Broadcasting (Oct 1931-Dec 1932)

The NEWS MAGAZINE of !3L. 2, NO. 10 WASHINGTON, D. C THE FIFTH ESTATE MAY 15, 1932 $3.00 PER YEAR — 15c A COPY anadian Broadcasting to Be Nationalized H By MARTIN CODEL dominion Network Urged in Parliament as U.S. Accepts hannel Changes; Private Stations Cut to 100 Watts ATIONALIZATION of Canada's oadcasting system, with the govnment operating a series of basic |?h power and regional stations •id private operators permitted to nduct local low power stations, Is been recommended to the Caidian Parliament by its radio mmittee following an exchange notes with the United States vernment regarding a new divi>n of wave lengths. To Canadian broadcasters, the oposed new Dominion scheme, lich has the support not only of 3 full Parliamentary committee t also of Premier Bennett's govnment, means the end of unreicted private enterprise and its placement by a sort of hybrid the British system of governmtal monopoly and the Ameri,n system of free competitive en^prise. To American broadcasters, it sans several important changes the present allocations of stans on clear, regional and local jquencies. While no channels e surrendered to Canada, that jntry secures the use of more of em on a shared basis with the lited States under a plan that ints to the ultimate adoption of policy in this country of higher -wers on certain clear and re)nal channels. Enactment Held Certain ITH PREMIER Bennett's Condative Party in power, the >use of Commons on May 11 unimously approved the committee rommendations. This is not equiv•nt to passage, a bill incorporatE the project being introduced 3 next day and requiring three idings for passage. This allows j debate, but the Bennett group nmands sufficient majority to rrant the expectation the bill ill pass in two weeks. Parliasnt is due to prorogue around ne 1. The new Canadian system has ee basic arrangements: (1) a -ies of government high power ttions across the Dominion operng on six clear channels; (2) a nes of government regional stans operating on six channels to shared with the United States, d (3) a series of privately ned and operated stations of wers up to 100 watts to serve lividual communities. THE PROPOSED nationalized broadcasting system, which the Canadian Parliament is expected to adopt, appears to be a sort of compromise between the British government monopoly and the American plan of free competitive enterprise. Its chief interest to the United States lies in the suggested reallocation of certain channels to be shared with Canada. Some stations in this country using regional and clear channels involved appear assured of higher power as a result. This wave length shakeup, while agreeable to the United States, raises a probable difficulty in the attitude of Mexico and Cuba. The limitation of advertising to 5 percent actually means the Canadian government is itself going into the business of broadcasting along American lines. The governmental stations would be linked into a network for TransCanadian service, existing stations to be taken over if they fit into the setup. The system is to be supported by revenue from receiving set licenses, which now amounts to S2 per set and is collected on about 600,000 of the 800,000 sets estimated to be in use in the Dominion. Advertising is to be accepted, though it is to be limited to not more than 5 per cent of each pi-ogram period. A Radio Commission of three is to be established, with assistant commissioners from each province. Programs are to be of domestic origin, but also to be purchased from or exchanged with outside sources; the assumption is that the Canadian network will subscribe to certain American network programs. The whole project is to be self-supporting, all revenues from license fees and advertising to be expended on it and the presumed increase in license fees to be fixed by the governor in council. Though it is difficult to see how the Canadian government can reimburse existing station owners out of the revenues in sight, let alone establish and operate the proposed new system, unless license fees are boosted very considerably and large advertising contracts are in view, the project does not contemplate any advance of funds by the government. At least $100,000,000 a year is represented in the operations of the radio system of the United States. On the other hand, the sponsors of the new project admit it is to be established gradually over a period of five to 10 years and cannot be effected overnight. That existing Canadian broadcasters opposed to government ownership and operation will continue their fight, possibly engaging in litigation over the prices to be paid them for their plants, is to be expected. The complete wave length setup of the proposed new Canadian system is outlined in the box on the following page. In brief, the wave length agreement reached between the Hon. W. D. Herridge, Canadian Minister at Washington, and the Acting Secretary of State, William R. Castle, Jr., in conferences which were quietly conducted with the Federal Radio Commission during the week of May 2, amounts to this: New Channel Setup 1. CANADA retains the six exclusive channels it has had for the last half dozen years, on which stations of 5,000 to 50,000 watts are to be established as indicated in the accompanying box. 2. Canada acquires three additional high power channels by occupying the 1050 and 1100 kc. clear channels used in this country and by adding to the spectrum the 540 kc. channel, now just below the broadcast band, which must be vacated by American military aviation radio services. 3. Canada retains six of the 11 channels it previously shared with the United States and relinquishes the other five. 4. Canada proposes to share up to 20 other channels used in the United States by placing thereon the 100 or more private local stations of powers not exceeding 100 watts with the understanding that the same geographical separations are to be maintained as are maintained between U. S. stations of the same power. Numerically, the new Canadian setup simply means that where Canada now has the exclusive use of six channels and the shared use of 11, or 17 in all, it keeps the exclusive use of six, adds one more channel to the band, shares two of our present clear channels, continues to share six other channels and assumes the right to use 20 more for local services, or 35 in all. The wave-sharing proposal was Canada's, and it was accepted in every detail by the American authorities. Power Increases Loom ANALYZED from the point of view of American broadcasters, the new Canadian system does not wreak nearly as great hardships as may appear at first blush. On the contrary, it removes the effectiveness of certain power-limitation regulations of the Commission, and presages horizontal increases in power on wave lengths which U. S. stations will have to share with Canadian. The status quo, of course, continues with respect to the six clear channels retained by Canada. The two additional U. S. clear channels to be shared are now allocated to KNX, Hollywood (1050 kc.) with 5,000 watts, and WPG, Atlantic City, and WLWL, New York, (1100 kc.) which share time and each of which uses 5,000 watts power. On 1050 kc. Canada proposes placing only a 500 watter in Nova Scotia, wmich is well across the continent from KNX, and on 1100 kc. Canada proposes to establish a 50,000 watter in British Columbia, also across the continent from WPG and WLWL. Little interference is anticipated with KNX, though its service ay 15, 1932 • BROADCASTING Page 7