Broadcasting Telecasting (Oct-Dec 1957)

closed circuit* ASCAP RENEWAL • With its 250-plus subscriber stations voting overwhelmingly to renew current ASCAP tv music performance licenses on existing terms for another four years (early story page 48), all-industry negotiating committee Friday began polling stations not underwriting committee work. Committee Chairman Irving R. Rosenhaus of WATV (TV) Newark sent wires pointing out current ASCAP tv licenses expire tomorrow night (Dec. 31) and reporting "overwhelming" subscriber vote for renewal. Otherwise telegrams to non-subscribers followed pattern of one to subscribers, whose returns late Friday favored renewal more than 200-1. • How much do you have to spend to be No. 1 advertiser on a tv station nowadays? Pepsi-Cola Metropolitan Bottling Co., New York, subsidiary of Pepsi-Cola Co., through Kenyon & Eckhardt, has just signed for one of its biggest spot tv campaigns — close to million dollars, spread over two years, on WCBS-TV New York. Broken down, that would average out to better than $400,000 per year. But account is outranked, in dollar volume, by at least two others — including Piel's beer and General Foods — each spending more than $500,000 per year on WCBS-TV. • FCC VS. NETWORKS • First tangible result of FCC special staff network study disclosed last week with filing of charges of alleged infractions of existing regulations in relations of networks with tv affiliates. Citations, received last Monday by ABC-TV and CBS-TV (NBC-TV presumably will get them too) charge violations of network-monopoly regulations dealing with setting of spot rates of affiliates, territorial exclusivity and blocking of secondary clearances of network programs. • Effect of FCC citations means holding up of license renewals of affiliated stations pending disposal of charges, and it's assumed that renewals of network ownedand-operated stations are affected since networks are not directly licensed. Networks and stations are given 30 days from Dec. 20 to answer. Foray against networks by FCC, which came practically on Christmas Eve, evolved before FCC had completed its briefing on ponderous network study report, final sessions being due Jan. 6-7 [Closed Circuit, Dec. 23]. • DYNAFLOW PITCH • Of all agencies pitching for $23 million General Motors' Buick account, it was understood late last week that Leo Burnett Co., Chicago, and Benton & Bowles, New York, appeared to be front runners (also see page 27). Leo Burnett himself had tie-in with General Motors many years ago as advertising di rector for Cadillac. Benton & Bowles on other hand serviced Studebaker-Packard cars for number of years before account went to Burke Dowling Adams Inc. last year. But executives of Buick Div. admitted they were still reviewing number of agency presentations and said announcement would not be made until all had been considered. • Mindful of growing menace of municipal taxes on advertising, Chicago station executives plan strategy session today (Monday) to discuss what to do if their city tries to impose tax. They'll study tax problem in Baltimore, St. Louis and Norfolk, Va. (see story page 32) to prepare themselves in case problem spreads to their city. Meeting was called by Ward L. Quaal, vice president and general manager of WGN-AM-TV , in his capacity as president of Chicago Broadcast Adv. Club. • SELLING SEASON • One contributing reason for radio's big swing upward this year may have been broadcaster optimism backed by hard cash. In survey conducted some months ago but not yet published. Radio Advertising Bureau found virtually one-fourth (24% ) of stations contacted had increased or were increasing their sales staffs for 1957. Only 2% cut back, while 74% reported no change. Study also showed median number of salesmen per station in markets above 500,000 population was five; under 500,000, three. • Though Board Chairman Raymond Spector professed to know nothing about it, reports circulated along Madison Avenue last week that Hazel Bishop Inc. had been bought by Chesebrough-Ponds, with Mr. Spector standing to gain some $5 million for his stock. Mr. Spector also is president of Raymond Spector Co., agency for Bishop cosmetic house. • REASON FOR SALE • Since announcement 10 days ago [At Deadline, Dec. 23] of record-breaking sale of WCAU-AMFM-TV Philadelphia (plus real estate) to CBS for $20 million, question has arisen as to why Maj. Robert McLean's Philadelphia Bulletin was disposed to sell valuable property. Maj. McLean and Dr. Frank Stanton, CBS Inc. president, called on practically all members of FCC on Friday, Dec. 20, to explain transactions, which is subject to FCC approval. Reason assigned was desire of 66-year-old president and chief owner of Philadelphia Bulletin to get his affairs in shape for tax purposes. Maj. McLean recently relinquished presidency of Associated Press and short time ago was released from hospital after surgery and treatment. He has carried inordinately heavy burden and during past two years lost brother and three key executives by death. • Despite unprecedented price, earnings of WCAU properties reportedly justify $12.6 million for tv station, $3 million for radio (am and fm), and building and real estate could not be replaced for $4.4 million price, according to responsible CBS source. Hence price, highest on record, is reportedly better value than several recent sales, dollarfor-dollar. It was pointed out that asking price on WNAC-AM-FM-TV Boston by General Teleradio to CBS was in neighborhood of $23 million without comparable holdings or real estate. • BUREAU BUILDING • One of first 1958 developments will be action — perhaps final — on television's perennial controversy, NARTB tv circulation-coverage audit bureau. This five-year-old project, debated at autumn series of regional meetings, comes up for NARTB Tv Board decision at Jan. 22 meeting in Phoenix, Ariz. NARTB is currently winding up poll of tv stations to see how they feel about idea. Judging by regional meeting sentiment, poll may show slim majority in favor of bureau. If NARTB Tv Board gives go-ahead, next step will be formation of all-industry, non-profit corporation followed by campaign to raise funds. • To be announced soon will be action taken by FCC in mid-December on one of remaining deintermixture cases. FCC, by 5-1 vote, instructed staff to dismiss deintermixture proceedings involving ch. 3 WCIA (TV) Champaign-Urbana, 111. Comr. Bartley voted for rule-making proceedings; Comr. Lee was absent. • CONFERENCE CALLS • Second annual public service and educational programming conference under auspices of Westinghouse Broadcasting Co. will be held in Baltimore March 5-8 on campus of Johns Hopkins U. Because of spectacular success of first conference in Boston last February, Baltimore session has been extended one day and will be by invitation only to program heads of 1 50 radio and tv stations, o WBC Baltimore conference , which was arranged last August but has not yet been announced, will overlap first annual disc jockey conference arranged by Storz Stations for Kansas City, March 7-8-9, and which was formally announced two months ago. Conflict may develop because some of same programming executives will be involved. But there's no disposition either on part of Storz or Westinghouse to change dates. Todd Storz reports Muelbach Hotel is already booked solid for his convention and that all luncheon and dinner events are underwritten by record companies. i Broadcasting December 30, 1957 • Page 5