon take over the licensing of their own catalogues upon such terms as they could negotiate. The Society takes the position that it was entitled to license us to play the Warner compositions for the five-year term referred to, and that we are now entitled to perform these compositions under the terms of our license with the Society. The Society bases its contention on two iirincipal grounds : First, that the Warner Grouji were members (Continued on page50) WE HEREBY announce to you that after midnight, December 31, 1935, and until further notice no musical compositions copyrighted in the name of any of the following music publishers will be broadcast on our networks or on stations owned or programmed by us : Harms Inc., New World Music Corp., Shubert Music Publishing Co., M. Witmark «& Sons, T. B. Harms Co., Victoria Publishing Co., Remick Music Corp. In this letter we shall call them the "Warner publishers'' as all of them are either controlled or afiiliated with "Warner Bros. Pictures, Inc." The facts that have forced this decision upon us are as follows : (1) The National Broadcasting Company has always held contracts with the American Society of Composers, Authors and Publishers (hereinafter called "Society") for public performing rights of musical compositions which from time to time have been renewed by us without the necessity of having to approach our clients. Our last renewal was on the 4th of June, 1935, when, after long and protracted negotiations, we extended our contracts for a period of five years and four months commencing September 1, 1935, and ending December 31, 1940. The licenses we secured gave us the right to broadcast all of the musical compositions contained in the catalog of the Society as it was constituted on June 4, 1935. These contracts were duly approved by action of the Board of Directors of the Society, including a representative of the Warner publishers who sat on the I?oard of the Society. We entered into this extension agreement on the understanding that the musical compositions copyrighted by the Warner publishers would continue to be available to our advertisers and ourselves and the terms for the royalty payments were based upon that understanding. (2) Within the last few weeks and since the signing of our renewal agreements with the Society the Warner pub (Continued on page 50) January I, 1936 • BROADCASTING Page 7