Broadcasting (July - Dec 1938)

Deutsch Ready to Start Disc Network Sept. 15 Is Picked for World Transcription System RADIO'S first major market "wax network", embracing some 30 outstanding stations as basic outlets, will get under way in mid-September as the World Transcription System. Tentatively scheduled to begin operation Sept. 15, the new network will function as a subsidiary of World Broadcasting System, pioneer in spot transcription broadcasting and in large measure responsible for its development. Percy L. Deutsch, president of WBS, has worked on the plan for several years, and while he withheld details, he informed Broadcasting, Aug. 30 that his organization has definitely decided to proceed with the venture. Already, it was learned, two dozen stations in important markets have contracted with WTS. By Sept. 15, the tentative starting date, it is expected at least 30 Mr. Kendrick basic stations will be aligned. The network will be offered in a block to advertisers in the same fashion as the wire chains, the only essential difference being ;f he transmitting medium. Discs instead of wire lines will be used, Kendrick to New York Simultaneously, it was learned that A. J. Kendrick, vice-president of WBS in charge of Chicago operations, will move to New York about Sept. 15 to assume immediate supervision of WTS. Read Wight, Mr. Kendrick's chief assistant in Chicago, will take charge of that office. Mr. Kendrick has been active in contacting stations on the new venture, along with A. B. Sambrook, station relations manager. It is expected his assignment will include field operations as well as general supervision at New York headquarters. Under the plan, basic stations will pay WTS a percentage of their card rates to cover mechaniI cal costs. The percentage will vary, depending upon the importance of the market and the station, but in no event will be less than 5%. In Campbell Dickering CAMPBELL SOUP Co., Camden; is planning a network series to start this autumn, with Edwin C. Hill as commentator. The program is understood to have been submitted to NBC by Ward Wheelock Co., Philadelphia, the Campbell agency, but no contract had been signed by the network as Broadcasting went to press. The commentary program would be in addition to the new Hollywood Hotel program starting Sept. 9 on 70 CBS stations and the Amos 'n' Andy series on NBC-Red. PERCY L. DEUTSCH some instances it will be 7%% and in others 10%. This fee will cover cost of production of masters and discs. "More than 20 leading broadcasters in the larger markets have already signed with World in this latest move to develop more national transcription advertising for stations," Mr. Deutsch announced Aug. 30. "A complete list of member stations will be announced shortly." Employing ERPI wide-range recording methods, quality of WBS transcriptions has always been of highest calibre. General public acceptance of transcriptions led to the development of the wax network project. Flexibility of service, taking into account time differentials, also has made transcription spot a desirable medium for particular types of national and regional advertisers with peculiar merchandising situations. It is presumed WTS will intensify its sales efforts in that particular trade sphere. WTS will function as a subsidiary of WBS which will continue its regular transcription library and other operations. Mr. Deutsch, however, heads both organizations, with Mr. Kendrick in immediate charge of WTS. All other executives and officers of WBS will function for WTS, under present plans. Last June, Mr. Deutsch and Mr. Sambrook outlined preliminary plans for WTS at a dinner in Washington attended by more than a score of prominent broadcasters. The session was held coincident with the FCC hearings on proposed new regulations.^ At the Independent Radio Network Affiliates convention in Chicago last month, Mr. Deutsch and his associates held further conferences with key broadcasters. It was following this session that he decided to proceed with the plan. ChairmanMcNinch In Harness Again Routine Matters Are Decided At FCC Quorum Session A QUORUM of the FCC, presided over by Chairman Frank R. McNinch, convened Aug. 30 for the first time in several weeks to make plans for an active fall session. Chairman McNinch returned to his desk Aug. 29 after having been away continuously since early July. In excellent health and ruddycomplexioned after a fortnight's sojourn at a New Jersey beach, the Chairman planned to have things going full swing Sept. 6, immediately after Labor Day. Broadcast Meeting On Aug. 29, four members of the Commission held a meeting to consider telegraph and telephone matters. For the following day a meeting was scheduled on routine broadcast matters. Present were Chairman McNinch, and Commissioners Sykes, Brown and Craven. Other members were vacationing away from Washington. All were expected back, however, immediately after Labor Day. A meeting of the so-called ChainMonopoly committee, for the purpose of establishing a date for formal hearings on the broad network inquiry, was anticipated in early September. The committee, comprising Commissioners McNinch, Sykes, Brown and Walker, probably will meet without the presence of the last-named member. It is expected to, consider a bill of particulars for the hearing and also set a date now Jikely to be Oct. 10 or Oct. lj. ^Meanwhile, William J.' Dempsey;™ special counsel for the committee ij -has been devoting his full time t'o'~ preparations for the hearings;. " ous activity on the part . of producers and exploitation .men , to secure plugs for stars, stories;"andsongs indicate very clearly indeed that radio offers* a hew and important value in the exploitation of motion pictures and motion pic-, ture personalities. In fact, the record of the past few years will indicate, we believe, that motion picture people have been more alert to the promotional value of radio than have broadcasters themselves. Otherwise it is to be doubted if broadcasters would have permitted many of the indulgent Hollywood exploitations to have come through their transmitters, without cost and with little restriction. "We believe the attitude of your committee will be very disturbing to hundreds of local exhibitors throughout the country who have been receiving generous and effective cooperation from their local radio stations. We believe your statement will be very disturbing to radio advertisers who are investing large sums of money in motion picture personalities in the belief that such talent would attract not only the movie-going public but would reach as well larger sectors of the mass market, both movie-goers and non-moviegoers through radio. "In light of past cooperation, the statement of your Committee is most disappointing, and in view of future relations between radio and motion pictures, it is most alarming." Exclusion of Radio Of Movie Drive Is ACTION of the motion picture industry in restricting its new advertising campaign to newspapers was challenged Aug. 30 on behalf of the broadcasting industry by Ed Kirby, NAB public relations director, z In a letter to Howard Deitz, Metro-Goldwyn-Mayer official and chairman of the "Movies Are Your Best Entertainment" campaign, Mr. Kirby questioned the logic of the Deitz statement outlining reasons why the motion picture campaign was restricted to printed media. The NAB public director revealed that the trade association will undertake a "complete review of the situation". Paul Peter, research director of the NAB, will make a "comprehensive study of all practices, relations and cooperative connections between the two industries," he said. "Upon these findings, the broadcasters hope to evolve a sounder and more equitable relationship which will insure at least that the privilege it has extended will not be abused or ignored," he said. Confusion on Media The letter made clear that there was no complaint against the press. Mr. Kirby said that recent conversations between leaders of both press and radio have given promise that "a new and more far-sighted and wholesomely competitive activity is possible" between the two media. He added, however, that the press, advertisers, and the public would regard the NAB as re From Paid Portion Criticized by NAB miss in its duty "if it did not take exception to the farreaching implications involved in. your statement." "We do not seek to divert one penny of your present appropriation, but what we do attempt frankly, is to clarify the confused thinking of your committee in its appraisal of the radio medium," the letter said. Movie Use of Radio "The radio industry has never taken the position that the motion picture industry should ever spend a dollar in radio at the expense of a dollar pulled out of a newspaper appropriation. We have observed that motion picture promotion especially requires newspaper art and notice and permanence of display for playing dates and location. "We have likewise been of the opinion that radio brings a new dimension and a new characteristic to motion picture exploitation and we have felt too, that radio in many areas was reaching new audiences for motion picture theatres, was developing new tastes through new approaches possible only through radio. We have felt that such new and additional contributions to motion picture merchandising were deserving of some economic return, the same way in which the newspapers justly charge for and earn a fair return for the services they render in the visual field. "Even though your statement fails to reflect such an evaluation of radio's effectiveness, the vigor BROADCASTING • Broadcast Advertising September 1, 1938 • Page 17