Sponsor (Oct-Dec 1960)

\iul more "flexibility" news was NBC when it became, in September, the tit-t network to make it possible for an advertiser to huv a daytime regional network when it sold Beech-Nut the eastern half of the network. On option time: In mid-September, the FCC cut one half hour of option time from each segment of the broadcast day. Despite early publicity, most agency and tv men expect hardly any change in networkaffiliate relationships when the new times l ABC and CBS have chosen 8:30-11 p.m. as their prime evening option time"! go into effect on the first of the year. \|..-t observers stuck with the the-i that it will he cheaper for affiliates to stay with the networks during prime option times than to program locally. Advertisers have been assured h\ their agencies that: • No advertiser who now has a show <>n the air will find himself without clearances when the rules go into effect, or next fall, or indeed through the fall of '(>2 (when the new Administration may be ready to take further action, perhaps on the ""antitrust" aspects of option time). • There will not be am substantial amount of prime time made available to local advertisers because of the ruling. • There is absolutely no prospect of any wholesale or even noticeable dropping off of markets to the point where in non-option time it would be impractical to use the networks. • The competition for official option time periods will be just as tough as ever, based not on their official <tatus and guaranteed clearances, but on their obvious choice times. Other sections of the FCC ruling require that networks provide 17 weeks1 notice to an affiliate before pre-empting option time when said affiliate has a firm, written contract for the time on a spot basis (eight weeks' notice had been required). iffiliates may reject network is "unsatisfactory or unsuitable 01 contrary to the public ineven after a series has startsubstitute a program I greater local or al importance." (Previously, a could only reject a network was first I only pre-empt for an im.) ^ RADIO {Continued from page 33) charge for like services." the recommendations said. Stiffest agency action was announced 1>\ \. \\ . \\er in June when it threatened to bypass station representatives and make its own deals directly with stations unless the reps got their stations to adopt single rates. \\ er annualh bills S30 million in spot radio: S19 million in spot television, sponsor found that: • Vn increasing number of stations were going in for one rate to all (chiefly the strong stations in a market ) . Problems in making the switch: explaining to local advertisers, restructuring discounts, worrying about the rival stations. • Some admen felt a strong definition of exactly what is "national" and what is "local" — and holding to it would solve the dilemma. A merchant who owns and operates his own local retail store would qualify for local. All others — national. The new look for network radio is "what we are. not what we were." The networks are programing short segments of news and features, feeding their affiliates regularly scheduled bits and pieces of hard news, human interest, sports and variety, with the network always available for special programs of any length from a football game to a concert to the inauguration of 20 January. Last to shed its soap operas was CBS. which ended the reign of Ma Perkins, Young Doctor Malone et al this fall. This makes the network programing concept, originally adapted by Mutual in June 1957. unanimous. Each network, however, is still tr\ big to uphold its own particular image. NBC with Monitor. ABC with Flair, etc. The CBS move is the final deathknell of network radio as we have known it for four decades. '*CBS just died harder than the others, but the demise has been ine\ itable for the last five \ears." said one media v. p. of a top 10 shop in N. Y. early in the fall. ABC's biggest program innovation this year was Flair, a 55-minute program of 11 five minute vignettes. "The stations can split up all 11 of these quickies and slot them anytime in their local programing between one and four p.m.." said a network spokesman. ABC! will continue with its morning Breakfast Club, moving into news five minutes before every hour from 7:55 a.m. to 10:55 p.m., five days a week. ABC also scored a punch of its own with its coverage of the Patterson-Johannson heavyweight championship fight last June. The fight drew the largest audience in network radio history, some 62 million people. Robert Pauley, ABC vice president in charge of the radio network, negotiated for the rights to the fight with TelePrompTer. The price was $200,000. one of the largest amounts spent for the rights to a single broadcast event in radio's history. It looks as if network radio is headed for better times under the new programing approach, by supplying less programing with intended lowering of operation costs. In the black, and smiling, as it emerges from its first completed year of news and service programing, is NBC. Early in January the network cut out all soaps and variety shows and began news-on-the-hour, news analysis, sports, special events plus monitor programing plan. At the time. NBC also announced it would continue full compensation for its affiliates for these services. Starting in April NBC's good financial fortune began coming to the fore. In spite of a "bad first quarter financially, the next three quarters of 1960 would put us in a profit position." Bill McDaniel announced. In June he stated the network was in the black. As of June 1, he said, there is "as much network business on the books as the network showed for the entire year of 1959," and this year will be "the first time we have shown a profit in eight years." In October McDaniel was able to announce that the network would be in profit for the first quarter of 1961. In November, he announced that NBC had 47 % of all sponsored network time and over 50rc of network advertising dollars. Also showing a profit for the last six months of 1960 was CBS. The network anticipates "higher returns" next vear. ABC and MBS remain in the red but ABC anticipates a profit in 1961 as does Mutual. 1960 also was witness to the continued growth of fm. including the medium's big national breakthrough. What is considered the largest single fm buy was made this fall bv Chrys SPONSOR • 26 DECEMBER 1960