Broadcasting Telecasting (Apr-Jun 1958)

of service to such areas and populations? 7. In what circumstances, if any. would public interest considerations justify prohibiting or limiting the operation of catv systems, boosters, translators or satellites? 8. Could the Commission justifiably distinguish between communities which have or "do not have regular local tv stations, in determining whether the public interest would be served by the provision of one or more program services by local catv systems, boosters or translators? 9. If the choice had to made, would it be more in the public interest to maintain the only service provided to people living in rural areas by a tv station, or to permit the provision of multiple program services to a smaller number of persons residing in a town served by a catv system, boosters or translators at the cost of or at serious risk to the continuation of service to other persons wholly dependent on the local tv station? 10. What specific kinds of limitations and restrictions might it be in the public interest to impose on catv systems, boosters or translators, and what standards or criteria should govern the imposition of such limitations or restrictions? 11. What basis, if any, is there for the assumption by the FCC, under present law, of licensing and regulatory powers over catv systems? 12. Would it constitute a legally valid exercise of FCC's regulatory jurisdiction over common carriers to deny authorization for common carrier microwave, wire or cable transmission of tv programs to catv systems on the ground of adverse competitive impact on the construction or successful operation of local or nearby tv stations? 13. Can economic injury to a tv station be a valid public interest justification for denial of authorization to local program distribution services which compete with a local regular tv station? 14. What legislative recommendations might it be appropriate to submit to Congress in respect to FCC jurisdiction over catv systems? HANDS-OFF ORDERED ON IN-STORE PLANS • Practice discriminatory • Seven firms, networks named Broadcasters no longer can offer sponsors chain-store-only display premiums without subjecting the sponsor to a federal offense. This is the effect of a Federal Trade Commission ruling made last week — not against stations— but against seven large grocery suppliers which used store merchandising benefits offered by network-owned stations in New York, Boston and Chicago. The FTC has ordered the manufacturers "to stop granting illegal promotional allow ances to favored customers through the major radio-tv networks." Using broadcast instore promotion-aids involving "favored grocery chains" violates anti-discrimination provisions of the Robinson-Patrnan Act, the trade commissioners have ruled. Respondents are General Foods Corp., Groveton Paper Co., Hudson Pulp & Paper Corp., P. Lorillard Co., Piel Bros. Inc., Sunkist Growers Inc. and Sunshine Biscuits Inc. The FTC's oblique attack on chain-store merchandising by stations began nearly two years ago [Lead Story, July 30, 1956]. Named in the decision are ABC, CBS and NBC. Contracts for time-plus bonus promotional displays with network-owned stations were illegal the FTC held, because smaller merchants were given no chance to participate in the time-for-display space swap. The FTC said that the manufacturers by buying time on the stations offering the in-store premium were in effect financing free air time for favored stores. Typical amounts paid in a year by the seven manufacturers ranged from about $122,000 to $210,000, the FTC said. Contracts cited in the action went back to 1951. In 1955 it was estimated by one surveyor that about 34% of television stations in the country offereed some sort of display merchandising. It is likely that as many or more radio stations at that time had store promotion plans. R/vat Ut F/teorto The February '58 ARB reports — From Sign-on to Sign-off Sunday through Saturday KMJ-TV leads with 213 quarter-hour firsts while Station A has 158, and Station B has 98 IN TOTAL RATED TIME PERIODS The Katz Agency, KMJ-TV • FRESNO, CALIFORNIA • McCLATCHY BROADCASTING COMPANY • NQtiona! Representative Broadcasting May 26, 1958 • Page 81