Sponsor (July-Sept 1962)

16 July 1962 Latest tv and radio developments of the week, briefed for busy readers SPONSOR-WEEK NEW NBC DAY PRICING TV network announces new combined time-talent rate, plus summer 20% reduction, effective 1 Jan. NBC TV will completely revise its basis for daytime sales, effective 1 January 1963, it was learned last week. The network will institute a combined quarter hour price including both time and program. New prices will range from a low of $10,000 per quarter hour in Say When to a high of $19,200 for Concentration. Several factors which now complicate daytime price structure will be eliminated. These include: contiguity, C-D rates, volume discount, line-up discount, separate program prices, and bonus classification. In addition, NBC will institute a 20% reduction in package prices during the 13 summer weeks. The changes do not apply to the Men/ Griffin Show, nor to the Today show. NBC's revision comes within days of CBS's revamping of its daytime discount structure. (See SPONSORWEEK, 9 July 1962, p. 10.) The NBC daytime package price will be applied to contracts in effect 1 January, renewable once but not past 31 December 1963. The package price, of course does not include commercials costs for preparation and presentation. After the first of the year daytime sponsorships will not earn discounts. However, quarter-hours will contribute 25% to volume for determing discounts in periods other than daytime. The period defined as daytime is that up to 6:00 p.m. NYCT. After 1 January NBC will apply an integrated networking charge of $3,600 net per quarter hour for programs not converted to the new basis. The present rate is $375. The change is understood to be designed to encourage conversion. Agencies within the next eight weeks will receive contract amendments for agreements extending beyond the end of 1962, specifying applicable packaged prices. One of the goals of the new package plan is to make daytime buying more flexible and to simplify advertisers' budgeting and accounting. (For commentary, see SPONSORSCOPE, p. 19, this issue.) TV INSURANCE ADS' $4.5 MIL FIRST QTR Insurance advertising was 23.2% higher in the first quarter of 1962 than last year, reports TvB. The year 1962 appears headed for a record in insurance spending on tv with Metropolitan Insurance Company of North America, and Continental Casualty just starting to spend heavily. Insurance companies spent $3.6 million in network and $884,000 in spot in the first quarter, compared to $2.9 million and $708,000 last year. Leading users were Mutual of Omaha and Prudential Insurance. INTERNATIONAL TV HAILS TELSTAR Highlights: Tuesday, LO July: Telstar Satellite' rocketed into space. Three I . S. t\ networks transmil first pictures. Excellent reception reported first in Prance and then in Britain. CBS deletes portion of \'\ XT-produced program and refuses to sell time for \ T\T special. \\ ednesdav . I I Jul\ : I rem I] transmit first l\ from Europe to I . S. \ ia Telstar. Britain, transmitting later, complains I rench \ iolated EB1 agreement and should not have transmitted own picture first, lii-i mutual I .S.-European ex< bange via Telstar announced for Mori day, 23 July. Minow cautions on 'equal time' removal Washington, D. C: FCC chairman Newton Minow urged caution in any suspension of Section 315 pointing to complaints and disputes that might result from removal of the 'equal time' clause. He warned that the FCC could hardly police 600 tv stations and 6,000 radio stations in their conduct in national, state and local election coverage. However, he admitted removal of Section 315 would lead to more free air time for political debates on stations which took an interest in public affairs. (For details see WASHINGTON WEEK, page 55, this issue.) SPONSOR 16 july 1962