Broadcasting Telecasting (Apr-Jun 1957)

B R O A D C ASTI N G TELEC ASTI N G Vol. 52, No. 16 APRIL 22, 1957 FIVE MORE ANTITRUST SUITS FILED Government sues film firms, may take action on network must-buys THE Dept. of Justice last week filed civil antitrust suits against five more feature film distributors for forcing television stations to buy feature packages — and, if Asst. Atty. Gen. Victor R. Hansen's words mean what they say, network tie-ins and must-buys are next on the list. The antitrust suits, charging block-booking of feature films on tv stations, were filed in New York federal district court against Associated Artists Productions Inc., C&C Super Corp., National Telefilm Associates Inc., Screen Gems Inc., and United Artists Corp. Last week's complaints followed by less than a month a similar antitrust suit against Loew's Inc. [B»T, April 1]. Mr. Hansen, addressing a luncheon meeting of the Federal Communications Bar Assn. in Washington two and a half hours after the film suits were filed, spoke of the department's investigation of "alleged tieins" between the sale of network time and programs and of its "broad inquiry" into network practices. Mr. Hansen indicated that most of the investigative work on network must-buy policies has been completed. Of must-buys he said: "We are now studying voluminous information acquired for us by the FBI to determine whether this practice is violative of the antitrust laws." The investigation of alleged tie-ins between the sale of network time and programs is still not complete, he said, "but we are far more knowledgeable than we were in September." It was in that month of 1956 that Mr. Hansen outlined in detail to the House Antitrust Subcommittee the Dept. of Justice's investigation for television. Last Thursday the antitrust chief said that there was "no specific timetable" on the current investigation, but he did make these "observations [on] the road ahead": "First, our investigations are continuing as rapidly as the task and the available manpower permit. We feel a great obligation to insure that this exciting new industry which provides entertainment and information to millions of Americans is operated in accordance with our laws and the great American tradition of free enterprise. "Secondly, we are bending every effort to expand and improve our liaison and cooperation with the other executive agency concerned with the development of broadcasting in the public interest, the FCC and — where legislation seems applicable — with the Congress. In this connection we have under careful study the recently-published hearings of Congressman Celler's Special Antitrust Subcommittee of the House Judiciary Committee. We also look forward with great interest to the report on television networks by the Senate Committee on Interstate & Foreign Commerce. And we are certain that the report of the FCC's Network Study Committee, being prepared by Dean Roscoe Barrow and his staff for release about July, will be of great value. "All of these studies by other branches and agencies of government are of the utmost assistance in our efforts to appraise the problems of television and to apply properly the antitrust laws to this industry." The Justice Dept.'s investigation of television industry practices commenced, Mr. Hansen noted, in the fall of 1953. About a year ago the study was expanded and accelerated, the Asst. Attorney General explained. "We intend to continue until we are satisfied that television broadcasting is operating in free and open competition." The suits against the five film distributors charged restraint of trade and violation of Sec. 1 of the Sherman Act. Basically it alleged that the distributors refused to sell individual pictures to tv stations, but forced them to buy packages. The complaints specified that: • AAP — Beginning in 1956, controlling 750 Warner Bros, features, required the purchase of one of 13 blocks, each consisting of 58 feature films. • C&C— Beginning in 1956, controlling 700 RKO Radio Pictures, forced the purchase of the whole group or blocks comprising from 150 to 440 feature films. • NTA — Beginning in 1956, controlling 100 20th Century-Fox features, forced the licensing of blocks (number of films not specified) "except in relatively few instances." • Screen Gems — Beginning in 1955, controlling over 200 Columbia Pictures features, required the purchase of blocks of at least 26 features, except in two instances. Screen Gems is a Columbia Pictures subsidiary. • United Artists — Beginning in 1956, controlling 78 independent features, re AND STILL MORE TO COME? SEPT. 14, 1956: Asst. Atty. Gen. Victor R. Hansen tells House Antitrust Subcommittee that Justice agents, reinforced by FBI men, have started major investigation of television, with emphasis on network practices. DEC. 4, 1956: Justice Dept. sues RCA-NBC for allegedly coercing Westinghouse Broadcasting Co. into swapping WBC's Philadelphia stations for NBC's Cleveland properties. MARCH 27, 1957: Justice Dept. sues Loew's Inc. for allegedly block-booking MGM feature films to television stations. APRIL 18, 1957: Justice Dept. sues five other film companies for block-booking. Defendants ( and their feature packages ) are: C&C Super Corp. (RKO), Screen Gems (Columbia) , AssociatedArtists Productions (Warner Bros.), National Telefilm Assocs. (20th Century-Fox) and United Artists (its own movies and those of several independent producers). APRIL 18, 1957: Same day five new film suits are filed, Asst. Atty. Gen. Hanse?i tells Federal Communications Bar Assn.: "I can assure you that we still have much work to do." Broadcasting • Telecasting April 22, 1957 • Page 27