Broadcasting Telecasting (Oct-Dec 1957)

periment with new methods to serve affiliates. One question raised in the report: Participation of networks in both radio and television has tended to affect adversely opportunities of non-radio affiliates in obtaining tv network affiliations, and the opportunities of tv-only networks to obtain access to station time. Would the public interest be better served and competition within radio and television be furthered if network organizations were limited to one or the other medium? the report questions. And, would new networks enter radio if ABC, CBS and NBC devoted themselves to tv networking only? chapter 14 Application of Commission Rules and Regulations to Network Organizations The networks, which are the strongest decision making component in the tv industry, should be answerable to the viewing public through FCC policies expressing public interest, the report said. Specific legislative authority for the FCC to apply its rules and regulations, in appropriate contexts, directly to the networks was recommended. It was further urged that sanctions for violation of Commission rules be changed. Revoking of station license is the only sanction currently available and this was found to be too drastic for application to all types of conduct proscribed by the rules. A system of forfeitures compatible with varying degrees of conduct proscribed by the rules should be allowed the FCC by Congress, the report said. The problem of overlapping jurisdiction with the Dept. of Justice was recognized as well as the possibility that network regulation by the FCC might provide an "umbrella" against possible antitrust actions. However, the study group felt that the advantages outweighed possible losses in antitrust prosecution. Application of the FCC rules to networks should be made only in those areas in which Commission objectives are infringed by network structure and practices. The report said this should not involve establishment of station rates, the division of compensation between networks and stations, or rules relevant to programming which go beyond balanced programming in the public interest. Pending grant of authority to apply its rules directly to networks, the FCC should continue to apply existing Chain Broadcasting Rules to stations and the new rules recommended in the report should be made applicable to all stations, or to stations owned by the networks, as the circumstances warrant. When the authority is granted to FCC to apply rules to the networks, then the FCC should review the Chain Broadcasting Rules, as amended, to make them applicable to networks only, to both networks and stations, or to tv stations only, as the conduct of each rule indicates. chapter 15 Summary and Recommendations (see page 100). EXTENT OF FCC NETWORK STUDY SET FORTH IN NOVEMBER 1955 When the FCC committee issued its Order No. 1 in November 1955, it declared: ". . . the network study will concern itself with the broad question whether the present structure, composition and operation of radio and television networks and their relationships with their affiliates and other components of the industry, tend to foster or impede the maintenance and growth of a nationwide competitive radio and television broadcasting industry." The subjects to be studied by the network staff were listed by the FCC committee in its Order No. 1 as follows: (a) What has been and will continue to be the effect on radio and television broadcasting of the following: (i) Ownership and operation of both radio and television networks by the same person, or persons affiliated with, controlled by, or under common control with the same person; (ii) Ownership and operation of radio and television broadcasting stations by persons who, directly or indirectly, own or operate radio or television networks; (iii) The production, distribution or sale of programs or other materials or services (including the providing of talent) by various persons, both within and outside of the broadcast industry, for ( 1 ) radio and television network broadcasting, and (2) radio and television non-network broadcasting; (iv) The representation of stations in the national spot field by various persons; (v) The relationships between networks and their affiliates including but not limited to those having to do with (1) selection of affiliates, (2) exclusivity, (3) option time, (4) free hours, (5) division of revenue, and (6) term of contract; (vi) The contracting for or lease of line facilities used in the operation of networks by persons who, directly or indirectly, own and operate networks; (vii) Related interests, other than network broadcasting, of persons who, directly or indirectly, own or operate networks; (viii) The ownership of more than one radio or television broadcast license by any one person. (b) Under present conditions in the radio and television broadcasting industry, what is the opportunity for and the economic feasibility of the development of a multiplenetwork structure in terms of (1) the number of broadcast outlets available, (2) national advertising potential, (3) costs of network establishment and operation, and (4) other relevant factors. (c) Under present conditions in the radio and television broadcasting industry, what is the opportunity for and economic feasibility of effective competition in the national advertising field between networks and nonnetwork organizations in terms of (1) the number and type of broadcast outlets available, (2) national advertising potential, (3) needs of the advertiser, and (4) other relevant factors. Listeners really e-n-j-o-y the Big "H" SECTION of the SESAC Transcribed Library • Modern and traditional Hawaiian melodies. Hulas and ceremonial themes. • Informative program notes. • Imaginative script service. • All at its best at low monthly fees. Write, right now . . . SESAC INC. The Coliseum Tower 10 Columbus Circle New York 19, N. Y. Broadcasting • Telecasting October 7, 1957 • Page 99