NAB reports (Jan-Dec 1941)

THURSDAY, MAY \S— Continued “The Unit Plan of Volume Mea¬ surement,” William Scripps, WW J, Chairman N AB Research Committee “Planning Today for Post-War Business,” Colonel Willard Chevalier, Publisher, BUSI¬ NESS WEEK 12 :30 p.m. 12:30 p.m. 2:15 p.m. 3 :00 p.m. 7:00 p.m. 7 :45 p.m. “Broadcast Advertising, An In¬ dustry Job,” Frank E. Pellegrin, Director, NAB Depart¬ ment of Broadcast Advertising Luncheon Session Gold Room (Open to NAB members and As¬ sociate members only) “The Radio Broadcasting Indus¬ try, Its Problems and Responsi¬ bilities, Mark Ethridge, WH AS, NAB Director and past presi¬ dent Business Session Ivory Room Samuel R. Rosenbaum, WFIL, Chairman NAB Labor Com¬ mittee, presiding “Labor and the Broadcaster” Open Discussion led by Joseph L. Miller, Director of Labor Re¬ lations Neville Miller, presiding Election, Directors-at-Large and Network Directors Advisory Ballot on Site of 1942 Convention Report of Resolutions Committee Adjournment Refreshment service preliminary to Banquet Ivory Room Nineteenth Annual NAB Banquet Gold Room (See Banquet Menu and Program) FRIDAY, MAY 16 9:00 a.m. Newspaper-Radio Committee Room 8 10:00 a.m. NAB Board of Directors Room 3 A Factual Analysis of ASCAP’s Proposal to MB Stations This is a factual analysis of proposals which ASCAP has made to Alutual Broadcasting System, Inc., and to (Mutual affiliates. Under the non-discrimination clauses of the consent decree signed by ASCAP, these proposals will presumably be available to all broadcasting stations and networks. While each station will compute what the proposals mean to it individually, the NAB, in ac¬ cordance with its established policy of supplying mem¬ bers with information on matters of industry interest, is presenting in the Reports these proposals together with this brief factual analysis which may be useful to mem¬ bers as a source of information. It is, of course, impossible to state the precise legal effect of the proposals until they have been reduced to contract form. Moreover, it is impossible to cover in detail in a brief memorandum all of the points involved in such a complicated problem. Under the recommendation made by the majority of Mutual stockholders to Mutual affiliates, it is proposed that ASCAP music be placed on the network prior to the negotiation of individual station licenses covering local business, and the cost thereof deducted from station pay¬ ments, provided that a majority in number of Mutual affiliates approve the deduction of such cost. No refer¬ ence is made in the proposals as to what the situation would be with respect to stations which do not assent to the making of the deductions. Stations will have to determine for themselves whether they wish to commit themselves to payment for network service before the actual submission and e.xecution of finalized agreements covering their individual problems on local service. According to the best estimates which can be made, the cost of the proposed licensing plan, if adopted by the entire industry and based on estimated 1940 net time sales, would be as follows: Payments by 781 Stations on National Non-Network and Local Net Time Sales . $2,374,000 Payments on Network Payments to .\ffiliates . 764,000 Payments by Networks taking into account deductions for wire lines and “Sales Commissions” . 753,000 Sustaining Fees of Stations . 723,000 Total Estimated Payments to .4SC.\P . $4,616,000 The proposals are not entirely clear as to whether the charges are to be based on net time sales or, as in the case of the June 1940 contracts tendered by ASCAP, upon additional factors such as line charges, free hours, certain talent costs, etc. In the event that the June 1940 pro¬ visions remain unchanged, this would of course increase the amounts of all payments mentioned in this analysis. Also in the event that ASCAP avails itself of its privi¬ lege of discontinuing, without reduction in payment, the availability of its foreign repertory and stations find it necessary to acquire the right to perform foreign music, this would increase the amount which would have to be paid for the former ASCAP repertory, some of which, it will be remembered, is now controlled by BMP The foregoing computation is based upon the 3% pay¬ ment fixed for the first four years of the proposal; con¬ siderably larger payments would be required when the rate is increased to during the remaining four years and seven months of the proposal. It is estimated that the amount actually paid by the industry to ASCAP in 1940 was $5,100,000. In the event that none of the factors causing increase come into being, a comparison with actual 1940 payments would indicate decreased pay¬ ments to ASC.\P of $484,000 in the event that we assume that all stations would take out blanket licenses. May 9, 1941 — 409