Broadcasting (Jan - June 1943)

©A IDC AST II CLTLcL Broadcast Advertising VOL. 24. No. 4 WASHINGTON, D. C, JANUARY 25, 1942 $5.00 A YEAR— 15c A COPY New AT&T Rates Save Industry $2,145,000 VIore Use of Small Outlets on Nets Foreseen SAVINGS IN network prop-am transmission costs amounting to approximately £2,145,000 will accrue to Droadcast stations as the result of rate cuts adopted by :he AT&T, as announced last Thursday by the FCC. Under the total cut, AT&T has agreed to reductions in telephone rates which effect an Dverall reduced revenue of its Long Lines department by an Estimated $50,700,000. The overall savings, includin lower wire and connecting costs, will affect every aetwork outlet, plus non-network stations which are occasional users )f wire line service. All radio wire line costs effective Feb. 1 will be paid on a new base of $6 per airline mile, as against the former rate of J>8 per airline mile for high fidelity service. Will Help Small Stations The $2,145,000 reduction applies po estimated expenditures by national networks of $8,000,000 a year for a Long line service, and j>f an additional $2,000,000 spent for regional and other remote service tnrough Associated .bell Companies. Tne overall reduction runs |n tne neignbornood o±' 2d%-So%, it was estimated, tnougn tne precise ngures all down tne line must (await tne adjustment and nlmg of tariffs by AT&T and tne Associated hell Companies. J It was said at the FCC that one luirect effect of this rate reduction will be to promote wider small station use of the networks. Until May 1942 stations wanting to make use of network programming .occasionally, were subject to a 30day contract. In May a one-hour per day rate was introduced for casual users. This served to promote the airing of public interest programs by small stations but the rates were still regarded as high for small operators. Under the new rate structure, reductions have been effected all along the line, ranging from 4050% in individual cases covering all schedules. Now small stations will be further encouraged to avail themselves of such public interest programs as the networks are willing to make available, according to FCC sources. Selling Job Remains This important step does not relieve the small stations entirely, however, for the problems of selling national advertisers on the use of local stations and the willingness of the networks to undersell their standard stations still remain. Revised rates cover Schedule A & B line users whose frequencies range from 100-5,000 cycles, Schedule C users who are limited to a frequency range from 200 to 3,500 cycles, Schedule D users who require special transmission without supervision or special operations for occasional use within the 200-3,500 cycle range, and Sched ule E which covers talking circuit users. Schedule A users may now obtain service for 16 hours per day at the rate of $6 per airline per month instead of the former $8. Each additional hour per day has been reduced from 15 cents per mile per month to 10 cents. Schedule B Cut 25% Under Schedule B, hour programs will be transmitted at the rate of 15 cents per mile per hour instead of 20 cents as heretofore. Each additional 15-minute period or fraction thereof consecutive with the initial period will be charged at the revised rate of 3% cents instead of the former 5-cent rate. Rate charges under Schedule C for 24-hour service have been reduced from $5.20 to $4 per airline mile per month. Those using less than 24 hours a day between noon and 9 p.m. have been reduced from $3 to $1.50 per airline mile per month for the first hour. Each additional hour will be charged at the rate of 25 cents per airline mile per hour instead of the former 50 cents. Cost of service for hours between 9 p.m. and 9 a.m. will be charged at the rate of 75 cents per month for the first hour instead of $1.50. Each additional hour will cost 20 cents instead of 25 cents. Rates of Schedule D call for 10 cents instead of 15 cents for the first hour or fraction thereof and each additional period will be charged at the rate of 3 cents instead of 3% cents. These are all inter-exchange channel per airline mile costs. Changes in the rates of station connections are as follows: Schedule A users (16 hours per day) must now pay $75 per month instead of the former $125. Each additional hour per day is to be charged at the rate of $15 per month instead of $20 as heretofore. Hourly connections operating under Schedule B are to be charged at the rate of $20 per month instead of $30. Under Schedule C, each bridg(Continued on page 50) 'Command Performance' Costs Army $25,480 Year for Music LATEST application of the AFM recording ruling finds musicians who formerly donated time and talents on Command Performance U. S. A., government-produced weekly shortwaved transcribed program for overseas servicemen, now charging the Army $24.50 per man. This is for a three-hour session, including rehearsal time and the 30-minute performance. During initial 42 weeks, when series was produced by radio branch, Bureau of Public Relations of the War Dept., no charge was made by musicians for their services. Gesture was widely publicized at that time as an AFM contribution to the war effort. Costs Army $25,480 With production of the program shifting to the Army Special Service Division Nov. 30, the situation took on a different aspect. The AFM cancelled that particular contribution to the war effort and prevailing contract rates were put into effect by Los Angeles Local 47. With orchestra averaging 20 men, the Army is now paying musicians on Command Performance $490 per week, or $25,480 on a yearly basis, to entertain soldiers, sailors and marines overseas. In cancelling its previous contribution arrangement, Los Angeles Local 47 officials contended that the Army Special Service Division had a budget for production, and pointed out that music and talent on other transcribed shows were being paid. This stand, it is said, was with the approval of AFM national headquarters. Army Special Service Division, in addition to Command Performance, also produces the weekly halfhour variety show Mail Call, which uses a band, and Jubilee, all-Negro variety program, built around an orchestra. It was pointed out though, that travelling name bands are permitted to contribute services gratis to Command Performance and other government produced transcribed programs for overseas transmis sion. Recent examples include Kay Kyser, Harry James and Benny Carter. Musicians Union also recognizes gratis use of remote bands in production. Artists on the weekly Command Performance regularly receive air credit in lieu of compensation. In isolated instances, however, where credit is not specifically given, payment is made in accordance with prevailing minimum AFRA rates, it was said. Besides government shortwave programs to men overseas, military bases originating commercial programs are also subject to an AFM ruling which, in many instances, discourages sponsors from sending shows on such tours. Although there are no standby fees for these commercial bands on military-base originating broadcasts, it was pointed out that the sponsor pays a 15% fee on the overall per man, per hour, to the AFM national headquarters when orchestra plays outside the local union jurisdiction. In addition the advertiser pays an extra one-hour rehearsal time fee for travel. For after broadcast offthe-air entertainment for servicemen at the military bases, the AFM one-hour overtime charge prevails. BROADCASTING • Broadcast Advertising January 25, 1943 • Page 7