Broadcasting (Jan - June 1939)

Copyright Formula Is Adopted By NAB, Getting Early Start Committee Unanimously Favors Paying Royalties Only on Income Derived From ASCAP Catalog SEEKING to avert the turmoil of past years in negotiating an equitable pei'forming rights contract with ASCAP, the 15 members of the recently appointed NAB Copyright Committee on March 21 adopted a resolution authorizing "immediate negotiations" for a new contract to supplant that now in effect and expiring at the end of 1940. Acting unanimously, the committee adopted a resolution authorizing NAB President Neville Miller to undertake the negotiations for a new contract based on "the principle of paying royalties on only that revenue derived from the sale of time for programs involving the use of the ASCAP catalogs." This in substance is the form of the so-called newspaper contract which ASCAP has in force with many newspaper-owned stations. The general contract now operative and agreed to by broadcasters in eleventh-hour negotiations in 1935, specifies that stations pay to ASCAP 5% of their receipts from all program service plus an arbitrary sustaining fee. United Action Urged The Copyright Committee met at the Ambassador Hotel, New York, March 20-21 at President Miller's invitation after he had made a study of the entire problem, which has been one of radio's most controversial issues practically since commercial broadcasting began. The group agreed that industry problems can be satisfactorily solved only by united action. Networks went along with independents in approving the resolution, which seeks definite acceptance of the new principle from ASCAP by May 31 so that recommendations on it can be considered by the NAB membership at the convention scheduled for Atlantic City July 10. Optimism prevailed among committee members following adoption of the resolution. The general view was that progress had been made in aligning a "united industry front" to deal with the problem, which involves payment by broadcasters of an estimated four million dollars annually to ASCAP for the right to perform its music. Coincident with the meeting, it became evident that ASCAP is unlimbering its big guns in an off'ensive against the broadcasting industry. E. C. Mills, chairman of ASCAP Administrative Committee, in a published interview, declared that the NAB "with characteristic stupidity and shortsightedness" is making the broadcasting industry "the goat". Bitterly attacking what he called the industry's policy of "vilification", he said that if it continues, the song writers of America will refuse to license use of their works by any broadcasting station when the present contracts expire. Page 28 • April J, 1939 The March 23 issue of Ke7i Magazine carried an article by Lloyd Morris, plus a two-page layout of pictures, dealing with ASCAP. The article described ASCAP as "one of the most powerful organizations in the world." It pointed out that five States have enacted laws forbidding it to function in their borders and that it can take jazz music off the air. "It dictates terms to a group of industries whose annual revenue exceeds five billion dollars, and derives wholly or partly from the public performance for profit, of copyrighted music." The article stated that in 1937 ASCAP gross revenue from licenses amounted to approximately $6,000,000, of which 62% was derived from broadcasting; 21% from theatres and movie houses ; 12% from restaurants, hotels and cafes; 3% from dance halls, and 2% fro m miscellaneous enterprises. Discussing expiration of ASCAP contracts with stations, the article stated that Gene Buck, ASCAP president, in 1932 held "a big stick" over broadcasters by threatening to take ASCAP's repertory off the air. "Should the radio interests refuse to meet whatever new terms he imposes next year, he will undoubtedly resort to the same threat," the article continued. "And he will be ready to carry it through. He knows — and the broadcasters, to their cost, also know — that they cannot operate using only music more than 56 years old." Although present ASCAP contracts do not expire until Dec. 31, 1940, the resolution adopted SO WELL known is the 30 Minutes Behind the Walls program carried over WBAP, Fort Worth, every Wednesday night for the last year from the State penitentiary at Huntsville, that this envelope, containing a fan letter, was promptly delivered to the "radio director" of the prison. by the NAB Committee stipulates that "negotiations shall be carried on with the object of obtaining definite acceptance on a practical basis to the above principle from ASCAP by May 31," so that definite recommendations may be made to the NAB convention in July. In other words, the broadcasters are making sure that they will not again wake up on the eve of contract time to find themselves disorganized and forced to accept whatever terms ASCAP may choose to dictate. By starting now, 20 months in advance, the industry proposes to move slowly and surely, laying its plans to meet all contingencies, so that when a contract is drawn it will be on a sound business basis that will protect the rights of the broadcasters as well as of the copyright proprietors. Committee members present at the meeting were: Edwin W. Craig, WSM, Nashville; Walter J. Damm, WTMJ, Milwaukee; John Elmer, WCBM, Baltimore; Gregory Gentling, KROC, Rochester, Minn.; Edward Klauber, CBS, New York; Niles Trammell, NBC, New York; Clair McCollough, WGAL, Lancaster; John Shepard 3d, Yankee IMPORTANCE OF RADIO COLUMNS Shown in Survey by Fortune; Over Half Read Them Habitually or Sporadically ALMOST one-third of the nation reads newspaper radio columns faithfully, and another third sporadically, according to the April survey of Fortune Magazine. This is about as good an average as the readership of the women's and sport pages, Fortune pointed out, adding that the radio pages probably have a greater following and influence than commonly credited them. Answering the question: "Do you read the columns in the newspapers about the radio stars and programs 31.7'; said •yes", 33.5% "occasionally" and 34.8% "no". To the further query: "(If yes or occasionally) Do they help you to choose what you want to listen to on the radio?", 53% of the readers, or 34.6% of the total population, answered "yes"; 25.9% of the readers and 16.9% of the population said "sometimes", and 21.1% and 13.8% said "no". Interpreting these statistics. Fortune explained: "It seems that 51.5% of the population (34.6% plus 16.9%) are habitually or sometimes guided in the selection of their air entertainment by what they see on the radio page, which in turn presumably influences both their culture and their buying habits. Considered in this light the radio page appears immensely influential because nothing else in a newspaper induces many people at home to do immediately anything much more important than baking a cake." "The breakdowns show that readership of radio columns is about 10% heavier among women and among people under 40 than among men and older people. But as between income groups it is almost uniform from top to bottom. The influence radio columns have upon choice of program, among those who do read them, is also greater among young people and women, and is nearly 10%' greater amon^' the poor than the prosperous," the I'eport concluded. Network, Boston; Theodore C Streibert, MBS, New York; Harolc Wheelahan, WSMB, New Orleans; E. B. Craney, KGIR, Butte; I. R Lounsberry, WGR-WKBW, Buffalo; T. W. Symons Jr., KXL, Portland, Ore.; Neville Miller, NAE president, and Edwin M. Spence NAB secretary-treasurer. It was pointed out that one o\ the most significant indications oj industry unification is the fact thai members of this group, represent ing national and regional networks, affiliate stations, independent stations, large stations anr small stations from all parts oi' the country, should have pledgee themselves to act together in thii, matter, dealing with ASCAP nc; as individuals but as an industry, dealing not for individual advantage but for the common good o;' the whole industry. Full text of resolution follows : "WHEREAS in the opinion of th; NAB the ASCAP's present method o: licensing broadcasters to use the Society's music is inequitable, inasmucli as it compels broadcasters to pay fee? on programs not using ASCAP music, and "WHEREAS it is imperative tha: the industry assure itself of an ade quate supply of music on an equitabl basis after the expiration on Decern ber 31. 1940. of the broadcasters' pres ent contracts with ASCAP in orde; to safeguard both the industry anthe public. "THEREFORE, be it unanimousl,. resolved, that the Copyright Commii tee of the NAB, consisting of reprc sentatives of all elements in the indus-j ti"y, authorize Neville Miller, pres dent of the NAB, in conformance wit i the authority already conferred upo; him by the Board of Directors of thi; NAB, to enter into immediate negotistions with ASCAP and that in eorducting such negotiations he be arthorized to draw upon this Committei; and its membership for such assis'ance as he may desire and, "BE IT Further Resolved, thai such negotiations shall be predicate!:' on the principle of paying royaltifii on only that revenue derived from th( sale of time for programs involvint:! the use of the ASCAP catalogues, an: "BE IT, Therefore, Further Re solved that negotiations shall be ea;J ried on with the object of obtainini! definite acceptance on a practical bs sis to the above principle froii! ASCAP by May 31, in order that thi: Copyright Committee may be fullij advised so as to make a complete an:) definite report with reeommendatioriil at the NAB annual meeting to li' held July 10, 1939." Paine Noncommittal : Asked to comment on the resc lution, John G. Paine, genera! manager of ASCAP, declined 0( the grounds that the resolution "too sketchy for comment". Hi said he would be glad to start n^ gotiations early so that there wou be ample time to find a formulj that will be most satisfactory tj both sides, adding that ASCA is entering the negotiations witi only one set policy, "to permit discrimination of any nature in th licensing set-up if it can possibl be avoided." Mr. Paine said that he had tolj Mr. Miller he would prefer to har die the copyright sale on a pe^ piece basis, as he had handled th transcription rights when he wS with MPPA, but that the vast nurt ber of musical selections used dail by the broadcasters would probai ly make this method of operatiol too cumbersome to be practicablj BROADCASTING • Broadcast Advertising