Broadcasting Telecasting (Oct-Dec 1957)

IsYoutt BEST BUY In The SCRANTON MARKET Chart based on average Pulse ratings for 12 quarter hours . . . 6:00 to 9:00 AM ... November, 1956 li W A B C D E all £ OTHERS J For 27 years, Scranton's top salesman, Bill Pierce dominates the audience in eight ■BB Pennsylvania counties served by WFJL. AdfeMEEKER yffgjL CCA Hits $300,000 In Sales at WITH "The best proof of CCA's effectiveness for WITH (Baltimore, Md.) is that we have run it for eight campaigns now, consecutively," says Jake Embry, Vice President of the station. "And most of the original sponsors are still with us like Acme Super Markets, R. C. Cola, Breast O'Chicken Tuna, Goetz Meats and a host of others. "We have sold in excess of $300,000 worth of time in conjunction with Community Club Awards ; and the proof of purchase has ranged all the way from 1,600,000 points (dollar volume plus bonuses) in the first campaign up to 15,700,000 throughout the seventh. "And now we've scheduled up through our tenth CCA Campaign." JAKE EMBRY COMMUNITY CLUB AWARDS THE PENT HOUSE 527 Madison Avenue New York 22, N. Y. Phone: PLaza 3-2842 FOR THE RECORD continued C. Rates 15. A rule should be adopted requiring the networks to publish currently their ratemaking procedures, including the circulation credited to each affiliate, the formula used for rate purposes, and all changes made in the network rates of individual affiliates. 16. The Commission should watch the development of the rate situation closely and continuously, but assume no responsibility for reviewing individual or general network rate decisions at this time. 17. New rules should be adopted, or current rules expanded, to prohibit any attempt by a network organization to influence the non-network rates of affiliated stations, and any attempt by a network to use the setting of network rates to influence station decisions with respect to program clearances. 18. The evidence with respect to possible infractions of Chain Broadcasting Rules 3.658(a) (through the use of network rates to influence the station's acceptance of programs from another network) and 3.658(h) (through the use of network rates to influence the national spot rates of affiliated stations) should be referred to the Commission for appropriate action. 19. The evidence concerning possible violations of the antitrust laws with respect to network-national spot rate competition and inter-network rate competition should be referred to the Department of Justice. D. Compensation 20. The Commission should make public the affiliation contracts which licensees are required to file with it, including the compensation provisions of these contracts. 21. The Commission should make a regular and continuous study of compensation arrangements between networks and their affiliated stations. While a potential for abuse exists, the present compensation practices of the networks do not require the adoption of a more specific rule at this time. E. Must-Buy 22. The must-buy requirement of the CBS and NBC networks should be prohibited through a Commission regulation. No objection should be raised to the adoption of some form of "minimum-buy" analogous to the present ABC practice. In the course of rule making, the Commission should consider whether or not an exception would be desirable permitting the must-buy practice in the case of multi-weekly programs sold in small time segments to a considerable number of different advertisers. The opinion of the Dept. of Justice should be requested on this subject. 23. The Commission should not undertake at this time to regulate the particular minimum requirements adopted by the networks. However, the situation should be followed closely and continuously, so that the Commission will be in a position to take action promptly at a later date, should the "minimum-buy" practice require regulation. F. Network Representation of Stations in National Spot Sales 24. The Commission should adopt a rule prohibiting the networks from representing stations other than their owned and operated in national spot sales. A reasonable period of time, such as two years, should be allowed for the stations to transfer their representation to a non-network organization. G. Interconnection 25. The Commission should resolve at the earliest practicable date the issues involved in Docket No. 8963 and Docket No. 11164.1 26. The Commission should examine closely the procedures for allocating scarce AT&T program transmission facilities to determine whether they are fair and equitable and otherwise in the public interest. H. Multiple Ownership 27. In the long run, the Commission should seek through its regulation a pattern of ownership which approaches as closely as circumstances permit the objective of limiting station ownership to one station for each licensee. 28. With respect to the grant of original applications for station licenses, the Commission should promulgate a rule relative to local ownership and diversity of ownership which establishes presumptions that a local applicant will serve the community interest better than an absentee licensee and that an applicant who owns no other station will be in a better position to serve the local community than an applicant who is already licensed to serve one or more other communities. 29. In connection with the renewal of station licenses, a similar presumption should not be established. However, in instances where a multiple owner is providing only marginal service and other entrepreneurs are contesting for the channel at renewal time, the Commission should give appropriate weight to the local ownership and diversity of ownership factors. 30. With respect to the transfer of station licenses, the Commission should recommend to the Congress the repeal of the MacFarland Amendment so that applicants other than the proposed transferee may also be considered in a comparative hearing context. If the Amendment is repealed, it is further recommended: a) that the Commission apply in such cases the presumption in favor of local ownership and diversity of ownership, mentioned in recommendation numbered 28 above; and b) that the Commission require that all proposed sales of stations to existing station owners be on a cash basis, so that other applicants may have the opportunity to make a comparable offer. 31. The Commission should require that each person acquiring a television station 1 Docket 8693 (FCC) is concerned with the lawfulness of rates and regulations covering AT&T interconnection services to broadcasters. Docket 11164 (FCC) is concerned with petition that private intercity relay systems be permitted, even if common carrier facilities are available and if the cost factor justifies the private system. Page 102 • October 7, 1957 Broadcasting • Telecasting